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CC 03-04-2025 Searchable PacketCITY OF CUPERTINO CITY COUNCIL AGENDA 10350 Torre Avenue, Council Chamber and via Teleconference Tuesday, March 4, 2025 6:45 PM Televised Regular Meeting (6:45) IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue. 2) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 3) 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 to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Cupertino Community Hall 2) E-mail comments by 4:00 p.m. on Tuesday, March 4 to the Council at citycouncil@cupertino.org. These e-mail comments will also be forwarded to Councilmembers by the City Clerk’s office before the meeting and posted to the City’s website after the meeting. Members of the public that wish to share a document must email cityclerk@cupertino.org prior to the meeting. Emailed comments that are related to an agenda item and received following the agenda publication, prior to or during the meeting, will be posted to the City’s website. Members of the public may provide oral public comments during the Meeting as follows: Oral public comments will be accepted during the meeting. Comments may be made during “oral communications” for matters not on the agenda, and during the public comment period for each agenda item. Oral public comments may be made during the public comment period for each agenda Page 1 1 CC 03-04-2025 1 of 283 City Council Agenda March 4, 2025 item. Members of the audience who address the City Council must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. 3) Teleconferencing Instructions To address the City Council, 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_0Io3Fcs1QraQi0hS-Kc5Tg Phone Dial: 669-900-6833 and enter Webinar ID: 912 7483 4890 (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. Join from an H.323/SIP room system: H.323: 144.195.19.161 (US West) Meeting ID: 912 7483 4890 SIP: 91274834890@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. Page 2 2 CC 03-04-2025 2 of 283 City Council Agenda March 4, 2025 3. When the Mayor calls for the item on which you wish to speak, click on “raise hand,” or, if you are calling in, press *9. 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. 5. Members of the public that wish to share a document must email cityclerk@cupertino.org prior to the meeting. These documents will be posted to the City’s website after the meeting. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL CLOSED SESSION REPORT CEREMONIAL ITEMS 1.Subject: Recognition of March as Youth Art Month Recommended Action: Present proclamation recognizing March as Youth Art Month A - Proclamation 2.Subject: Recognition of March as American Red Cross Month Recommended Action: Present proclamation recognizing March as American Red Cross Month A - Proclamation POSTPONEMENTS AND ORDERS OF THE DAY ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Council on any matter within the jurisdiction of the Council and not on the agenda for discussion. The total time for Oral Communications will ordinarily be limited to one hour. Individual speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority given to students. In most cases, State law will prohibit the Council from discussing or making any decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly respond to statements made or questions posed by speakers. A councilmember may also ask a question for clarification, provide a reference for factual information, request staff to report back concerning a matter, or request that an item be added to a future City Council agenda in response to public comment. Page 3 3 CC 03-04-2025 3 of 283 City Council Agenda March 4, 2025 CONSENT CALENDAR (Items 3-6) Items appearing on the Consent Calendar are considered routine City business and may be approved by one motion. Typical items may include meeting minutes, awards of contracts, the ratification of accounts payable, and second readings of ordinances. Any member of the Council may request to have an item removed from the Consent Calendar based on the rules set forth in the City Council Procedures Manual. Members of the public may provide input on one or more consent calendar items when the Mayor asks for public comments on the Consent Calendar. 3.Subject: Approval of February 12, 2025 City Council minutes Recommended Action: Approve the February 12, 2025 City Council minutes A - Draft Minutes 4.Subject: Approval of February 19, 2025 City Council minutes Recommended Action: Approve the February 19, 2025 City Council minutes A - Draft Minutes 5.Subject: Setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal Recommended Action: Adopt Resolution No 25-017 declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal Staff Report A - Draft Resolution B – Property owner 30’ WUI Letter C - Property owner 100’ WUI Letter D – Notice of Violation 6.Subject: Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action: Conduct the second reading and enact Ordinance No. 25-2268: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN AND HOUSING ELEMENT” Staff Report A - Draft Ordinance Page 4 4 CC 03-04-2025 4 of 283 City Council Agenda March 4, 2025 PUBLIC HEARINGS - None Effective January 1, 2023, Government Code Section 65103.5 (SB 1214) limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under SB 1214 may make an appointment with the Planning Division to view them at City Hall by sending an email to planning@cupertino.org. Plans will also be made available digitally during the hearing to consider the proposal. ACTION CALENDAR 7.Subject: Baker Tilly Budget Format Review and Performance Measures Updates Recommended Action: Approve recommendations outlined in the recent the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly Staff Report A - Budget Document Improvements and Performance Measures Final Report B - Draft Implementation Action Plan 8.Subject: Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25; Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183. Recommended Action: 1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25 2. Adopt Resolution No. 25-018 approving Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183. Staff Report A - FY 2024-25 Mid-Year Financial Report B - Draft Resolution C - Description of Budget Transfers as of December 31, 2024 D - FY 2024-25 Mid-Year Recommended Adjustments E – Mid-Year Performance Measures & Workload Indicators F – FY 2024-25 Mid-Year Special Projects Update as of December 31, 2024 G - Competitive and Non-Competitive Citywide Grants Tracking H - Capital Improvement Program Project Status 9.Subject: Amendments to the Cupertino City Council Procedures Manual (Continued from February 19, 2025 City Council Meeting) Recommended Action: Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual Supplemental Staff Report Staff Report from February 19, 2025 A – Redline of Cupertino City Council Procedures Manual B – Proposed Resolution STUDY SESSION Page 5 5 CC 03-04-2025 5 of 283 City Council Agenda March 4, 2025 10.Subject: Study Session on updates to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to international travel Recommended Action: Study Session to consider, discuss and provide direction on revisions to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to 1) international travel, including the addition of appropriate prior approvals for travel expenses and staff time away from usual duties at the City, and other related matters, and 2) staff time focused on supporting delegation visits to the City from Sister Cities and Friendship Cities Staff Report A – 2023 Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations ITEMS REMOVED FROM THE CONSENT CALENDAR CITY MANAGER REPORT ORAL COMMUNICATIONS - CONTINUED COUNCILMEMBER REPORTS 11.Subject: Councilmember Reports A - Councilmember Report, Fruen B - Councilmember Report, Mohan C - Councilmember Report, Moore FUTURE AGENDA ITEMS ADJOURNMENT Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence legislative or administrative action may be required by the City of Cupertino’s lobbying ordinance (Cupertino Municipal Code Chapter 2.100) to register and report lobbying activity. Persons whose communications regarding any legislative or administrative are solely limited to appearing at or submitting testimony for any public meeting held by the City are not required to register as lobbyists. For more information about the lobbying ordinance, please contact the City Clerk’s Office at 10300 Torre Avenue, Cupertino, CA 95014; telephone (408) 777-3223; email cityclerk@cupertino.org; and website: www.cupertino.org/lobbyist. 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 Page 6 6 CC 03-04-2025 6 of 283 City Council Agenda March 4, 2025 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. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this 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, Cupertino, California 95014, during normal business hours; and in Council packet archives linked from the agenda/minutes page on the City web site. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or 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 website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 7 7 CC 03-04-2025 7 of 283 CITY OF CUPERTINO Agenda Item 25-13628 Agenda Date: 3/4/2025 Agenda #: 1. Subject:Recognition of March as Youth Art Month Present proclamation recognizing March as Youth Art Month CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™8 CC 03-04-2025 8 of 283 Proclamation WHEREAS, The City of Cupertino is committed to supporting the arts to inspire and prepare students for success in the 21st century, and to help our youth develop as productive, contributing members of a strong community; and WHEREAS, Along with the Santa Clara County Office of Education, we share the vision of ensuring that students have access to a high-quality arts education that is culturally relevant and inclusive in all forms as part of a comprehensive education that sparks curiosity, imagination, creativity, and joy; and WHEREAS, The month of March is recognized as Youth Arts Month in the State of California, and is an annual celebration to emphasize the value of art education for all children while encouraging support for art programs in schools; and WHEREAS, Arts-learning strategies and arts integration help teachers to recognize and build upon critical thinking skills, curiosity, flexibility, communication, innovation, collaboration, and are traits required for post-secondary and workplace success; and WHEREAS, Each March, art education is celebrated in local schools, school districts, community arts organizations, and larger communities to increase support, understanding, and interest in art education. THEREFORE, I, Mayor Liang Chao, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as Youth Arts Month to support, encourage, and advocate for art education in our local classrooms and to celebrate students’ creativity, inspiration, and joy through artistic expression. IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March Fourth, Two Thousand and Twenty-Five. ____________________________ The Honorable Liang Chao Mayor, City of Cupertino 9 CC 03-04-2025 9 of 283 CITY OF CUPERTINO Agenda Item 25-13629 Agenda Date: 3/4/2025 Agenda #: 2. Subject:Recognition of March as American Red Cross Month Present proclamation recognizing March as American Red Cross Month CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™10 CC 03-04-2025 10 of 283 Proclamation WHEREAS, In the City of Cupertino, the American Red Cross has a long history of helping our neighbors in need, as the organization’s dedication has touched millions of lives each year; and WHEREAS, March is American Red Cross Month, a special time to honor the kindness and dedication of Red Cross volunteers and donors who give their time and resources to help families and members of the community; and WHEREAS, The American Red Cross shelters, feeds, and provides support to victims of disasters; supplies about 40 percent of the nation’s blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families; and WHEREAS, We applaud our heroes here in the City of Cupertino who aid the American Red Cross as they give themselves to assist their neighbors when they need a helping hand; and WHEREAS, The City of Cupertino dedicates the month of March to all those who give to and support the American Red Cross in its mission to care for people in need and alleviate human suffering in the face of emergencies. THEREFORE, I, Mayor Liang Chao, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as American Red Cross Month and encourage citizens of the City of Cupertino and all Americans to support this organization and its noble humanitarian mission. IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March Fourth, Two Thousand and Twenty-Five. ____________________________ The Honorable Liang Chao Mayor, City of Cupertino 11 CC 03-04-2025 11 of 283 CITY OF CUPERTINO Agenda Item 25-13722 Agenda Date: 3/4/2025 Agenda #: 3. Subject: Approval of February 12, 2025 City Council minutes Approve the February 12, 2025 City Council minutes CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™12 CC 03-04-2025 12 of 283 DRAFT MINUTES CUPERTINO CITY COUNCIL Wednesday, February 12, 2025 SPECIAL MEETING At 6:03 p.m., Mayor Liang Chao called the Special City Council Meeting to order in City Hall Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014 and via teleconference location pursuant to Government Code section 54953(b)(2); Newark Airport, Terminal C, Departures, 3 Brewster Road, Newark Airport, NJ, 07114. ROLL CALL Present: Mayor Liang Chao, Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang (participated remotely). Absent: None. In open session prior to closed session, Mayor Chao opened the public comment period regarding the items on the agenda. No members of the public requested to speak and Mayor Chao closed the public comment period. CLOSED SESSION 1. Subject: Public Employee Employment (Gov’t Code 54957(b)(1)); Title: City Attorney Recruitment Council conducted the closed session regarding the City Attorney Recruitment. OPEN SESSION REPORT REGARDING CLOSED SESSION - None ADJOURNMENT At 9:55 p.m., Mayor Chao adjourned the Special City Council Meeting. 13 CC 03-04-2025 13 of 283 Page 2 City Council Minutes February 12, 2025 Minutes prepared by: _________________________ Kirsten Squarcia, City Clerk 14 CC 03-04-2025 14 of 283 CITY OF CUPERTINO Agenda Item 24-13585 Agenda Date: 3/4/2025 Agenda #: 4. Subject: Approval of February 19, 2025 City Council minutes Approve the February 19, 2025 City Council minutes CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™15 CC 03-04-2025 15 of 283 DRAFT MINUTES CUPERTINO CITY COUNCIL Wednesday, February 19, 2025 SPECIAL MEETING At 6:45 p.m., Vice Mayor Kitty Moore called the Special City Council Meeting to order and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference; and teleconference location pursuant to Government Code section 54953(b)(2); Leeela Gurgagon National Highway 8, Ambience Island, DLF Phase 3, Sector 24, Gurugram, Haryana 122002, India. ROLL CALL Present: Mayor Liang Chao (participated remotely), Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang (participated remotely). Absent: None. CLOSED SESSION REPORT City Attorney Chris Jensen reported on the closed session held on February 12, 2025. City Attorney Jensen reported that the Council met to consider the appointment of an interim city attorney. Some results from that closed session will be presented in the agenda under Item 12. There was one reportable action: the Council appointed a subcommittee consisting of Vice Mayor Moore and Councilmember Fruen to negotiate a contract for the Interim City Attorney. The motion was approved by a 3-2 vote, with Fruen and Mohan voting no. CEREMONIAL ITEMS 1. Subject: Recognition of The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows) Recommended Action: Present proclamation to The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows) for its contributions to the community 16 CC 03-04-2025 16 of 283 City Council Minutes February 19, 2025 Page 2 Tom Blackburn, Cupertino Odd Fellows Lodge No. 70 Secretary, made comments and received the proclamation. Vice Mayor Moore presented the proclamation to The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows) for its contributions to the community. PRESENTATIONS 2. Subject: Presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address Recommended Action: Receive presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address Mayor Chao gave a presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address. POSTPONEMENTS AND ORDERS OF THE DAY – None ORAL COMMUNICATIONS Written communications for this item included emails forwarded by Councilmembers. The following members of the public spoke: Jennifer Griffin discussed a Santa Clara County affordable teacher housing project. Avani Bheemaiah, Avni, Akshita, Raghav, Pragne, and Kelly, representing Project Unlocked for Future Business Leaders of America (FBLA), discussed their survey findings of Cupertino business owners regarding the City’s regulatory environment. Planning Commissioner Muni Madhdhipatla (representing self) discussed a homeless encampment at De Anza Boulevard and McClellan Road. Planning Commissioner San R (representing self) discussed Council approvals for fiscal planning, roadway projects, and resident consideration. Venkat Ranganathan discussed a proposed housing project on Wolfe Road. 17 CC 03-04-2025 17 of 283 City Council Minutes February 19, 2025 Page 3 Rhoda Fry discussed the Emergency Manager position vacancy, City spending and revenues, and a project for consideration by the Administrative Hearing Committee. CONSENT CALENDAR (Items 3-8) Vice Mayor Moore opened the public comment period and, seeing no one, closed the public comment period. MOTION: Fruen moved and Mohan seconded to adopt the Consent Calendar as presented. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan , and Wang. Noes: None. Abstain: None. Absent: None. 3. Subject: Approval of January 27, 2025 City Council minutes Recommended Action: Approve the January 27, 2025 City Council minutes 4. Subject: Approval of January 28, 2025 City Council minutes Recommended Action: Approve the January 28, 2025 City Council minutes 5. Subject: Approval of February 3, 2025 City Council minutes Recommended Action: Approve the February 3, 2025 City Council minutes 6. Subject: Approval of February 4, 2025 City Council minutes Recommended Action: Approve the February 4, 2025 City Council minutes 7. Subject: Ratifying Accounts Payable for the periods ending January 3, 2025; January 17, 2025; and January 31, 2025 Recommended Action: A. Adopt Resolution No. 25-011 ratifying Accounts Payable for the Period ending January 3, 2025; B. Adopt Resolution No. 25-012 ratifying Accounts Payable for the Period ending January 17, 2025; and C. Adopt Resolution No. 25-013 ratifying Accounts Payable for the Period ending January 31, 2025 Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council. 8. Subject: Acceptance of Federal Highway Administration grant, and award of design professional services agreement to Biggs Cardosa Associates, Inc. for a total not-to-exceed contract amount of $625,000 for the Stevens Creek Bridge Repair Project. Recommended Action: 1. Adopt Resolution No. 25-014 accepting $688,000 in Federal grants from the Federal Highway Administration's Highway Bridge Program for the 18 CC 03-04-2025 18 of 283 City Council Minutes February 19, 2025 Page 4 Stevens Creek Bridge Repair Project. 2. Adopt Resolution No. 25-015 approving budget modification #2425-381, approving an increase of Federal grant revenue estimates of $688,000 and an appropriation of $688,000 in the Capital Improvement Program Fund (420-99-267). 3. Authorize the City Manager to award a design professional services agreement with Biggs Cardosa Associates, Inc. in the total not-to-exceed contract amount of $625,000 for the Stevens Creek Bridge Repair Project. Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council. PUBLIC HEARINGS 9. Subject: Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action: That the City Council introduce and conduct the first reading of Ordinance No. 25-2268 titled “An Ordinance of the City Council of the City of Cupertino Correcting the Zoning of a Priority Housing Element Site Located at 20865 McClellan Road From R-3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” by title only. Written communications for this item included a supplemental report with staff responses to councilmember questions, staff presentation, and emails to the Council. Assistant Director of Community Development Luke Connolly gave a presentation. Councilmembers asked questions and made comments. Vice Mayor Moore opened the public hearing and the following people spoke. Ken Bell Daniel Ying Yvonne Thorstenson Jennifer Griffin Rhoda Fry Vice Mayor Moore closed the public hearing. MOTION: Wang moved and Mohan seconded to introduce and conduct the first reading of Ordinance No. 25-2268 titled, “An Ordinance of the City Council of the City of 19 CC 03-04-2025 19 of 283 City Council Minutes February 19, 2025 Page 5 Cupertino Correcting the Zoning of a Priority Housing Element Site Located at 20865 McClellan Road From R-3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” by title only. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, and Mohan. Noes: Wang. Abstain: None. Absent: None. At 8:32 p.m., Vice Mayor Moore recessed the meeting. The meeting reconvened at 8:37 p.m. with Councilmember Wang absent. ACTION CALENDAR 10. Subject: Tyler New World Enterprise Resource Planning (ERP) replacement (Continued from February 4, 2025 City Council meeting) Recommended Action: Adopt Resolution No. 25-007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council. Chief Technology Officer Teri Gerhardt reviewed the staff report. Councilmembers asked questions and made comments. At 8:53 p.m., Vice Mayor Moore recessed the meeting. The meeting reconvened at 9:03 p.m. with all Councilmembers present. Vice Mayor Moore opened the public comment period and the following people spoke. San R Tracy K Vice Mayor Moore closed the public comment period. MOTION: Wang moved and Chao seconded to adopt Resolution No. 25-007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement. FRIENDLY AMENDMENT: Wang made a friendly amendment to move forward with the Request for Proposal (RFP), but not appropriate the budget and use the Technology, Information, and Communications Commission (TICC) as needed for additional input. 20 CC 03-04-2025 20 of 283 City Council Minutes February 19, 2025 Page 6 (Chao accepted the friendly amendment). The Council did not vote on this motion. SUBSTITUTE MOTION: Fruen moved and Mohan seconded the staff recommendation to adopt Resolution No. 25-007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement. The Council did not vote on this motion. SECOND SUBSTITUTE MOTION: Chao moved and Wang seconded the staff recommendation as amended to adopt Resolution No. 25-007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement with an amendment for an amount of $2.5 million dollars for the budget modification. FRIENDLY AMENDMENT: Fruen made a friendly amendment to include check-ins for Council approval of the final contract and any additional funding (Chao and Wang accepted the friendly amendment). MODIFICATION: Chao modified the second substitute motion with a potential to increase to $3,744,526 with justification from the RFP that it's clear that there is willingness to need a higher amount (Wang accepted the friendly amendment). The amended and modified second substitute motion passed with the following vote: Ayes: Chao, Moore, Fruen, and Wang. Noes: Mohan. Abstain: None. Absent: None. MOTION: Moore moved and Fruen seconded to extend the meeting to hear agenda Item 12. The motion passed with the following vote: Ayes: Chao, Moore, Mohan, Fruen, and Wang. Noes: None. Abstain: None. Absent: None. 12. Subject: Appointment of Floy Andrews as City Attorney and approval of contract for City Attorney legal services with Aleshire & Wynder, LLP Recommended Action: Appointment of Floy Andrews as City Attorney and approval of contract for City Attorney legal services with Aleshire & Wynder, LLP Written communications for this item included a presentation submitted by Aleshire & Wynder. Vice Mayor Moore introduced the item. Councilmembers asked questions and made comments. Vice Mayor Moore opened the public comment period and, seeing no one, closed the 21 CC 03-04-2025 21 of 283 City Council Minutes February 19, 2025 Page 7 public comment period. MOTION: Fruen moved and Moore seconded to appoint Floy Andrews as City Attorney and approve the contract for City Attorney legal services with Aleshire & Wynder, LLP. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, and Mohan Wang. Noes: None. Abstain: None. Absent: None. MOTION: Chao moved and Wang seconded to extend the meeting to hear Item 11 in its entirety. The motion failed with the following vote: Ayes: Chao and Wang. Noes: Fruen, Mohan, and Moore. Abstain: None. Absent: None. ADJOURNMENT At 10:45 p.m. Vice Mayor Moore adjourned the Special City Council meeting. There was no Council discussion on the remaining agenda items. 11. Subject: Amendments to the Cupertino City Council Procedures Manual Recommended Action: Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual Written communications for this item included a staff presentation , Councilmember Mohan’s comments on Council Procedures Manual revisions, and emails to the Council. This item was continued to the March 4, 2025 City Council Meeting per rule. ITEMS REMOVED FROM THE CONSENT CALENDAR – None CITY MANAGER REPORT The Council did not hear this item. ORAL COMMUNICATIONS – CONTINUED – None COUNCILMEMBER REPORTS 13. Subject: Councilmember Reports Councilmembers reported on their various committees and events as provided in the published agenda. FUTURE AGENDA ITEMS 22 CC 03-04-2025 22 of 283 City Council Minutes February 19, 2025 Page 8 The Council did not hear this item. Minutes prepared by: _________________________ Kirsten Squarcia, City Clerk 23 CC 03-04-2025 23 of 283 CITY OF CUPERTINO Agenda Item 25-13692 Agenda Date: 3/4/2025 Agenda #: 5. Subject:Setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal Adopt Resolution No 25-017 declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™24 CC 03-04-2025 24 of 283 1 CITY COUNCIL STAFF REPORT Meeting: March 4, 2025 Subject Consider setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and consider adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal. Recommended Action Adopt Resolution No 25-___ declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal. Reasons for Recommendation The Cupertino Brush Abatement Program is a separate program from the County Weed Abatement Program that works to protect the City from wildfire risk by reducing potential fuel, such as brush, for hillside areas. This program is managed by the Santa Clara County Fire Department. Cupertino Municipal Code Section 16.40.200 requires property owners in the locally adopted Wildland-Urban Interface Fire Area (WUI) to maintain effective defensible space by removing brush, flammable vegetation and combustible growth when required by the fire code official due to steepness of terrain or other conditions. All properties in the WUI area are subject to the requirements of the Brush Abatement Program. The Program authorizes the County to remove the brush if the property owner does not and to recover the cost of abatement. Each year, homeowners are reminded that they must remove brush and vegetation from around their home to comply with the minimum fire safe regulations. On February 14, 2025, County Fire mailed a letter notifying property owners in designated fire hazard severity zones (Attachments B-C). Fire crews begin conducting property inspections in early April of each year. Properties that are found to be out of compliance with the enforced safety regulations are issued a notice of violation requesting corrections (Attachment D). All properties must comply 25 CC 03-04-2025 25 of 283 2 before June 1. After June 1, non-compliant properties are referred for mandatory abatement by an assigned County contractor. The costs associated with the abatement work for that parcel are placed on the homeowner’s property tax bill. To proceed with the annual brush abatement process, staff recommends adopting the draft resolution declaring properties as having potential fire hazards from brush; and setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal (Attachment A). If the resolution is not adopted, the County Fire will be unable to authorize abatement work performed by a contractor on properties that are not in compliance with the vegetation clearance requirements. Sustainability Impact There are no sustainability impacts. Fiscal Impact There are no fiscal impacts at this step in the process. Any costs associated with the program are charged to property owners, as determined at the lien assessment hearing on June 17. The City Council holds the hearing, considers any disputes, and adopts a resolution placing a lien assessment on the properties to allow the County to recover the cost of weed and/or brush abatement. California Environmental Quality Act Weed abatement activities are exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15304 (minor alteration to land). _____________________________________ Prepared by: Kirsten Squarcia, City Clerk Reviewed by: Pamela Wu, City Manager Attachments: A - Draft Resolution B – Property owner 30’ WUI Letter C - Property owner 100’ WUI Letter D – Notice of Violation 26 CC 03-04-2025 26 of 283 RESOLUTION NO. 25-___ A RESOLUTION OF THE CUPERTINO CITY COUNCIL DECLARING PROPERTIES AS HAVING POTENTIAL FIRE HAZARDS FROM BRUSH AND SETTING A PUBLIC HEARING TO DECLARE A PUBLIC NUISANCE AND FOR OBJECTIONS TO PROPOSED REMOVAL WHEREAS, brush is growing in the City of Cupertino upon certain streets, sidewalks, highways, roads and private property; and WHEREAS, said brush may attain such growth as to become a fire menace or which are otherwise noxious or dangerous; and WHEREAS, said brush appears to be a public nuisance; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby declare: 1. That said brush does now appear to be a public nuisance and potential fire hazard; 2. That said condition and potential fire hazard exists upon all of the streets, sidewalks, highways, roads, and private property more particularly described by common names or by reference to the tract, block, lot, code area, and parcel number on the report to be provided by the Santa Clara County Fire Department; 3. That the 17th day of June, 2025, at the hour of 6:45 p.m., or as soon thereafter as the matter can be heard, in the Council Chamber in the Community Hall, City of Cupertino and via teleconference, with details on how to attend the meeting appearing on the City Council agenda for that date, are hereby set as the time and place to determine whether the condition is a public nuisance and where all property owners having any objections to the proposed removal of such brush may be heard; 4. That the Santa Clara County Fire Marshal is hereby designated and ordered as the person to give notice of the adoption of this resolution in the manner and form provided in Section 16.40.200 of the Cupertino Municipal Code. 27 CC 03-04-2025 27 of 283 Resolution No. 25- Page 2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 4th day of March, 2025, by the following vote: Members of the City Council AYES: NOES: ABSENT: ABSTAIN: SIGNED: ________ Liang Chao, Mayor City of Cupertino ________________________ Date ATTEST: ________ Kirsten Squarcia, City Clerk ________________________ Date 28 CC 03-04-2025 28 of 283 A.Create 30 feet of defensible space around your home. To accomplish this, you must clear flammable vegetation a minimum of 30 feet around structures. B.Remove pine needles, leaves, and other dead vegetation from roofs, eaves and rain gutters. C.Trim tree limbs 10 feet from chimneys and stove pipes; remove dead limbs that hang over rooftops. D. Remove all non-fire-resistive vegetation a minimum of 10 feet on each side of a fire apparatus access road or driveway. E.Cover chimney outlets or flues with a 1/2” mesh spark arrester. F. Post a clearly visible house address, using at least 4” high numbers, for easy identification. For homes located more than 50 feet from the street, post address numbers at the driveway entrance. Additional Safety Recommendations •Create and maintain a 5-foot noncombustible zone around all structures, including decks. •Clear 10 feet around and 15 feet above fuels (e.g., woodpiles, lumber, and scrap). Move woodpiles as far away as possible from all structures. •Clear vegetation and other combustible material from underneath decks. Enclose elevated decks with fire-resistive materials. •Trees 18 feet or taller should be limbed up 6 feet from the ground. Provide additional vertical clearance when trees have vegetation beneath them. February 14, 2025 RE: <<Property Address>> / APN: <<APN>> Dear Property Owner, National Wildfire Community Preparedness Day will take place on Saturday, May 3rd. Take action to protect your home and community against the threat of wildfire by attending one of several upcoming community wildfire preparedness workshops, see QR code below under the Resources and Information section. As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface, you must comply with the minimum fire-safe regulations. Self-inspections are a key component in achieving fire resilience for residents and the community. Included in this letter is a property self-inspection card. Please complete this card and return by mail or online using the provided QR code below under Option 1. Your property is in a High/Moderate Fire Hazard Severity Zone of the Wildland Urban Interface Area and requires 30 feet of defensible space from all structures. Defensible space is the necessary buffer created around a structure when combustible vegetation is removed or reduced. The enforced safety regulations for your property include: Enforced Safety Regulations (Items A - F) SANTA CLARA COUNTY FIRE DEPARTMENT ATTN: FIRE PREVENTION DIVISION 1315 DELL AVENUE CAMPBELL, CA 95008-6609 <<Owner Name>> <<Owner Address>> <<Owner City>>, <<Owner State>> <<Owner ZIP Code>> <<Endorsement Line>> <<Owner Name>> <<Owner Address>> <<Owner City>>, <<Owner State>> <<Owner ZIP Code>> FFFFFFFFFFFFFFFFFFFF PLACE STAMP HERE CUPERTINO 30' 29 CC 03-04-2025 29 of 283 Owner Responsibilities: 1.Please ensure that your property satisfies the listed requirements. You have the option to complete the required work yourself or hire a contractor. For information about vegetation abatement services, visit WeedAbatement.SCCgov.org or call 408.282.3145. 2.Please either complete and return the attached property self-inspection card OR scan the QR Code below (under Option 1) to report the current status of your property before April 1, 2025. Inspection Schedule: On April 1, 2025, SCCFD will begin conducting property inspections. Property owners not in compliance will be notified of what work needs to be completed to comply with the Enforced Safety Regulations. Fourteen (14) days after the initial and subsequent inspections, we will conduct a re-inspection of the properties that were out of compliance. If your property fails to comply with Items A, B, C, or D of the Enforced Safety Regulations specified above, before June 1, 2025, the compliance work will be completed by the City of Cupertino's authorized contractor, and the charges for this service will appear on your next property tax bill. If you would like to request a courtesy inspection, appointments will be available April 1st through April 15th. To schedule a courtesy property inspection provided by SCCFD or for more information, please contact the Fire Prevention Division at prevention@sccfd.org or call 408.341.4420. Sincerely, Hector R. Estrada, Deputy Chief Fire Prevention Division Choose ONE: 1. Scan the QR code below with a smartphone camera to submit your response online OR 2. Complete and mail the attached information card below. Evacuation Zone ID: Private Access Key:Or Online: qrs.ly/syej73x <<ZoneID>> <<AccessKey>> Option 1 - Respond Online I have received the annual Wildland Urban Interface (WUI) Enforced Safety Regulations letter related to flammable vegetation abatement. The current status of my property is as follows (choose one): □I have inspected my property for flammable vegetation clearance and believe it complies with the Enforced Safety Regulations. I understand that an inspection of my property may be conducted to verify compliance. □I will remove flammable vegetation around all structures on my property in accordance with the Enforced Safety Regulations by the required time-frame. I understand that if the required work is not completed, the authorized contractor will complete the work and the charges will appear on my next property tax bill. □I am no longer the owner of this property. □There are no structures on this property. Name (print clearly): ____________________________________________________ Date: _________________ Phone: (______)____________________ Email: __________________________________________________ Property Address: <<Property Address>> Option 2 - Respond by Mail Resources and Information California Department of Insurance: www.insurance.ca.gov • 800.927.4357 Provides information about all types of insurance, including insurance coverage and limits for high fire risk areas Santa Clara County FireSafe Council: www.SCCFireSafe.org • 408.975.9591 Protects and educates communities at risk from wildfire through fuel reduction programs, outreach and community planning efforts Santa Clara County Weed Abatement Program: WeedAbatement.SCCgov.org • 408.282.3145 Provides community education and hazard abatement services to protect communities from fire hazards AlertSCC.org Genasys Protect: Know Your Zone Visit: protect.genasys.com to view/verify your Evacuation ZONE# Wildfire Preparedness Workshops & Chipping Program Information 30 CC 03-04-2025 30 of 283 A.Create 100 feet of defensible space around your home. To accomplish this, you must clear flammable vegetation a minimum of 30 feet around structures. Additionally, create a reduced fuel zone for the remaining 70 feet (or to the property line). B.Remove pine needles, leaves, and other dead vegetation from roofs, eaves and rain gutters. C.Trim tree limbs 10 feet from chimneys and stove pipes; remove dead limbs that hang over rooftops. D. Remove all non-fire-resistive vegetation a minimum of 10 feet on each side of a fire apparatus access road or driveway. E.Cover chimney outlets or flues with a 1/2” mesh spark arrester. F.Post a clearly visible house address, using at least 4” high numbers, for easy identification. For homes located more than 50 feet from the street, post address numbers at the driveway entrance. Additional Safety Recommendations •Create and maintain a 5-foot noncombustible zone around all structures, including decks. •Clear 10 feet around and 15 feet above fuels (e.g., woodpiles, lumber, and scrap). Move woodpiles as far away as possible from all structures. •Clear vegetation and other combustible material from underneath decks. Enclose elevated decks with fire-resistive materials. •Trees 18 feet or taller should be limbed up 6 feet from the ground. Provide additional vertical clearance when trees have vegetation beneath them. February 14, 2025 RE: <<Property Address>> / APN: <<APN>> Dear Property Owner, National Wildfire Community Preparedness Day will take place on Saturday, May 3rd. Take action to protect your home and community against the threat of wildfire by attending one of several upcoming community wildfire preparedness workshops, see QR code below under the Resources and Information section. As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface, you must comply with the minimum fire-safe regulations. Self-inspections are a key component in achieving fire resilience for residents and the community. Included in this letter is a property self-inspection card. Please complete this card and return by mail or online using the provided QR code below under Option 1. Your property is in a Very High Fire Hazard Severity Zone of the Wildland Urban Interface Area and requires 100 feet of defensible space from all structures. Defensible space is the necessary buffer created around a structure when combustible vegetation is removed or reduced. The enforced safety regulations for your property include: Enforced Safety Regulations (Items A - F) SANTA CLARA COUNTY FIRE DEPARTMENT ATTN: FIRE PREVENTION DIVISION 1315 DELL AVENUE CAMPBELL, CA 95008-6609 <<Owner Name>> <<Owner Address>> <<Owner City>>, <<Owner State>> <<Owner ZIP Code>> <<Endorsement Line>> <<Owner Name>> <<Owner Address>> <<Owner City>>, <<Owner State>> <<Owner ZIP Code>> FFFFFFFFFFFFFFFFFFFF PLACE STAMP HERE CUPERTINO 100' 31 CC 03-04-2025 31 of 283 Owner Responsibilities: 1.Please ensure that your property satisfies the listed requirements. You have the option to complete the required work yourself or hire a contractor. For information about vegetation abatement services, visit WeedAbatement.SCCgov.org or call 408.282.3145. 2.Please either complete and return the attached property self-inspection card OR scan the QR Code below (under Option 1) to report the current status of your property before April 1, 2025. Inspection Schedule: On April 1, 2025, SCCFD will begin conducting property inspections. Property owners not in compliance will be notified of what work needs to be completed to comply with the Enforced Safety Regulations. Fourteen (14) days after the initial and subsequent inspections, we will conduct a re-inspection of the properties that were out of compliance. If your property fails to comply with Items A, B, C, or D of the Enforced Safety Regulations specified above, before June 1, 2025, the compliance work will be completed by the City of Cupertino’s authorized contractor, and the charges for this service will appear on your next property tax bill. If you would like to request a courtesy inspection, appointments will be available April 1st through April 15th. To schedule a courtesy property inspection provided by SCCFD or for more information, please contact the Fire Prevention Division at prevention@sccfd.org or call 408.341.4420. Sincerely, Hector R. Estrada, Deputy Chief Fire Prevention Division Choose ONE: 1. Scan the QR code below with a smartphone camera to submit your response online OR 2. Complete and mail the attached information card below. Evacuation Zone ID: Private Access Key:Or Online: qrs.ly/syej73x <<ZoneID>> <<AccessKey>> Option 1 - Respond Online I have received the annual Wildland Urban Interface (WUI) Enforced Safety Regulations letter related to flammable vegetation abatement. The current status of my property is as follows (choose one): □I have inspected my property for flammable vegetation clearance and believe it complies with the Enforced Safety Regulations. I understand that an inspection of my property may be conducted to verify compliance. □I will remove flammable vegetation around all structures on my property in accordance with the Enforced Safety Regulations by the required time-frame. I understand that if the required work is not completed, the authorized contractor will complete the work and the charges will appear on my next property tax bill. □I am no longer the owner of this property. □There are no structures on this property. Name (print clearly): ____________________________________________________ Date: _________________ Phone: (______)____________________ Email: __________________________________________________ Property Address: <<Property Address>> Option 2 - Respond by Mail Resources and Information California Department of Insurance: www.insurance.ca.gov • 800.927.4357 Provides information about all types of insurance, including insurance coverage and limits for high fire risk areas Santa Clara County FireSafe Council: www.SCCFireSafe.org • 408.975.9591 Protects and educates communities at risk from wildfire through fuel reduction programs, outreach and community planning efforts Santa Clara County Weed Abatement Program: WeedAbatement.SCCgov.org • 408.282.3145 Provides community education and hazard abatement services to protect communities from fire hazards Genasys Protect: Know Your Zone Visit protect.genasys.com to view/verify your Evacuation ZONE# Wildfire Preparedness Workshops & Chipping Program Information AlertSCC.org 32 CC 03-04-2025 32 of 283 <<Date>> <<Owner Name>> <<Owner Address>> <<Owner City>>, <<Owner State>> <<Owner ZIP Code>> Re: <<APN>> / <<Property Address>> Dear Property Owner, Collaborative efforts are key to building fire resilient communities. As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface (WUI), you play a vital role in keeping both your property and neighborhood safe by complying with the minimum fire safe regulations. Your property was recently inspected by the Santa Clara County Fire Department on <<Inspection date>>. At that time, the following items were identified to bring your property into compliance with the enforced Wildland Fire Safety Regulations. The noted corrections are listed below: <<Violations>> <<Inspector comments>> Please ensure that your property satisfies the requirements above, then call or email the Fire Prevention Division of the Santa Clara County Fire Department at 408.341.4420 or prevention@sccfd.org to schedule a re-inspection. If your property re-inspection is not scheduled within fourteen (14) days after your initial failed inspection, the Santa Clara County Fire Department will conduct an independent re-inspection of your property to determine compliance status. You have the option to complete the required work yourself or hire your own contractor. For information about brush and weed abatement services, call 408.282.3145 or visit WeedAbatement.SCCgov.org. All property’s compliance must be verified through reinspection no later than June 1 st, 2025. Properties identified by the Fire Department as being non-compliant with the Wildland Fire Safety Regulations will be referred to your city/town for mandatory abatement. The local authority will make a declaration identifying properties with hazardous conditions and may hold a public hearing. At that time, if your property has been identified as non-compliant, you will be notified. 33 CC 03-04-2025 33 of 283 CITY OF CUPERTINO Agenda Item 25-13779 Agenda Date: 3/4/2025 Agenda #: 6. Subject: Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6 th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Conduct the second reading and enact Ordinance No. 25-2268: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN AND HOUSING ELEMENT” CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™34 CC 03-04-2025 34 of 283 CITY COUNCIL STAFF REPORT Meeting: March 4, 2025 Subject Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024- 001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action Conduct the second reading and enact Ordinance No. 25-XXXX: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN ANDHOUSING ELEMENT” Reasons for Recommendation During a special City Council Meeting held on February 19, 2025, Staff presented text from the City’s General Plan, Housing Element and Municipal Code to support correction of the zoning designation of Priority Housing Element Site no. 24. City Council conducted the first reading for Ordinance No. 25-XXXX on a 4-1 vote (No: Wang). If Council approves these changes today, the proposed ordinance will take effect after thirty (30) days on April 3, 2025. Sustainability Impact None. Fiscal Impact None. City Work Program (CWP) Item Housing Element Update. 35 CC 03-04-2025 35 of 283 CWP Item Description Update Housing Element and complete rezoning. General Plan updates and EIR by December 2023. Council Goal Housing California Environmental Quality Act (CEQA) Due to a settlement agreement the City entered into to settle a lawsuit related to the Housing Element, any actions that the City takes to adopt a compliant housing element, including rezoning actions to implement the Housing Element, are exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65759 et seq. Additionally, since there is no increase to the permitted density on the site with this rezoning action, there are no environmental impacts anticipated pursuant to Government Code section 15061(b)(3). Prepared by: Piu Ghosh, Planning Manager Luke Connolly, Assistant Director of Community Development Reviewed by: Benjamin Fu, Community Development Director Approved for Submission by: Pamela Wu, City Manager Attachments: A – Draft Ordinance No. 24-2254 36 CC 03-04-2025 36 of 283 ORDINANCE NO. 25 – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN ANDHOUSING ELEMENT SECTION I: PROJECT DESCRIPTION Application No: Z-2024-001 Applicant: City of Cupertino Location: 359 13 019 (20865 McClellan Rd) SECTION II: RECITALS WHEREAS, state law requires the City to prepare and adopt an updated Housing Element every eight years to accommodate its fair share of housing and identify housing needs, resources and opportunities; WHEREAS, pursuant to State Housing Law, the City prepared and presented a draft 6 th Cycle Housing Element to the California Department of Housing and Community Development (HCD) on March 28, 2024, WHEREAS, HCD informed the City in a letter dated April 10, 2024 that the proposed Draft Housing Element is conditionally certified, pending rezoning of the Priority Housing Sites, and any associated rezoning required, to accommodate the City’s Regional Housing Needs Allocation (RHNA); and WHEREAS, pursuant to State Housing Law, the City Council adopted the City’s 6th Cycle Housing Element on May 14, 2024 with Resolution 24-039; and WHEREAS, the Zoning map and Municipal Code were both amended on July 2, 2024, with a second reading on July 16, 2024 to rezone the Priority Housing Element sites to be consistent with the City's General Plan land use map; and WHEREAS, the City has received a letter dated September 4, 2024 that the adopted Housing Element is certified by the Department of Housing and Community Development; WHEREAS, the site located at 20865 McClellan Road was part of the rezoning completed to achieve Housing Element compliance and while contemplated to be developed with 37 CC 03-04-2025 37 of 283 townhomes in the text of the Housing Element, the rezoning indicated in the Housing Element inadvertently limited development on the site to multi-family housing (R-3); WHEREAS, the City wants to correct this error to ensure internal inconsistency between the General Plan and zoning and allow the development of townhomes as contemplated in the Housing Element and desired by the property owner; WHEREAS, all necessary public notices have been given as required by the Municipal Code of the City of Cupertino and the Government Code for meetings with the Planning Commission and the City Council; and WHEREAS, the Planning Commission at its duly noticed regular meeting on December 10, 2024 recommended approval of the proposed correction to the Zoning Map with a 3- 2 vote (Madhdhipatla and Scharf: No); and WHEREAS, the City Council of the City of Cupertino held a duly noticed public hearing on February 4, 2025, and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof; and WHEREAS, the City Council of the City of Cupertino is the decision -making body for this Ordinance; WHEREAS, the City entered into a Stipulated Judgement dated January 8, 2024 pursuant to a lawsuit related to adoption of the Housing Element which included requirements for coming into compliance with state housing element law and exempted the City from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759; and WHEREAS, pursuant to Government Code 65759, the General Plan Amendment to adopt the Housing Element and associated amendments to the General Plan and zoning is fully described and analyzed in the Environmental Assessment, which is incorporated into the General Plan as Appendix G; WHEREAS, the City Council finds the following: 1. That the proposed zoning is in accord with the Municipal Code and the City's Comprehensive General Plan. The proposed zoning is in conformance with the General Plan since the City Council adopted amendments to the General Plan, including changes to land use designations, in May 2024 with adoption of the Housing Element. The text in the Housing Element clearly indicates that townhome development is anticipated and desired by the interested developer for this site since 2021. This change is a mere conforming change to the zoning designation to make the City’s zoning map conform to the text in the Housing Element of the General Plan. 38 CC 03-04-2025 38 of 283 2. The proposed zoning is in compliance with the provisions of the California Environmental Quality Act (CEQA). Pursuant to Govt. Code Section 65759, the zoning actions related to bringing the City’s Housing Element, including any associated rezoning, into compliance with state law are exempt from CEQA. An Environmental Assessment was prepared, also in compliance with state law. This Environmental Assessment identified all feasible mitigation measures and was adopted as Appendix G – General Plan 2040 and Zoning Code Amendments Environmental Assessment of the General Plan as required by state law. 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 proposed zoning designation and anticipated land use development. The site being rezoned has access to utilities and is compatible with adjoining land uses as previously anticipated with adoption of the Housing Element of the General Plan. 4. The proposed zoning will promote orderly development of the City. The proposed zoning aligns zoning with the City’s Housing Element and General Plan land use goals and policies related to locating higher density development close to transit corridors and employment centers (De Anza College, Apple etc.). The sites being rezoned will promote orderly development in the City by allowing similar land uses to be located compatibly as contemplated in the Housing Element text. The proposed changes also allow the City to comply with the requirements of state law related to housing. 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 proposed zoning is not detrimental to the health, safety, peace, morals and general welfare since these are conforming changes. Additionally, where health or safety impacts have been identified mitigation measures have been identified which would be applicable to any development on these sites, including those implemented through the City’s existing Municipal Code requirements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: Section 1. Rezoning. That the property described herein has a zoning designation as shown in the following table and in Exhibit Z-1, and is incorporated into the Master Zoning Map of the City of Cupertino: APN Acres Existing Zoning Designation New Zoning 359 13 019 0.99 R3 R3/TH 39 CC 03-04-2025 39 of 283 Section 2. Severability and Continuity. The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino M unicipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions. Section 3. California Environmental Quality Act. Adoption of these zoning amendments to allow implementation of the Housing Element is exempted from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759. Section 4: Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 5: Publication. The City Clerk shall give notice of adoption of this Ordinance as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance. INTRODUCED at a special meeting of the Cupertino City Council on February 19, 2025 and ENACTED at a regular meeting of the Cupertino City Council on March 4, 2025 by the following vote: Members of the City Council 40 CC 03-04-2025 40 of 283 AYES: CHAO, MOORE, MOHAN, FRUEN NOES: WANG ABSENT: ABSTAIN: SIGNED: Liang Chao, Mayor City of Cupertino Date ATTEST: Kirsten Squarcia, City Clerk Date APPROVED AS TO FORM: City Attorney Date 41 CC 03-04-2025 41 of 283 EXHIBIT Z-1 42 CC 03-04-2025 42 of 283 CITY OF CUPERTINO Agenda Item 25-13761 Agenda Date: 3/4/2025 Agenda #: 7. Subject:Baker Tilly Budget Format Review and Performance Measures Updates Approve recommendations outlined in the recent the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™43 CC 03-04-2025 43 of 283 CITY COUNCIL STAFF REPORT Meeting: March 4, 2025 Subject Baker Tilly Budget Format Review and Performance Measures Updates Recommended Action Approve recommendations outlined in the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly Reasons for Recommendation Background Historically and as good practice, major changes to its current budget document and budget format have been presented to the City Council for their review and feedback. Most recently, the City Council approved major changes to the FY14 and FY15 budget documents and its format such as organizational changes, budgeting philosophy, cost allocation and internal service fund changes, added new financial policies, and updated program narratives/format changes. For further details on these changes, please see the FY 2013-14 Adopted Budget pages 9-17 and FY 2014-15 Adopted Budget pages 8-10. During the last round of budget preparation for FY 2024-25 review, feedback received on the budget document from City Council, residents and City staff from budget sessions, community outreach and internal budget meetings, and the City’s internal auditors suggested the need to improve and streamline the annual budget. That feedback also indicated a need to reassess the City's Performance Measures to focus on outcomes that reflect the City’s priorities rather than workload indicators. In Fall 2024, the City engaged Baker Tilly US, LLP to conduct a comprehensive review of its Budget Document and Performance Measures. The primary objective of this engagement is to enhance clarity, accessibility, and to strategically align the City's annual budget document and to improve the effectiveness of performance measures in tracking progress toward key citywide goals. The project was divided into two phases:  Budget Document Review 44 CC 03-04-2025 44 of 283  Performance Measures Assessment The final report is included as Attachment A of this report. Audit Committee Review Subsequent to the publication of the final report, the Audit Committee reviewed and provided feedback on the proposed recommendations at its February 18th meeting. The Audit Committee also voted unanimously to accept the report. They also requested the following be included in the staff report to City Council:  Pilot the recommended budget format for FY26-27 for feedback from City Council or through an Audit Committee Budget format subcommittee regarding the proposed format  Connect the CIP with the budget book (include graphs)  Maintaining detail availability as an appendix  Ensuring original budget (point-in-time) is easily accessible  Reviewing performance measures to reflect focus areas like economic development  Graphical presentation of numbers to support a narrative description  Hyperlink to policies within the budget book o Summarized policy – key point of what the policy does o Attachment to an agenda item for all policies including redline, new, or amended policies within the budget book that are provided to City Council with a staff report  Internal Audit functions and responsibilities to be considered for budget presentation to the City Council Next Steps Following Council’s approval, staff will review the draft implementation action plan (Attachment B) and include a final implementation action plan as part of the proposed budget. Any budget format changes would first be presented to the Audit Committee as budget format falls under the Committee’s responsibilities. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact to the General Fund. Funding for this work was $89,900 through salary savings from the current Budget Manager vacancy in budget unit 100-41-426. City Work Program (CWP) Item: No. CWP Item Description: 45 CC 03-04-2025 45 of 283 Not applicable. Council Goal: Public Engagement and Transparency Sustainability and Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: Toni Oasay-Anderson, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor, Deputy City Manager Approved for Submission by: Pamela Wu, City Manager Attachments: A – Budget Document and Performance Measures Improvements Final Report B – Draft Implementation Action Plan 46 CC 03-04-2025 46 of 283 February 2025 City of Cupertino Budget Document and Performance Measures Improvements 47 CC 03-04-2025 47 of 283 Baker Tilly US, LLP 2055 Gateway Place Suite 140 San Jose, CA 95110 United States of America T: +1 (408) 625 5100 F: +1 (408) 625 5125 bakertilly.com February 12, 2025 Ms. Pamela Wu, City Manager Ms. Kristina Alfaro, Director of Administrative Services City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Dear Ms. Wu and Ms. Alfaro: Baker Tilly is pleased to present our report resulting from our analysis of the City of Cupertino’s current budget document and the performance measures upon which City services are evaluated. The budget document is one of the most critical policy documents that reflect the priorities of the City in the provision of services to the community. The ability to tell the story regarding those priorities and the allocation of resources that the community has entrusted to City leaders to spend wisely is critical to informing the City Council’s policy priorities and provision of resources to achieve those goals. We have identified 32 recommendations for change and improvement in the City’s budget document, related processes, and a set of performance measures that better reflect the success in providing services to the community and its stakeholders. We look forward to presenting this report to the City’s Audit Committee and, ultimately, the City Council. Sincerely, Carol Jacobs, Managing Director +1 (949) 809 5588 | carol.jacobs@bakertilly.com 48 CC 03-04-2025 48 of 283 Budget Document and Performance Measures Improvements Table of Contents Baker Tilly i Table of Contents Executive Summary .................................................................................................................................. 2 Key Observations ............................................................................................................................. 2 Key Recommendations .................................................................................................................... 3 Project Introduction .................................................................................................................................. 4 Project Approach .............................................................................................................................. 4 Methodology ..................................................................................................................................... 4 Guiding Principles ........................................................................................................................... 5 Report Content ................................................................................................................................. 7 Budget Document ..................................................................................................................................... 8 Budget Document Interview Themes ............................................................................................ 8 Interview Themes - City Councilmembers ................................................................................. 8 Interview Themes- City Staff ...................................................................................................... 9 Key Takeaways from Interviews ............................................................................................... 10 Current Budget Document Review and Analysis ..................................................................... 10 Comparative Research ................................................................................................................... 12 Budget Document Observations and Recommendations ........................................................ 14 Budget Formatting .................................................................................................................... 14 Budget Message ........................................................................................................................ 14 Budget Guide ............................................................................................................................ 16 Community Profile ................................................................................................................... 16 Financial Policies ...................................................................................................................... 16 All Funds Financial Schedules ................................................................................................. 17 General Fund Financial Schedules ........................................................................................... 17 Department Sections ................................................................................................................. 18 Capital Budget/Capital Improvement Plan .............................................................................. 19 Other Budget-Related Matters ................................................................................................. 21 Recommended Document Framework (Table of Contents) .................................................... 23 Performance Measures ........................................................................................................................... 30 Performance Measures Interview Themes ................................................................................. 30 Interview Themes – Council ..................................................................................................... 30 Interview Themes – Staff .......................................................................................................... 30 Key Takeaways .......................................................................................................................... 31 Current Performance Measures Review and Analysis ............................................................. 31 Performance Measures Observations and Recommendations ................................................ 32 Performance Measures vs. Workload Indicators ...................................................................... 32 49 CC 03-04-2025 49 of 283 Budget Document and Performance Measures Improvements Table of Contents - Tables Baker Tilly ii Strategic Planning .................................................................................................................... 34 Recommended Performance Measures ....................................................................................... 37 Conclusion ................................................................................................................................................ 45 Attachment A – List of Recommendations ......................................................................................... 46 Table of Contents - Tables Table 1. Defining Guiding Principles in Local Government Budgeting and Performance Measurement ............................................................................................................ 6 Table 2. Shared Themes on Budget Document from City Councilmembers and Staff ........ 10 Table 3. Components of the Budget Document ............................................................................ 12 Table 4. Performance Measures Versus Workload Indicators ................................................... 33 Table 5. Suggested Performance Measures ................................................................................... 37 Table of Contents - Figures Figure 1. Guiding Principles in Local Government Budgeting and Performance Measurement ............................................................................................................ 6 Figure 2. Strategic Planning Framework ..................................................................................... 36 50 CC 03-04-2025 50 of 283 Budget Document and Performance Measures Improvements Executive Summary Baker Tilly 2 Executive Summary The City of Cupertino engaged Baker Tilly US, LLP to conduct a comprehensive review of its budget document and performance measures. The primary objective of this engagement was to enhance the clarity, accessibility, and strategic alignment of the City's annual budget document and to improve the effectiveness of performance measures in tracking progress toward key citywide goals. The project was divided into two distinct phases: 1. Budget Document Review: This phase focused on assessing the structure and content of Cupertino’s existing budget document. While Cupertino has a history of producing award-winning budgets, opportunities exist to refine the document to improve readability, transparency, and accessibility for a wider range of stakeholders, including elected officials, community members, and non-financial professionals. 2. Performance Measures Assessment: The second phase involved evaluating Cupertino’s current performance measures and workload indicators. Many existing measures were developed several years ago and no longer align with the City’s evolving priorities and strategic objectives. The project sought to establish a robust framework for performance measurement that reflects current service delivery priorities, fosters accountability, and supports continuous improvement. Our approach included reviewing key city documents including the budget document, performance measure data, and strategic goals of the City. We conducted interviews with City Councilmembers and staff across multiple departments, and conducted comparative research with peer cities to identify best practices and potential improvements. Key Observations Our analysis identified several key themes related to both the budget document and performance measures: • Budget Document Challenges: Stakeholders noted that the budget document is highly detailed but difficult to navigate, leading to underutilization. Complex financial terminology and inconsistent formatting further hinder accessibility. • Performance Measurement Gaps: Existing performance measures lack alignment with strategic goals, are inconsistently applied across departments, and often focus on workload indicators rather than true performance outcomes. • Capital Improvement Plan (CIP) Integration: The absence of a dedicated and consistently published CIP document limits transparency in capital project planning and funding. • Public Engagement: The City’s budget process includes limited direct engagement with community members outside of Council meetings and publication of various budget reports and materials, reducing opportunities for public input and education. 51 CC 03-04-2025 51 of 283 Budget Document and Performance Measures Improvements Executive Summary Baker Tilly 3 • Strategic Planning Alignment: The City's budgeting process and performance measures lack a comprehensive citywide strategic plan upon which they should be based, creating a disconnect between resource allocation and long-term priorities. Key Recommendations Based on our findings, we recommend the following actions to improve Cupertino’s budget document and performance measurement framework: • Refine the Budget Document Structure: Implement a more intuitive layout, including a clearer table of contents, a standalone budget message, and an elevated Budget Overview section. • Improve Budget Transparency and Accessibility: Condense complex financial terminology, move non-essential sections to an appendix, and leverage OpenGov for detailed budget data. • Streamline Departmental Budget Presentations: Standardize departmental sections to include key priorities, performance measures, and financial summaries. • Enhance Capital Improvement Plan (CIP) Reporting: Develop a five-year CIP document integrated into the annual budget and assign clear roles for its preparation and publication. • Increase Public Engagement: Expand community outreach efforts, review efficacy of educational materials explaining budget priorities, and explore additional interactive budget tools for greater accessibility. • Integrate Strategic Planning into Budgeting: Establish a structured strategic planning framework to ensure that budget allocations align with citywide priorities and performance tracking is consistent across departments. • Revamp Performance Measures: Align performance measures with the City’s strategic goals, differentiate between workload indicators and true performance metrics, and standardize the reporting process. By implementing these recommendations, Cupertino can create a budget document that is not only more user-friendly and transparent but also a more effective tool for decision-making and accountability. Additionally, refining performance measures will provide meaningful insights into service delivery and help track the City’s progress in achieving its strategic vision. 52 CC 03-04-2025 52 of 283 Budget Document and Performance Measures Improvements Project Introduction Baker Tilly 4 Project Introduction Project Approach The City of Cupertino ("Cupertino" or "the City") has engaged Baker Tilly US, LLP (“Baker Tilly”) to review the City’s current budget document and performance measures. The goal of this project is to help the City enhance its annual budget document and performance measures to ensure they are meaningful, accessible, and insightful for all stakeholders. The project is divided into two phases. Phase 1 focuses on reviewing the structure and content of the budget document. Cupertino has a strong history of producing award-winning budgets. Yet there is a need for more relevant, clear, and easily understandable budget document that can be accessed by a broader audience. Specifically, the challenge is to provide elected officials, community stakeholders, and non-financial professionals with a budget document that helps them understand how the City allocates and invests resources to achieve its highest priorities. Phase 1 aims to revamp the structure and content of the City’s budget document to help increase transparency and accessibility. Phase 2 shifts focus on Cupertino's current performance measures and workload indicators. The existing performance measures, developed several years ago, no longer align with the City’s evolving priorities and strategic objectives. With recent shifts in development activity, service delivery, and the City's strategic goals, there is a need to revisit and update these measures. Phase 2 aims to bridge the gap between outdated metrics and the City’s evolving priorities, ensuring that the new performance measures reflect current goals and foster continuous improvement and accountability. The ultimate objective is to develop a set of robust, dynamic performance measures that accurately track the City's progress in achieving its strategic vision. Methodology To achieve the goals of this project, Baker Tilly requested and reviewed data provided by City staff. The following serves as a summary of the data we reviewed the following resources: • Current and prior year budgets, • Performance measure information, • Budget process and timeline, • Budget award documentation, • OpenGov portal, • Cupertino budget website, and • City Council strategic goals. The data received was used to facilitate interviews with City Councilmembers and staff. Baker Tilly consultants interviewed the following participants: • Mayor, Vice-Mayor and three Councilmembers, • Nine staff members from the following departments: 53 CC 03-04-2025 53 of 283 Budget Document and Performance Measures Improvements Project Introduction Baker Tilly 5 o City Manager’s Office, o Administrative Services, o Public Works, o Parks and Recreation, o Innovation and Technology, and o Community Development. Each provided unique insights into both the budget document and current performance measures as shown below. These activities offered a detailed understanding of how current budget practices intersect with the city’s broader objectives. Guiding Principles Local governments use the budget process to distribute limited resources among various programs and services, making it one of their most critical functions. As the centerpiece of resource allocation decisions, the budget process culminates in the adopted budget document, which serves as a powerful decision-making tool. The effectiveness and acceptance of these decisions depend heavily on the structure and characteristics of the budgeting process itself. When the budget process and its outcomes are closely aligned with other government functions, such as strategic planning and operational management, they lead to more informed financial and programmatic decisions, ultimately enhancing government performance. An inclusive budgeting approach that actively engages stakeholders—including elected officials, administrators, employees and their representatives, community organizations, and business leaders—ensures that diverse needs and priorities are reflected. This approach fosters positive public relations and strengthens trust and confidence in government among citizens and other stakeholders. Best practices in local government budgeting and measuring performance suggest a series of guiding principles to provide meaningful information that informs the allocation of fiscal resources to accomplish the agency’s objectives. The overarching principles guiding this assessment focus on five essential areas that are foundational to improving the current budget document and performance measures, displayed in Figure 1. 54 CC 03-04-2025 54 of 283 Budget Document and Performance Measures Improvements Project Introduction Baker Tilly 6 Figure 1. Guiding Principles in Local Government Budgeting and Performance Measurement Each is summarized in Table 1 below. Table 1. Defining Guiding Principles in Local Government Budgeting and Performance Measurement Guiding Principle Definition Strategic Alignment • Clearly reflect how the city’s resources, initiatives, and policies are aligned with long- term vision and goals. • Strategic objectives integrated into the budget • Demonstrate a purposeful allocation of resources supporting future growth and sustainability • Performance measures track progress toward strategic goals, allowing for more informed adjustments in future planning cycles Fiscal Stewardship • Demonstrate responsible management of public funds • Highlight efforts to maximize value of taxpayer dollars while maintaining financial stability • Performance measures track key fiscal metrics to ensure effectively use of City funds, identify potential inefficiencies, and make necessary improvements to support essential programs and services Community Engagement • Collaboration with community stakeholders fosters transparency, builds trust, and empowers residents to take an active role in shaping the city’s future • Leads to better alignment with community-driven goals Transparency • Provide clear, accessible information about the city’s financial resources • Clarify and communicate decision-making processes • Demonstrate how funds are allocated across departments and initiatives Budget and Performance Measures Strategic alignment Fiscal stewardship Community engagement Transparency Accessibility 55 CC 03-04-2025 55 of 283 Budget Document and Performance Measures Improvements Project Introduction Baker Tilly 7 • Performance measures track and report progress toward specific goals, providing transparency in how the city is meeting its objectives Accessibility • Ensures that the budget and performance measures are understandable and accessible to all stakeholders. • Presents financial information in a clear, user-friendly format • Uses plain language and visual aids to make complex data more digestible • Performance measures include clear metrics that allow residents, community groups, and decision-makers to easily track the city’s progress toward its goals Together, these principles form a comprehensive framework for updating the budget document to align with these goals, ensuring that the city’s financial planning and resource allocation support its long-term vision and foster transparency. Report Content This report includes the following sections that discuss the results of our data gathering and interviews, common themes, our independent analysis and recommendations, • Budget Document – This section is focused on our observations, analysis and recommendations to improve the budget document reflective of the guiding principles discussed earlier. This section includes: o Interview Themes – an overview of what we heard from our interviews with City Councilmembers and staff o Review and Analysis – a summary of our analysis of the data and documents reviewed o Comparative Research – the results of our review of various budget documents of comparable agencies in Santa Clara County and the region o Observations and Recommendations – a summary of our analysis and recommendations to improve the budget document o Recommended Budget Document Framework – a summary of our recommendations in the form of a proposed table of contents with descriptions for the proposed new format of the budget document. • Performance Measures – This section is focused on our observations and recommendations to develop performance measures that are reflective of the City’s top priorities as they are known today. This section includes: o Interview Themes – an overview of what we heard from our interviews with City Councilmembers and staff o Review and Analysis – a summary of our analysis of the data and documents reviewed o Observations and Recommendations – a summary of our analysis and recommendations of performance measures to be considered for inclusion in a revised budget document and to track and report on during the fiscal year. o Recommended Performance Measures – a list of proposed new performance measures. 56 CC 03-04-2025 56 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 8 Budget Document Budget Document Interview Themes As mentioned earlier, we conducted individual interviews with all City Councilmembers and nine staff members. The following represents the themes we heard as part of our interview of each group, respectively. Interview Themes - City Councilmembers The common themes regarding the budget document from council interviews is summarized in the following five themes: 1. Transparency and Accessibility a. The "Budget at a Glance" document and departmental summaries provide an accessible overview of the City's financial plan, highlighting key allocations and priorities. b. The budget document frequently uses complex financial terms that are difficult for the reader to understand. c. City staff always make themselves available to answer questions and provide clarification and was consistently noted as a positive aspect. 2. Clarity and Presentation a. The introduction section is perceived as too lengthy. b. Layout issues, such as the use of portrait versus landscape orientation and the absence of a title page, have been noted as affecting readability. c. The table of contents appears to need refinement to enhance navigability. A more clearly structured and detailed table would help readers easily locate relevant sections within the document. 3. Capital Improvement Projects (CIP) a. The CIP projects cause confusion, especially regarding how they are prioritized and how their funding overlaps with other programs. b. There is a lack of cohesiveness between the operating and capital budgets c. There is limited visibility into fund transfers, consulting services, and community grant funding, making it harder to fully understand resource allocation. 4. Data and Accountability a. Insufficient tracking of special project carryovers and enterprise fund allocations raises concerns about accountability. b. Some budgetary elements, such as contingencies and extended library hours, are viewed as unnecessary "bloat." c. Revenue projections are perceived as overstated, and cash management practices seem to be underutilized. 5. Engagement and Strategy a. The budget’s role as a planning document is not clear. 57 CC 03-04-2025 57 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 9 b. The budget does not adequately reflect Council priorities or provide a clear strategic plan. c. Simplifications, such as the "Budget in Brief," are seen as overly reductive. Interview Themes- City Staff The common themes regarding the budget document and its preparation from staff interviews is summarized into the following six themes: 1. Detail, Transparency and Usability a. The budget document is extremely detailed, reflecting the City Council priority for transparency. b. The "Budget at a Glance" section, City Manager’s budget message and departmental summaries are helpful for informing the public. c. Although OpenGov is a valuable resource for accessing budget information, finance staff are readily available to clarify and provide additional detail on budget to council members and staff as needed. d. While some departments find the detailed program-level information necessary, others feel overwhelmed by the volume of content. e. The document’s size and complexity lead to confusion and underutilization by many staff and stakeholders. f. Definitions and explanations can be simplified to help explain complex financial topics in layman’s terms. 2. Communication and Process Challenges a. The budget process is effectively communicated internally, but time constraints hinder thorough review and input from departments. b. Additional requests from Administrative Services, councilmembers, or administration add pressure and exacerbate time limitations. 3. Document Accessibility and Navigation a. Finance staff can navigate the document but recognize that others may struggle to utilize it effectively. b. The budget message is seen as overly lengthy and redundant, contributing to user frustration. 4. Technology and Tools a. Departments find OpenGov challenging to use but believe training and layout improvements could make it a more effective tool for presenting the budget. 5. Connection to Capital Improvement Projects (CIP) a. There is city-wide confusion about why the CIP budget is not integrated into the departmental sections of the budget document. b. The CIP projects cause confusion, particularly regarding prioritization and funding overlaps with other programs. 6. Relevance and Usage a. The document is infrequently used by staff and becomes outdated as soon as the fiscal year begins. 58 CC 03-04-2025 58 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 10 Key Takeaways from Interviews Our interviews of Council and staff members identified several commonalities that should be highlighted. They are presented in Table 2 below. Table 2. Shared Themes on Budget Document from City Councilmembers and Staff Common Theme Description Transparency and Accessibility • Council and staff acknowledge the importance of transparency, with positive mentions of tools like the "Budget at a Glance" and the availability of City staff to clarify questions • Most also find the budget document overwhelming or too complex, suggesting a need for a focused simplification of explanations of financial terms and processes Strategic Alignment • Both groups note a lack of strategic alignment with City priorities, in part due to the lack of a citywide strategic plan Clarity and Presentation • Both groups raise concerns about the document’s readability and navigability • There is also agreement that certain sections, such as the introduction and budget message, are overly lengthy, negatively impacting their utility • Both groups observe that the budget is not user-friendly for all stakeholders Capital Improvement Projects • Council and staff identify significant confusion regarding Capital Improvement Plan (CIP) prioritization, funding overlaps, and its lack of integration with the operating budget • They also both highlight a lack of visibility into specific resource allocations within the CIP, such as funding sources and fund transfers Data and Accountability • Understanding that the budget is a planning document for allocation of resources, both groups mention challenges with deciphering or tracking financial details, such as enterprise fund allocations and the status and origination of City work programs completed or underway in the prior budget cycle that may influence budgetary carryover needs in the current budget year • Councilmembers and staff also agree on the need for clarity in terms of revenue projections and how any dedicated revenue sources were allocated By addressing these shared concerns, the City can improve the budget document's utility and alignment with stakeholder needs. Current Budget Document Review and Analysis We reviewed the current and past two years of budget documents, focusing on the latest FY 2025 adopted budget document. We also reviewed all of the other information provided to us as indicated earlier, including the OpenGov portal used by staff, Council and the community. Based on our understanding of Cupertino’s needs, using the guiding principles as a reference point, and our years of experience in developing and working with local government budgets in California and across the country, our initial observations about the budget document and its preparation are summarized into the following four themes: 59 CC 03-04-2025 59 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 11 1. Budget Document Structure: a. The document is redundant and includes repeated information in the five-year forecast, budget message, and notable accomplishments section. b. The document lacks a clear definition of its purpose, leading to the inclusion of financial data not typically found in a budget. c. The Budget’s role as a planning document is not clear. d. Additions to the document, driven by City Council requests over the years, have been made without evaluating the overall structure. 2. Components of the Budget Document: a. The CIP is not part of the budget document and is handled separately by Public Works. b. The "Budget in Brief" for FY 2024-25 has been completed, but not yet published as of the date of this report. 3. Program and Department Information: a. Although the City Work Program is tied to Council priorities, the projects are not aligned with the specific departments responsible for carrying out the projects. b. The City Work Program and Special Projects sections are confusing, with no clear distinction between them. c. Insufficient tracking of special project carryovers and enterprise fund allocations raises questions about accountability. d. Department write-ups go into excessive program-level detail. e. Personnel by department is repeated multiple times throughout the document. f. The General Fund and other restricted funds are presented as totals, with no breakdown by individual fund. 4. Tools Readily Available to Improve Accessibility: a. OpenGov could serve as an alternative for users who need additional detail, reducing the need for excessive information in the document itself. 60 CC 03-04-2025 60 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 12 Comparative Research Comparative research provides a perspective to help understand how functions are budgeted, staffed and organized in similar settings. This type of research informs discussions by organizational leaders about service level alignment and can often surface opportunities for improvement. We conducted a review of budget documents from cities within the region. We researched various components of their budget document. The components we researched included the following: • Frequency – annual or biennial budgets • Pages – total number of pages in the document • Budget presentation level – whether by department, program, or other • CIP – whether the CIP plan is included in the overall budget document • Budget in brief – whether a budget in brief document is also produced • Online – the extent to which the budget is online and interactive • Hard copy – whether the agency produces a hard copy version of their budget that is available online • GFOA award – whether the agency submitted and received a GFOA award of achievement • CSMFO award – whether the agency submitted and received a CSMFO award of achievement Working with staff, and referencing input received from the City Council during their interviews, we identified nine cities to which to compare. These cities are similar in terms of population, size and geographic location. Table 3 summarizes the various aspects of their budget documents. Table 3. Components of the Budget Document City Frequency Pages Budget Level (Dept, Division or Program) CIP Included Budget in Brief Y/N Online Interactive Budget Hard Copy Budget GFOA Award CSMFO Award Cupertino Annual 650 Program Separate Yes Yes Yes Yes Yes Campbell Annual 762 Department - Fund Included No No Yes Yes Yes Los Altos Annual 181 Department Included capital budget Separate 5-year plan No No Yes Yes Yes Excellence in Operating Budget Menlo Park Annual 136 Department Included No Yes Yes No, won award for ACFR No 61 CC 03-04-2025 61 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 13 City Frequency Pages Budget Level (Dept, Division or Program) CIP Included Budget in Brief Y/N Online Interactive Budget Hard Copy Budget GFOA Award CSMFO Award Milpitas Annual 385 Budget summarized by Division With no narrative by Division Included capital budget Separate 5-year plan Yes Yes Yes Yes, won a special distinction for performance measures Yes Innovation Awards Morgan Hill Annual 332 Department Separate Capital Budget No No Yes No Yes Excellence in Operating Budget Palo Alto Annual 585 & 697 Department - Fund Separate Capital Budget No Yes Yes Yes, won a special distinction for performance measures Yes Capital and Operating San Bruno Annual 302 Department Included capital budget Separate 5-year plan Yes No Yes No Yes (2020) Excellence in Operating Budget Sunnyvale Annual 726 & 676 Fund - Department Separate Projects Budget Yes No Yes Yes, won a special distinction for performance measures No Review of the components of the comparable cities shows that the budget is broken down by Department and Fund level compared to Cupertino which goes into programmatic detail. Additionally, for all cities compared, the capital budget document is posted together with the operating budget online or as a separate volume or incorporated in the main budget document. The size of the budget varies for most cities, but the majority are under 400 pages. 62 CC 03-04-2025 62 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 14 Budget Document Observations and Recommendations The City of Cupertino has an extensive budget document that contains detailed budget information at the program level. There is also duplication of information throughout the document. We developed recommendations to reduce the information contained in the document but still capturing the pertinent information for the user of the document. Budget Formatting The budget document needs to include consistent formatting and typical items in any document such as a title page and a table of contents that is easily understood and navigable. We also noted some pages are not formatted in proper orientation (portrait vs. landscape). Consistency is important in the appearance of what can be considered a complex document. Recommendation 1. Ensure the document includes a title page, improved table of contents, consistent layout and orientation. Budget Message The Budget Message section currently contains five subsections: • Budget Message, • Strategic Goals, • Notable Accomplishments, • New Initiatives and • Budget Overview. We believe this section needs to be reorganized to better emphasize its various components and streamline the budget presentation. The section name is confusing as it includes other separate sections besides the Budget Message. The Budget Message itself is well written and offers the reader good information on the state of the City. Because of its importance, a best practice of other agencies is to have the Budget Message stand on its own as its own section. We believe this should be adopted in the City’s budget document as well. Recommendation 2. Isolate the Budget Message as a standalone section. The Strategic Goals section is well written and offers the reader good information on the City Council’s priorities. In the absence of a full strategic plan, this section best captures the highest priorities upon which the budget should be based. (See “Strategic Planning” subsection of this report within the Performance Measures section for recommendations regarding strategic planning.) Because the City’s mission and its priorities provide an overarching theme upon which the budget should be developed, this section belongs at the front of the document in the Introduction section. Recommendation 3. Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart. 63 CC 03-04-2025 63 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 15 Other areas of the current Budget Message section can be condensed for consistency and moved to other sections of the document. Recommendation 4. Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective department section. Recommendation 5. Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message The Budget Overview subsection contains a summary of all funds that reads like a Budget-in Brief document and is very useful for the reader. Given our other recommendations above, this is the sole remaining subsection of the current Budget Message section of the budget. The Budget Overview should be a standalone section within the budget document. Recommendation 6. Elevate the Budget Overview subsection as its own section in the budget document. The Budget Overview section will now contain the following subsections as currently included in the City’s existing budget: • Budget Roadmap, • Changes to the Budget and Policies, • Budget by Fund, • Service-Level Reductions, • Special Projects, • Current Economic Update, • Key Budget Assumptions, and • Ongoing Challenges Each of these sections add value to the document, however there are ways to streamline their presentation to focus on the important elements in the City’s Budget Overview. The Service Level reductions sub section by department details each proposed reduction at the program level and it is difficult to consume the impact of the reductions. This should be condensed to a summary level with details spelled out in each relevant department section. When the time comes that the City no longer needs to reduce services, this element can be eliminated or changed into “key budget changes” that are discussed in the City Manager’s Budget Message. Recommendation 7. Report department reductions at the summary level and refer to the department section for further detail. The resulting Budget Overview section can become the basis of the City’s “Budget at a Glance” document for the future. It would need to be summarized and condensed into no more than four letter-size pages written in easy-to-understand non-financial language so that stakeholders within the community with no training in municipal finance can understand the key elements of the City’s adopted budget. This should be published upon adoption of the final budget for each budget cycle. Recommendation 8. Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user. 64 CC 03-04-2025 64 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 16 Budget Guide This section is unnecessary for the budget document and pertinent sub sections should be moved to other sections of the document. As long as they are included within the appendix or other pertinent sections, the City can still qualify its budget document for the GFOA award. Recommendation 9. Move the Mission Statement to the strategic goals section. Recommendation 10. Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and Revenues/Expenditures/Fund Balance Table to the Appendix. Community Profile The Community Profile section currently includes eight subsections. • History, • Community Economic Profile, • City Profile, • Education, • Programs and Applications, • Community Statistics, • Community and Recreation Services, and • Things to Do and See The History, Community Economic Profile, and Community Statistics sections are the only sections needed for the GFOA award. The other sections have good information but is not normally provided in a budget document. This information is better served on the City’s website or in a program guide and only extends the size of the budget document. Recommendation 11. Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document. Financial Policies Including key financial (budget) policies upon which the budget is based is a best practice to inform the reader of the policies that inform the preparation of the Budget. The GFOA only requires a summary of financial policies. This section in the budget document contains the entire policy. Each policy should contain a summary and a link to the website for the entire policy, similar to how the Investment Policy is currently shown in the document. Recommendation 12. Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website. 65 CC 03-04-2025 65 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 17 All Funds Financial Schedules This section is a good summary of the budget that includes all funds. This is a best practice and required for the GFOA award. The Flow of Funds Chart (Sankey) is somewhat confusing, even with the explanation provided at the bottom of the chart. It is not a typical chart used in local government budgets. Instead, a narrative discussion of how taxes are used to fund City services is rightfully an area that public stakeholders are interested in, which could be supplemented by graphic depictions of, for example, a $100 bill that shows how taxes are allocated to various programs/services. This can be provided in the Budget Overview section instead of this section. Recommendation 13. Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget. General Fund Financial Schedules This section provides important information on one of the most focused-upon funds in local government – the General Fund. It includes the following subsections: • Contribution Schedule, • Summary, • Revenues, • Expenditures, • Transfers, • Fund Balance, and • Long-Range Forecast The section starts out with a General Fund Contribution Schedule which is meant to depict how General Fund resources are subsidizing or supporting operations in various General Fund departments and other funds (e.g., Special Revenue funds, Enterprise funds, etc.). The table can be confusing to the casual reader. General Fund departments already identify what revenues they specifically bring in within their department sections. Contributions to other funds are already demonstrated in the Transfers subsection. This table can instead be summarized to show where the General Fund is contributing resources to other funds in a narrative overview. Readers can refer to the City’s OpenGov site to find more details. Recommendation 14. Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table. Recommendation 15. Refer the reader to the department section or OpenGov for further detail. The Revenues section contains an in-depth review of each type of revenue which is contained in the long-range financial forecast schedule. The definition of each of the revenue components is useful but is, in many ways, duplicative in nature to the information that is included in the long-range financial forecast section. Information about each revenue source would best be 66 CC 03-04-2025 66 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 18 presented as condensed information within this subsection, and the more exhaustive descriptions and relevant charts and graphics included in the long-term financial forecast. Recommendation 16. Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection. The Expenditure section includes good summary information and a reference to OpenGov for further detail could be added in case the reader wants to see additional detail. Otherwise, we recommend no changes in this section. The General Fund Transfer section and the General Fund Fund Balance section also provide summary information, and no changes are recommended. The General Fund Forecast section goes into great detail on the revenue components as the revenue forecast and the key assumptions upon which the long-range financial forecast is based are core ingredients in this section. The City might wish to review this level of detail and condense some of the information presented, but otherwise we believe the composition of these sections is good and proper. Department Sections The department section of any local government budget is important in demonstrating how fiscal resources have been appropriated to provide services to the community that the agency serves. The key question that a department section should answer is “How are City resources being used to accomplish its mission in serving the community?” Best practices suggest that the following key elements should be included in any department section of a local government agency, influenced by the nature of the agency (e.g., city, county, special district): • Description of the department and its services; • Organizational structure (personnel and/or divisions/programs); • Personnel summary (FTEs and FTE-equivalents for seasonal positions) • Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; and • Revenues and Expenditure appropriations by division and/or program. Smaller agencies might include line-item details within the department sections. Larger agencies, however, will summarize those details within the department section and may refer to a separate document or resource (e.g., OpenGov) for the detailed line-items upon which the budget is developed. The City’s budget includes department sections with summary information by division level but also includes all of the details of each program including FTE allocation and all funds budget appropriation. This is primarily the reason for the voluminous size of the operating budget document, and the confusion which many departments find in understanding their 67 CC 03-04-2025 67 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 19 appropriations each year. Most comparable cities show this information at the division or department level and while programs are shown as part of divisions, the overall budget information is rolled up to the division level. The summary revenue and expenditure charts for each department provides the high-level analysis necessary to understand what revenue sources the department specifically brings in and how its resources are used to serve the community in the form of personnel, materials, contract services and allocation of costs from support departments (“cost allocation”). The reader can drill down for more detail through OpenGov. The City posts its budget to OpenGov and there is a robust amount of information that the user can drill down and see. To condense the budget document, information should be shown at the division level with links to the OpenGov portal so budget document users can drill down to the specific program detail within the division. We have two recommendations to streamline the presentation of department information that will provide transparency in services provided and the allocation of resources and streamline budget presentation. Recommendation 17. Review each department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.). Recommendation 18. Eliminate the program budget information in the department sections and refer the user to OpenGov to obtain further detail. Capital Budget/Capital Improvement Plan The City has not issued an official capital budget/capital improvement plan (CIP) document in three years. This is a critical step in the process of providing additional information and transparency to the capital budget. This is also a mandatory criterion for the GFOA award and the City risks losing the award if this is not completed. Best practices for creation of the capital improvement plan to be incorporated within the budget include the following elements: • Capital Improvement Plan Overview, including the following elements: o Overview of what is included in the CIP (e.g., infrastructure improvements/maintenance, types such as parks and streets, whether capital outlay for equipment is included) 68 CC 03-04-2025 68 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 20 o Summary of projects completed and closed out in the previous budget cycle/year o Key Projects for Current Budget Year with abbreviated summary descriptions of each o Summary Five-Year Funding Analysis, including a summary of all projects by priority level and whether any projects are underfunded or unfunded. • CIP Budgeting Process, including: o Definition of what a CIP project is o Planning process (e.g., identifying CIP projects, project prioritization criteria, cost estimates, cost components, funding sources and development of the five-year plan • CIP Project Descriptions, including each of the following elements: o Project total by year by funding source o Project total by year by expenditure category (estimated project cost, inflation/escalation, contingency) o Project Priority Category Assignment, with any description of reasons therefore o Project Description (high-level summary, may include graphics where necessary) o Funding Sources, including any matching requirements for grant funding o Estimated Project Milestones (e.g., project design, project bid, construction, implementation/completion) • Financial Summary by year, grouped by project type (e.g., utilities, transportation/roads, storm drains, parks, facilities, etc.) • Funding Availability, grouped by priority level, displaying fund source and projected available revenue sources in total for the five-year outlook. The City should incorporate these concepts in its CIP Plan section to be included in each budget and should be updated by the Public Works Department and integrated within the preparation of each budget for Council consideration and adoption. Recommendation 19. Develop a minimum five-year Capital Improvement Plan and incorporate the CIP plan into the budget document. Public Works is currently assigned as the department primarily responsible for development the City’s long-range CIP plan. Most agencies will assign development of the CIP plan to Public Works or Engineering, although there are some that assign that responsibility to the budget office or the department that acts in that capacity. Yet development of the CIP plan relies heavily on Public Works/Engineering expertise as stewards of the public infrastructure. We believe this assignment to Public Works for Cupertino is appropriate. However, the CIP plan cannot be developed in a vacuum. While Public Works takes the lead in developing most of the City’s long-range CIP plan, collaboration with other departments providing input into the various projects (e.g., Parks and Recreation for parks projects) and funding sources is necessary. A spirit of shared responsibility is necessary, with Public Works in the lead role. The Administrative Services Department, as the City’s budget office, is then ultimately responsible for compiling and publishing the document as part of the overall budget document. 69 CC 03-04-2025 69 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 21 Recommendation 20. Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments. Recommendation 21. Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division. Recommendation 22. Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget. Recommendation 23. Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs. Recommendation 24. Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage. Recommendation 25. Ensure all appropriated funds and consulting services are tracked and reported against original purposes. Other Budget-Related Matters During the course of our work, other budget-related matters came to our attention that have an impact on the usefulness of the budget document and meeting the core principles discussed earlier. Those are discussed here. Special Projects The City uses the concept of Special Projects to indicate various priority projects that have been identified outside of the ordinary course of serving the community. The City has tracked these special projects within the context of the annual budget, providing a report on projects that were developed and their status heading into the subsequent budget year. The City also provides updates on special projects as a part of its quarterly financial report. Concerns were raised as part of our interview process about the timeliness of the reporting, understanding the costs associated with each project, and the authority upon which the special project was developed and approved (e.g., staff-level authority vs. Council authority). There also seems to be confusion regarding how projects that either are not completed or span multiple fiscal years are budgeted and carried over. Staff indicates that quarterly reports are provided to the City Council as part of its quarterly financial reporting. The issue that needs to be addressed is how Special Projects should be defined, the form of reporting, how often the reports should be prepared and discussed during Council meetings, and how best to follow-up on items that result from policy direction on those Special Projects as the year progresses. There needs to be a common understanding of these parameters among Council and staff. 70 CC 03-04-2025 70 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 22 We believe that a policy that addresses these issues should be created. The policy should be developed considering the context of the City’s highest priorities evidenced in the citywide strategic plan or strategic priorities (in the absence of a strategic plan). We believe that the reporting should be conducted quarterly, understanding that check-ins on specific projects may be necessary throughout the year. Recommendation 26. Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form. Contracted/Consulting Services Concerns were also expressed relative to the use of contracted and/or consulting services throughout the budget year. Currently, the use of consulting services to support the delivery of services is within the context of the City Manager’s budget authority through the annual budget resolution as well as the Expenditure Policies of the City that are currently spelled out in the annual budget document. Most local government agencies in the region and in California include a provision within the annual budget adoption resolution that provides their City Manager or chief executive with the authority to expend funds appropriated at the fund/department level. The typical budget resolution also expresses that the City Council is the authority relative to position control, meaning that new positions cannot be created without Council approval. It is not uncommon for the city manager to be granted authority to use appropriated funds, within the fund/department limitation, to use contracted and/or consulting services to support operational needs in achieving the objectives within the budget. In many cases, city managers will use contracted/consulting services to support operational needs where temporary staffing vacancies exist and where services must be delivered timely to meet the operational objectives. To the extent that the City Council wishes to address this issue in the coming fiscal year, we recommend that this be clarified through the Expenditure Policy and/or the annual budget resolution. Recommendation 27. Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting services to achieve the City’s annual service delivery goals expressed in the adopted budget. Budget Public Engagement Budget public engagement is becoming more critical in assuring that community needs are being adequately addressed and to create a partnership environment with stakeholders in the community to ensure the agency is accomplishing its most important needs with the financial 71 CC 03-04-2025 71 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 23 resources it has been entrusted to oversee. Such public engagement can take on the form of various strategies including public information, education materials, and in-person community engagement activities to solicit input and inform the community on fiscal-related matters. Moreover, it is important to stress that a budget document represents a “financial planning tool” that provides the allocation of resources to accomplish the agency’s objectives in service delivery to the community. These elements are important in conveying budget information to the community. Increasing engagement with the budget is essential for fostering transparency and understanding within the community. By actively involving the public in the budgeting process, governments can build trust and ensure that residents feel informed and empowered. The City’s existing Budget Roadmap indicates various points in the budget process for public engagement. Typically, those are included as part of City Council meetings rather than separate engagement opportunities with community stakeholders. Yet the City publishes several well- designed and informational documents, notices, and engagement opportunities via the City website and social media accounts to inform and engage the community in budget deliberations. Recommendation 28. Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded. Recommendation 29. Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy-to-understand content and graphics. Recommendation 30. Leverage tools like OpenGov to create interactive, department-focused summaries for each user type including the community, council and staff. Recommended Document Framework (Table of Contents) Based on our recommendations indicated above, we recommend the following changes to the budget document framework that will streamline its presentation and make it easier to navigate. These changes balance the need for detailed information with creating a document that is understandable by finance professionals, City/department leaders, stakeholders and community members alike. These changes will still allow the City to pursue GFOA awards for excellence in budgeting. Changes are indicated in red font. Introduction City Organizational Chart City Mission and Strategic Goals (moved from Budget Summary and Budget Guide and combined) 72 CC 03-04-2025 72 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 24 Directory of City Officials Commissions and Committees GFOA Distinguished Budget Presentation Award CSMFO Operating Budget Excellence Award Resolutions Budget Message (moved out of Budget Summary into its own section) Budget Overview (moved out of Budget Summary into its own section) Budget Summary Budget Message City Mission and Strategic Goals -(move to Introduction section) Notable Accomplishments-(move to department section) New Initiatives (move to department section) Budget Overview Budget Guide Our Mission (move to Introduction section) Elements of the Budget Document- (move to appendix) Glossary of Budget Terminology- (move to appendix) Commonly Used Acronyms- (move to appendix) Revenues, Expenditures, and Fund Balance Table (move to appendix) Community Profile History Community Economic Profile City Profile (leverage City website to host such information) Education (leverage City website to host such information) Programs and Applications (leverage City website to host such information) Community Statistics Community and Recreation Services (leverage City website to host such information) Things To Do and See (leverage City website to host such information) Financial Policies (summarize key policies rather than detailed policy descriptions) Annual Budget Process Structure of City Finances Fund Structure Department/Fund Relationship Balanced Budget Policy Revenue Policies Expenditure Policies Capital Improvement Programs Policy Information Technology Replacement and Capitalization Policy Pension and Retirement Funding Policy Long Term Financial Stability Policies Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Investment Policy Community Funding Policy 73 CC 03-04-2025 73 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 25 Appropriations Limit Legal Debt Margin All Funds Financial Schedules Financial Overview by Fund Flow of Funds Chart (Sankey) (eliminate and summarize use of tax resources) All Funds Summary All Funds Revenues All Funds Expenditures All Funds Expenditures by Department All Funds Fund Balance General Fund Financial Schedules General Fund Contribution Schedule General Fund Summary General Fund Revenues General Fund Expenditures General Fund Transfers General Fund Fund Balance General Fund Forecast Departments (see Recommendation #17 regarding streamlined content to include for each section listed below) Council and Commissions Department Overview City Council Commissions Community Funding (summarized in overview) Historical Society (summarized in overview) Sister Cities (summarized in overview) Technology, Information & Communications Commission (summarized in overview) Library Commission (summarized in overview) Arts and Culture Commission (summarized in overview) Public Safety Commission (summarized in overview) Bicycle and Pedestrian Commission (summarized in overview) Parks and Recreation Commission (summarized in overview) Teen Commission (summarized in overview) Planning Commission (summarized in overview) Housing Commission (summarized in overview) Sustainability Commission (summarized in overview) Audit Committee (summarized in overview) Administration Department Overview City Manager Sustainability (summarized in overview) 74 CC 03-04-2025 74 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 26 Office of Communications (summarized in overview) Multimedia (summarized in overview) Public Access Support (summarized in overview) Community Outreach and Neighborhood Watch (summarized in overview) Office of Emergency Management (summarized in overview) Economic Development (summarized in overview) City Clerk Duplicating and Mail Services (summarized in overview) Elections (summarized in overview) City Manager Contingency City Attorney Law Enforcement Department Overview Law Enforcement Interoperability Project (summarized in overview) Innovation and Technology Department Overview Innovation & Technology Administration Video Applications Infrastructure GIS Administrative Services Department Overview Administrative Services Administration (summarized in overview) Accounting (summarized in overview) Business Licenses (summarized in overview) Purchasing (summarized in overview) Budget (summarized in overview) Finance Human Resources Retiree Benefits (summarized in overview) Insurance Administration (summarized in overview) Workers Compensation Insurance (summarized in overview) Long Term Disability (summarized in overview) Compensated Absences (summarized in overview) Parks and Recreation Department Overview Parks and Recreation Business and Community Services Recreation and Education Sports, Safety and Outdoor Recreation Recreation Administration (summarized in overview) 75 CC 03-04-2025 75 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 27 Library Services (summarized in overview) Administration (summarized in overview) Cultural Events (summarized in overview) Facilities (summarized in overview) Administration (summarized in overview) Youth Teen Recreation (summarized in overview) Senior Center (summarized in overview) Teen Programs (summarized in overview) Neighborhood Events (summarized in overview) Park Facilities (summarized in overview) Administration (summarized in overview) Blackberry Farm Golf Course (summarized in overview) Outdoor Recreation (summarized in overview) Sports Center Operations (summarized in overview) Community Development Department Overview Community Development Administration Current Planning Mid and Long Term Planning (summarized in overview) Housing Services CDBG General Admin (summarized in overview) CDBG Capital/Housing Projects (summarized in overview) CDBG Public Service Grants (summarized in overview) BMR Affordable Housing Fund (summarized in overview) Human Service Grants (summarized in overview) General Building Building Plan Review (summarized in overview) Building Code Enforcement (summarized in overview) Muni Code Enforcement (summarized in overview) Code Enforcement Public Works Department Overview Public Works Administration Environmental Programs Developmental Services Service Center Grounds Streets Trees and Right of Way Facilities and Fleet Transportation Sustainability (summarized in overview) Resource Recovery (summarized in overview) 76 CC 03-04-2025 76 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 28 Non-Point Source (summarized in overview) Storm Drain Fee (summarized in overview) General Fund Subsidy (summarized in overview) Storm Drain Maintenance (summarized in overview) Plan Review (summarized in overview) CIP Administration (summarized in overview) Service Center Administration (summarized in overview) Golf Grounds Maintenance (summarized in overview) McClellan Ranch Park (summarized in overview) Memorial Park (summarized in overview) BBF Ground Maintenance (summarized in overview) School Site Maintenance (summarized in overview) Neighborhood Parks (summarized in overview) Sport Fields Jollyman, Creekside (summarized in overview) Civic Center Maintenance (summarized in overview) Sidewalk Curb and Gutter (summarized in overview) Street Pavement Maintenance (summarized in overview) Street Sign Marking (summarized in overview) Street Lighting (summarized in overview) Equipment Maintenance (summarized in overview) Environmental Materials (summarized in overview) Trail Maintenance (summarized in overview) Overpasses and Medians (summarized in overview) Street Tree Maintenance (summarized in overview) Sheriff Work Program (summarized in overview) BBF Golf Maintenance (summarized in overview) City Hall Maintenance (summarized in overview) Library Maintenance (summarized in overview) Service Center Maintenance (summarized in overview) Quinlan Community Center Maintenance (summarized in overview) Senior Center Maintenance (summarized in overview) McClellan Ranch Maintenance (summarized in overview) Monta Vista Community Center Maintenance (summarized in overview) Wilson Park Maintenance (summarized in overview) Portal Park Maintenance (summarized in overview) Sports Center Maintenance (summarized in overview) Creekside Park Maintenance (summarized in overview) Community Hall Maintenance (summarized in overview) Teen Center Maintenance (summarized in overview) Park Bathrooms Maintenance (summarized in overview) Blackberry Farm Maintenance (summarized in overview) Franco Traffic Operations Center (summarized in overview) City Hall Annex (summarized in overview) 77 CC 03-04-2025 77 of 283 Budget Document and Performance Measures Improvements Budget Document Baker Tilly 29 Community Shuttle (summarized in overview) Traffic Engineering (summarized in overview) Traffic Signal Maintenance (summarized in overview) Safe Routes 2 School (summarized in overview) Non-Departmental (Fixed Assets Acquisition) Non-Departmental Department Overview General Fund Non-Departmental (summarized in overview) Tree Fund Non-Departmental (summarized in overview) Debt Service Non-Departmental (summarized in overview) Capital Reserve Non-Departmental (summarized in overview) Facility Lease Debt Service Appendix Unfunded Needs CIP Schedule All Funds Forecast Schedule Personnel Schedule Elements of the Budget Document Glossary of Budget Terminology Commonly Used Acronyms Revenues, Expenditures, and Fund Balance Table 78 CC 03-04-2025 78 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 30 Performance Measures Performance Measures Interview Themes As mentioned earlier, we conducted individual interviews with all City Councilmembers and nine staff members. The following represents the themes we heard as part of our interview of each group, respectively. Interview Themes – Council The common themes regarding the performance measures from council interviews are summarized into the following themes: 1. Governance and Oversight a. There is a lack of oversight in public works and other areas. b. There is a need for improved transparency, particularly regarding project statuses and permitting. 2. Performance Measures Needed a. Council addressed the following areas that need improved performance measures: i. Public safety community perception ii. Community amenities and service utilization iii. Code enforcement responsiveness iv. Permitting process efficiency and equity v. Financial and economic performance vi. Employee and resource management Interview Themes – Staff The common themes regarding the performance measures from staff interviews are summarized in the following five themes: 1. Lack of Alignment with Goals a. Performance measures often do not align with departmental goals, which themselves are closer to mission statements rather than actionable objectives. b. The disconnect between measures and goals reflects limited initial input from department directors during the creation of performance measures. 2. Limited Engagement and Emphasis a. There is no clear mandate or directive emphasizing the importance of performance measures, leading to a lack of priority across departments. b. Most departments primarily update existing metrics with little effort to develop or refine new measures. 3. Process Challenges and Misunderstandings 79 CC 03-04-2025 79 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 31 a. Staff are unclear about the timeline, process, and format for updating performance measures during the budget cycle. b. Confusion exists between workload indicators (operational data) and performance measures (outcome-focused metrics). 4. Lack of Standardization and Collaboration a. There is no standardized timeline or regular meetings for department heads to collaborate on and review performance measures. b. Departments have ideas for improvement but lack a coordinated process to update measures effectively. 5. Data Dependencies and Interdepartmental Impact a. Changes to performance measures may require verification of data availability by I&T, creating additional hurdles. b. Shared data sets between departments mean that updates to one department’s measures can have cascading effects on others. Key Takeaways The interviews with both Council and staff reveal consistent themes related to the need for improved performance measures but highlight different areas of concern. Both groups emphasize the importance of aligning performance measures with the City’s overarching goals. Council members focused on the need for clear governance and oversight, particularly in public works and project transparency, while staff point to the lack of alignment between departmental goals and performance metrics. Both also identify a lack of prioritization and emphasis on performance measures, with Council seeking clearer accountability and staff noting limited engagement and unclear directives. Additionally, both groups agree that there is a need for a more structured process, with Council advocating for more strategic direction and staff noting confusion in how performance measures are developed and updated. Ultimately, both Council and staff recognize the importance of performance measures but agree that the current system requires better alignment, clearer guidelines, and improved collaboration to be effective. Current Performance Measures Review and Analysis Our initial observations about the department performance measures and the process are summarized into the following two themes: 1. Alignment with Overall City Goals a. Department goals do not directly align with the City Council’s five priority goals; they are too broad to be linked to any one specific goal. b. Internal auditors have suggested the need for a strategic plan. c. Departments list a single, mission-like goal in the budget, with all performance measures tied to it, but no other specific departmental goals d. Staff invest little time in performance measures due to their disconnect from overall city goals. 80 CC 03-04-2025 80 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 32 2. Performance Measures Utilization a. There are no clear instructions for creating new or updating performance measures. b. Departments are reluctant to develop performance goals, believing no one reviews them. c. Staff feel the existing goals are sufficient and don't need revision. d. Departments would like to update their performance measures but with no importance placed on the measures, they fill in the current performance measures. Performance Measures Observations and Recommendations The City’s budget document includes performance measures, something that several other cities in the region do not. For that, the City is to be complimented. However, the performance measures need to be relevant to those key metrics that evaluate the City’s performance in meeting the priority needs of the community. We developed recommendations to identify meaningful performance measures for the City’s consideration in evaluating performance in the years to come. Performance Measures vs. Workload Indicators Currently in the budget document, there is no clear distinction between a performance measure and workload indicator. Additionally, there is no standardized approach in the budget document to determine which departments, divisions or programs should have either a performance measure, a workload indicator, or a combination of both. This inconsistency can make it difficult to assess and compare the effectiveness or efficiency of different departments or services. For example, the Recreation and Community Services Department has overarching departmental performance and workload indicators on a divisional level while the Public Works Department has both performance measures and workload indicators at a division and program level. Guidelines for which types of metrics should be applied departmentally, divisionally and programmatically can help ensure consistency. A standardized approach would help ensure that the performance metrics and workload indicators are tailored to its goals, operations, and desired outcomes. Additionally, the current budget document lacks a clear and consistent differentiation between performance measures and workload indicators, which are two distinct and important types of metrics. • Performance measures are indicators that assess the effectiveness, efficiency, and outcomes of a program or service. These metrics focus on the results achieved relative to the goals set, offering a gauge of whether objectives are being met and how well resources are being utilized to achieve these outcomes. Performance measures often involve qualitative or quantitative data that demonstrate the success or impact of a 81 CC 03-04-2025 81 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 33 program. For example, a performance measure could include metrics such as customer satisfaction rates, reduction in response time for a service, or improvements in a specific outcome. These measures help stakeholders understand the value delivered by a program and can guide decisions on areas for improvement, funding allocation, or program expansion. • Workload indicators measure the volume or level of activity within a program or service, tracking the inputs or resources required to carry out specific tasks. Workload indicators typically quantify aspects such as the number of transactions processed, the number of people served, the amount of time spent on activities, or the frequency of certain events or processes. These indicators help to assess the scope of operations, and the demand placed on staff and resources. For instance, a workload indicator might include metrics like the number of calls answered, the volume of permits issued, or the number of inspections conducted. While workload indicators provide insight into the operational aspects of a program, they do not necessarily reflect the effectiveness or quality of the services being delivered. Table 4 presents our analysis of the current “performance measures” included in the current budget document as to whether those items are performance measures or workload indicators. Table 4. Performance Measures Versus Workload Indicators Departments Division Program Current PM Current WI City Attorney City Manager City Clerk x x Public Affairs x x Sustainability Program x Economic Development x x Law Enforcement x x City Treasurer Administrative Services Finance x x Human Resources x x Community Development x Building x Planning x Economic Dev Code Enforcement Housing x Recreation and Community Services x Rec and Ed x Sports, Safety, Outdoor Rec x Business and Comm Services x Public Works Capital Improvement Program x x Development Services x x Transportation x x Environmental Programs x x Service Center Grounds x x Streets x x 82 CC 03-04-2025 82 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 34 While workload indicators can identify how busy a department might be, the focus should instead be on performance measures to determine whether departments are being successful in delivering services to the community and identify areas that require additional focus or resources as part of the budget process. Strategic Planning Since the creation of the original performance measures and workload indicators, there has been a lack of clear, consistent guidance on how departments should update and refine these metrics over time. Without a structured approach for periodic review and adjustment, these metrics may become outdated, misaligned with evolving departmental goals, or insufficient to reflect changes in service delivery, operations, or external factors. As a result, the data collected through these metrics may no longer provide an accurate or comprehensive picture of a department's performance or workload. Integrating the update of these metrics into a formal, ongoing strategic planning process can help address this issue. For Cupertino, implementing a structured strategic planning process is crucial to ensuring that its programs and services remain effective, relevant, and aligned with the city's evolving needs. In 2020, the City Council adopted five overarching goals to guide the city’s priorities, which are reviewed every two years. These goals feed directly into the City’s Two-Year Work Plan, but they currently do not tie into the budget, leaving a gap in how the city’s objectives are measured and funded. By creating an overarching City Strategic Plan, Cupertino can establish a high-level roadmap for all departments, aligning their performance measures and workload indicators with the city’s long-term goals. A City Strategic Plan would provide a clear framework for ensuring that each department's metrics are directly tied to the city's priorities and resources, promoting consistency across departments and ensuring that all efforts are aligned with the broader vision for Cupertino’s future. This process would help the city maintain a unified vision, guide resource allocation, and evaluate performance based on clear, well-defined objectives. Additionally, by incorporating the update of performance measures and workload indicators into the strategic planning cycle, the city can ensure these metrics remain relevant and effective as the city grows and its needs evolve. Moreover, this process would foster a culture of continuous improvement by encouraging regular reflection on past performance, identifying areas for adjustment, and implementing data-driven decisions. By embedding performance measures and workload indicators within a Departments Division Program Current PM Current WI Trees & ROW x x Facilities and Fleets x x Innovation and Technology GIS x x Multimedia x Infrastructure x x Apps x x Video 83 CC 03-04-2025 83 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 35 citywide strategic planning framework, Cupertino can ensure a cohesive and efficient approach to meeting its goals and improving service delivery. The pyramid structure in Figure 2 that follows provides a framework for how to begin thinking about strategic planning for the City. • Core Values – Core values form the foundation of an organization, guiding decisions and actions in fulfilling its mission and vision. They define what the organization stands for, providing boundaries around leadership, service philosophy, priorities, and strategies. • Mission – The mission statement focuses on the present, defining the organization’s purpose and answering, "What do we do?" • Vision – The vision, on the other hand, looks to the future, answering "Where are we going?" and offering inspiration for the community, staff, and policymakers. • Organizational Goals – Organizational goals outline the direction and desired future, offering the "why" behind specific actions. • Organizational Strategies – Strategies are the means to achieve these goals, providing a method to ensure success. Performance measures are developed to assess whether the goals are being met, and these can be organization-wide or department-specific. • Strategic Priorities – Strategic priorities form an implementation action plan (IAP) that assigns responsibility across departments, ensuring goals and strategies are achieved. • Personal Priorities – Personal priorities create action plans for staff and volunteers, aligning their efforts with the organization’s broader mission and vision to serve the community effectively. 84 CC 03-04-2025 84 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 36 Figure 2. Strategic Planning Framework Based on the foregoing, we believe that the City should develop a strategic plan along the lines of what we have presented above. Recommendation 31. Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments. Personal Priorities Strategic Priorities Organizational Strategies Organizational Goals Vision Mission Core Values 85 CC 03-04-2025 85 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 37 Recommended Performance Measures As stated earlier, this project seeks to bridge the gap between outdated performance metrics and the City’s evolving needs, ensuring that the measures not only reflect current service delivery priorities but also support continuous improvement and accountability across departments. We have also taken care to eliminate workload indicators from this list since, as indicated earlier, workload indicators merely represent how busy a department might be whereas performance measures are the key indicators of whether the City is achieving the outcomes it desires based on its strategic initiatives and priorities. Table 5 details current performance measures by department and proposed new performance measures, with the performance measures in red being new proposed performance measures. Priority 1 performance measures should be implemented in the next budget. Priority 2 performance measures should be reviewed and implemented as soon as possible. Standards for performance will need to be established, with City Council approval, to have a basis upon which to evaluate performance and an indicator of areas that require greater focus or attention. This set of recommended performance measures will need to be updated when the City conducts a strategic planning process as discussed above. Table 5. Suggested Performance Measures Department/Division Current Performance Measures Recommended Performance Measures City Manager’s Office City Attorney N/A Priority 1: • Percent of City Council resolutions reviewed within 7 business days • Percent of public information requests for legal review submitted to City Attorney’s office reviewed within 7 business days • Percent of legal opinion requests from external department responded to within 5 business days • Percentage of contract reviews completed within 10 business days City Manager N/A Priority 1: • Percent of council requests responded to within 24 hours • Percentage of citizen requests to the City Manager’s Office acknowledged in 3 business days • Percent of Council requests/inquiries on published agenda items that are provided to Council at or before the Council meeting 86 CC 03-04-2025 86 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 38 Department/Division Current Performance Measures Recommended Performance Measures City Clerk • City Council minutes for meetings presented for Council approval by the following regular meeting • Adopted City Council resolutions and ordinances processed and city scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document • Public Record Act requests responded to by the Statutory deadline date Priority 1: • Percent of City Council preliminary agenda posted on time, in accordance with Open Government Ordinance, 6 business days prior to meeting • Percent of City Council Agendas packets prepared, posted and delivered 4 days prior to meeting • Percent of timely filings of Fair Political Practices Commission Form 700 Statements of Economic Interest • Percent of timely filings of Fair Political Practices Commission Forms 460/Campaign Committee reports Priority 2: • Percent of City Council minutes for regular meetings presented for Council approval by the following regular meeting" • Percent of adopted City Council resolutions and ordinances processed and scanned to Laserfiche within 1 week of Clerk’s office receipt of final, signed document • Percent of Public Record Act requests responded to by the Statutory deadline date Public Affairs/ Communication • Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts • Community engagement: total number of IOI recipients • Total number of Gov Delivery Notices sent • Cupertino 311: Average response time to customers organization‐wide (in days) Priority 1: • Growth of number of total followers on City social media channels (Facebook, LinkedIn, X, Instagram, Nextdoor) Priority 2: • Percent of residents that rate the overall quality of information on the City’s communications channels as good or excellent • Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts • Social media engagement: average number of engagements (reactions, comments, shares, and clicks) per post on City Hall Facebook account • Community engagement: total number of IOI recipients • Total number of Gov Delivery Notices sent Economic Development • Maintain Economic Development Business Connect Subscribers • Economic Development Business Visits, Workshops & Events Priority 1: • Number of meetings conducted with developers and prospective businesses • Growth in the number of people subscribing to Business Connect Newsletter • Percentage growth of number of corporate visits Law Enforcement • Response Time for o Priority 1 Calls o Priority 2 Calls o Priority 3 Calls • Total Teen/Community maintaining minimum attendance Priority 1: • Percent of calls that met response time standards for • Priority 1 Calls • Priority 2 Calls • Priority 3 Calls • Percent of graduates from the Teen Academy 87 CC 03-04-2025 87 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 39 Department/Division Current Performance Measures Recommended Performance Measures Administrative Services Finance • General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations" • Credit Rating • Actual revenue vs. budget (% below budget)" • Actual expenditure (% below budget) • Funding allocated to high priority services (Public Works, Community Development, Law Enforcement)" Priority 1: • General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations • Total actual revenue vs. budget within 10% of original projections • Consecutive years of maintaining a credit rating of A+ or better • Consecutive years of timely completion of debt compliance reporting • Number of high-risk internal audit issues identified • Number of consecutive years that the City's annual financial statements receive an unmodified opinion from the External Auditors with no significant deficiencies or material weaknesses Priority 2: • Actual expenditure (% below budget) • Average number of days from approved invoice received to check issuance • Percent of funding allocated to high priority services (Public Works, Community Development, Law Enforcement) • Number of consecutive years the City's Annual Comprehensive Financial Report (ACFR) receives the Government Finance Officers Association Award Human Resources • # of Worker’s Compensation Cases • Total recordable Injury Rate YTD • % absenteeism (% of total annual work hours) • % turnover rate • % Employee participation in wellness activities • Average # of applications received per recruitment • Recruitment timeline ‐ # days from hiring request to offer letter" Priority 1: • Decline in workers compensation costs • Citywide turnover rate percentage • Percentage of recruitments completed within established timelines Priority 2: • Number of workers compensation claims processed • The total recordable Injury Rate • Percent absenteeism (% of total annual work hours) • Percent of Employee participation in wellness activities • Percentage of employees participating in Citywide training program • Average number of applications received per recruitment Community Development Building • Building permit applications shall be plan reviewed within 15 business days. • Customer/Applicants visiting the Building Permit Counter shall be assisted within 15 minutes Priority 1: • Percent of building permit applications reviewed within 15 business days • Percent of customers/applicants visiting the building/permit counter that are assisted within 15 min • Percent of customers/applicants visiting the building/permit counter rating the service received as good or better • Percent compliance with regulations such as Permit Streamlining Act and AB1633 • Percent of building inspections performed versus the building inspections received 88 CC 03-04-2025 88 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 40 Department/Division Current Performance Measures Recommended Performance Measures Planning • Applicants visiting the Planning Counter shall be assisted within 15 minutes • Building permit applications reviewed/issued over‐the‐ counter (OTC) Priority 1: • Number of staff decision planning permit applications (excluding Design Review) submitted and percent receiving 1st set of staff comments in 30 or fewer calendar days • Average number of days to review a revision • Percentage of development applications scheduled for Planning Commission review within 90 business days of the project deemed complete • Percent of Applicants visiting the Planning Counter assisted within 15 minutes • Percent of building permit applications reviewed/issued over the counter (OTC) Priority 2: • Number of required public meetings for applications deemed complete and heard by a hearing body within 90 days. Code Enforcement • Average number of days to initiate investigation of code complaints • Code enforcement cases resolved without issuance of citations Priority 1: • Average number of days to initiate investigation of code complaints • Percent of code complaints through the 311 system that received an update on the status within 48 hours of initial contact • Percent of code complaints through the 311 system that were resolved Housing • Below market rate rental and purchase vacancies filled • Landlord‐tenant counseling and dispute resolution cases provided • Public Outreach Events • Funds received from Community Block Grant (CDBG) federal entitlement program Priority 1: • Percent of below market rate rental and purchase vacancies filled • Number of landlord‐tenant counseling and dispute resolution cases provided • Number of housing program applications (including BMR, first-time homebuyer and rehabilitation) and percent processed within 21 calendar days. • Percentage decline in number of censused unhoused individuals within the community (Note: County is responsible for providing unhoused remediation programs; measure indicates whether greater coordination with County is needed) Priority 2: • Growth in outreach to target groups identified in Housing Element for housing redevelopment opportunities 89 CC 03-04-2025 89 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 41 Department/Division Current Performance Measures Recommended Performance Measures Recreation and Community Services All divisions • % Department’s total cost recovery for all (direct and indirect) costs • # of new programs or events offered • % of Parks and Recreation Department customers surveyed who rate services as good or excellent • % of programs maintaining minimum registration Priority 1: • % of Parks and Recreation Department customers surveyed who rate services as good or excellent • % Department’s total cost recovery for all (direct and indirect) costs • % growth in total Enrollment in classes/camps/programs. • Average enrollment-to-capacity percentage in all recreation offerings • % of programs maintaining minimum registration • Growth in reservations (e.g., facility rentals, picnic/court reservations) • Percent growth in memberships (e.g., senior center and sports center) Public Works Capital Improvement Program • Percentage of projects completed on budget • Percentage of construction projects completed on time Priority 1: • Timely completion of Capital Improvement Plan and incorporation into the budget document • Consecutive years of publishing an updated Capital Improvement Plan • Percentage of projects completed within the originally adopted budget (unless formally amended) • Percentage of projects completed on time • Percentage of projects that have been started or completed from latest Capital Improvement Plan Development Services • Respond to complete plan submittals or applications within two (2) weeks • Respond to complete encroachment permit applications within two (2) weeks • Respond to public inquiries at the Public Works counter in City Hall within 15 minutes Priority 1: • Percent of complete plan submittals or applications responded to within 2 weeks • Percent of complete encroachment permit applications responded to within 2 weeks • Percent of public inquiries at the Public Works counter in City Hall responded to within 15 minutes • Cupertino 311: Average response time to customers organization‐wide (in days) Transportation • Percentage of non‐emergency traffic signal requests addressed within 72 hours • Percentage of emergency traffic signal requests addressed within 2 hours. • Percentage of traffic engineering requests responded to within 72 hours • Annual mileage increases of separated bicycle lanes and pedestrian paths. Priority 1: • Percentage of non‐emergency traffic signal requests addressed within 72 hours • Percentage of emergency traffic signal requests addressed within 2 hours. • Percentage of traffic engineering requests responded to within 72 hours • Annual mileage increases of separated bicycle lanes and pedestrian paths. 90 CC 03-04-2025 90 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 42 Department/Division Current Performance Measures Recommended Performance Measures Environmental Program • Percent of businesses in compliance during annual proactive stormwater pollution prevention inspections" • Percent of non‐exempt businesses and multi‐family accounts separating organics • Percent trash/litter reduction achieved to meet Stormwater Permit requirements" • Diversion rate from all single‐family, multi‐family, and commercial accounts as reported by Recology tonnage reports • Respond to reports of actual or potential discharge the same business day • % of plan reviews completed in required number of days • Cubic yards of compost distributed via compost site • % of vegetation obstructions resolved within 15 days from time of report Priority 1: • Percent of businesses in compliance during annual proactive stormwater pollution prevention inspections" • Percent of non‐exempt businesses and multi‐family accounts separating organics • Percent trash/litter reduction achieved to meet Stormwater Permit requirements" • Diversion rate from all single‐family, multi‐family, and commercial accounts as reported by Recology tonnage reports • Respond to reports of actual or potential discharge the same business day • % of plan reviews completed in required number of days • Cubic yards of compost distributed via compost site • % of vegetation obstructions resolved within 15 business days from time of report Sustainability • % community‐wide emissions reduced from baseline of 307,288 MT CO2e/yr • Initiate, develop, and complete actions from the Climate Action Plan 2.0 • % initiated • % complete or ongoing • % municipal operations emissions reduced from baseline of 1,865 MT CO2e/yr Priority 1: • Percentage of applicable capital improvement projects that integrate sustainability and resilience • % community‐wide emissions reduced from baseline of 307,288 MT CO2e/yr • % municipal operations emissions reduced from baseline of 1,865 MT CO2e/yr Priority 2: • Initiate, develop, and complete actions from the Climate Action Plan 2.0 • % CAP actions initiated • % CAP actions complete or ongoing Grounds • Percentage of 311 requests that are responded to and closed within 3 business days • Percentage of the 1,872 park inspections, including playgrounds, performed weekly • Percentage of Backflow Prevention • Devices inspected, tested and repaired annually Priority 1: • Percentage of 311 requests that are responded to and closed within 3 business days • Percentage of the 1,872 park inspections, including playgrounds, performed weekly • Percentage of Backflow Prevention • Percent of parks and playgrounds rated as being maintained in good condition by visitors • Percentage of parks and facilities that pass routine inspections Priority 2: • Number of devices inspected, tested and repaired annually 91 CC 03-04-2025 91 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 43 Department/Division Current Performance Measures Recommended Performance Measures Streets • Pavement condition index (PCI) > or equal to 82 • Percent of the 2087 storm drain inlets inspected and cleaned in fiscal year • Percent of Inlets with Trash Capture Screens inspected and cleaned twice yearly • Percentage of roadway regulatory & street name signs repaired or replaced • Percentage of trip and fall complaints investigated and mitigated within 2 business days" • Percentage of reported streetlight outages investigated and repaired in 3 business days Priority 1: • Pavement condition index (PCI) > or equal to 82 (or City standard as so established) • Percent of the 2,087 storm drain inlets inspected and cleaned in fiscal year • Percent of Inlets with Trash Capture Screens inspected and cleaned twice yearly • Percentage of roadway regulatory & street name signs repaired or replaced • Percentage of trip and fall complaints investigated and mitigated within 2 business days" • Percentage of reported streetlight outages investigated and repaired in 3 business days Trees & ROW • Percentage of 311 requests that are responded to and closed within 3 business days • Percentage of trees inspected and maintained in the yearly maintenance zone (8-year maintenance cycle) • Percentage of trees planted versus trees removed • # planted • # removed Priority 1: • Percentage of 311 requests that are responded to and closed within 3 business days • Percentage of trees inspected and maintained in the yearly maintenance zone (8-year maintenance cycle) • Percentage of trees planted versus trees removed o # planted o # removed Facilities and Fleets • Percentage of preventative maintenance work orders completed for Fleet assets within 14 days of the due date. • Percentage of facilities maintenance requests closed within 30 days. Priority 1: • Percentage of preventative maintenance work orders completed for Fleet assets within 14 business days of the due date. • Percentage of facilities maintenance requests closed within 30 business days. Innovation Technology GIS • GIS: % of time spent Developing Application • GIS: % of time Maintaining applications • GIS: Increase Property Information (Internal/External) site visits per month • GIS: Cityworks utilization ‐ # of assets Cupertino maintains vs # of assets maintained in Cityworks. Also, the % increase of work units completed (WOs, INSP,SRs) Priority 1: • Cityworks utilization ‐ # of assets Cupertino maintains vs # of assets maintained in Cityworks. Also, the % increase of work units completed (WOs, INSP,SRs) Priority 2: • GIS: % of time spent Developing Application • GIS: % of time Maintaining applications • GIS: Increase Property Information (Internal/External) site visits per month Multimedia/ Video • Percentage of total video productions performed vs scheduled productions (city meetings excluded) • Percentage of total engineering projects vs scheduled projects • Total video views on YouTube Priority 1: • Percentage of surveyed non-English speaking residents who are aware of and have accessed the City’s video productions in any media form Priority 2: • Percentage of total video productions performed vs scheduled productions (city meetings excluded) • Percentage of total engineering projects vs scheduled projects • Total video views on YouTube 92 CC 03-04-2025 92 of 283 Budget Document and Performance Measures Improvements Performance Measures Baker Tilly 44 Department/Division Current Performance Measures Recommended Performance Measures Infrastructure • Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on time" • Infrastructure: Percentage based upon number of Helpdesk tickets/SLA measurements • Infrastructure: % Customer satisfaction based upon Satisfaction Rate from helpdesk tickets • Infrastructure: % of network uptime (not including planned maintenance) Priority 1: • % of network uptime (not including planned maintenance) • Percentage based upon number of Helpdesk tickets/SLA measurements • % Customer satisfaction based upon Satisfaction Rate from helpdesk tickets • Percentage based upon number of scheduled projects/Number of projects completed on time" • Percentage of helpdesk requests closed within 8 hours Apps • Applications: % of citywide‐enterprise application project management performed on time and on budget" • Applications: Number of website site visits/Number of site hits • Applications: Number of support requests for the applications support per month Priority 1: • % of citywide‐enterprise application project management performed on time and on budget" • Number of website site visits/Number of site hits • Number of support requests for the applications support per month • Number of legacy systems replaced, eliminated or consolidated. • Percent project implementations performed on time and budget The performance measures identified herein will need to be reviewed in light of standards of performance expected for each Department. Performance measures for Parks and Recreation are consolidated for the overall department rather than division based on their operations and to provide an overall comprehensive view into parks and recreation services rather than by division. The final list will require review by City staff and City Council approval of those performance standards and should be updated at least biennially. Recommendation 32. Establish performance standards for each performance measure and reevaluate at least biennially. 93 CC 03-04-2025 93 of 283 Budget Document and Performance Measures Improvements Conclusion Baker Tilly 45 Conclusion A city’s budget document is one of the most important financial planning tools that the City Council and staff must review and complete each year. It should be reflective of the highest priorities that the City is facing in the budget year. The budget document should address the needs of the City Council to inform their decision-making, the staff to support their delivery of services to the community, and the community itself in understand how the City is spending its tax dollars and exercising its role as fiscal stewards of the tax dollars to which it has been entrusted. Performance measures relevant to achieving its strategic priorities are an important element that leads to trust in the services that the City provides. The recommendations made herein will help the City streamline its budget document, which provides more meaningful information and is laid out in a way that is understandable. The performance measures we have identified will help the City evaluate its performance in achieving its goals. 94 CC 03-04-2025 94 of 283 Budget Document and Performance Measures Improvements Attachment A – List of Recommendations Baker Tilly 46 Attachment A – List of Recommendations Recommendation 1. Ensure the document includes a title page, improved table of contents, consistent layout and orientation. Recommendation 2. Isolate the Budget Message as a standalone section. Recommendation 3. Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart. Recommendation 4. Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective department section. Recommendation 5. Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message Recommendation 6. Elevate the Budget Overview subsection as its own section in the budget document. Recommendation 7. Report department reductions at the summary level and refer to the department section for further detail. Recommendation 8. Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user. Recommendation 9. Move the Mission Statement to the strategic goals section. Recommendation 10. Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and Revenues/Expenditures/Fund Balance Table to the Appendix. Recommendation 11. Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document. Recommendation 12. Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website. Recommendation 13. Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget. Recommendation 14. Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table. Recommendation 15. Refer the reader to the department section or OpenGov for further detail. Recommendation 16. Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection. 95 CC 03-04-2025 95 of 283 Budget Document and Performance Measures Improvements Attachment A – List of Recommendations Baker Tilly 47 Recommendation 17. Review each department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.). Recommendation 18. Eliminate the program budget information in the department sections and refer the user to OpenGov to obtain further detail. Recommendation 19. Develop a minimum five-year Capital Improvement Plan and incorporate the CIP plan into the budget document. Recommendation 20. Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments. Recommendation 21. Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division. Recommendation 22. Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget. Recommendation 23. Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs. Recommendation 24. Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage. Recommendation 25. Ensure all appropriated funds and consulting services are tracked and reported against original purposes. Recommendation 26. Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form. Recommendation 27. Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting services to achieve the City’s annual service delivery goals expressed in the adopted budget. Recommendation 28. Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded. Recommendation 29. Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy- to-understand content and graphics. 96 CC 03-04-2025 96 of 283 Budget Document and Performance Measures Improvements Attachment A – List of Recommendations Baker Tilly 48 Recommendation 30. Leverage tools like OpenGov to create interactive, department- focused summaries for each user type including the community, council and staff. Recommendation 31. Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments. Recommendation 32. Establish performance standards for each performance measure and reevaluate at least biennially. 97 CC 03-04-2025 97 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan March 2025 98 CC 03-04-2025 98 of 283 Making the Most of the Draft Implementation Action Plan Baker Tilly has developed this draft Implementation Action Plan to assist the City of Cupertino with the phasing and scheduling of 33 recommendations in the project report. That report sets forth the analysis leading to each recommendation. The work involved in implementing the recommendations will need to be integrated into the other work of the departments tasked with their completion, along with appropriate assignments of responsibility and with identification of specific planned completion dates. The draft Action Plan begins that process with guidance about a recommended priority assignment. Priority 1 recommendations are those that we believe are the most important to accomplish without delay or are easy to accomplish. Priority 2 recommendations have less importance in the near term or have an added element of complication to complete or require a significant amount of resources (perhaps internal and external) to assist with completion. Priority 3 recommendations are the least urgent to complete, either due to span of control or complexity Department . We suggest that you use this document to prepare a final Action Plan for the City of Cupertino. In doing so, the management team will need to identify specific target dates for completing implementation activities associated with each recommendation. Additionally, you may want to modify the described activities for implementing an individual recommendation based on internal knowledge of what will be required for completion or adjust the assignment of responsibility based on pending or future workload or other considerations. Where a draft task calls for an event to occur “regularly” or with a preset frequency (e.g., quarterly, monthly) you’ll want to ensure that your implementing procedure or policy is written to accomplish that objective. Prudent implementation of most recommendations will require “circling back” after the work of implementation has begun to fine-tune the work or the milestones based on experience. This step is not explicitly called out for each recommendation; however, assessing the progress of implementation (via “circling back”) should be a part of your normal management system. We would be happy to set up a consultation with you to support the conversion of this draft into the final Action Plan you can use to manage implementation. To turn this draft into the Action Plan that is used to manage implementation, replace the column titled “Priority” with actual completion dates. Target dates can be specific (e.g., September 1) or by month or quarter (e.g., 3Q 2025), as appropriate to the individual action. All of the work to implement the strategies is in addition to the normal work of involved City staff. Baker Tilly has staff associates who are experienced in implementing many of the actions identified in this draft Action Plan. We welcome the opportunity to assist you in doing so, and in any case, we remain available to consult with you in whatever way we can be helpful. Please do not hesitate to contact Carol Jacobs at 949-809-5588 or Steve Toler at 408-385-3414 if we can be of assistance. Steve Toler can be reached by email at Steve.Toler@bakertilly.com. The discipline of project planning is basic to the successful execution of the work ahead. We hope that you find the draft Implementation Action Plan useful in that regard. 99 CC 03-04-2025 99 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 1 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments 1 Ensure the document includes a title page, improved table of contents, consistent layout and orientation. • Review the budget document for consistent formatting including font, font size, page orientation • Ensure title page and table of contents are properly formatted 1 Admin Services 2 Isolate the Budget Message as a standalone section. • Move the Strategic Goals Budget Message section to the front of the document in the Introduction Section 2 Admin Services 3 Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart. • Condense the City’s Mission in the Budget Guide section areas of the Budget Message • Move to the introduction section 2 Admin Services 4 Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective Department section. • Condense Notable Accomplishments and New Initiatives sections into small bulleted or narrative list by Department • Move each bulleted description into relevant Department section • Remove Notable Accomplishments and New Initiatives sections 2 Admin Services 5 Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message • Summarize high-level notable accomplishments and new initiatives into a small paragraph • Put this paragraph in the City Manager’s Budget Message 2 Admin Services/ City Manager’s Office 6 Elevate the Budget Overview subsection as its own section in the budget document. • Add the existing Budget Overview subsection as it’s own new section • Include the following subsections: o Budget Roadmap, o Changes to the Budget and Policies, o Budget by Fund, o Service-Level Reductions, o Special Projects, o Current Economic Update, o Key Budget Assumptions, and o Ongoing Challenges 2 Admin Services 1Priority 1: Important to accomplish without delay and/or easy to accomplish. Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete. Priority 3: Least urgent to complete and/or may take longer to set-up or to execute. 2To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared. 100 CC 03-04-2025 100 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 2 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments 7 Report Department reductions at the summary level and refer to the Department section for further detail. • Use the newly created Budget Overview section in Recommendation #6 to create a four page narrative • Refer to the individual Department sections for further detail 2 Admin Services 8 Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user. • Publish the above four page narrative from Recommendation #7 as a separate City’s Budget at a Glance document 2 Admin Services 9 Move the Mission Statement to the strategic goals section. • Move the Mission Statement from the Budget Guide section to the Strategic Soals section. 2 Admin Services 10 Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and Revenues/Expenditures/Fund Balance Table to the Appendix. • Move the following Elements of the Budget Document to the appendix o Glossary of Budget Terminology o Commonly Used Acronyms o Revenues/Expenditures/Fund Balance Table 2 Admin Services 11 Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document. • Remove the following subsections of the Community Profile section o City Profile o Education o Programs and Applications o Community and Recreation Services o Things to Do and See 2 Admin Services 12 Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website. • Remove the full financial policies from the budget document • Include a summary of the relevant financial policies and a link to the full policy on the City’s website 3 Admin Services 13 Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget. • Eliminate the Flow of Funds Chart in the All Funds Financial Schedule section • Include a narrative of how taxes are used to fund City services within the Budget Overview section 3 Admin Services 14 Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table. • Develop a draft narrative summary for City Manager’s Office review and feedback • Eliminate the existing table of the General Fund Contribution Schedule in the General Fund Financial Schedules sections • Refer to the General Fund Transfers subsection in the narrative 2 Admin Services 101 CC 03-04-2025 101 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 3 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments • Publish the updated section for incorporation into the annual budget document 15 Refer the reader to the Department section or OpenGov for further detail. • Review architecture and links in OpenGov to ensure accuracy and usability of financial schedules that provide the same or similar information as in the current budget document • Make revisions to OpenGov as required • Modify text references in the General Fund Financial Schedules section in each department to direct readers to the department sections, appendix and/or OpenGov • Condense Revenues section detail • Add reference to Open Gov to show further detail 2 Admin Services 16 Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection. • Develop a revised draft of a condensed General Funds revenue section (e.g., start with an outline, then complete a draft based on prior budget) • Move the more detailed descriptions and analysis in the General Fund Forecast subsection • Ensure consistency in formatting and align structure across both sections for clarity • Publish the updated section as part of the draft budget 2 Admin Services 17 Review each Department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.). • Review each Department section to ensure there is consistency in including the following components: o Department description o Organizational chart o Personnel summary o Key priorities o Performance measures o Revenue and Expenditure summary 3 Admin Services 18 Eliminate the program budget information in the Department sections and refer the user to OpenGov to obtain further detail. • Eliminate the program budget information in the departmental sections • Add reference to Open Gov for the reader to obtain further detail at the program budget level 2 Admin Services 102 CC 03-04-2025 102 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 4 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments 19 Develop a minimum five-year Capital Improvement Plan (CIP) and incorporate the CIP plan into the budget document. • Develop the Capital Improvement Plan should be created and include the following elements: o CIP Overview o CIP Process that explains the definition of a project and the planning process o Project descriptions o Financial Summary by Year o Funding Availability • The CIP should be included as part of the annual budget with similar timelines so that the recommended operating and capital budgets are published within the budget schedule. 2 Public Works/ Admin Services 20 Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments. • Assign the lead role of development of the CIP to the Public Works Department • Conduct cross-departmental CIP meetings to ensure input is received • Develop a department coordination framework that defines roles, responsibility for input and collaboration • Discuss and disseminate the framework with departments. • Conduct periodic check-ins on CIP plan development to include the City Manager, and representatives from Public Works and Administrative Services 1 City Manager’s Office, delegated to Public Works 21 Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division. • Assign the lead role of compilation and publication of the CIP to the Admin Services Department • Standardize CIP formatting and structure to ensure consistency in CIP descriptions, budget projections and reporting • Establish a review and submission timelines for the draft and final CIP version in the context of the broader budget process • Collaborate with Public Works to inform final development of the finalized CIP plan • Incorporate the capital budget in the recommended budget document. 1 City Manager’s Office, delegated to Admin Services 22 Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget. • Complete the FY 2024-25 Capital Budget already in progress (performed by Public Works) 1 Public Works/ Admin Services 103 CC 03-04-2025 103 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 5 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments • Issue the Capital Budget as Volume 2 of the current adopted budget. 23 Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs. • Develop a quarterly reporting framework to define reporting element such as progress tracking, estimated time of construction and completion, and tracking against budget • Establish a reporting calendar to set quarterly review deadlines on City Council agendas • Implement the CIP progress reporting • Check-in with City Council and department leaders to evaluate CIP progress reporting and opportunities to improve it 3 City Manager’s Office, delegated to Public Works 24 Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage. • Create a framework to report the following: o Fund transfers o Enterprise funds o Grant funding • Compile the fund transfer and grant data to document all sources and uses of funds • Publish the developed report(s) 2 Admin Services 25 Ensure all appropriated funds and consulting services are tracked and reported against original purposes. • Review current trancking mechanisms and implement any necessary changes based on feedback received from City Councilmembers regarding past reports • Review the current expense report that shows budget and actual expenditures for all appropriated funds • Create a report in OpenGov that highlights the consulting services expenses compared to the original budget. • Keep clear documentation of all consulting services budgets. 3 Admin Services 26 Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form. • Develop a special projects policy that addresses: o Definition of special projects o Form of reporting o Frequency of reporting o Follow-up on items and direction from City Council 3 City Manager’s Office 104 CC 03-04-2025 104 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 6 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments 27 Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting services to achieve the City’s annual service delivery goals expressed in the adopted budget. • Review the City’s annual budget resolution and/or expenditure and budget policies to ensure the following: o Authorities provided to the City Manager o Use of contracted or consulting services • Make any changes or updates as needed 1 City Manager’s Office 28 Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded. • Present the City’s current budget community engagement strategy to the City Council • Solicit feedback on additional community engagement strategies • Make any changes or updates as needed 1 City Manager’s Office 29 Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy-to-understand content and graphics. • Review the proposed changes to the community engagement strategies • Update educational content and engagement strategy with easy- to-understand content and graphics based on proposed changes 1 Admin Services/ City Manager’s Office 30 Leverage tools like OpenGov to create interactive, department-focused summaries for each user type including the community, council and staff. • Review the current OpenGov design and layout for departments and solicit feedback for improvements • Move the current year so the newest information is listed first on the main page • Develop content based on the needs of the community and council • Include links in the budget document to OpenGov to create more tailored content 1 Admin Services 31 Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments. • Determine if the strategic plan will be done with assistance from consultants or in house • Work with City Council to create a city-wide strategic plan according to the following framework o Core Values o Mission o Vision o Organizational Goals o Organizational Strategies o Strategic Priorities o Personal Priorities 1 City Manager’s Office 105 CC 03-04-2025 105 of 283 City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan Baker Tilly 7 Rec No. Recommendation Implementation Steps Priority 1 Department Responsible 2 Comments • Incorporate strategic plan into planning for the budget document and performance measures 32 Establish performance standards for each performance measure and reevaluate at least biennially. • Review Baker Tilly’s suggested performance measures by Department • Obtain City Council approval on the set of performance measures to be implemented, informed by the Baker Tilly report and any subsequent creation of a citywide strategic plan • Identify roles and responsibilities within each department to identify the metrics to be tracked, gather the data, and develop the reports • Implement a tracking mechanism by developing a reporting structure to monitor compliance and effectiveness (e.g., quarterly, semi-annually) • Create a process for reviewing performance and updating performance measures with the City Council periodically (semi- annually) and as part of the annual budget process 1 City Manger’s Office, delegated to each department 106 CC 03-04-2025 106 of 283 CITY OF CUPERTINO Agenda Item 24-13302 Agenda Date: 3/4/2025 Agenda #: 8. Subject: Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25; Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183. 1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25 2. Adopt Resolution No. 25-018 approving Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183. CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™107 CC 03-04-2025 107 of 283 CITY COUNCIL STAFF REPORT Meeting: March 4, 2025 Subject Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25 Recommended Action 1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25 2. Adopt Resolution No. 25-XXX approving Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183. Executive Summary The Mid-Year Financial Report for Fiscal Year (FY) 2024-25 outlines the City’s financial status as of December 31, 2024. The City has updated its 10-Year financial forecast and, due to significant changes in revenues and expenditures assumptions, is forecasting to be structurally sound with no deficits through FY 2033-34. The details are discussed later in the report. The FY 2024-25 Amended Budget is $217.4 million, increasing from an adopted budget of $146.6 million due to carryovers and encumbrances from the last fiscal year, in addition to Council-approved budget adjustments. As of Mid-Year FY 2024-25, revenue was $5.3 million, or 11%, lower than Mid-Year 2023- 24, primarily attributed to a significant decrease in reported sales tax due to a shift to cash basis accounting for interim reports as recommended by the City’s financial auditors, The Pun Group. While this change enhances cash flow accuracy, it may limit comparability with FY 2023-24. This decrease is offset by an increase in use of money and property primarily due to the reversal of the $2.8 million mark-to-market adjustment recorded as a year-end entry in FY 2023-24, resulting in a temporary positive revenue impact in FY 2024- 25. Mid-Year expenditures were $10.3 million, or 22% higher than last year, primarily due to a City Council approved one-time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs. 108 CC 03-04-2025 108 of 283 2 Key recommendations from the report include the following proposed budget adjustments: • Increase Capital Reserve to meet the minimum reserve levels per policy and restart annual Capital Reserve funding transfers; • Funding for additional executive recruitment; and • Funding for the purchase of a new lawn mower. Reasons for Recommendation Background On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending plan funded by $139.3 million in revenue and $7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget. As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations.1 As part of the FY 2023-24 year-end close, additional funds were carried forward to FY 2024-25, amounting to $9.0 million in encumbrances and $61.1 million in budget carryovers. The largest encumbrances were for General Fund ($4.8 million), and the largest carryovers were for General Fund ($24.3 million) and are largely related to The Rise Project. Furthermore, the FY 2024-25 Amended Budget as of December 31, 2024, includes Council- approved budget adjustments from July 1 to December 31, 2024, for a total of $227,801,053 across all funds. The amended budget at the end of mid-year is $227.8 million, funded with $175.0 million in revenue and $52.8 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations. 1 Encumbrances are outstanding commitments tied to unfilled purchase orders or contracts, which are rolled over to the following fiscal year until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects carried over to the following fiscal year to be spent for the same purpose for which they were approved. Carryovers can be found in the Q1 financial report presented to City Council on December 3, 2024. 109 CC 03-04-2025 109 of 283 3 Mid-Year Summary of Budget Adjustments by Fund Fund FY 2024-25 Adopted Budget Carryovers Encumbrances Adjustments Approved in 1st and 2nd Quarters FY 2024-25 Amended Budget as of December 31, 2024 General 90,041,794 24,271,306 4,753,530 10,729,524 129,796,154 Special Revenue 13,956,348 15,445,956 885,056 374,115 30,661,475 Debt Service 2,676,200 - - - 2,676,200 Capital Projects 22,057,580 20,678,417 2,449,854 300,000 45,485,851 Enterprise 9,271,222 522,360 55,396 20,545 9,869,523 Internal Service 8,643,349 151,167 837,023 (299,998) 9,331,541 Total All Funds 146,646,493$ 61,069,206$ 8,980,859$ 11,124,186$ 227,820,744$ 110 CC 03-04-2025 110 of 283 4 Discussion The Mid-Year Financial Report, reported as of December 31, 2024, is a critical tool for the City to evaluate its current revenue outlook and make necessary adjustments to the budget in response to changing spending priorities. It provides an overview of the City's budget status, including its revenue outlook, expenditure patterns, and other key financial metrics. Additionally, the report helps the City ensure that it stays on track toward achieving its goals and objectives by providing valuable insights into the City's financial performance. By using this information to make informed decisions and take appropriate actions, the City can maintain its fiscal sustainability. The largest request at mid-year is related to fully funding the Capital Reserve to policy levels and a few other minor requests for funding. Transferring unassigned fund balance dollars from the General Fund to the Capital Reserve does not allocate those funds for spending, which is done as part of the Capital Improvement Plan process or via a staff report. The City will continue to closely monitor revenue and expenditure trends in the coming months. This ongoing analysis is critical to ensuring that the City's budget remains responsive to the needs of its constituents and is aligned with the City's goals and objectives. By proactively managing its budget, the City can remain fiscally responsible and provide essential services and programs to its community. 111 CC 03-04-2025 111 of 283 5 General Fund Forecast The City had previously forecasted a structural deficit in the last six years of its ten-year financial forecast. As shown in the graphic below, the City’s deficit began in FY 2029, primarily due to the reinstatement of a $2 million transfer to the Capital Reserve to fund future capital improvement projects. In FY 2030, the deficit grows as the Utility User Tax sunsets, resulting in a loss of approximately $4 million annually. However, this impact is partially offset by the full repayment of debt in FY 2031. From then, ongoing increases in expenditures outpace revenues resulting in a growing deficit. Due to the settlement agreement with California Department of Tax and Fee Administration (CDTFA) and other adjustments to forecast assumptions, the City is now forecasting to be structurally sound for the next 10 years. The table below describes how the funding gap closed. In FY 2023-24, $15.1 million in reductions was achieved by reducing materials and contracts and eliminating 13 vacant positions. In FY 2024-25, the reduction focus shifted from category to service-level reductions, resulting in $8.7 million in savings. The majority of the savings came from aligning the budgets to actual expenditures and reducing annual Capital Improvement funding. These efforts resulted in $23.8 million in total reductions. In addition, refinements to the City’s budget forecast had a net positive impact further improving the City’s long-term financial outlook. Budget reductions are detailed in the table below: -$0.2M $0.7M $1.1M $0.3M -$0.4M -$2.8M -$3.1M -$5.2M -$6.2M -$7.2M General Fund Annual Operating Surplus/(Deficit) 6 Recession scenario Sunset of Utility User Tax in November 2030, resulting in a loss of revenue of over $4M annually Resumption of $2M transfers to Capital Reserve 112 CC 03-04-2025 112 of 283 6 Budget Reductions FY 2023-24 and FY 2024-25 Category FY24 Summary Materials & Contracts $5.5M Reductions across departments, most notably reductions to street pavement maintenance and training and development Staffing $2.4M 13 FTE positions Transfers2 $5.8M Reduced Transfers out to other funds Capital Outlays, Special Project, Contingencies and Cost Allocations 2 $1.4M Reduced all categories listed FY24 Reductions $15.1M Category FY25 Community Benefits $0.1M 4th of July Fireworks Fiscal Accountability $2.8M Align Law Enforcement costs with actuals, ERP, and legal costs Infrastructure $2.9M No CIP reserve transfer and tree maintenance moved inhouse Operations and Maintenance $2.9M Elimination of two Project Managers and reduction of part-time staff. Includes additional materials and contract reductions. Total FY25 Reductions $8.7M TOTAL REDUCTIONS ALL YEARS $23.8M 2 Transfers and Capital outlay, special projects etc. were not previously included in reduction discussions after the proposed budget as they did not result in a service level reduction. These are included to show the full budget reductions made, with exception of use of fund balance. 113 CC 03-04-2025 113 of 283 7 Changes since FY 2024-25 Final Budget Since the forecast was last presented to City Council as part of the FY 2024-25 Final Budget, we have gained clarity on a number of budget-related items, including the CDTFA Audit resolution and water system lease revenues. Additionally, City Council approved a one-time additional discretionary payment (ADP) to CalPERS for the City’s retirement system of $10 million dollars, which has had a significant impact on the forecast. Furthermore, staff have made additional refinements to the forecast to better align with historical actuals in property tax and Franchise fees, and made changes to the employee vacancy rate to better align it with historical employee vacancy savings. The table below summarizes these changes and their impact, comparing the FY 2024-25 Final Budget Forecast with the FY 2024-25 Mid-Year Forecast. FY26 and FY34 Projection Changes by Category: Final Budget vs Mid-Year Forecasts ($ in millions) FY25 Final Budget 10 Year Forecast FY25 Mid-Year 10 Year Forecast Changes FY25 Mid-Year Budget Outcome $7.20 Million Deficit Expenditure decreases of ($1.77) million $0.52 million Surplus Revenue increases of $5.95 million -= Expenditure Categories Changes in FY26 of the Forecast Changes in FY34 of the Forecast Employee compensation & benefits (2.39)$ (1.77)$ 45 - Transfer out 2.00$ -$ Total Expenditure Changes (0.39)$ (1.77)$ Revenue Categories 05 - Sales Tax (0.04)$ (0.05)$ 10 - Property Tax 1.11$ 1.40$ 15 - Transient Occupancy (0.46)$ (0.54)$ 25 - Franchise Fees 0.82$ 0.92$ 40 - Use of Money and Property 0.17$ 2.32$ 60 - Miscellaneous 1.85$ 1.84$ Total Revenue Changes 3.49$ 5.95$ Net Impact 3.88$ 7.72$ 114 CC 03-04-2025 114 of 283 8 The table above compares the original forecast presented as part of the FY 2024-25 Final Budget to the updated FY 2024-25 Mid-Year forecast. These numbers were calculated by comparing both forecasts at the category level. Both FY 2025-26 and FY 2033-34 forecast are compared to show how impacts either increase or decrease in the forecast. Revenues Sales and Transient Occupancy Tax are decreasing just over $500,000 in FY 2025-26 and just under $600,000 in FY 2033-34. This decline is primarily driven by updated forecast projections based on prior year actuals. Property Tax and Franchise Fees are increasing by about $1.9 million dollars in FY 2025-26 and $2.3 million in FY 2033-34, reflecting refinements in the forecast to better align with the prior year actuals. The growth trend is expected to continue throughout the forecast. Use of Money and Property is increasing due to the City’s improved financial position. With more years in the positive than in a deficit this results in more funds or fund balance available for the City to invest. The additional fund balance contributes to higher interest earnings, as more funds are available for investment. The increase is reflected throughout the forecast, with estimated increases in FY 2025-26 of $170,000, growing by $2.32 million in FY 2033-34, as fund balances continue to rise. Miscellaneous Revenue is increasing due to the City’s new water system lease agreement, which provides approximately $1.8 million in annual revenues for the life of the 12-year contract with San Jose Water Company. These revenues began in the current fiscal year, FY 2024-25, and will conclude in FY 2036-37, which is beyond the current forecast. Expenditures Employee Compensation and Benefits is decreasing by $2.39 million in FY 2025-26 and $1.77 million in FY 2033-34. This reduction is primarily due to aligning FY 2024-25 projections with the adopted budget, the one-time Additional Discretionary Payment (ADP) to CalPERS to reduce the City's Unfunded Accrued Liability (UAL), and an increase in the assumed vacancy rate to 4%. The gradual decline in annual savings over the forecast period is attributed to CalPERS UAL payments stabilizing and aligning more closely with the initial forecast. Transfers out is increasing in the FY 2025-26 to account for the recommendation in this staff report to begin funding the Capital Reserve sooner than previously anticipated. Since this funding was already included in the later years of the original forecast, there is no impact in FY 2033-34. Although this is great news, the City must remain cautious, as expenditure growth outpaces our revenues, leading to a decreasing surplus figure in the later years of the 115 CC 03-04-2025 115 of 283 9 current forecast. To maintain long-term financial stability, the City will likely need to seek further reductions and/or revenue enhancements in the near future. Updated 10-Year Forecast as of FY 2024-25 Mid-Year Financial Report After applying the changes noted in the section above, the City’s financial forecast has significantly improved. What was previously a deficit in over half the forecast is now positive throughout the entire forecast period. Additionally, the forecast allows for resumption funding of the Capital Improvement at $2 million annually beginning in FY 2024-25 versus FY 2028-29. These positive changes in our forecast reflects the work the City Council, Community, and staff have put into solving the unprecedented loss of $30 million in revenue and subsequent structural deficit However, we recommend proceeding with caution as our forecast shows that our expenditure growth outpaces revenue growth, as shown with declining budget surpluses throughout the forecast. As we move forward in this year’s budget process along with next year’s proposed and final budget, the focus should be on limiting ongoing expenses and focusing on one-time costs. The City should continue to pursue revenue enhancements such as fee increases and tax measures and look to reduce costs where feasible, with a goal of having growing surpluses in out-years versus declining, a sign that the city is fiscally sound into the future. 116 CC 03-04-2025 116 of 283 10 General Fund at Mid-Year 4-Year Comparison of Revenues, Expenditures, and Changes to Fund Balance ($ in millions) The General Fund's year-end actuals show that the City’s revenues have historically exceeded expenditures, leading to the increase in fund balance. In addition, the City's encumbrance and budget carryover process typically led to increases in year-end fund balance. Historically, when this was not the case, it was not due to a structural deficit but the transfer of excess fund balance from the General Fund to the Capital Reserve per the City's Fund Balance policy. The updated long-term forecast discussed later in this report will show that the City expect to have positive fund balance for the next 10 years. By continuing to monitor and manage its financial resources effectively, the City can ensure that it maintains a healthy fund balance in the General Fund. 117 CC 03-04-2025 117 of 283 11 Revenue General Fund revenue is $5.3 million, or 11%, lower than the same time last year due to changes in the City’s revenue sources as shown in the following table. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues General Fund Sales Tax revenue as of mid-year is $6.2 million, which is a 72% decrease from the previous year. This decline is primarily due to two factors. First, as noted in the First Quarter Financial Report, the City reached a settlement agreement with the CDTFA, which resulted in the cessation of previously misallocated sales tax revenue. The City adjusted the sales tax received to reflect the new reporting amount of $6.2 million. The CDTFA has yet to adjust any sales tax reporting as a result of the settlement. Second, sales tax revenues are received on a two-month lag, meaning the current figures account for collections from July through October 2024 (FY 2024-25), whereas mid-year figures from the prior fiscal year (FY 2023-24) included six months of collections, spanning July through December 2023. For FY 2024-25, the City budgeted $11.6 million in sales tax revenue. Staff recommends maintaining this projection to remain both conservative and realistic, as it accounts for current trends while ensuring fiscal prudence. Given that only four months of sales tax collections have been received, it is still too early in the fiscal year to make significant adjustments based on partial-year data. Property Tax revenue is higher than last year by approximately $422,000, or 5%. According to HdL, the City’s property tax consultant, residential use values increased 5.7% for a total Revenue Category Mid-Year 2024 Mid-Year 2025 Variance ($) Variance (%) 05 - Sales tax 22,486,303 6,253,234 (16,233,070) -72% 10 - Property tax 9,111,207 9,533,057 421,850 5% 15 - Transient occupancy 2,256,103 2,517,307 261,204 12% 20 - Utility tax 1,519,268 1,747,222 227,953 15% 25 - Franchise fees 910,438 828,043 (82,396) -9% 30 - Other taxes 656,756 903,132 246,376 38% 35 - Licenses and permits 1,859,890 2,703,734 843,845 45% 40 - Use of money and property 1,662,349 5,620,126 3,957,777 238% 45 - Intergovernmental revenue 221,695 1,593,094 1,371,399 619% 50 - Charges for services 5,705,245 7,219,090 1,513,845 27% 55 - Fines and forfeitures 118,777 157,093 38,316 32% 60 - Miscellaneous 564,192 1,445,733 881,540 156% 65 - Transfers in 111,000 15,000 (96,000) -86% 70 - Other financing sources - 1,331,275 1,331,275 N/A Total 47,183,225$ 41,867,139$ (5,316,086)$ -11% 118 CC 03-04-2025 118 of 283 12 of $1.147 billion and represented 81% of all growth experienced in the City. The citywide growth in value in the 2024-25 assessment roll is $1.412 billion, an increase of 4.4%. Staff will continue to monitor this top revenue source and may recommend adjustments as part of the Third Quarter Financial Report. The City’s property tax base remains strong, and HdL is currently projecting growth in property taxes over the next five years, as shown in the table below. Transient Occupancy Tax (TOT) revenue increased by $261,000, or 12%, compared to the previous year due to the remittance of taxes from a hotel in Cupertino during the current mid-year period that were not received in the previous year. Although an increase is reflected here, business travel has not returned compared to pre-pandemic levels. According to HdL, occupancy is improving a couple of percentage points each year, however, the Average Daily Rate may still be too low, compared to prior years. So, while the Average Daily Rate is increasing, it doesn't appear that it is driven by demand. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 31,223,141 32,324,317 33,606,651 35,024,886 36,531,087 119 CC 03-04-2025 119 of 283 13 Average Daily Rates and Occupancy Rates by Month Hotels in Cupertino Although TOT revenues have mostly recovered from the pandemic, the City's TOT revenues may continue to be affected in the long term due to telework and decreased business travel. Headwinds in the tech industry have resulted in layoffs and reduced spending in areas such as travel. Staff will continue to monitor economic regulations and other factors and report back on their impact on TOT revenues as part of the quarterly financial reports. Utility Tax (UUT) increased by approximately $228,000, or 15%, primarily due to an increase in the amount of UUT collected based on higher gross receipts compared to the same period in the prior year. Franchise Fees decreased by approximately $82,000, or 9%, due to a one-time overpayment reflected in the prior mid-year period for October 2023 that was corrected with an underpayment in January 2024. 120 CC 03-04-2025 120 of 283 14 Other Taxes increased by approximately $246,000, or 38%, due to increases received for the collection of business license taxes and property transfer taxes. Licenses and Permits increased by approximately $844,000, or 45%, due to construction plan check revenues for multiple large office tenant improvement submittals, an increase in residential submittals for new homes and remodels, as well as an increase in permits to clear code enforcement cases. Use of Money and Property increased by approximately $4.0 million, or 238%, largely due to the reversal of the $2.8 million mark-to-market adjustment recorded as a year-end entry in FY 2023-24, resulting in a temporary positive revenue impact in FY 2024-25. Intergovernmental Revenue increased by $1.4 million, or 619%, over the same period last year primarily due to the receipt of grant funds for the community shuttle. Charges for Services increased by $1.5 million, or 27%, driven mainly by increases in cost allocation plan methodology and general service fees related to library maintenance. Fines and Forfeitures increased by $38,000, or 32%, due to an increase in revenues related to parking fines compared to the same period last year. Miscellaneous Revenue increased by approximately $882,000, or 156%, primarily due to the timing of the Apple donation for sheriff services. Transfers In decreased by $96,000, or 86%, due to transfers in from other funds that occurred during the previous mid-year period. Other Financing Sources increased by $1.3 million due to revenues received from the Byrne property transaction. Expenditures Expenditures in the General Fund have increased by $10.3 million, or 22%, when compared to the same time last year. The following table shows the differences between General Fund expenditures as of the mid-year in the current fiscal year and the prior fiscal year: 121 CC 03-04-2025 121 of 283 15 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures General Fund Salary decreased by approximately $0.5 million, or 5%, from the previous mid-year period due to vacancy savings. Benefits increased by approximately $10.6 million, or 227%, from last year primarily due to a City Council approved one-time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs. In addition, increases in retirement, healthcare, and workers’ compensation costs account for the remaining increase. Materials increased by approximately $326,000, or 13%, primarily due to increases in electrical costs and general supplies. Contract Services increased by approximately $424,000, or 3%, primarily driven by insurance premium increases, paid claims, settlements, and law enforcement contract costs. Cost Allocation increased by approximately $190,000, or 4%, primarily due to increased Cost Allocation Plan (CAP) charges.3 3 The cost allocation plan (CAP) allocates indirect and overhead costs to the departments that benefit from them. Costs incurred by central service providers (e.g., City Manager's Office, City Attorney's Office, Finance, Human Resources, Facilities, etc.) are charged to the departments that benefit from the services (e.g., Parks & Recreation). The purpose of the CAP is to help the City to determine the true cost of providing services. Expenditure Category Mid-Year 2024 Mid-Year 2025 Variance ($) Variance (%) 05 - Employee compensation 11,096,489 10,566,467 (530,022) -5% 10 - Employee benefits 4,664,982 15,264,471 10,599,488 227% 15 - Materials 2,487,504 2,813,766 326,262 13% 20 - Contract services 13,833,030 14,256,813 423,784 3% 25 - Cost allocation 5,128,828 5,319,290 190,462 4% 30 - Capital outlays 421,523 32,349 (389,174) -92% 31 - Special projects 1,909,536 623,226 (1,286,311) -67% 35 - Contingencies - 3,035 - N/A 45 - Transfer out 6,595,284 7,403,168 807,884 12% 50 - Other financing uses 102,412 247,521 145,109 142% Total 46,239,589$ 56,530,107$ 10,287,483$ 22% 122 CC 03-04-2025 122 of 283 16 Capital Outlay decreased by approximately $389,000, or 92%, due to the security gate project at the Service Center in the prior year. Special Projects decreased by approximately $1.3 million, or 67%, primarily due to I- 280/Wolfe Road Interchange Improvement. Contingencies remain relatively unchanged from last year. Transfers Out increased by approximately $808,000, or 12%, due to the increase of transfers for retiree medical due to the use of the Other Post Employment Benefits Trust paying for the last two years. Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure each fund has a positive fund balance at the end of the fiscal year. Other Financing Uses increased by approximately $145,000, or 142%, due to a higher volume of on-call contracts in the Community Development Department for plan reviews and inspections. Special Revenue Funds Revenue Special Revenue Funds revenue is $0.2 million, or 4%, higher than the same time last year primarily due to an increase in use of money and property and intergovernmental revenue. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Special Revenue Funds Other Taxes decreased by approximately $119,000, or 58%, primarily due to decreased park dedication fees received in the prior mid-year period for Alan Row. Revenue Category Mid-Year 2024 Mid-Year 2025 Variance ($) Variance (%) 30 - Other taxes 205,602 86,517 (119,085) -58% 40 - Use of money and property 348,511 1,116,291 767,779 220% 45 - Intergovernmental revenue 3,031,052 3,527,541 496,489 16% 50 - Charges for services 76,061 54,491 (21,570) -28% 55 - Fines and forfeitures 156 -(156) N/A 60 - Miscellaneous 4,304 200 (4,104) -95% 65 - Transfers in 3,449,019 2,595,150 (853,869) -25% Total 7,114,705$ 7,380,189$ 265,485$ 4% 123 CC 03-04-2025 123 of 283 17 Use of Money and Property increased by approximately $768,000, or 220%, primarily due to the mark-to-market adjustment, mirroring the impact seen in the General Fund. Intergovernmental Revenue increased by approximately $0.5 million, or 16%, due primarily to transportation related federal grants. Charges for services decreased by approximately $22,000, or 28%, primarily due to general fee revenues received for environmental storm drain clean-up reimbursement received. Fines and forfeitures were relatively unchanged from last year. Miscellaneous revenues were relatively unchanged from last year. Transfers In decreased by approximately $854,000, or 25%, due to decreased transfers in from general fund for street and sidewalk maintenance as part of service level reductions. Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure that each fund has a positive fund balance at the end of the fiscal year. Additionally, when Capital Improvement Program (CIP) projects are authorized by City Council, a transfer from the Capital Reserve to the appropriate fund is necessary to record the costs and activities of the project. For more information on the City’s operating and capital transfers, refer to pages 625-627 and 631-632 of the FY 2024- 25 Adopted Budget. Expenditures Special Revenue Funds expenditures are $1.8 million, or 30%, lower than the same time last year due primarily to decreases in capital outlays and special projects. 124 CC 03-04-2025 124 of 283 18 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Special Revenue Funds Salary decreased by approximately $37,000, or 4%, due to vacancy savings. Benefits increased by approximately $56,000 or 15%, from last year due to increases in health care premiums and retirement costs. Materials decreased by approximately $33,000, or 12%, due to decreases in BMR and CDBG expenditures compared to the same period last year. Contract Services decreased by approximately $256,000, or 53%, primarily due to annual sidewalk curb and gutter maintenance. Cost Allocation increased by approximately $405,000, or 66%, primarily due to increased City Manager and Human Resources CAP Charges. Capital Outlays decreased by approximately $794,000, or 39%, due to decreases in Facility Improvements and SB1 Road. Special Projects decreased by approximately $758,000, or 86%, due to decreases in the annual asphalt project. Transfers Out decreased by $368,000, or 96%, due to reduced transfers for CIP projects. 125 CC 03-04-2025 125 of 283 19 Debt Service Funds Revenue Debt Service Funds revenue is similar to last year. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Debt Service Funds Expenditures Debt Service Funds expenditures are similar to last year. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Debt Service Funds Capital Projects Funds Revenue Capital Projects Funds revenue is higher than last year primarily due to transfers in. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Capital Projects Funds Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year. 126 CC 03-04-2025 126 of 283 20 Expenditures Capital Projects Funds expenditures are $4.8 million, or 83%, higher than last year due to an increase in transfers to fund capital projects. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Capital Projects Funds Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year. Enterprise Funds Revenue Enterprise Funds revenue is $66,000, or 2%, lower than the same time last year due primarily to a reduction in service fee charges. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Enterprise Funds Use of Money and Property increased by approximately $99,000, or 30%, due to increased field rental permit revenue. Charges for services decreased by approximately $668,000, or 21%, primarily due to a reduction in enterprise service fees. Miscellaneous decreased by $11,300, or 100%, primarily due to stormwater pollution remediation recovery received during the prior mid-year period. Transfers In increased by approximately $0.5 million due to transfers from the General Fund. 127 CC 03-04-2025 127 of 283 21 Expenditures Enterprise Funds expenditures are $0.7 million, or 16%, lower than the same time last year due primarily to a decrease in contract services. Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Enterprise Funds Salary and Benefits increased by approximately $224,000, or 19%, primarily due to health insurance premiums and retirement costs. Materials increased by approximately $49,000, or 32%, primarily due to software and Cal Recycle payment program administration expenses. Contract Services decreased by approximately $1.0 million, or 46%, primarily due to the restructuring of the Lifetime Tennis contract at the Sports Center. Cost Allocation increased by approximately $319,000, or 68%, primarily due to increased City Manager CAP allocation and Finance cost allocation. Special Projects decreased by approximately $0.25 million, or 69%, due to projects that differ in scope and timing from year to year. Internal Service Funds Revenue Internal Service Funds revenue is $1.6 million, or 46%, higher than the same time last year due to increased transfers in. 128 CC 03-04-2025 128 of 283 22 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Internal Service Funds Use of Money and Property increased by approximately $108,000, or 141%, due to increased interest earnings from the City’s investment portfolio and mark-to-market adjustments. Charges for Services increased by approximately $321,000, or 15%, primarily due to Innovation Technology related Cost Allocation charges. Transfers In increased by approximately $1.0 million, or 68%, due to increased transfers from the General Fund to the Innovation & Technology and Compensated Absences Fund. Other Financing Sources increased by about $252,000 due to workers compensation charges being billed to departments and received as revenue in this fund. In FY 2023-24, the fund had enough savings to cover the workers compensation fund, and therefore no revenue was collected. Expenditures Internal Service Funds expenditures are $290,000, or 8%, lower than the same time last year due primarily to a decrease in materials and salaries, offset by increases in cost allocation and contract services. 129 CC 03-04-2025 129 of 283 23 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Internal Service Funds Salary decreased by approximately $157,000, or 16%, due to vacancy savings. This is offset by a $55,000 increase in benefit costs. Materials decreased by $259,000, or 41%, mainly due to a decrease in small tools and equipment costs. Contract Services are up approximately $115,000, or 15%, largely due to an increase in general service agreements. Cost Allocation increased by approximately $123,000, or 428%, primarily due to Innovation Technology and Finance related CAP charges. Special Projects decreased by approximately $91,000, or 27%, due to projects that differ in scope and timing from year to year. Transfers Out decreased by $76,000, or 100%, due to Innovation Technology related transfers that occurred in the prior mid-year period. Budget Adjustment Requests The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports. The budget adjustment requests are summarized in the table below and are also provided in this report as Attachment D. 130 CC 03-04-2025 130 of 283 24 I&T - Video & Admin - PT salary transfers Staff is requesting salary transfers to cover administrative support for the department during the Management Analyst’s upcoming leave of absence. Executive Recruitment – Assistant City Manager and City Attorney Staff requests additional funds to be used for the executive recruitment of an Assistant City Manager and City Attorney. The cost of engaging an Executive Search Firm for executive-level recruitment can vary, but based on past experience, the average expense is approximately $25,000 per recruitment. The Human Resources budget includes only one executive level recruitment in their base budget. Hidden Treasures Proceeds The Hidden Treasures event at the Senior Center accepts donations from the community and, in turn, sells the donations on the last Thursday in October. The proceeds are then calculated into the costs to run the event, with the remaining amount incorporated into the Stay Active Fund. The Stay Active Fund helps members ages 50 and over remain active and engaged at the Cupertino Senior Center. This fund provides financial assistance Fund Department Reven ue Expenditure Change in Fund Balance Proposal GENERAL FUND 100 General Fund Innovation & Technology - (31,564) 31,564 I&T - Admin - PT Admin Assistant 100 General Fund Administrative Services - 25,000 (25,000)Exec recruitment - Assistant City Manager & City Attorney 100 General Fund Parks & Recreation 13,619 11,188 2,431 Hidden Treasures Proceeds 100 General Fund Non-Departmental - 4,101,564 (4,101,564)Transfer out to meet minimum capital reserve levels per policy, resume annual $2 million transfer to capital reserve and IT salary savings to Internal Service Funds 100 General Fund Innovation & Technology - (3,481) 3,481 Partial Defund of Redesign of City Website TOTAL GENERAL FUND 13,619 4,102,707 (4,092,569) CAPITAL FUNDS 429 Capital Reserve Non-Departmental 4,070,000 - 4,070,000 Transfer in to meet minimum reserve levels per policy & resume annual $2 million transfer TOTAL CAPITAL FUND 4,070,000 - 4,070,000 INTERNAL SERVICE FUNDS 610 Innovation & Technology Innovation & Technology 31,564 31,564 - I&T - Admin - PT Admin Assistant fund by GF Transfer 610 Innovation & Technology Innovation & Technology - (6,079) 6,079 Partial Defund of City Facilities Video Capture 630 Vehicle/Equip Replacement Public Works - 33,700 (33,700)Mower Replacement TOTAL INTERNAL SERVICE FUND 31,564 59,185 (27,621) TOTAL ALL FUNDS $ 4,115,183 $ 4,161,892 $ (50,190) 131 CC 03-04-2025 131 of 283 25 through scholarships for members to offset the cost of a Senior Center membership and registration for classes and events. This fund is also utilized to bring in specialized speakers, secure educational films, and purchase resource materials, etc., for events and programs that promote prevention and preparedness of aging issues, such as the Health Fair. Staff requests the use of the $13,619 revenue brought in during the Hidden Treasures event to reimburse the costs to run the program and continue to support the Stay Active Fund. I&T – Partial Defund of Redesign of City Website & City Facilities Video Capture Staff is requesting the partial defund of Redesign of City Website & City Facilities Video Capture as these projects were successfully completed under budget. Capital Funds Reserve Transfer Staff is requesting $2.07 million in transfers to meet the minimum reserve levels per the Committed, Unassigned Fund Balance, and Use of One Time Funds Policy and resuming Capital Fund Transfer in the current Fiscal Year. In addition, staff is requesting to resume the annual Capital Reserve transfer of $2 million dollars this fiscal year due to the updated forecast versus waiting for FY29 to resume the transfer, for a total request of $4.07 million. Mower Replacement The proposal seeks to address the issue of an aging and inefficient EQP15 Mower, a 2015 model that has accumulated 2,114 engine hours and reached the end of its useful life. The current equipment is no longer reliable, with frequent repairs and ongoing maintenance becoming economically unfeasible. This situation has created operational inefficiencies and increased downtime, which hinders productivity and escalates costs. Staff requests funds for the purchase of a new mower. This investment will ensure improved performance, reduce maintenance expenses, and enhance operational efficiency. By replacing the outdated mower, the organization can maintain its commitment to reliable and cost-effective operations while ensuring uninterrupted service delivery. Fund Balance As of mid-year, staff anticipates the General Fund will end FY 2024-25 with $152.8 million in fund balance, a decrease of $17 million from the first quarter projection of $169.8. The decrease is due to the uncommitting of $10 million dollars for a one-time discretionary payment towards the City’s retirement system, CalPERS, in addition to changes in the amended budget, including adjustments being requested in this report. It is important to note that the only portion available for use, according to City policy, is unassigned funds. Committed funds, such as the Committed for Future Use reserve are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $25.3 million is unassigned and available to be used. 132 CC 03-04-2025 132 of 283 26 Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized. General Fund Classification of Fund Balance Per the City’s Fund Balance Policy, unassigned fund balance over $500,000 is to be used in the following order to replenish committed/restricted fund balances with any remaining balances to be placed in the Capital Reserve: 1. Economic Uncertainty Reserve 2. For Future Use 3. CalPERS Reserve (Section 115 Pension Trust) 4. Sustainability Reserve 5. Unassigned As of mid-year, all priority areas in the General fund are fully funded. As mentioned earlier in this report minimum funding for the Capital Reserve in the Capital Reserve Fund is under funding minimums and an adjustment is being requested to bring it back in line with policy. Staffing As of December 31, 2024, the FY 2024-25 Amended Budget includes a total of 207 full-time equivalent (FTE) positions. No changes are recommended at mid-year. Performance Measures & Workload Indicators The Mid-Year Financial Report includes updated performance measures and workload indicators that are in line with the best practices of both government and private industry. These measures have been designed to provide a comprehensive understanding of the City's performance and progress toward achieving its goals and objectives. Attachment E provides an overview of the status of the performance measures as of mid-year. This Classification Actual 2022-23 Actual 2023-24 Adopted Budget 2024-25 1st Quarter Projection 2024-25 Mid-Year Year End Projection 2024-25 Non Spendable 0.9$ 3.4$ 0.4$ 4.7$ 3.4$ Restricted 20.7 23.3 20.7 20.7 20.7 Committed 34.1 108.6 99.0 31.1 98.6 Assigned 9.7 4.7 7.0 7.0 4.7 Unassigned 73.1 26.0 23.6 106.2 25.3 TOTAL FUND BALANCE 138.6$ 166.1$ 150.8$ 169.8$ 152.8$ 133 CC 03-04-2025 133 of 283 27 information is critical to effective decision-making and ensures that resources are being used in the most efficient and effective way possible. City Manager Discretionary Fund In the FY 2024-25 Adopted Budget, City Council approved $50,000 in funding for the City Manager Discretionary Fund. The quarterly financial reports will detail the City Manager’s use of the discretionary fund and may include recommendations to replenish depending on the extent and nature of use. As of December 31, 2024, the City Manager’s Discretionary Fund has not been used. Special Projects The quarterly financial reports provide a status update on special projects, including the budget, amount spent, and estimated completion date. See Attachment F for FY 2024-25 special projects as of December 31, 2024. Grants Staff provides updates on the status of grants as part of the quarterly financial reports. As mentioned in the First Quarter financial staff report, staff will begin to provide updates only on active grants and any completed projects for which funding is yet to be received. Active grants have not yet been fully closed out with the granting agency. Previously, staff reported on grants that have also been closed out. Also, as of Mid-Year, staff will now begin to provide information on the granting agency, grant amount spent, and grant amount remaining. Below is a high-level summary of the grant tracking document. Please refer to Attachment G for complete grant tracking updates. Competitive Grants Non-Competitive Grants Active Grants 18 10 Pending Results 2 1 Total Grant Dollars Awarded $30,128,192 $1,444,913 Staff will continue to provide additional updates on the status of grants as part of the quarterly financial reports. Capital Improvement Program The quarterly financial reports provide a revised estimate and update on Capital Improvement Program (CIP) projects. As of mid-year, the Public Works Department is not requesting any revisions to the capital budget. See Attachment H for the status of projects. 134 CC 03-04-2025 134 of 283 28 Proposed Budget Changes Vacancy Reporting On September 22, 2024, Assembly Bill 2561 (“AB 2561”) was signed into law to amend the Meyers-Milias-Brown Act (“MMBA”) and create a new obligation for public agencies to publicly address the status of their vacancies. AB 2561 requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. This section is in compliance with AB 2561. Staff will bring this information as part of the Proposed Budget study session in May 2024. Budget Format Changes Based on recommendations from Baker Tilly on the Budget Document and Performance Measures Improvements review, staff will determine what changes may be feasible as part of the FY 2025-26 Proposed Budget. Capital Improvement Plan Public Works staff will bring forward potential Capital Improvement Projects to City Council in April and May 2025, to be reviewed at the FY 2025-26 Proposed Budget Study Session in May 2025, for inclusion in the FY 2025-26 Final Budget Hearing and Adoption in June 2025. Council Work Program City Manager’s Office staff will be bringing City Council Work Programs in March and April 2025, for inclusion the FY 2025-26 Proposed Budget Study Session in May 2025. Other Budget Items Administrative Services staff in conjunction with Parks and Recreation anticipates including both the Festival and Fee Waiver and Community Funding items as part of the proposed budget. This is a change from prior years when these documents were discussed as part of the proposed budget study session but not included in the document due to timing issues. Additionally, proposed budget requests are still in process but staff wanted to highlight that it anticipates providing potential revenue tax measures in FY 2025-26 for Council consideration to inform Council of options should it choose to proceed with placing a tax measure on the November 2026 ballot. This aligns with the need to have a structurally balanced budget in the out years of our forecast where we currently have declining surpluses. Sustainability Impact No sustainability impact. 135 CC 03-04-2025 135 of 283 29 Fiscal Impact The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $4,161,892 in new appropriations, funded by $4,115,183 in revenues and $50,190 in one-time fund balance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives. City Work Program (CWP) Item: No. CWP Item Description: Not applicable. Council Goal: Public Engagement and Transparency Sustainability and Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: Toni Oasay-Anderson, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor, Deputy City Manager Approved for Submission by: Pamela Wu, City Manager Attachments: A – FY 2024-25 Mid-Year Financial Report B – Draft Resolution C – Description of Budget Transfers as of December 31, 2024 D – FY 2024-25 Mid-Year Recommended Adjustments E – Mid-Year Performance Measures & Workload Indicators F – FY 2024-25 Mid-Year Special Projects Update as of December 31, 2024 G – Competitive and Non-Competitive Citywide Grants Tracking H – Capital Improvement Program Project Status 136 CC 03-04-2025 136 of 283 This Financial Report is interactive. Click on a chart to learn more. Background On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending plan funded by $139.3 million in revenue and $7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget. As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations . As part of the FY 2024-25 year-end close, additional funds were carried forward to FY 2024-25, amounting to $9.0 million in encumbrances and $61.1 million in budget carryovers. The largest encumbrances were for General Fund ($4.8 million), and the largest carryovers were for General Fund ($24.3 million) and are largely related to The Rise Project. Furthermore, the FY 2024-25 Amended Budget as of December 31, 2024 includes Council-approved budget adjustments from July 1 to December 31, 2024, for a total of $227,801,053 across all fund. The amended budget at the end of mid-year is $227.8 million, funded with $175.0 million in revenue and $52.8 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations. CITY OF CUPERTINO FY 2024-25 Mid-Year Financial Report The Administrative Services Department is pleased to present the Mid-Year Financial Report for Fiscal Year 2024- 25, covering the period from July 1, 2024 to December 31, 2024. This report serves as an update on the City's financial standing, providing the City Council, City leadership, and the public with important insights on the City's fiscal status. The City is committed to providing accurate and timely financial information, and this report reflects its ongoing efforts to maintain transparency and accountability. 137 CC 03-04-2025 137 of 283 Amended Budget 2023-24 Amended Budget Q1 2023-24 Amended Budget Q3 2024-25 Adopted Budget 2024-25 Amended Budget Q2 Fiscal Year 0.0 50.0M 100.0M 150.0M 200.0M Do l l a r s Public Works Capital Projects Community Development Law Enforcement Non Departmental Parks and Recreation Administrative Services Innovation & Technology Administration Council and Commissions Community Development Flow of Funds Chart (in Millions) 138 CC 03-04-2025 138 of 283 General Fund Revenues, Expenditures, and Fund Balance To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 139 CC 03-04-2025 139 of 283 2020-21 Amended Budget Q2 June 2020-21 Actual December 2021-22 Actual 2022-23 Amended Budget Q2 June 2022-23 Actual 2023-24 Amended Budget Q2 December 2024-25 Actual Fiscal Year 0.0 100.0M 25.0M 50.0M 75.0M 125.0M Do l l a r s Revenues Expenses -$14,662,967.41 Revenues Less Expenses in Dec 2024 -$15M -$10M -$5M $0 $5M $10M Dec 2020 Dec 2022 Dec 2024 $27,877,519.81 Revenues Less Expenses in Jun 2023 $0 $5M $10M $15M $20M $25M $30M Jun 2021 Jun 2022 Jun 2023 General Fund Revenue and Expenditure Trends As of December 31, 2024, General Fund revenues have totaled $41.9 million, representing 34.3% of the budgeted revenue. This is below the mid-year revenue range of the past three years, which was between 35% and 40%. General Fund expenditures have totaled $56.5 million, which is 43.2% of the budgeted appropriations*. This is below the mid-year expenditure range of the previous three years, which was between General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End 140 CC 03-04-2025 140 of 283 48% and 50% of year-end actual expenditures. To ensure fiscal stability, staff will continue to closely monitor leading revenue sources throughout the year. *Staff is working with Opengov to resolve the discrepancy in the amended budget amount of $131,006,154. General Fund Revenues - Mid-Year Actuals vs Budget Data Updated Feb 26, 2025, 11:37 AM 12/2020 12/2021 12/2022 12/2023 12/2024 34.30% In Revenues of $122,062,969.00 Budgeted through Dec 2024 General Fund Expenses - Mid-Year Actuals vs Budget Data Updated Feb 26, 2025, 11:37 AM 12/2020 12/2021 12/2022 12/2023 12/2024 43.15% In Expenses of $131,006,154.00 Budgeted through Dec 2024 $41,867,139.46 Revenues in Dec 2024 $0 $20M $40M $60M $80M $100M $120M Jun 2021 Jun 2022 Jun 2023 Dec 2024 $56,530,106.84 Expenses in Dec 2024 $0 $20M $40M $60M $80M $100M Jun 2021 Jun 2022 Jun 2023 Dec 2024 General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals 141 CC 03-04-2025 141 of 283 $41,867,139.43 Revenues in Dec 2024 Property Tax Charges for ... Sales Tax Other Licenses and... Use of Money $56,530,106.84 Expenses in Dec 2024 Contract Ser... Employee Com... Other Cost Allocat... Transfers Ou... Expenses General Fund Classification of Fund Balance As of mid-year, staff anticipate the General Fund will end FY 2024-25 with $152.8 million in fund balance. A decrease of $13.2 million from the first quarter projection of $169.8. The decrease is due to the uncommitting of $10 million dollars for a one-time discretionary payment towards the City’s retirement system CalPERS, in addition to changes in the amended budget including adjustments being requested in this report. It’s important to note that the only portion available for use, according to City policy, is unassigned funds. Committed funds, such as the Committed for Future Use reserve are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $29.1 million is unassigned and available to be used. Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized. General Fund Revenues by Type General Fund Expenses by Type 142 CC 03-04-2025 142 of 283 Recommended Adjustments The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports. The budget adjustment requests are summarized in the table below. Summary The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $4,161,892 in new appropriations, funded by $4,115,183 in revenues and $50,190 in one-time fund balance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives. 143 CC 03-04-2025 143 of 283 City of Cupertino, California Cupertino City Hall 10300 Torre Avenue Cupertino, CA 95014-3202 View the City Council Meeting Agenda View the City's Budgets View the City's Financial Transparency Portal Powered by OpenGov 144 CC 03-04-2025 144 of 283 RESOLUTION NO. 25-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 BY APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES FOR SPECIFIED FUNDS WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amen ded appropriations, and therefore recommends the fund reallocations described herein. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A. PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 4th day of March 2025, by the following vote: Members of the City Council AYES: NOES: ABSENT: ABSTAIN: 145 CC 03-04-2025 145 of 283 Resolution No. __________________ Page 2 SIGNED: ________ Liang Chao, Mayor City of Cupertino ________________________ Date ATTEST: ________ Kirsten Squarcia, City Clerk ________________________ Date 146 CC 03-04-2025 146 of 283 Attachment B Exhibit A General Fund 4,102,707 13,619 (4,092,569) Special Revenue Funds - - - Capital Project Funds - 4,070,000 4,070,000 Enterprise Funds - - - Internal Service Funds 59,185 31,564 (27,621) Total Appropriation Amendment All Funds $ 4,161,892 $ 4,115,183 $ (50,190) Fund Balance (Use of) Appropriation Amendment by Fund Revenue Amendment Appropriation Amendment 147 CC 03-04-2025 147 of 283 Budget Transfers as of December 31, 2024 Attachment C GL Account Description Amount 100‐74‐202 500‐501 ‐ Employee Compensation Salaries Full Time Code enforcement abatement (20,000)         100‐74‐202 700‐702 ‐ Contract Services General Service Agreement Code enforcement abatement 20,000          ‐  100‐74‐202 700‐702 ‐ Contract Services General Service Agreement Transfer $20k from Contract Services to new Abatement account (20,000)         100‐74‐716 700‐702 ‐ Contract Services General Service Agreement Transfer $20k from Contract Services to new Abatement account 20,000          ‐  100‐31‐305 700‐702 ‐ Contract Services General Service Agreement Funds for Applications Intern III (25,303)         100‐32‐308 500‐502 ‐ Employee Compensation Salaries Part Time Funds for Applications Intern III 24,626          100‐32‐308 501‐501 ‐ Employee Benefits PT Medicare Funds for Applications Intern III 357               100‐32‐308 501‐520 ‐ Employee Benefits PT PERS Funds for Applications Intern III 320               ‐  100‐31‐305 700‐702 ‐ Contract Services General Service Agreement Funds for Citywide Interns (95,315)         100‐44‐412 500‐502 ‐ Employee Compensation Salaries Part Time Funds for Citywide Interns 95,315          ‐  100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Jo Nguyen ‐ Medicare ‐ PT Communications & Marketing Coordinator (892)              100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Jo Nguyen ‐ PARS ‐ PT Communications & Marketing Coordinator (800)              100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Jo Nguyen ‐ Salary ‐ PT Communications & Marketing Coordinator (63,308)         100‐12‐126 500‐502 ‐ Employee Compensation Salaries Part Time Jo Nguyen ‐ Salary ‐ PT Communications & Marketing Coordinator 63,308          100‐12‐126 501‐501 ‐ Employee Benefits PT Medicare Jo Nguyen ‐ Medicare ‐ PT Communications & Marketing Coordinator 892               100‐12‐126 501‐519 ‐ Employee Benefits PT PARS Jo Nguyen ‐ PARS ‐ PT Communications & Marketing Coordinator 800               ‐  100‐12‐120 500‐501 ‐ Employee Compensation Salaries Full Time Shawn Spano ‐ Exec Coaching, Team Training, Strategic Planning (12,000)         100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Shawn Spano ‐ Exec Coaching, Team Training, Strategic Planning 12,000          ‐  100‐12‐120 500‐501 ‐ Employee Compensation Salaries Full Time CBRE Real Estate Appraisal  Services (3,100)           100‐12‐120 700‐702 ‐ Contract Services General Service Agreement CBRE Real Estate Appraisal  Services 3,100            ‐  100‐12‐120 500‐501 ‐ Employee Compensation Salaries Full Time City‐Owned Properties (16,900)         100‐12‐120 700‐702 ‐ Contract Services General Service Agreement City‐Owned Properties 16,900          ‐  100‐12‐120 750‐239 ‐ Special Projects PR & Strategic Comm Strategy Branding Guidelines & City Logo Refresh Consultant 50,000          100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Branding Guidelines & City Logo Refresh Consultant (50,000)         ‐  100‐13‐130 700‐702 ‐ Contract Services General Service Agreement Assist in funding Logikcull Amendment for increased PRA storage (3,000)           100‐32‐308 600‐606 ‐ Materials Software Assist in funding Logikcull Amendment for increased PRA storage 3,000            ‐  14 8 CC 03-04-2025 148 of 283 Budget Transfers as of December 31, 2024 Attachment D GL Account Description Amount 100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Assist in funding Logikcull Amendment for increased PRA storage (1,000)           100‐32‐308 600‐606 ‐ Materials Software Assist in funding Logikcull Amendment for increased PRA storage 1,000            ‐                    100‐41‐405 600‐629 ‐ Materials Conference and Training Conference and Training for Greg (600)              100‐41‐425 600‐629 ‐ Materials Conference and Training Conference and Training for Greg 600               ‐                    100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Vallco Project Management 2025 (20,593)         100‐71‐701 700‐702 ‐ Contract Services General Service Agreement Vallco Project Management 2025 20,593          ‐                    100‐32‐308 600‐606 ‐ Materials Software BMN for Plante & Moran ERP Consulting Agreement (69,166)         100‐32‐308 750‐181 ‐ Special Projects ERP (Phase II)BMN for Plante & Moran ERP Consulting Agreement 69,166          TOTAL ‐                    14 9 CC 03-04-2025 149 of 283 FY 2024‐25 Mid‐Year Recommended Budget Adjustments Attachment D 2/19/2025 10062623450404                      13,619 Hidden Treasures Proceeds 2/19/2025 10062623600639                      11,188 Hidden Treasures Proceeds 2/19/2025 63090985900945                      33,700 Mower Replacement 2/19/2025 10031305500502                     (31,564)I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 10090001800902                      31,564 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61030300500502                      22,479 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61034310500502                        9,085 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61030300421401                      22,479 I&T ‐ Transfers 2/19/2025 61034310421401                        9,085 I&T ‐ Transfers 2/19/2025 10044412700702                      10,000 Exec recruitment ‐ ACM 2/19/2025 10044412700702 15,000                     Exec recruitment ‐ CA 2/19/2025 10090001800902                 4,070,000  Transfer out unassigned fund balance to Capital Reserve to meet  minimum reserve levels per policy 2/19/2025 42999001421401                 4,070,000  Transfer in to Capital Reserve from unassigned fund balance to meet  minimum reserve levels per policy 2/19/2025 61034310750199                       (6,079)Partial Defund of City Facilities Video Capture 2/19/2025 10032308750123                       (3,481)Partial Defund of Redesign of City Website 150 CC 03-04-2025 150 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Administrative Services Finance Goal: Financial Stability ‐ Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. So that…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target General Fund committed, assigned,  and unassigned fund balance as a %  of budgeted appropriations 122% 45% 101% 35% Credit Rating AA+ AA+ AA+ AA+ Actual expenditures (% below budget)14% 14% 189% 5% So that… Citizens can enjoy high quality services that meet community priorities. Human Resources Goal: To create a thriving organization with meaningful careers in public service. So that… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target # of Worker’s Compensation Cases 4950 Total recordable Injury Rate YTD 1.4%3.3% 1.9% 0% % absenteeism (% of total annual work hours)3% 3% 3% 2% % turnover rate 9% 7% 3% 1% % Employee participation in wellness  activities 38% 44% 41% 75% Average # of applications received per  recruitment 45 50 83 50 Recruitment timeline ‐ # days from  hiring request to offer letter 105 79 63 60 So that… Citizens can enjoy high quality services that meet community priorities. Actual revenue vs. budget (% below  budget)17%20% 147% 10% Funding allocated to high priority  services (Public Works, Community  Development, Law Enforcement) 58% 66% 71% 63% The City is  financially  responsible. The City can  invest in  Community  priorities. The City can  ensure a safe  working  environment for  all employees The City attracts and retains a  talented  workforce The agency  builds a flexible  and productive  work  arrangement. 151 CC 03-04-2025 151 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Administrative Services Finance Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Jun FY25 Jul‐Dec  # of vendor checks processed 5,130         4,541              2,407         # of payroll checks processed 9,176         9,038              4,505         # of business license applications 969            1,087              582            # of business license renewals 2,176         2,206              1,089         # of journal entries posted 3,695         4,560              3,273         # of purchase orders approved 543            445                 332            # of receipts processed 11,275       10,191            5,114        Human Resources Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Jun FY25 Jul‐Dec  # of regular recruitments 29              21                   12              # of regular new hires 31              24                   17              # of temporary new hires 70              68                   15              # of personnel payroll changes 773            768                 160            # of full‐time employee exits  processed 22              25                   11              # of mandated training classes  offered* 19              15                   11              # of employees participating in the  wellness program 80              94                   79              *some trainings mandated every other year, however not on the same annual schedule  152 CC 03-04-2025 152 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Community Development Department Community Development  Goal: Review and guide development activity to ensure compliance with relevant codes and policies,  and alignment with community values to promote and enhance Cupertinoʹs community‐wide quality of life. Enabled by…Measure FY23    Jul‐Jun FY24    Jul‐Dec FY25 Jul‐Dec Ongoing Target Building permit applications shall be  plan reviewed within 15 business days. 80% 82% 95%80% Customer/Applicants visiting the  Building Permit Counter shall be assisted  within 15 minutes 90% 92% 89%80% Applicants visiting the Planning Counter  shall be assisted within 15 minutes 98% 96% 93%50%                    Building permit applications  reviewed/issued over‐the‐counter (OTC) 62% 61% 60%75% Below market rate rental and purchase  vacancies filled 20 8 4 15 per year Average number of days to initiate  investigation of code complaints 0.54 0.46 0.45 < 7 Code enforcement cases resolved  without issuance of citations 93% 92% 88%80% Landlord‐tenant counseling and dispute  resolution cases provided 25 38 12 100 per year Public Outreach Events 15 9 5 12 per year Funds received from Community Block  Grant (CDBG) federal entitlement  program $388,459 $358,910 $173,313 Comply with  HUDʹs annual  timeliness test Efficient  planning and  building  services and  enhanced  customer  service.  Effective code  enforcement  services. Affordable and  Below Market  Rate Housing  programs and  public  service  grants.  Cupertino is a thriving City to live, work, learn and play. 153 CC 03-04-2025 153 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Community Development Planning and Community Development Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Dec FY25 Jul‐Dec Number of preliminary reviews 127 21 29 Number of planning applications  received 232 95 170 Number of planning counter inquiries 1,223 644 891 Housing Services Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Dec FY25 Jul‐Dec Number of BMR rental and ownership  vacancies filled 20 8 4 Number of landlord tenant counseling  and dispute cases received 25 38 12 Number of annual HUD documents  (CAPER, Action Plan, Consolidated  Plan) completed 21 1 Housing and Human Services Grant  Funds inquiries 10 N/A (applications  are due  2/6/24) N/A (applications are  due 2/4/25) Building Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Dec FY25 Jul‐Dec Number of permits received 2,618 1,324 1,596 Number of inspections requested 15,181 8,406 7,605 Number of building counter inquiries 2310 1755 1940  Data provided from April 2022‐ June 2022 * In person appointment started July 15, 2021, the counters were temporary  closed in January 10, 2022 due to the surge of the Omicron variant of Covid‐ 19 *For FY 2024, the City only accepted applications for Capital Housing projects. Public service funds  operate on a multi‐year cycle and will be made available during the FY 2025 funding cycle. 154 CC 03-04-2025 154 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: City Managerʹs Office, City Clerk Division GOAL:  Streamline information processing for Council, staff and community members  for compliance with State requirements and facilitate independent and transparent access  to public information. Enabled by…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target City Council minutes for meetings  presented for Council approval by the  following regular meeting 100% 100% 100% 100% Adopted City Council resolutions and  ordinances processed and scanned to  Laserfiche within a week of Clerk’s  office receipt of final, signed document 85%/60%100%/  100% 100%/  100%100% Public Record Act requests responded  to by the Statutory deadline date 99% 99% 100% 100%   So that… All can fully participate in local government to achieve the community & organizational goals.  Online  information and  updated records  that can be  easily accessed  in a timely  manner. Response to  records requests  to comply with  State law of 10  days. 155 CC 03-04-2025 155 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Administration, City Clerk Division City Clerk Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Jun FY25 Jul‐Dec City Council minutes for regular  meetings presented for Council  approval by the following regular  meeting 20/20 44/44 16/16 Adopted City Council resolutions and  ordinances processed and scanned to  Laserfiche within a week of Clerk’s  office receipt of final, signed  document 136/160;  6/10 131/131;  13/13 55/55; 8/8 Public Record Act requests responded  to by the Statutory deadline date 271/274 258/259 183/183 156 CC 03-04-2025 156 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: City Managerʹs Office, Economic Development Division Enabled by… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target Maintain Economic Development  Business Connect Subscribers 6,000 8,758 9,752 9,000 Economic Development Business  Visits, Workshops & Events 7643320 per year   So that… GOAL: To actively pursue opportunities in the areas of business attraction, retention, and expansion as a  means of promoting economic vitality, and strengthening the City’s sales tax base to support Cupertino’s  excellent quality of life for its residents, businesses, and daytime population. Effective  partnerships  and proactive  Economic  Development  programs to  support local  businesses.  Cupertinoʹs economy and sales tax revenue base are diversified to further enhance the Cityʹs financial  stability and its ability to provide quality amenities to the community.  157 CC 03-04-2025 157 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Administration, Economic Development Division Economic Development Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Jun FY25 Jul‐Dec Meetings with large groups/organizations; appointments  with brokers, prospective business owners, business owners  and operators, City staff, etc.50 281 257 Special events, including small business workshops and  seminars, ICSC conferences and events, ribbon cuttings and  grand openings, and Small Business Saturday Celebration 71313 Number of Delivery Posts to Business Connect Subscribers 31219 158 CC 03-04-2025 158 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Administration, City Managerʹs Office, Office of Communications Division GOAL:  Promote and increase interest and participation in City services, programs,  initiatives, and projects while building community pride and positive identification with the  City among its residents. Enabled by…Measure FY23 Jul‐Jun FY24   Jul‐Dec FY25   Jul‐Dec Ongoing  Target Social media engagement: total number  of followers including City Hall  Nextdoor, Facebook, Twitter, and  Instagram , YouTube, accounts 41,000 48,622 49,426  10%  annual  increase Community engagement: total number  of IOI recipients 1732 2,581 2,819  10%  annual  increase Total Number of Gov Delivery Notices  sent 586 556 302 10%  annual  increase   So that… *Social media engagement metrics seen here are different due to Facebookʹs changes on its metrics, how they calculate it, and what  they provide now. Previously, Facebook would count any action as engagement; now they only count likes/reactions, comments,  link clicks, and shares. Residents have access to timely, engaging, and important information Leveraging the  communication  skills,  knowledge, and  experience of  employees while  utilizing existing  and emerging  technologies to  enhance,  improve, and  streamline the  communication  process. 159 CC 03-04-2025 159 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Administration, Office of Communications Public Affairs Workload Indicator  FY23  Jul‐Jun FY24 Jul‐Jun FY25 Jul‐ Dec Social Media Engagement: Post per  year (Facebook, Nextdoor, Twitter,  Instagram)500 747 483 Number of YouTube videos created 17 31 26 Number of Community Information  and Outreach Program products  provided (newsletters, press releases,  website news postings)150 50 48 Number of Communications Requests  Received and Completed from  Departments via Communications  Request Form N/A N/A 416 160 CC 03-04-2025 160 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Innovation & Technology Innovation & Technology Goal: Provide superior delivery of information and technology services to city employees and  constituents while continually enhancing levels of engagement. Enabled by…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target GIS: % of time spent Developing  Application 50% 28% 34% 65% GIS: % of time Maintaining  applications 50% 72% 66% 35% GIS: Increase Property Information  (Internal/External) site visits per  month 279/84 338/97 325/96 500/100 GIS: Cityworks utilization ‐ # of assets  Cupertino maintains vs # of assets  maintained in Cityworks. Also the %  increase of work units completed  (WOs, INSP,SRs) 45/31 45/32 45/32 45/45 Infrastructure: Percentage based upon  number of scheduled projects/Number  of projects completed on time N/A 63% 67% 100% Infrastructure: Percentage based upon  number of HelpDesk tickets/SLA  measurements 85.9% 90.4%91.3%90% Infrastructure: % Customer  satisfaction based upon Satisfaction  Rate from helpdesk tickets 99.6% 94.8% 100% 85% Infrastructure: % of network uptime  (not including planned maintenance)99.9% 99.9% 99.9% 99% Applications: % of citywide‐enterprise  application project management  performed on time and on budget 98% 96% 95% 95% Applications: Number of website site  visits/Number of site hits 857,387 1,100,000 630,000 5%  annual  increase Applications: Number of support  request for the applications support   per month 640 850 628 20 Tools and  services leverage  existing,  emerging and  innovative  technologies to  enhance,  improve, and  streamline  business and  communications  processes Integrated  information  services enable  customers’  access to the  tools and  information they  need, when and  where they need  it 161 CC 03-04-2025 161 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Innovation Technology Applications Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of tasks for Enterprise Programs Support & Maintenanace ‐ includes  enterprise business platforms like ERP, Land Management System, Recreation System,  City Digital Records, City Website and many programs like Admin Services digital  transformation, citywide permiting, licensing and enforcement solutions. 2,250 Standardizin g tracking  process 2,550 1,530 Number of Hours for Application Development ‐ includes custom software solutions  like Bid Management solution and Permit Parking software solutions. Application  development for these kind of software solution goes through all stages of Software  Development Life Cycle (SDLC) of Requirement‐gathering, Analysis, Designing,  Coding, Testing and Deployment of these custom software solutions.  1,300 1,500 1,240 % of Project Implementation Performed on Time and Budget for Ciytwide  Applications ‐ This measure involves the task of project research and communications,  project charter creation, creating or reviewing statement of work, contractor research  and selection process, activity and resource planning, creation of work breakdown  structure, team building, time management, deliverable management,  customer  satisfaction, risk management, communication management, project closeout process  and  documentation. 95%96% 95% Infrastructure Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec % of helpdesk requests completed 48 hours or less ‐ Prompt customer service and  attention is a critical customer service measurement to ensure staff is able to perform  and excel with their daily duties. This core responsibilty is performed by two Network  Specialists serving 200‐250 staff depending on the time of year. Infrastructureʹs goal is  to provide a service level where 90% of all helpdesk service requests are completed in  48 hours or less. 85.9%90.4%91.3% % of network uptime ‐ Maintain availability and accessibility of the Cityʹs network  infrastructure during business hours of operation. The Cityʹs local and wide area  networks require high reliability to ensure various applications (ERP, GIS, Land  management, etc.) and services (Internet, e‐mail, shared files, City web services, etc).  are available for staff and members of the public.  99.9%99.9% 99.9% Number of IT Projects Completed ‐ Project research and communications, project  charter creation, SOW creation, contractor research and selection process, activity &  resource planning/work breakdown structure, team building and motivation, time  management, deliverable management, ensuring customer satisfaction, risk  management, communication management, project closeout process, documentation N/A 5    4     162 CC 03-04-2025 162 of 283 GIS Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Hours Spent on Development ‐ The GIS Division builds internal and external web  applications, business intelligence tools, digital workflows,  and configures enterprise  applications. 507/new  tracking  system was  in  development  during this  time frame 673/new  tracking  system was in  development  during this  time frame 433 Number of Map, Data, Analysis, Report Completed Requests ‐ Requests range from  hard copy maps to interactive web maps, data request, data changes, crystal report  requests. 316/new  tracking  system was  in  development  during this  time frame 349/new  tracking  system was in  development  during this  time frame 279 Number of I&T workplan projects completed ‐ Project research and communications,  project charter creation, SOW creation, contractor research and selection process,  activity & resource planning/work breakdown structure, team building and  motivation, time management, deliverable management, ensuring customer  satisfaction, risk management, communication management, project closeout process,  documentation 90%* 7/8      3/3 3/5 *One project was removed due to budget cuts 163 CC 03-04-2025 163 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Information & Technology, Video Division  Enabled by… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target Percentage of total video productions  performed vs scheduled productions (city  meetings excluded) 356%  57/16 220% 44/20 155% 28/18 100% Percentage of total engineering projects vs  scheduled projects  200% 10/5 182% 11/6 133% 4/3 100% Total video views on YouTube*141,571 135,641 80,351 5% annual  increase    So that… * Unable to retrieve Granicus viewership data due to error in their reporting module GOAL: Video Division oversees numerous outreach projects, public meetings, internal equipment upgrades, and  public events. These activities coincide with the City Council and City’s expectation for a positive presence in the  community and communications and transparency to residents. 24/7 government access  channel, radio station,  digital signage network,  City website, and  numerous online video  platforms. Public awareness, interest, understanding, and participation in the issues, programs, and services presented by the  City of Cupertino can be enhanced. 164 CC 03-04-2025 164 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Information & Technology, Video Division  Workload Indicator  FY23  Jul‐Jun FY24  Jul‐Jun FY25 Jul‐Dec Video Productions Completed vs. Those Scheduled ‐  Video productions  range in scope from relatively simple 30‐second public service announcements  to major projects like CREST that require more than two months of on‐going  field production, post‐production editing, and a live awards program telecast.  This specific Workload Indicator clearly indicates that a large percentage of  annual video projects are unscheduled or unanticipated. The measurements  here are tracked in the ʺmilestonesʺ document located in our City Channel  documentation folder. The milestones document is a comprehensive dataset of  all the video division projects‐‐both large and small‐‐and is maintained by the  entire video staff. City meeting telecasts are not included in this particular  dataset. 245% 27/11 356% 57/16 245% 27/11 Engineering Projects Completed vs. Those Scheduled ‐ Video staff is  responsible for designing, managing, and maintaining the many audiovisual  and broadcast systems located within the organization.   These include  systems within the conference and multipurpose rooms, office and huddle  spaces, as well as the complex broadcast systems within the video control  room at Community Hall. The Workload Indicator here measures the number  of projects completed vs. the number of scheduled projects.   These  measurements are tracked in the ʺengineering milestonesʺ document located  in our City Channel documentation folder. This document is maintained by  Pete Coglianese, who is the broadcast engineer for the division. 100% 2/2 275% 11/4 100% 2/2 Total Viewership on the YouTube and Granicus Platforms ‐ Video staff  historically tracks viewership data within our primary online video platforms‐‐ YouTube and Granicus. Both YouTube and Granicus provide advanced  reporting modules that allow us to accurately track the number of views over  a given date range. The numbers here indicate total views rather than total  unique views. Other online platforms were considered as part of this dataset;  however, because we do not consistently post videos to our other social media  sites such as Facebook, Twitter, Instagram, and Nextdoor, those statistics were  not included as part of this specific performance measure. Similarly, we do  have accurate viewership data for the City Channel, our government access  television channel, so that platform was excluded as well. 60,249 158,300 60,249 165 CC 03-04-2025 165 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Law Enforcement Law Enforcement Goal: Maintain a safe environment to live, work, learn and play. Enabled by…Measure FY23 Jul‐ Jun FY24 Jul‐Jun FY25  Jul‐ Dec Ongoing  Target Priority 1 6.57 5.81 7.28 5 minutes Priority 2 7.46 6.32 6.41 9 minutes Priority 3 12.72 7.86 6.30 20 minutes % programs maintaining minimum  attendance Teen & Citizen  Academy 90% 100% 0% 80% Response time for emergency callsAll members of  the community are safe, informed,  empowered and  supported. 166 CC 03-04-2025 166 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Law Enforcement Law Enforcement Workload Indicator FY23 Jul‐ Jun FY24 Jul‐ Jun FY25  Jul‐ Dec Total Priority 1 Calls 85 52 14 Total Priority 2 Calls 4,263 5,315 2,910 Total Priority 3 Calls 3,161 3,818 1,836 Total Teen/Community Academy  Participants 18 31 0 167 CC 03-04-2025 167 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Parks and Recreation Parks and Recreation Goal: Create a positive, healthy and connected community. Enabled by… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target % of Parks and Recreation Department  customers surveyed who rate services  as good or excellent 98% 98% 98% 85% % of programs maintaining minimum  registration 78%78% 82% 80% % change in participants 16% 13% 14% 1% So that… Cupertino has an exceptional system of parks and services that align with community values. 40%% Departmentʹs total cost recovery for  all (direct and indirect) costs 55% 56% 53% City investment in  quality recreation  and community programs Improved business  processes to  improve customer  experience 168 CC 03-04-2025 168 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Parks and Recreation Business and Community Services Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of reservations at Quinlan  Center 405 426 202 Number of festival applications  received 10 9 9 Recreation and Education Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of registrations 3,756 3,960 2,178 Number of survey respondents 95 62 54 Number of Senior Center classes  offered 235 381 216 Number of Senior Center trips offered 14 22 11 Sports, Safety and Outdoor Recreation Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of programs offered 1,256 1,202 730 Number of picnic reservations @ BBF 152 159 100 Rounds of golf at BBF Golf Course 37,961 41,974 20,009 Sports Center Memberships 1,394 1,493 1,689 169 CC 03-04-2025 169 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Public Works Capital Project Delivery So that… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of projects completed on  budget 100% 100% 100% Percentage of construction projects  completed on time 100% 100% 33% Goal: Develop and deliver projects on time and within budget that serve the residentʹs needs and supports the City stability and growth *FY23: 10 projects completed, 10 projects on budget, 10 projects on time;  *FY24: 6 projects completed, 6 projects on budget, 6 projects on time;  *FY25 Q1 & Q2: 6 projects completed, 6 projects on budget, 2 projects on time City funds  capital  improvement projects. Projects are  utilized by the  community. Benefit: Residents and businesses are assured their community is being improved insightful, targeted and efficient use of taxes and fees towards maintaining and impr the Cityʹs facilities and assets.  170 CC 03-04-2025 170 of 283 Environment Goal: Protect our natural environment for current and future generations. So that... Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percent of businesses in compliance  during annual proactive stormwater  pollution prevention inspections 95% 93% 67% Percent of non‐exempt businesses and  multi‐family accounts separating  organics  87% 98% 99% Percent trash/litter reduction achieved to  meet Stormwater Permit requirements 94%97% N/A Diversion rate from all single‐family,  multi‐family, and commercial accounts  as reported by Recology tonnage reports 53%48% 50% Respond to reports of actual or potential  discharge the same business day 86%72% 71% % of plan reviews completed in required  number of days 93%92% 92% Cubic yards of compost distributed via  compost site Quarry: 600CY  SMaRT Station:  789CY  Compost;  239CY Mulch Quarry: 180  CY SMaRT  Station: 580  CY Compost  45.45 CY  Mulch Quarry: 0 CY   SMaRT  Station:  278.18 CY  Compost       21.82 CY  Mulch % of vegetation obstructions resolved  within 15 days from time of report* 37%68% N/A *Inspections occur in the spring only City is  responsible for  a  comprehensive  storm water  pollution  prevention  program. Potential  pollutants are  stopped before  entering the  storm drain  system. City implements  solid waste  collection  services that  encourage  diversion of  waste from  landfills. Benefit: Current and future residents enjoy a healthy, sustainable environmen Diversion of  solid waste  from landfill is  maximized,  compost is  produced for  community use,  recyclable  material is sold  to help offset  collection costs  and methane  gas emissions at  landfills are  reduced. 171 CC 03-04-2025 171 of 283 172 CC 03-04-2025 172 of 283 Development Services  Goal: Provide timely review and permitting of privately completed improvements within the  public right of way. So that… Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of completeed plan  submittals or applications responded to  within two (2) weeks 94% 88% 77% Percentage of completed encroachment  permit applications responded to within  two (2) weeks 94%92% 90% Percentage of public inquiries at the  Public Works counter in City Hall  attended to within 15 minutes 95%95% 95% Grounds Division So that...Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of 311 requests that are  responded to and closed within 3  business days 62%59% 47% Percentage of the 1,872 park inspections,  including play grounds, performed  weekly 31%37% 59% Percentage of Backflow Prevention  Devices inspected, tested and repaired  annually 100% 100% 100% Goal: Provide well maintained, clean, and safe areas for the community’s recreational use and enjoyment  at optim cycle costs. Improvements within the  public right of  way have  engineering  oversight and  are constructed  to City  standards. Public  improvements are consistent  and meet the  needs of the  community. Benefit: Customers can expect quality reviews and permitting on a defined schedule the community can expect quality public facilities. The City  consistently  funds park  maintenance  and safety  improvement  programs. Benefit: Cupertino has a well maintained public park system that meets the needs of community and is beneficial to personal wellness. Parks are  maintained in  good, usable condition;  safety  programs are  effective. 173 CC 03-04-2025 173 of 283 Streets Division So that…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Pavement condition index (PCI) > or  equal to 82 81 82 82 Percent of the 2087 storm drain inlets  inspected and cleaned in fiscal year 53% 21% 12% Percent of Inlets with Trash Capture  Screens inspected and cleaned twice  yearly 100% 100% 50% Percentage of roadway regulatory &  street name signs repaired or replaced 2.0% 5.0% 5.0% Percentage of trip and fall complaints  investigated and mitigated within 2  business days   73% 60% 84% Percentage of reported streetlight  outages investigated and repaired in 3  business days 90% 90% 90% Trees and Right of Way Division So that...Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of 311 requests that are  responded to and closed within 3  business days 90%90% 90% Percentage of trees inspected and  maintained in the yearly maintenance  zone (8 year maintenance cycle) 22%87% 48% Percentage of trees planted versus trees  removed # planted/# removed 146% 153/105 68% 77/114 88% 44/50 Goal: Timely maintenance of public sidewalks, streets, streetlights and storm drain system in good condition to en environmentally compliant, and accessible infrastructure that minimizes liability and has an optimal life cycle cost Goal: Maintain and enhance the Cityʹs street trees and medians to ensure a safe, healthy and environmentally cons Urban Forest. The City  consistently  funds street  and storm  drain  maintenance  and safety  improvement  programs. Street and  storm drain  systems are  maintained in a good condition;  safety  programs are  effective. Benefit: Cupertino has well maintained street and storm drain systems that meet the n of the community. Benefit: Cupertino has a healthy and safe urban forest and medians provide good aesthetic and environmental value. The City  consistently  funds street  tree and  median  maintenance  and safety  programs Street trees and  medians  remain in good  health and  condition 174 CC 03-04-2025 174 of 283 Facilities and Fleet Division So that…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of preventative maintenance  work orders completed for Fleet assets  within 14 days of the due date. 54%69% 72% Percentage of facilities maintenance  requests closed within 14 days.35%66% 63% Transportation Division So that...Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Percentage of non‐emergency traffic  signal requests addressed within 72  hours.  95% 100% 100% Percentage of emergency traffic signal  requests addressed within 2 hours.100% 100% 100% Percentage of traffic engineering  requests responded to within 72 hours 85% 90% 90% Annual mileage increase of separated  bicycle lanes and pedestrian paths. 0.82 0.00 0.2 Goal: Timely maintain City Facilities and City Fleet to meet staff, community and environmental requirements at a optimal life cycle cost. Goal: Ensure the efficiency and safety of the transportation system for all modes of travel.  The City  consistently  funds facility and fleet maintenance,  fleet  procurement, and safety  improvement  programs. Benefit: Cupertino has well maintained, usable, and safe facilities and fleet in orde meet the needs of staff and the community. Benefit: Having a safe and efficient transportation system that is inviting for all mod travel.  Infrastructure indicates good  condition;  safety  programs are  effective. Facilities and  Fleet remain in  good and  operable  condition. 175 CC 03-04-2025 175 of 283 Ongoing  Target 95% 95% yʹs  d by  roving  176 CC 03-04-2025 176 of 283 Ongoing  Target 75% 100%  (SB1383) 100% by  7/1/2025 55% 95% 100% 1,000 CY 100% nt. 177 CC 03-04-2025 177 of 283 178 CC 03-04-2025 178 of 283 Ongoing  Target 90% 90% 95% Ongoing  Target 80% 100% 100% al life  e, and  f the  179 CC 03-04-2025 179 of 283 Ongoing  Target 82 100% 100% 7% 98% 90% Ongoing  Target 95% 100% 101% sure safe,  t. cious  needs  d  180 CC 03-04-2025 180 of 283 Ongoing  Target 85% 90% Ongoing  Target 100% 100% 95% 1 mile n  er to  des of  181 CC 03-04-2025 181 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Public Works Capital Improvement Program Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of projects started in the first  year funded 4/5 2/2 6/6 Number of active projects versus total  number of projects 24/26 23/28 17/25 Environmental Programs Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of actual versus potential  discharges 93 actual  27 potential 104 actual        17 potential 25 actual          13 potential Number of stormwater pollution  prevention industrial commercial  inspections 136 160 2 so far Number of building and demolition  permits reviewed 754 662 327 so far Number of non‐exempt businesses  and multi‐family accounts required to  separate organics  272 475 471 Tons of waste entering landfill from  single‐family, multi‐family, and  commercial accounts as reported by  Recology July 1,2022‐  June  30,2023:  11,879.39 13,008 6,324 Number of visitors to compost site (FY22‐23)        Quarry: 910;  SMaRT Station:  Compost (397)  Mulch (103) Quarry: 913  SMaRT Station:  Compost (506)  Mulch (148) Quarry: 411  SMaRT Station:  Compost (220)  Mulch (54) Number of vegetation obstructions  reported 95 25 N/A *Vegetation obstructions being handled by Code beginning August 2023 182 CC 03-04-2025 182 of 283 Developmental Services Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of development applications  received  127 111 70 Number of encroachment permit  applications received 449 478 218 Number of customer service visits 358 471 297 Grounds Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Maintain city grounds (#) with total  acreage (SF) 29 sites/149AC 29 sites/149AC 29 sites/149AC Maintain school sites (#)with total  acreage (SF) 9 sites/46AC 9 sites/46AC 9 sites/46AC Total Number of 311 Requests 45 69 32 Total number of play grounds  maintained 37 37 37 Total number of irrigation controllers  maintained 74 74 74 Total number of park trees maintained 5,223 5,361 5,361 Total number of park furniture  maintained (tables and benches) 431 431 431 Total number of city trash receptacles  maintained 420 420 420 Total number of backflow preventers  maintained 174 174 174 Streets Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Total roadway miles 138 138 138 Total concrete sidewalk miles 196 196 196 Total number of unique sidewalk  repair sites addressed 730 258 211 Total square footage of sidewalk, curb  and gutter repaired/replaced 46,466 30,996 5,425 Total number of storm drain inlets 2,094 2,103 2,103 Total number of drain inlets with trash  capture devices 179 182 200 Total number of streetlights 3,413 3,421 3,421 183 CC 03-04-2025 183 of 283 Total number of roadway signs 10,394 10,444 10,494 Total miles of storm drain pipe  maintained 104.7 104.7 104.7 Total number of crosswalks  maintained 723 723 723 Total miles of pavement striping  maintained 162 162 162 Total number of street miles swept  monthly 696 696 696 Trees and Right of Way Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Total number of street trees 1,922 Trees  Maintained 2828 Trees  Maintained 1696 Trees  Maintained Total acreage of medians maintained 40 AC 40 AC 40 AC Total number of median islands  maintained 185 185 185 Total square feet of median landscape  converted or installed to water efficent  landscaping 16,873 0 Defunded 0 Defunded Total number of irrigation controllers  maintained 45 45 45 Total number of 311 Requests for tree  maintenance 386 473 332 Miles of pedestrian and bicycle trails   maintained 0.85 3.0+3.0+ Facilities and Fleet Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Total number of city facilities  maintained 51/221,500 SF 51/221,500 SF 51/221,500 SF Total number of Fleet vehicles  maintained 105 107 107 Total number of special equipment  maintained (tractors, trailers, chippers,  riding mowers, club car, forklift,  generator) 329 329 329 Total number of small equipment  maintained 278 278 278 Total number of work orders  completed 1,836 Facilities 553 Fleet 1772 Facilities  693 Fleet 1105 Facilities    395 Fleet 184 CC 03-04-2025 184 of 283 Fleet vehicles replaced with hybrid  and/or electric models 132 Annual number of sitevisits to ensure  janitorial compliance 1,628 1,628 1,628 Transportation Workload Indicator FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Number of signalized intersections 60 60 60 185 CC 03-04-2025 185 of 283 City of Cupertino FY 24‐25 Budget Performance Measures Department: Public Works, Sustainability GOAL:  Implement Cupertino’s Climate Action Plan and General Plan Sustainability  Element to achieve quantifiable emissions reductions, conserve finite resources, and  achieve utility cost avoidance and savings across municipal operations and community partners. Enabled by…Measure FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Ongoing  Target % community‐wide emissions reduced  from baseline of 307,288 MT CO2e/yr 15%  reduction  by 2020  (261,195  MT  CO2e/yr)  Initiate, develop, and complete actions  from the Climate Action Plan 2.0 % initiated  % complete or ongoing (CAP  1.0)100%  79% 6% 4% 28% 10% 100% 100% % municipal operations emissions  reduced from baseline of 1,865 MT  CO2e/yr  15%  reduction  by 2020  1 Cupertinoʹs GHG inventories are conducted roughly every 3‐5 years.    So that… 2018 inventory: 24% decrease  in emissions from baseline  (258,659 MT CO2e/yr) 2018 inventory: 66%  reduction in emissions from  baseline: 642 MTCO2e An agency  implementing  Council and  community  sustainability  goals to  effectively  safeguard  shared  resources. Engaged  community  partners and  volunteers supporting CAP  implementation Cupertino is a thriving City to live, work, learn and play. 186 CC 03-04-2025 186 of 283 City of Cupertino FY 24‐25 Budget Workload Indicators Department: Public Works, Sustainability Workload Indicator  FY23    Jul‐Jun FY24    Jul‐Jun FY25 Jul‐Dec Climate Action Plan 2.0 Actions  initiated or in Progress 82230 Climate Action Plan 2.0 Actions  Completed 5714 Community Education and Outreach  Activities Held 5514 Cross‐Departmental Projects  Supporting 959 Number of municipal and community  programs leading or supporting 883 187 CC 03-04-2025 187 of 283 FY 2024-25 First Quarter Special Projects Attachment G FY Added Department Program Base And Detail Account  With Detail Description Full Org Set Code And  Description  Amended  Budget   Actual Amount  (Expenses)   Encumbrances Status Estimated  Completion Notes (e.g., carried over  to next fiscal year) FY24 Administration 120  City Manager 750.239 ‐ PR & Strategic Comm  Strategy 100‐12‐120 ‐  General Fund‐City Manager‐City  Manager 127,400.00 0.00 0.00 In Progress 6/30/2026 FY24 Administration 120  City Manager 750.245 ‐ CWP Rise Const  Stakeholder Engmt 100‐12‐120 ‐  General Fund‐City Manager‐City  Manager 100,000.00 0.00 0.00 In Progress 6/30/2025 The City will continue engagement  with The Rise on an ongoing basis.  Expenses may occur after Q2.  FY20 Administration 632  Comm Outreach &  Neigh Watch 750.056 ‐ Neighborhood  Engagement 100‐12‐632 ‐  General Fund‐City Manager‐ Comm Outreach & Neigh Watch 56,781.00 23,562.29 0.00 Completed 9/30/2024 The Neighbor to Neighbor grant  ended on 9/30/24. Final  encumbrance of $19,481 processed  in Q2. FY24 Administration 632  Comm Outreach &  Neigh Watch 750.227 ‐ CWP Public Safety res/com  areas 100‐12‐632 ‐  General Fund‐City Manager‐ Comm Outreach & Neigh Watch 10,000.00 0.00 0.00 In Progress 6/30/2025 The Block Leader outreach program  has started and staff  will continue to  promote the programs until the end  of this fiscal year.  FY24 Administration 633  Disaster  Preparedness 750.230 ‐ Business Continuity  Resilience 100‐12‐633 ‐  General Fund‐City Manager‐ Disaster Preparedness 500,000.00 0.00 0.00 Not Started 6/30/2024 Staff is considering making  improvements to the EOC later this  fiscal year.  FY23 Administration 633  Disaster  Preparedness 750.240 ‐ MRC Rise 100‐12‐633 ‐  General Fund‐City Manager‐ Disaster Preparedness 2,194.00 1,176.24 0.00 Completed 9/30/2024 Additional supplies purchased for  MRC Rise in July 2024. Project is now  complete.  FY24 Administration 705  Economic  Development 750.230 ‐ Business Continuity  Resilience 100‐12‐705 ‐  General Fund‐City Manager‐ Economic Development 310,487.00 0.00 0.00 In Progress 6/30/2025 Funds were carried over for the  ongoing support for Small to  Medium Business Resiliency. This  was a Budget allocation from the  State of California FY23 Administration 705  Economic  Development 750.179 ‐ Econ Dev Strategy  Outreach 100‐12‐705 ‐  General Fund‐City Manager‐ Economic Development 20,000.00 0.00 0.00 Not Started Defund at Q3 FY17 Community development 701  Current Planning 750.007 ‐ The Hamptons 100‐71‐701 ‐  General Fund‐Planning‐Current  Planning 108,640.00 0.00 0.00 Not Started Waiting for building submittal.  Project approval expries in 2026 FY21 Community development 701  Current Planning 750.009 ‐ Marina Plaza 100‐71‐701 ‐  General Fund‐Planning‐Current  Planning 23,317.00 0.00 0.00 Not Started Waiting for building submittal.  Project approval expries in  December 2026. FY22 Community development 701  Current Planning 750.029 ‐ Vallco SB35/Rise 100‐71‐701 ‐  General Fund‐Planning‐Current  Planning 109,207.00 0.00 0.00 In Progress Ongoing Waiting for building permit. Some  permits for grading and site  preparation work issued. FY20 Community development 702  Mid Long Term  Planning 750.032 ‐ General Plan 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 239,805.00 0.00 0.00 In Progress Ongoing Operational item, no completion  date 18 8 CC 03-04-2025 188 of 283 FY 2024-25 First Quarter Special Projects Attachment G FY17 Community development 702  Mid Long Term  Planning 750.090 ‐ Residential/Mixed Use  Design 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 194,922.00 0.00 0.00 In Progress Summer 2025 Delays in prjoect due to previous  contractor/consultant and Housing  Element. First community meeting to  be held on Feb 10, in hybrid format. FY22 Community development 702  Mid Long Term  Planning 750.101 ‐ CWP RHNA and Gen Plan  Update 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 422,564.00 46,095.75 378,394.22 Completed Sep 2024 Completed in September, when the  City received notice from HCD that  the Housing Element complies with  State law. Housing Element   implementation policies will be  presented for Commission and  Council input as project progesses. Community development 702  Mid Long Term  Planning 750.102 ‐ CWP Sign Ordinance  Update 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 200,000.00 0.00 0.00 Not Started Spring 2025 RFP was released Winter 2024 to  obtain consultant. Pending adoption  of CWP by Council to determine  budget and which projects can move  forward. FY22 Community development 702  Mid Long Term  Planning 750.135 ‐ Laserfiche planning map  scanning 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 726.00 0.00 0.00 In Progress Winter 2024 Ongoing Operational Item FY24 Community development 702  Mid Long Term  Planning 750.235 ‐ CWP Tree List 100‐71‐702 ‐  General Fund‐Planning‐Mid  Long Term Planning 50,000.00 0.00 0.00 In Progress June 2025 Joing project with Public Works, RFP  released to obtain consultant. FY20 Community development 711  BMR Affordable  Housing Fund 750.052 ‐ Develop ELI Housing 265‐72‐711 ‐  BMR Housing‐Housing Services‐ BMR Affordable Housing Fund 238,301.00 0.00 3,005.00 In Progress Winter 2025 Pending development of Mary Ave,  then operational. Project is under  review in compliance with Exclusive  Negotiation Agreement (ENA).  Following the Negotiation period,  staff will present the Council with a  Disposition and Development  Agreement (DDA) and Lease  agreement for the project and the  project will also concurrently go  through entitlement hearings. FY22 Community development 714  Construction Plan  Check 750.031 ‐ Westport 100‐73‐714 ‐  General Fund‐Building‐ Construction Plan Check 89,621.00 1,087.50 33,194.23 In Progress 2026 Pending building permit status. The  timeline is uncertain, however, staff  estimates the townhome portion  should be fully occupied within the  first quarter of 2025. The Senior  BMR apartment building is complete  and fully occupied. The assisted  living parcel is currently under  redesign and will be submitted for  review in Fall 2025. FY20 Community development 714  Construction Plan  Check 750.067 ‐ VTC 100‐73‐714 ‐  General Fund‐Building‐ Construction Plan Check 14,595,179.00 580.00 2,594,599.46 In Progress Ongoing This pertains to building permits and  staff estimates that the developer  will submit additional building  permits in 2025 FY20 Community development 715  Building Inspection 750.067 ‐ VTC 100‐73‐715 ‐  General Fund‐Building‐Building  Inspection 5,406,634.00 0.00 0.00 Not Started This pertains to building inspections  required for this project. It is  estimated that permits will be  submitted this year for permitting  and possible inspections starting in  2026. FY22 Information Services 308  Applications 750.123 ‐ Redesign of City Website 100‐32‐308 ‐  General Fund‐I&T Applications‐ Applications 3,481.00 0.00 3,481.31 Completed 12/30/2024 Proposed to defund at midyear FY23 Information Services 308  Applications 750.183 ‐ ACA Guide & Wrapper 100‐32‐308 ‐  General Fund‐I&T Applications‐ Applications 25,000.00 0.00 25,000.00 In Progress 6/30/2025 FY23 Information Services 308  Applications 750.184 ‐ Accela Roadmap 100‐32‐308 ‐  General Fund‐I&T Applications‐ Applications 23,000.00 0.00 23,000.00 In Progress 6/30/2025 18 9 CC 03-04-2025 189 of 283 FY 2024-25 First Quarter Special Projects Attachment G FY21 Information Services 308  Applications 750.236 ‐ Project Dox 100‐32‐308 ‐  General Fund‐I&T Applications‐ Applications 394.00 393.75 0.00 Completed 8/1/2024 FY23 Information Services 310  Infrastructure 750.199 ‐ City Facilities Video  Capture 610‐34‐310 ‐  Innovation & Technology‐I&T  Infrastructure‐Infrastructure 6,079.00 0.00 0.00 Completed 6/30/2024 Proposed to defund at midyear FY22 Information Services 986  GIS 750.166 ‐ AR McClellan Ranch 610‐35‐986 ‐  Innovation & Technology‐I&T  GIS‐GIS 11,333.00 11,333.32 0.00 Completed 12/30/2024 FY23 Information Services 986  GIS 750.212 ‐ Laserfiche Scanning 610‐35‐986 ‐  Innovation & Technology‐I&T  GIS‐GIS 4,099.00 0.00 4,098.54 Completed 9/30/2024 FY24 Information Services 986  GIS 750.238 ‐ VR Decarb 610‐35‐986 ‐  Innovation & Technology‐I&T  GIS‐GIS 112,002.00 38,249.70 73,750.25 In Progress 6/30/2025 FY23 Law enforcement 200  Law Enforcement SC  Sherif 750.227 ‐ CWP Public Safety res/com  areas 100‐20‐200 ‐  General Fund‐Law Enforcement‐ Law Enforcement SC Sherif 60,000.00 62,250.00 62,250.00 In Progress 3/30/2025 FY24 Public works 122  Sustainability  Division 750.025 ‐ Special Maintenance 100‐81‐122 ‐  General Fund‐Environmental  Programs‐Sustainability Division 10,000.00 0.00 0.00 In Progress 6/30/25 FY22 Public works 122  Sustainability  Division 750.106 ‐ Electric Cooking Workshop  Series 100‐81‐122 ‐  General Fund‐Environmental  Programs‐Sustainability Division 6,400.00 0.00 0.00 In Progress 6/30/2025 FY24 Public works 122  Sustainability  Division 750.176 ‐ Climate AP Vision  Summary Doc 100‐81‐122 ‐  General Fund‐Environmental  Programs‐Sustainability Division 10,000.00 0.00 0.00 In Progress 6/30/2025 Carried over from last FY; Will  confirm if IT has in base budget. They  may have paid for it. If so, this can be  removed FY24 Public works 122  Sustainability  Division 750.223 ‐ CWP Electrification Study 100‐81‐122 ‐  General Fund‐Environmental  Programs‐Sustainability Division 96,057.00 21,002.79 15,104.88 In Progress 6/30/2025 FY21 Public works 800  Public Works Admin 750.071 ‐ Municipal Water System 100‐80‐800 ‐  General Fund‐PW  Administration‐Public Works Admin 5,811.00 8,796.00 0.00 In Progress 6/30/2025 Ongoing Legal Fees. Will be moved  to base budget in FY26 FY25 Public works 800  Public Works Admin 750.244 ‐ CWP Recycled Water  Feasibility 100‐80‐800 ‐  General Fund‐PW  Administration‐Public Works Admin 200,000.00 0.00 0.00 In Progress 6/30/2025 FY25 Public works 801  Resources Recovery 750.025 ‐ Special Maintenance 520‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery 20,000.00 0.00 0.00 In Progress 6/30/2025 CAP dashboard pilot FY24 Public works 801  Resources Recovery 750.041 ‐ HHW and PaintCare 520‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery 161,010.00 66,540.50 0.00 In Progress Ongoing annual  project SCC Household Hazardous Waste program. Annual on‐going program  to cover residential drop off of items  that cannot be accepted by  Recology. FY21 Public works 801  Resources Recovery 750.084 ‐ Single Use Plastics  Ordinance 520‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery 94,544.00 (1,205.00)0.00 In Progress 1/31/2026 Ordinance implementation still in  progress and on schedule. Contract  term extended.  FY22 Public works 801  Resources Recovery 750.137 ‐ SB1383 Procurement  Requirements 520‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery 205,653.00 0.00 0.00 In Progress Ongoing annual  project No completion date FY22 Public works 801  Resources Recovery 750.174 ‐ New Lndfill Agrmnt/Solid  Wst con 520‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery 103,542.00 24,660.00 47,266.25 In Progress 8/31/2025 FY20 Public works 802  Non Point Source 750.064 ‐ Low Income Cost Share 230‐81‐802 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Non Point Source 2,000.00 0.00 0.00 In Progress Ongoing Ongoing item will be moved to base  budget in FY26 FY20 Public works 802  Non Point Source 750.065 ‐ CUSD Joint Use Cost Share 230‐81‐802 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Non Point Source 8,707.00 0.00 0.00 In Progress Ongoing Ongoing item will be moved to base  budget in FY26 FY19 Public works 804  Plan Review 750.039 ‐ PW Scanning Project 100‐82‐804 ‐  General Fund‐Developmental  Services‐Plan Review 9,310.00 0.00 9,310.29 Completed Ongoing Funds are encumbered in Q1 for PW.  Remaining project will be funded by  IT. FY20 Public works 804  Plan Review 750.067 ‐ VTC 100‐82‐804 ‐  General Fund‐Developmental  Services‐Plan Review 1,961,366.00 14,065.00 1,182,523.68 In Progress Anticipated 2030 FY22 Public works 804  Plan Review 750.105 ‐ CWP Revisit 5G 100‐82‐804 ‐  General Fund‐Developmental  Services‐Plan Review 250,000.00 0.00 0.00 In Progress 6/30/2025 Most of the work to date has been  completed in‐house. Ongoing  changes to related laws, limited  staffing resources, and other  priorities have resulted in delays to  finalization. 19 0 CC 03-04-2025 190 of 283 FY 2024-25 First Quarter Special Projects Attachment G FY20 Public works 807  Service Center Admin750.043 ‐ Office Reconfiguration 100‐83‐807 ‐  General Fund‐Service Center‐ Service Center Administration 111,416.00 9,109.11 0.00 In Progress Ongoing Partial Defund at Q3, included in  base budget FY25 Public works 812  School Site  Maintenance 750.025 ‐ Special Maintenance 100‐84‐812 ‐  General Fund‐Grounds‐School  Site Maintenance 10,500.00 0.00 0.00 In Progress 06/30/2025 Dugout roof replacement ‐ Hyde FY25 Public works 814  Sport Fields Jollyman  CRK 750.025 ‐ Special Maintenance 100‐84‐814 ‐  General Fund‐Grounds‐Sport  Fields Jollyman CRK 10,500.00 0.00 8,500.00 In Progress 06/30/2025 Dugout roof replacement ‐ Jollyman FY19 Public works 820  Sidewalk Curb and  Gutter 750.020 ‐ Annual Sidewalk Curb &  Gutter 270‐85‐820 ‐  Transportation Fund‐Streets‐ Sidewalk Curb and Gutter 2,776,484.00 0.00 1,588,567.91 In Progress 6/30/2025 Annual project FY24 Public works 825  Street Tree  Maintenance 750.235 ‐ CWP Tree List 100‐86‐825 ‐  General Fund‐Trees and Right  of Way‐Street Tree Maintenance 60,000.00 0.00 0.00 In Progress 6/30/2025 Collaborating with CDD. Project  currently awaiting CDD's completion  of RFP. RFP just went out  10/21/2024. CWP update from  Council may turn this into a Urban  Forest Master Plan.  FY25 Public works 827  Bldg Maint City Hall 750.025 ‐ Special Maintenance 100‐87‐827 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint City Hall 2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY25 Public works 828  Bldg Maint Library 750.025 ‐ Special Maintenance 100‐87‐828 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint Library 45,000.00 0.00 0.00 In Progress 6/30/2025 Library HVAC FY25 Public works 829  Bldg Maint Service  Center 750.025 ‐ Special Maintenance 100‐87‐829 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint Service Center 2,000.00 297.09 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY24 Public works 830  Bldg Maint Quinlan  Center 750.025 ‐ Special Maintenance 100‐87‐830 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint Quinlan Center 79,174.00 8,955.65 0.00 Not Started 6/30/2025 Security project  FY24 Public works 831  Bldg Maint Senior  Center 750.025 ‐ Special Maintenance 100‐87‐831 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint Senior Center 123,675.00 0.00 0.00 Not Started 12/31/2025 Funds are allocated to replace  kitchen HVAC unit.  FY25 Public works 832  Bldg Maint McClellan 750.025 ‐ Special Maintenance 100‐87‐832 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint McClellan Ranch 2,000.00 0.00 0.00 Not Started 12/31/2024 Burglar Alarm Upgrades FY25 Public works 833  Bldg Maint Monta  Vista Ct 750.025 ‐ Special Maintenance 100‐87‐833 ‐  General Fund‐Facilities and  Fleet‐Bldg Maint Monta Vista Ct 2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY23 Public works 836  Bldg Maint Sports  Center 750.025 ‐ Special Maintenance 570‐87‐836 ‐  Sports Center‐Facilities and  Fleet‐Bldg Maint Sports Center 45,705.00 20,169.00 0.00 In Progress 12/31/2025 HVAC repair (in progress), raquetball  court (November 2024) FY25 Public works 838  Comm Hall Bldg  Maint 750.025 ‐ Special Maintenance 100‐87‐838 ‐  General Fund‐Facilities and  Fleet‐Comm Hall Bldg Maint 2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY23 Public works 844  Traffic Engineering 750.040 ‐ Planned Transportation  Project 100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 2,788.00 2,565.00 222.50 Completed 6/30/2025 FY22 Public works 844  Traffic Engineering 750.163 ‐ VMT to LOS Standards 100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 30,637.00 10,800.26 19,776.97 In Progress 6/30/2025 FY23 Public works 844  Traffic Engineering 750.219 ‐ CWP Bicycle Facilities 100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 50,000.00 0.00 0.00 In Progress 6/30/2025 No progress since last quarterly  report.  FY23 Public works 844  Traffic Engineering 750.231 ‐ SC Corridor Vision Study 100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 154,079.00 151,968.63 0.00 In Progress 6/30/2025 FY23 Public works 844  Traffic Engineering 750.242 ‐ AC2 Traffic Monitoring 100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 42,975.00 0.00 42,975.00 Completed 6/30/2026 Funds encumbered. Waiting for  invoices. Completed for this FY. FY25 Public works 844  Traffic Engineering 750.243 ‐ CWP Active Transportation  100‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering 330,000.00 0.00 0.00 In Progress 6/30/2025 FY23 Public works 853  Storm Drain Fee 750.063 ‐ Rainwater Capture 230‐81‐853 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Storm Drain Fee 28,207.00 6,634.62 9,072.44 In Progress Ongoing annual  project FY20 Public works 854  General Fund Subsidy 750.065 ‐ CUSD Joint Use Cost Share 230‐81‐854 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐General Fund  Subsidy 0.00 17,672.77 0.00 In Progress Ongoing annual purchase 19 1 CC 03-04-2025 191 of 283 Department Granting Agency Name of Grant Description/Purpose of Grant Requested Grant Amount Date Applied Date Due Grant Application Status (Grant Awarded, Pending Results, Grant Denied) Grant Amount Awarded City Matching Funds Required? Yes/No; If yes, please include amount Date Awarded Grant Amount Spent Grant Amount Remaining Is Grant Active or Closed or N/A? Innovation and  Technology CA Energy  Commission California Automated Permit  Processing (CalAPP) Program CalAPP is proving a one time grant  for the enhancement of Solar permit  applications $60,000 2/15/2023 5/31/2027 Grant Awarded $60,000 $45,020 4/4/2023 $0 $35,520 Active Public Works CalSTA TIRCP (Transit and Intercity Rail  Program) 5‐year expansion of Via shuttle,  including partnership with City of  Santa Clara $8,465,000 3/3/2022 3/8/2022 Grant Awarded $8,465,000 No ʺrequiredʺ  match, but City  must fund the non  grant‐funded  balance of the  program, or  $8,465,000.  This is  shared with City of 7/11/2022 Public Works Caltrans HSIP (Highway Safety  Improvement Program) Improving safety on roadway  segments $3,561,800 9/12/2022 9/12/2022 Grant Awarded $3,205,620 $356,180 3/15/2023 $3,444 $3,202,176 Active Public Works FHWA Safe Streets 4 All (SS4A) Bollinger Road road diet traffic  analysis, outreach and engineering  design $532,000 7/10/2023 7/10/2023 Grant Awarded $425,600 $106,400 12/13/2023 Public Works HUD Federal Community Project  Funding Grant FY22 Funding for Cupertino Library  Expansion project $1,000,000 3/25/2021 6/10/2022 Grant Awarded $1,000,000 No 2/15/2024 $0 $1,000,000 Active Public Works CA Parks and  Recreation Dept. State Specified Grant Funding for Jollyman All Inclusive  Play Area $1,000,000 3/17/2022 7/1/2022 Grant Awarded $1,000,000 No N/A $0 $1,000,000 Active Public Works CA DOT McClellan Road Bridge  Reconstruction State Funding Grant (Evan Lo) $7,500,000 3/17/2022 7/1/2022 Grant Awarded $5,000,000 No N/A $0 $7,500,000 Active Public Works Santa Clara  County Santa Clara County AIPG Funding for Jollyman All Inclusive  Play Area $1,440,000 10/10/2018 10/12/2018 Grant Awarded $1,440,000 $1,591,799 5/13/2019 $0 $1,440,000 Active Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280  Trail)‐East $1,936,000 12/1/2021 12/1/2021 Grant Awarded $1,936,000 $830,000 (30% of  total project cost ‐  includes both  Measure B Grants) 11/12/2021 $0 $1,936,000 Active Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280  Trail)‐Central  $460,000 7/1/2020 7/1/2020 Grant Awarded $460,000 $1,795,000 (30% of  project cost ‐  includes both  Measure B Grants) 7/14/2020 $110,802 $349,198 Active Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280  Trail)‐Central  $3,725,000 7/1/2020 7/1/2020 Grant Awarded $3,725,000 $1,795,000 (30% of  project cost ‐  includes both  Measure B Grants) 7/14/2020 $0 $3,725,000 Active Public Works California Office  of Traffic Safety  (OTS) Pedestrian and Bicycle Safety  Program Bicycle and Pedestrian Traffic  Safety Education $152,000 1/31/2024 1/31/2024 Grant Awarded $160,000 No 10/22/2024 $0 $160,000 Active Public Works FHWA BPMP (Bridge Preventative  Maintenance Program) Funding for recommended  preventative maintenance on local  roadway bridges $1,144,472 9/30/2020 N/A Grant Awarded $1,144,472 $148,278 4/12/2023 $965,930 $178,155 Active Public Works FHWA HBP (Highway Bridge Program) Repairs to bridge 37C0011, SCB  over Stevens Creek $688,000 10/5/2018 N/A Grant Awarded $688,000 $172,000 10/12/2018 $0 $688,000 Active Public Works BAAQMD BAAQMD ‐ TFCA 40% Fund  (Transportation Fund for Clean  Air) Funding for year three (FY25) of  Silicon Valley (SV) Hopper. $500,000 3/14/2024 3/15/2024 Grant Awarded $500,000 No ʺrequiredʺ  match, but City  must fund the non  grant‐funded  balance of the  program.  Cityʹs  contribution is  $882,704. N/A $0 $500,000 Active Competitive Citywide Grants Tracking - FY25 Mid-Year Update 19 2 CC 03-04-2025 192 of 283 Department Granting Agency Name of Grant Description/Purpose of Grant Requested Grant Amount Date Applied Date Due Grant Application Status (Grant Awarded, Pending Results, Grant Denied) Grant Amount Awarded City Matching Funds Required? Yes/No; If yes, please include amount Date Awarded Grant Amount Spent Grant Amount Remaining Is Grant Active or Closed or N/A? Competitive Citywide Grants Tracking - FY25 Mid-Year Update Public Works SVCE Community Decarbonization  Engagement Grant Competitive grant for community  engagement around  decarbonization topics from SVCE.  Grant Funds shall be disbursed to  Recipient on a reimbursement basis. $100,000 4/1/2022 4/4/2022 Grant Awarded $111,500 No 2/2/2023 $0 $111,500 Active Parks and Recreation NRPA NRPA: Supporting Healthy  Aging Through Parks and  Recreation 3.0 With the support of the Centers for  Disease Control and Prevention  (CDC), NRPA is offering instructor  training grants for five arthritis‐ appropriate, evidence‐based  interventions (AAEBIs). Essentially,  these are physical activity classes  that are proven to help people with  hii b ll $0 10/20/2023 10/23/2023 Grant Awarded $0 ‐ Grant  provides  instructor  training and  material/equip ment for the  class No 11/28/2023 $0 $0 Active Public Works MTC One Bay Area Grant (OBAG)  Cycle 2 Stevens Creek Blvd Protected Bike  Lanes Phase 2 $807,000 7/28/2016 N/A Grant Awarded $807,000 Yes, $93,000 (11.47%  of project cost)  1/24/2022 $3,230 $803,770 Active 19 3 CC 03-04-2025 193 of 283 Department Granting Agency Name of Grant Description/Purpose of Grant Requested  Grant Amount Date  Applied Date Due Status (Grant  Awarded,  Pending Results,  Grant Denied) Grant Amount Awarded Date Awarded Grant Amount Spent Grant Amount  Remaining Is Grant Active  or Closed or  N/A? Administration Santa Clara County  (CalOES) Emergency Management  Performance Grant  (EMPG) Performance Grant (EMPG) program is one of the grant programs that  constitute DHS/FEMA’s focus on all‐hazards emergency preparedness.  These grant programs are part of a comprehensive set of measures  authorized by Congress and implemented by DHS. Among the goals  noted in the DHS Strategic Plan, the EMPG program supports the goal  to Strengthen Preparedness and Resilience. $11,000 N/A N/A Grant Awarded $11,000 N/A $2,471  $               8,529 Active Public Works DOE Energy Efficiency  Community Block Grant EECBG funds for use in developing energy efficiency services or  strategies, code enforcement, other uses $125,790 N/A 4/28/2023  Grant Awarded $125,790 7/2/2024 $0 $125,790 Active Administration/ Community  Development  Department County of Santa  Clara (Simitian) Homeless Services and  Supports A matching grant of $50,000 for the City of Cupertino, which currently  funds several assistance programs for unhoused residents. These  programs include Haven to Home, a program run by West Valley  Community Services that offers bus passes, laundry quarters, hygiene  kits, foods assistance, and other forms of assistance, as well as a Rotating  Safe Car Park program that serves Saratoga and Cupertino and is  operated by Amigos de Guadalupe and West Valley Community  Services. Use of the additional $50k will be determined. $50,000 4/29/2024 4/29/2024 Grant Awarded $50,000 TBD $0 $50,000 Active Community  Development  Department HUD Community Development  Block Grant (CDBG) U.S. Dept of Housing & Urban Development (HUD) Federal Entitlement  Allocation ‐ FY 2023‐24 $358,910 7/31/2023 Annually: 6/30 Grant Awarded $358,910 7/21/2023 $193,777  $           165,113 Active Community  Development  Department HUD Community Development  Block Grant (CDBG) U.S. Dept of Housing & Urban Development (HUD) Federal Entitlement  Allocation ‐ FY 2024‐25 $173,313 11/18/2024 Annually: 6/30 Grant Awarded $173,313 11/6/2024 $9,553  $           163,760 Active Public Works VTA Bicycle/Pedestrian  Education &  Encouragement 2016 Measure B $33,090 9/8/2022 N/A Grant Awarded $38,082 7/1/2024 $18,000  $        20,082.00 Active Public Works Calrecycle CalRecycle Beverage  Container Recycling  City/County Payment  Program Provide opportunities for beverage container recycling. Allowable uses  include 2 staff attending annual CA Resource Recovery Association  conference, water refill stations, and recycling receptacles.  $15,158 Funds must be  expensed  between  4/13/2023‐ 3/1/2025 Annually: dates  vary Grant Awarded $15,158 4/13/2023 $3,578  $        11,580.00 Active Public Works Calrecycle CalRecycle Beverage  Container Recycling  City/County Payment  Program Provide opportunities for beverage container recycling. Allowable uses  include 2 staff attending annual CA Resource Recovery Association  conference, water refill stations, and recycling receptacles.  $15,137 12/15/2023 Annually: dates  vary Pending Results $15,137 Money not received yet  as of 2/2025; typically  receive in April‐ May N/A N/A N/A Public Works Calrecycle CalRecycle SB 1383 Local  Assistance Grant Program ‐  2023 cycle Grant program meant to provide aid in the implementation of  regulation requirements associated with SB 1383.  $161,264 11/14/2023 11/15/2023 Grant Awarded $161,264 5/22/2024 $0 161264 Active Public Works MTC TDA3 Funding for De Anza Blvd Buffered Bike Lanes $166,259 5/24/2023 5/26/2023 Grant Awarded $166,259 10/5/2023 $131,751 $34,508 Active Public Works MTC TDA3 Active Transportation Plan $330,000 5/16/2024 5/16/2024 Grant Awarded $330,000 10/3/2024 $0 $330,000 Active Non-Competitive Citywide Grants Tracking - FY25 Mid-Year Update 19 4 CC 03-04-2025 194 of 283 CIP PROJECT AND STAFFING UPDATE January 1, 2025 Q2 - FY2024 – 2025 (October - December 2024): Status of Current CIP Projects The Capital Improvement Programs division continues to accomplish a great deal with limited resources. Two positions are currently vacant (for 1.5FTEs) and we are in the process of restarting recruitment, partnering with Human Resources division. Facilities CIP Projects (orange) – 5 active projects, 4 queued Parks and Recreation CIP Projects (green) - 3 active projects, 1 queued Streets and Infrastructure CIP Projects (mauve) – 5 active projects, 1 completed Transportation (Traffic, Bike and Pedestrian) CIP Projects (blue) – 5 active projects, 2 queued, 1 completed Total: 18 active projects, 7 queued, 2 completed. Note: The color-coded project categories used here correlate to the terminology adopted in the five-year CIP annual proposal. These ‘types’ are descriptive rather than prescriptive, as many projects could fall into multiple categories. COMPLETED PROJECTS Project Title Description Notes Vai Avenue Outfall Repair of an outfall at Vai Avenue. Completed in October 2024. De Anza Boulevard Buffered Bike Lanes Restripe De Anza Blvd to include a painted buffered zone between the existing bike lane and the vehicle lanes. Completed in January 2025. 195 CC 03-04-2025 195 of 283 Page 2 October 30, 2024 ACTIVE PROJECTS (6) – SUSAN (CIP Manager) (1.0 FTE) Project Title Description Phase, Schedule, and Status PV Systems Design & Installation Design and install photovoltaic systems at 3 City facilities. • Phase: Design, RFQ • Completion: April 2026 After review by Commissions, Community and Council, the project is moving ahead with 3 of the originally proposed 5 sites. RFP for Design Build Entities is in process and the contract award will be coming to Council at the 1st meeting in February. ADA Improvements This is an ongoing program funded annually to improve accessibility at all public facilities throughout the City. (Multi-year funding) • Phase: Ongoing • Completion: N.A. Undertaking improvements at Jollyman Park BCA Implementation: Sports Center shower rooms renovation Renovate Shower/Locker room facilities at the Sports Center to address water damage issues causing safety concerns. • Phase: Design • Completion: Summer 2025 Permit and construction documentation underway for renovations to the Locker/ Shower rooms. All Inclusive Play Area & Adult-Assistive Bathroom Facility (Jollyman Park) At Jollyman Park, Design and construct an all-inclusive playground and an adult- assistive bathroom facility adjacent to the new AIPG. (Externally Funded, in part) • Phase: Construction • Completion: June 2025 Construction is underway. Lawrence-Mitty Park and Trail Plan Design and construct a new neighborhood park. Located on 7.8 acres adjacent to Saratoga Creek, near the intersection of Lawrence Expressway and Mitty Way • Phase: Design • Completion: Spring 2027 Design process is underway. Park Amenity Improvements Funding for various park amenities such as benches, hydration stations, outdoor table tennis, cornhole, shade structures, pickleball striping, etc. (Multi-year funding). • Phase: Design, Procurement • Completion: Ongoing Linda Vista DOLA hedge barrier implementation scheduled for Spring 2025. Jollyman Park will receive new bike racks, trash receptables, and picnic tables. Picnic tables for Creekside Park will be installed in Spring 2025. ACTIVE PROJECTS (8) – JASON (Senior Civil Engineer) (1.0 FTE) Project Title Description Phase, Schedule, and Status Stevens Creek Blvd CL IV Bikeway Phase 2A Design and Construction of the separated bikeway along Stevens Creek Blvd from Wolfe Road to DeAnza Blvd. (Externally Funded, in part) • Phase: Bid • Completion: Spring 2025 Phase 2A Construction bid process complete, and contract award will come to Council in January 2025. Stevens Creek Blvd CL IV Bikeway Phase 2B and Bandley Intersection Design and Construction of the separated bikeway along Stevens Creek Blvd from De Anza Blvd to US-85. This includes signal upgrades at Bandley Drive. (Externally Funded, in part) • Phase: Design • Completion: 2025-26 Design is underway; 95% complete. Grant funding being sourced. Tamien Innu - East and Central Segments Design and construct an off-street bicycle and pedestrian facility parallel to the I-280 HWY, from De Anza Blvd. Wolfe Road • Phase: Design • Completion: 2025-26 196 CC 03-04-2025 196 of 283 Page 3 October 30, 2024 (Central), from Wolfe Rd. to Vallco Parkway (East) (Externally Funded) East segment: revised design concept under analysis to verify impact to the trees on the adjacent property (Apple). Once that impact is deemed to be mutually acceptable, the final design will return to Valley Water for review. Central segment: paused while the east segment design is finalized. Bollinger Road Corridor Study Traffic analysis, topographic and utilities survey, and preliminary engineering of Bollinger Road. (Externally Funded, in part) • Phase: Analysis • Completion: 2027 Roadway Safety Improvements - HSIP High Friction pavement treatment and speed feedback signage added to seventeen locations. (Externally Funded, in part) • Phase: RFP and Design • Completion: Winter 2025 McClellan Road Bridge Replacement Removal and replacement of the bridge on McClellan Road near the entrance to McClellan Ranch Preserve. (Externally Funded) • Phase: RFQ/RFP for Project team • Completion: TBD Stevens Creek Bridge Repair Stevens Creek Blvd Bridge over Stevens Creek. Prepare feasibility study and PS&E to determine and implement appropriate scour countermeasures. (Externally Funded, in part) • Phase: Design • Completion: 2025 Engineering/design is underway. City Bridge Maintenance Repairs (BPMP) Repair 4 bridges as recommended in the Caltrans Bridge Report along with additional improvements to prolong the useful life of the bridges. The work is partially funded (80%) through the Bridge Preventative Maintenance Program, a federally funded program. • Phase: Construction • Completion: Spring 2025 Repairs are complete at SCB at Calabazas Creek (CC), Tantau at CC, Miller at CC. Creek- adjacent work at Homestead over Stevens Creek (SC) will be completed in the Spring, after rainy season. ACTIVE PROJECTS (2) – JO ANNE (Project Manager, works in 2 PW Divisions) (0.25 FTE) Project Title Description Phase, Schedule, and Status City Lighting LED improvements Implement the transition of City's streetlight infrastructure from induction and other fixtures to LED fixtures to meet the "Dark Sky" Ordinance requirements and reduce light pollution and energy cost • Phase: Construction • Completion: Procurement is TBD; 12-18 months installation Public bid process is complete. Award of contract will come to Council in January 2025. Street Light Installation - Annual Infill Infill of streetlights as requested by residents. (Multi-year funding) • Phase: Ongoing • Completion: N.A. ACTIVE PROJECTS (2) – JIMMY (Assistant Director of Public Works) (0.0 FTE) Project Title Description Phase, Schedule, and Status EVCS expansion - Service Center Design and Construction of infrastructure for EVCS for the City’s Fleet vehicles. • Phase: Design • Completion: 2026 Working with PG&E and SVCE to confirm scope of work. 197 CC 03-04-2025 197 of 283 Page 4 October 30, 2024 BCA Implementation: Senior Center fire alarm system New Fire Alarm system for the Senior Center, and baseline specifications for other facilities. (Externally Funded, in part) • Phase: Design • Completion: May 2025 Project team is working on bid documentation. QUEUED PROJECTS (7) Project Title Description Notes Annual Playground Replacement Replacement of older playground equipment that is dated and worn. (Multi- year funding) RFPs for Little Rancho and Canyon Oaks playgrounds scheduled for 2025. School Walk Audit Implementation Construct infrastructure-related improvements around schools that were identified as part of the comprehensive School Walk Audit study. (Externally Funded, in part) • Phase: Ongoing • Completion: N.A. More projects expected to become active in Spring 2025. Tamien Innu - West Segment Design and construct an off-street bicycle and pedestrian facility parallel to the I-280 HWY, from the Don Burnett Bicycle – Pedestrian Bridge to De Anza Blvd. This segment is on hold until the other segments are designed City Hall Annex Program, plan and build facility improvements required for interim facility to accommodate staff while City Hall is remodeled, as well as the long-term use of this facility. Design documentation is 60% complete. Awaiting direction on City Hall project before further action on this project. City Hall Improvements Programming, Feasibility and Community Outreach to form the basis of a renovation strategy for the buildings. Understanding of the overall City financial issues and scope delineation must advance before this project can progress. Library Expansion Project (landscaping & donor wall) Develop a design and construct a 5600 SF addition to the existing Library building. (Externally Funded, in part) Grant funding ($1M) is received for Courtyard and Landscaping scope. Staffing required to move the project ahead. Donor Wall repair is complete. SV Hopper EV Parking Provide electric vehicle charging stations (EVCS) for SV Hopper (formerly VIA) fleet at Cupertino Sports Center. Engineering analysis complete. Cost estimate and scoping to be finalized. 198 CC 03-04-2025 198 of 283 Page 5 October 30, 2024 Upcoming projects (Unfunded): Project FY Notes BCA Implementation: future projects Ongoing Ongoing project[s] will continue to require staffing. The Building Condition Assessment Report documented the need for ~$20M worth of projects, in 2018. Outfall Repairs FY25-26 FY25-26 proposal; Recent report shows 52 outfalls in critical need of repair. Park Shade Structures: 5 locations included in the 5yr CIP FY25-26 FY25-26, as noted in the 5yr CIP program. BBF Golf Course Irrigation & Pond repairs: included in the 5yr CIP FY25-26 FY25-26, as noted in the 5yr CIP program. Memorial Park projects: All- Inclusive Playground FY25-26 Grant funding may be available, making a FY25-26 proposal likely. ATP update: projects FY26-27 FY26-27 proposal. The Active Transportation Plan update will refocus prioritization of ATP projects. Memorial Park projects: Softball Field Lighting FY26-27 The current system has exceeded its useful lifecycle. Don Burnett Bridge Architectural Lighting to LED FY26-27 Pathway lights have been upgraded to LED, but the architectural lighting remains to be changed over. Regnart Road Improvements, Phase 2 FY26-27 The 2017 study identified 4 additional sites of Regnart Road in need of improvements to mitigate hillside degradation. Bollinger Road Corridor Construction; included in the 5yr CIP FY28-29 FY28-29, as noted in the 5yr CIP program. Electrification of all buildings FY28-29 The CAP calls for residents to electrify their properties. The City can lead the way by electrifying the City Facilities. Little Rancho picnic area TBD PW/P&R had a recent request from residents, and this is indicative of future demands for unplanned projects Pumpkin Fiesta Storm Drain Improvements, Phase 2 FY29-30 The Storm Drain Master Plan identifies the need to upgrade additional sections of this storm drain. City Hall project TBD Design and Construction, following programmatic development, FY- TBD. Memorial Park projects derived from MPSP TBD Numerous projects are possible 199 CC 03-04-2025 199 of 283 CITY OF CUPERTINO Agenda Item 25-13778 Agenda Date: 3/4/2025 Agenda #: 9. Subject:Amendments to the Cupertino City Council Procedures Manual (Continued from February 19, 2025 City Council Meeting) Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™200 CC 03-04-2025 200 of 283 CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: March 4, 2025 Subject Further amendments to the Cupertino City Council Procedures Manual Recommended Action Adopt Resolution No. 25-___ amending the Cupertino City Council Procedures Man- ual Background This item was continued from the City Council meeting held on February 19, 2025. Since that meeting, the following two additions have been made to the Amendments to the Cupertino City Council Procedures Manual: -- language that was previously inadvertently omitted from Section 2.2 has been added (page 2). -- new language proposed after a conversation with the Mayor regarding texting and other private communications of public officials while on the dais has been added to Section 8.7.1 (page 13). No other changes have been made to the redline originally attached to the agenda item contained on the February 19, 2025 agenda. Attachments Provided with Original Staff Report: A – Redline of Cupertino City Council Procedures Manual B – Proposed Resolution No. 25-____ _____________________________________ Prepared by: Floy Andrews, City Attorney 201 CC 03-04-2025 201 of 283 CITY COUNCIL STAFF REPORT Meeting: February 19, 2025 Subject Amendments to the Cupertino City Council Procedures Manual Recommended Action Adopt Resolution No. 25-____ amending the Cupertino City Council Procedures Manual Reasons for Recommendation On February 7, 2023, the City Council adopted Resolution No. 23-021, approving the Cupertino City Council Procedures Manual. The adoption of the Procedures Manual addressed an identified deficiency in the City’s governance policies . The Manual includes rules and guidelines for communication, meeting management, decorum, and decision making. The Procedures Manual was subsequently amended in March 2024 (Resolution No. 24-024). On February 4, 2025, the City Council conducted a study session to consider further revisions to the Procedures Manual and provided direction to the City Attorney’s Office to return to Council with proposed amendments to the Manual . A redline of the Procedures Manual is provided as Attachment A. The proposed amendments include revisions made at the direction of Council (in some cases, revised for clarity) and minor additional revisions to Procedures Manual Section s 1.4, 7.4, 8.1, and 8.3 recommended to limit the City’s legal risk and conform to current practices. Consistent with the City Council’s February 4 direction, staff recommends that the City Council adopt the proposed Resolution (Attachment B) amending the Cupertino City Council Procedures Manual. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. 202 CC 03-04-2025 202 of 283 City Work Program (CWP) Item: N/A CWP Item Description: N/A Council Goal: Public Engagement & Transparency California Environmental Quality Act Not applicable. _____________________________________ Prepared by: Christopher D. Jensen, City Attorney Reviewed by: Tina Kapoor, Deputy City Manager Approved for Submission by: Pamela Wu, City Manager Attachments: A – Redline of Cupertino City Council Procedures Manual B – Proposed Resolution No. 25-____ 203 CC 03-04-2025 203 of 283 01276.0001/1055450.2 1 City of Cupertino City Council Procedures Manual Attachments: Ex. A – Elected Officials’ Compensation Program Ex. B – Council Technology Policy Ex. C – Resolution No. 07-103 Ex. D – Municipal Code Chapter 2.17 Effective Date: March 20, 2024February 20, 2025March 4, 2025 Responsible Departments: City Manager’s Office Related Policies & Notes: See Exhibits A–D. 1. Introduction  1.1  Purpose. The purpose of this Manual is to promote communication,  understanding, fairness, and trust among the members of the City  Council, City staff, and members of the public concerning their roles,  responsibilities, and expectations for management of the business of  the City of Cupertino.  1.2  Values. Courtesy and respect for individual points of view should be  practiced at all times. All Councilmembers shall respect each other’s  right to disagree. All Councilmembers shall act with decorum and  courtesy.  1.3 Brown Act. All actions of the City Council and City commissions,  committees, and subcommittees shall comply with the Ralph M. Brown  Act.  1.4 No Cause of Action Against City. This Manual is intended to govern the  internal policies and procedures. Violations of this Manual are enforceable  solely through enforcement pursuant to Section 10. Nothing in this Manual is  intended to give rise to a claim or cause of action against the City,  or any City  Councilmember or other City official.  2. Selection of the Mayor and Vice Mayor  2.1  Selection of Mayor and Vice Mayor. The Mayor and Vice Mayor shall  be selected annually at a special meeting on the second Thursday of  December. The Mayor and Vice Mayor shall not serve consecutive  terms; provided, however, this provision shall not prevent the Vice  204 CC 03-04-2025 204 of 283 01276.0001/1055450.2 2 Mayor from succeeding to the office of Mayor.  2.2  Removal of Mayor and Vice Mayor. The Mayor or Vice Mayor may be  removed from office, for cause, by a 4/5ths affirmative vote of the  members. Removal for cause shall mean removal of a Councilmember  because of such member’s (a) willful and continued failure  substantially to perform their duties, (b) conviction for, or guilty plea  to, a felony, or a crime involving moral turpitude, (c) abuse of illegal  drugs or other controlled substances or habitual intoxication, or (d)  other illegal activities. The removal should proceed with a formal  warning, which states with proven evidence of the member’s failure to  perform their duties and proposed corrective measures. The Mayor or  Vice Mayor must be advised of the proposed cause for removal at least  72 hours before any action is taken. If the Mayor is removed from office,  the Vice Mayor shall become Mayor. If either officer is removed from  office, the Vice Mayor shall be appointed from among the remaining three  Councilmembers.  3. Councilmember Committees and Subcommittees  3.1  Appointment. The Mayor shall appoint Councilmembers to standing  and ad hoc committees and subcommittees established by the City  Council, subject to ratification by the Council at its next regular  meeting. It will be the responsibility of the committees and  subcommittees to inform and submit recommendations to the Council.  3.2  Instructions and Expectations. The Council shall make certain that all  Council committees and subcommittees are properly instructed in their  assigned scope of work and responsibilities. The committee’s or  subcommittee’s jurisdiction shall be defined in writing and approved  by a majority of the City Council. All Council committees and  subcommittees having a continuing or indefinite jurisdiction shall be  subject to the Brown Act.  3.3  Reporting. Council committee and subcommittee members are to  keep the Council informed of the work and progress of their  committee or subcommittee. These reports or minutes shall be made  in writing whenever a recommendation is made to the Council.  4 Other City Commissions and Committees  4.1  Responsibility. The Council will make appointments to City’s  205 CC 03-04-2025 205 of 283 01276.0001/1055450.2 3 commissions and committees. Qualifications to serve on commissions  and committees shall be set forth in the Municipal Code or by a  resolution or motion of the Council that is not inconsistent with the  Municipal Code. Appointment of Councilmembers to City committees  shall be governed by the procedures in Section 3.  4.2  Attendance at Council Meetings. The Chair or another commission  member appointed by the Chair shall attend City Council meetings  whenever the commission makes a recommendation to Council  regarding an item of business on the Council agenda. The commission  liaison shall promptly notify the Chair after an item requiring a  commissioner’s appearance is placed on a future City Council agenda.  4.3  Performance Expectations. The Council shall make certain that all  commissions and committees are properly instructed on their  responsibilities and performance expectations. This will include the  issuance of a Council‐approved Commission and Committee  Handbook and a mandatory annual training session for all  Commission and Committee members.  4.4  Appointment. Commission and Committee applicants will be  interviewed by the Council before being voted on by the Council in a  noticed public meeting. Applicants are considered by motion and  appointed by a majority vote of Council. Two members of an immediate  family or persons residing in the same household shall not be allowed  to serve simultaneously on the same commission or committee.  Immediate family members residing in the same household as a  Councilmember are not eligible for appointment to any commission or  committee. Former Councilmembers are not eligible for appointment to  any commission or committee within four years of having served on the  City Council.  4.5  Removal. The City Clerk shall remove notify the City Council and  make a recommendation for potential removal of commission  members for failure to comply with attendance policies adopted in  the Commissioner’s Handbook. Council retains full discretion to  review commission and committee member performance and may  take disciplinary action as needed, including removal from the  commission or committee.  4.6  Undue Influence on Commissioners. Councilmembers should not  attempt to influence or publicly criticize commission recommendations  206 CC 03-04-2025 206 of 283 01276.0001/1055450.2 4 or to influence or lobby individual commission members on any item  under their consideration. It is important for commissions to be able to  make objective recommendations to the City Council on items before  them. Councilmembers that attempt to influence commission positions  on an item may prejudice or hinder their role in reviewing the  commission’s recommendation as a member of the City Council.  Individual Councilmembers shall have the right to attend meetings of  Cupertino commissions and other Cupertino governmental bodies but  shall refrain from speaking or becoming involved in deliberations.  5. Administrative Matters  5.1 Attendance. City Councilmembers acknowledge that attendance at  lawful meetings of the City Council is part of their official duty.  Councilmembers shall make a good faith effort to attend all such  meetings. Council members shall notify the Mayor or the City Clerk if  they will be absent from a meeting.  Council attendance will be noted in the agenda of the next regular  meeting and thereafter for that calendar year, if five or more regular  meetings are missed.  5.2  Correspondence. Proposed correspondence from the Mayor or other  Councilmembers on City stationery should generally be reviewed by  the Council in draft form prior to release. On occasion, there are urgent  requests from the League of California Cities for correspondence  concerning legislation directly affecting municipalities. If the Mayor and  the City Manager agree that the League’s position corresponds with that  of the Council, the Mayor may send a letter without first obtaining  Council approval. City letterhead will be made available for routine  correspondence (e.g., thank you notes). Official correspondence (including  email) from Councilmembers should be respectful and professional.  5.3  Regional Bodies. The Mayor shall appoint Councilmembers to  represent the City of Cupertino on regional bodies subject to ratification  by the Council at its next regular meeting. The Mayor should endeavor  to provide all Councilmembers a fair opportunity to represent the City.  The positions taken by the appointed representatives should be in  alignment with the positions that Council has taken on issues that  directly impact the City of Cupertino. If an issue arises that is specific to  Cupertino and Council has not taken a position, the issue should be  discussed by Council prior to taking a formal position at a regional board  207 CC 03-04-2025 207 of 283 01276.0001/1055450.2 5 meeting to assure that it is in alignment with Council’s position. Council  representatives to such various boards shall keep the Council informed  of ongoing business through brief oral or written reports to the Council.  Councilmembers shall make a good faith effort to attend all regional  meetings that require a quorum of the appointed members to convene a  meeting. Attendance should not be less than 75% of all scheduled  meetings. If a Councilmember is unable to attend, they should notify  their alternate as far in advance of the meeting as possible so as to allow  the alternate to attend. To ensure continuity of the City’s representation,  the alternate should receive all correspondence from the regional bodies  that is sent to the primary representative.  5.4  Responses to Public. It will be the responsibility of the City Manager to  ensure a response is provided to public correspondence for  informational requests addressed to the Council. Staff shall respond to  all requests for services as appropriate, and the City Manager shall keep  Council informed of the City response.  5.5 Reimbursement. City Councilmembers may be reimbursed for expenses  for travel to and lodging at conferences or meetings related to their role  as a Councilmember as stated in the Elected Officials’ Compensation  Program, as may be amended from time to time (Exhibit A). Any  additional expenses that fall outside the scope of this policy may be  reimbursed only if approved by the City Council, at a public meeting  before the expenses are incurred. Any request for reimbursement of  expenses shall be accompanied by an expense form and receipts to  document the expenditure. These documents are public records subject  to disclosure under the California Public Records Act. Councilmembers  shall be eligible to receive City‐issued hardware and software for the  conduct of official business pursuant to the Council Technology Policy  (Exhibit B).  5.6  Council Training. Any member of the City Council and City  commissions or advisory committees formed by the City Council shall  receive ethics and anti‐harassment training required by state law. New  members must receive the training within their first year of service and  shall comply with ongoing training requirements imposed by state law  and shall attend training on the Brown Act and Rosenberg’s Rules of  Order. Members shall attend training sessions that are offered locally  in the immediate vicinity of Santa Clara County, by completing online  a state‐approved public service ethics education program, or through a  208 CC 03-04-2025 208 of 283 01276.0001/1055450.2 6 state‐approved training which may be provided at a conference  attended by the member. The City Clerk shall keep ethics training  records for five years.  5.7 Mayor’s Initiative Budget. The Mayor may use the Mayor’s initiative  budget established as part of the City Manager’s discretionary fund for  projects that the Mayor deems appropriate during the Mayor’s term of  office, subject to the requirements of Resolution No. 07‐103 (Exhibit C).  The amount of the Mayor’s initiative budget is determined by the City  Council.  6. Relationship with City Staff  6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal  Code Chapter 2.17 (Exhibit D) governs the City Council’s relationship  with the City Manager and their staff under the Council‐Manager form  of government. To the extent that the provisions of Chapter 2.17 are  not set below, they are incorporated by reference into this Manual.  6.2  Council/Manager Form of Government. Under the Council/Manager  form of government, the City Council sets policy direction as the direct  representatives of the community.  with tThe City Manager providesing  the professional expertise to manage the organization and carry out the  Council’s direction. To enable the City Council to make informed decisions  while weighing community input, the City Manager provides staff  recommendations and presents options, along with their associated pros  and cons. The City Manager is responsible for carrying out the Council’s  policy direction through the day‐to‐day management of City functions,  including the oversight of City operating departments. Neither  individual Councilmembers nor the Council as a whole shall interfere  with the City Manager’s performance of the administrative duties  conferred upon them in Cupertino Municipal Code section 2.28.040.  6.3  Council‐Manager Relations. The City Council and its members  shall deal with the administrative services of the City only through  the City Manager, except for the purpose of inquiry, and neither the  City Council nor any Councilmember shall give orders to any  subordinates of the City Manager. The City Manager shall take  instructions from the City Council only when given at a duly held  meeting of the City Council, and no individual Councilmember shall  give any instructions to the City Manager. In the event that any  suggestion or comment from an individual Councilmember might be  209 CC 03-04-2025 209 of 283 01276.0001/1055450.2 7 perceived as an instruction by the City Manager or any staff, the City  Manager and/or staff should assume positive intent and treat it as a  suggestion or comment.  6.4  Individual Councilmember Influence on Staff Decisions  Prohibited. Individual Councilmembers shall not attempt to influence  staff decisions, recommendations, workloads, and schedules, and  department priorities without prior knowledge and approval of the  City Council. If a Councilmember wishes to influence the actions,  decisions, recommendations, workloads, work schedules and  priorities of staff, that member must prevail upon the City Council to  do so as a matter of Council policy.  6.5  Decorum. All Councilmembers and City staff shall treat each other  with dignity, courtesy, and respect. In exercising the City Council’s  policymaking authority, Councilmembers must often critique, modify,  or reject a staff recommendation. While thorough vetting and criticism  of staff policy recommendations or decisions is a necessary component  of Council’s policymaking role, criticism should focus on the policy  recommendations and decisions and should avoid personal attacks.  Councilmembers shall refrain from publicly criticizing the general  abilities, character, or motivations of any staff member and should  share any such concerns privately with the City Manager or City  Attorney.  6.6  Councilmember Access to Information. City Councilmembers have  free access to the flow of any information related to the operation of the  City. The City Manager shall ensure that such information is  communicated by staff in full and with candor to the Council. City staff  will make every effort to respond in a timely and professional manner  to all requests made by individual council members for information or  assistance, provided that, in the judgment of the City Manager, the  request is not of a magnitude either in terms of workload or policy,  which would require that it more appropriately be assigned to staff  through the collective direction of the City Council, based on the  guidelines set forth in Cupertino Municipal Code section 2.17.043. The  City Manager shall place requests that impose a significant workload  on staff on the Council agenda for review by the full Council, along  with a statement from that Councilmember as to why the information  is needed. No Councilmember shall circumvent the City Manager’s  direction regarding a request for information by seeking information  210 CC 03-04-2025 210 of 283 01276.0001/1055450.2 8 through a Public Records Act request. A Councilmember may file a  request for information by seeking information through a Public  Records Act request to the same extent as any member of the public.  6.7  Authority of City Council. Nothing in this Manual shall limit the City  Council’s power to accept, reject, amend, or otherwise guide and direct  staff actions, decisions, recommendations, workloads and schedules,  department priorities, and the conduct of city business through the  office of the City Manager. This power cannot be delegated to  individual Councilmembers, nor to committees composed of  Councilmembers consisting of less than a quorum of the City Council.  7. Agendas and Staff Reports  7.1  Future Agenda Items. The City Manager, the City Attorney, the Mayor,  or any two Councilmembers may request that an item be added to a  future agenda for Council action. The City Manager shall provide a  quarterly report to Council regarding the status of future agenda items,  which may include a request to remove items from the list of future  agenda items. Any item may be removed for the future agenda items  list by a majority vote of the City Council.At the requestor’s discretion,  the agenda request may also include additional information explaining  the rationale for or timing of the agenda item. Under the “Future  Agenda Items” section of each regular Council meeting agenda, the City  Manager shall include a document listing all current future agenda  requests.  7.2  Preparation of Agenda. The City Clerk shall prepare the agenda in  consultation with the City Manager, the Mayor, and the City Attorney.  Absent exigent circumstances, an item will be scheduled for Council  action no sooner than 14 days after receipt of a request to add the item  to the future agenda items list. Any item requiring preparation of a staff  report requires City Manager approval or, in case of a report prepared  by City Attorney’s Office staff, City Attorney approval, before being  added to an agenda. The Mayor, in consultation with the City Manager  and the City Clerk, shall determine the order of items on the agenda.  7.3  Agenda Item Descriptions. Each agenda item shall include a brief  general description of the matter to be discussed (approximately 20  words in length), including any action that may be taken under the  California Environmental Quality Act, and should generally include  the recommendation of the City Manager. If the agenda item includes  211 CC 03-04-2025 211 of 283 01276.0001/1055450.2 9 any budget request or modification, the amount of the request or  modification should be stated when possible. The brief description of  the agenda item should be comprehensible by a typical resident. For  example, an amendment to the Municipal Code should include a  description of the amendment, rather than only the Code section to be  amended; similarly, an item related to a development project should  include not only the street address, but the common name of the project  when applicable. Where practicable, the second reading of an  ordinance should have the same agenda title as the first reading.  7.4 Staff Reports. Staff reports should include the following sections:  1. Subject  2. Recommended Action  2.3. Executive Summary (optional)  2. Background  2.3. Reasons for Recommendation and Available Options  3.4. Sustainability Impact  5. Fiscal Impact  6. City Work Program Item  7. City Work Program Item Description  4.8. Council Goal  9. California Environmental Quality Act  The “Background” section should include the date, at least the month and the year,  previous meetings were held and decisions were made on the item. Where  applicable, maps and charts should be provided in the staff report for easy reference.  7.5  Agenda Publication. Agenda packets for a regular meeting should be  published and delivered to Councilmembers no later than the  Wednesday prior to a Tuesday Council meeting. Councilmembers are  encouraged to contact staff in advance for answers to questions  regarding an agenda packet. Written communications addressed to  Council shall be forwarded to Council and made available to members  of the public, consistent with the requirements of the Brown Act.  7.6  Supplemental Materials. Supplemental reports and materials received  by the City Clerk after the agenda is published but before 12:00 p.m. on  the Monday prior to the City Council meeting shall be published and  delivered to Councilmembers at 5:00 p.m. on Monday. Supplemental  reports and materials received by the City Clerk after 12:00 p.m. on  Monday but before 4:00 p.m. on the day of the meeting shall be  212 CC 03-04-2025 212 of 283 01276.0001/1055450.2 10 published and delivered to Councilmembers prior to the Council  meeting. Council questions and staff‐prepared responses will be  included in supplemental materials provided to Council and the public.  7.7 Written Communication. All written communications on an agenda item sent  after the meeting agenda is posted shall be included with the Council agenda  materials and made available to the public. Any written communications on  items not on the agenda shall be included with the Council agenda materials  and made available to the public if the sender requests that the communication  be so included. Written communication received before 4:00 p.m. on the day of  a regular City Council meeting will be posted by 5:00 p.m. Written  communication received after 4:00 p.m. on the day of the regular City Council  meeting will be posted on the business day following the meeting.    8. Meeting Procedures  8.1  Meeting Schedule. The City Council conducts its regular meetings on  the first and third Tuesdays of the month, except when Council is in  recess. At the second regular meeting in January, tThe City Council will  approve the schedule of meetings for the calendar year, which in  addition to the regular meeting schedule may include the cancellation  of regular meetings and the addition of special meetings and study  sessions. This practice does not, however, preclude the Mayor or a  majority of the members of the City Council from calling additional  meetings pursuant to the Brown Act. The City Council may by  resolution reschedule regular meetings that occur the day after a  Monday holiday on Wednesday of the holiday week. When a regular  City Council meeting is rescheduled to a Wednesday, the agenda shall  be published the prior Wednesday; the meeting shall start at 6:45 p.m.  and follow the adopted Order of Business for regular City Council  meetings.  8.2  Rules of Order. City Council meetings shall be governed by Rosenberg’s  Rules of Order except as otherwise provided by this Manual. Unless  otherwise required by state law or City ordinance, decisions of the  Council shall be made by a majority of members present and voting.  The Mayor may impose additional reasonable procedural rules not  inconsistent with Rosenberg’s Rules of Order and the provisions of this  Manual, unless objected to by a majority of Councilmembers present.  213 CC 03-04-2025 213 of 283 01276.0001/1055450.2 11 8.3 Order of Business. The order of agenda items for regular Council  meetings is as follows:  1. Call to Order  2. Pledge of Allegiance  3. Roll Call  4. Closed Session Report  5. Ceremonial Items  6. Postponements and Orders of the Day  7. Oral Communications (public comment on non‐agenda matters)  8. Consent Calendar  9. Public Hearings  10. Action Calendar  11. Items Removed from the Consent Calendar  12. City Manager Report  13. Oral Communications (continued)  14. Councilmember Reports  15. Future Agenda Items  16. Adjournment  Oral communications shall be limited to 30 minutes. Additional  speakers wishing to comment on non‐agenda items may be given time  to speak at the end of the agenda, after the City Manager’s report.  Councilmember Reports should focus on Council committee assignments and  ceremonial appearances and may include other information relevant to  matters within the jurisdiction of the City Council. In the absence of an  objection made by a majority of Councilmembers present and voting,  the Mayor may modify the order of business to facilitate the fair and  efficient conduct of Council meetings. The Mayor shall determine the  Order of Business of a special City Council meeting, subject to  overruling by any objections sustained by a majority of vote of the City  Council.   8.4 Consent Calendar.  8.4.1  Adding Item to Consent Calendar. The Mayor, the City  Manager, the City Attorney, or the City Clerk may recommend  that items appearing on the agenda be placed on the consent  calendar for action by the City Council. All items placed on the  consent calendar shall appear together on the agenda with the  recommendation as to the action to be taken by the City Council  with respect to such item. Upon the motion of any member of the  214 CC 03-04-2025 214 of 283 01276.0001/1055450.2 12 City Council, all items placed upon the consent calendar may be  acted upon together, and each shall be deemed to have received  the action recommended.  8.4.2  Removing Item from Consent Calendar. Items may be removed  from the consent calendar only by a member of the City  Council. Any member of the City Council who would like to  remove any item from the consent calendar shall notify the City  Manager and the City Clerk no later than 12:00 p.m. on the day  of the City Council meeting. A request to remove a consent  calendar item shall be made in writing and shall state the reason  for removing the item from the consent calendar. Items may be  removed from the consent calendar after 12:00 p.m. on the day  of the City Council meeting only by a majority vote of the  Council. Items removed from the consent calendar shall be  placed on the agenda for consideration after the action calendar.  8.5  Public Comment. An opportunity for public comment shall be provided  for the consent calendar, each other agenda item under consideration,  and, during regular meetings, on any matter that is within the subject  matter jurisdiction of the City Council. The Mayor may consolidate  public comment for related agenda items, subject to overruling by a  majority vote of the Council. Non‐ agenda matters (including Council  and staff reports) may be addressed by the public during oral  communications. Members of the public wishing to speak regarding an  item shall submit a request to comment to the Clerk (ʺblue cardʺ) or,  where applicable, raise their hand in Zoom within nine minutes of the  time the Mayor opens public comment or prior to the close of public  comment on the item, whichever is earlier. Each individual speaker will  ordinarily have up to three minutes to address the Council. If a speaker  representing five or more two or more members of the public in  attendance and wishing to comment on the item but electing not to  speak, the speaker may have up to two minutes per group member to  speak, up to a total of 10 minutes, to address the Council. Consolidation  of time among speakers is not otherwise allowed. If a large number of  speakers wish to address Council on an item, the Mayor may reduce the  time allotted to each speaker consistent with the Brown Act. Twice the  speaking time will be provided to any member of the public who uses a  translator.  8.6 Communications with Members of the Public. The City Council may  215 CC 03-04-2025 215 of 283 01276.0001/1055450.2 13 ask questions of speakers providing public comment but should avoid  an extended discussion with members of the public during meetings.  Additionally, when a member of the public provides comments  regarding a matter that is not on the agenda, Councilmembers may (1)  refer the speaker to staff; (2) refer the speaker to appropriate reference  material; (3) request that staff report back at a future meeting; or (4)  request that staff place the item on a future agenda.  Councilmembers should not otherwise respond to or comment on an  item of business that is not on the agenda. City staff should generally  avoid responding to comments or questions from members of the  public during Council meetings, although the City Manager or City  Attorney may offer to arrange a time to discuss the subject matter of  public comments with members of the public subsequent to the Council  meeting.  8.7 Conduct of Meetings  8.7.1 Councilmembers. Members of the City Council value and  recognize the importance of the trust invested in them by the  public to accomplish the business of the City. Councilmembers  shall accord courtesy to each other, to City employees, and to  members of the public appearing before the City Council. During  public meetings, Councilmembers shall not text or otherwise communicate  privately with any Public Official, as defined in the City’s Code of Ethics  for Conduct for Elected and Appointed Officials, or with members of the  public regarding matters relevant to items on the agenda while on the  dais..  8.7.2 City Employees. City staff shall observe the same rules of  decorum applicable to the City Council. City staff shall act  at all times in a businesslike and professional manner  towards Councilmembers and members of the public.  8.7.3 Members of the Public. Members of the public attending City  Council meetings are encouraged to treat Councilmembers, City  staff, and other members of the public with the same courtesy  that Councilmembers and City staff must accord to them. Any  members of the public who engages in conduct that disrupts a  City Council meeting shall be removed from the meeting.  Nothing in this Manual or any rules of conduct that may be  adopted by the City Council shall be construed to prohibit public  216 CC 03-04-2025 216 of 283 01276.0001/1055450.2 14 criticism of the policies, procedures, programs, or services of the  City, or of the acts or omissions of the City Council, City advisory  bodies, or City staff.  8.8 Discussion and Deliberation  8.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte  communications prior to deliberation on a quasi‐judicial matter.  A quasi‐ judicial matter is typically a hearing in which the City  Council hears evidence and makes findings of fact to reach a  conclusion based on the applicable law. An ex parte  communication occurs when a Councilmember hearing a quasi‐ judicial matter communicates directly or indirectly with any  person or party in connection with a matter before the Council,  without notice and the opportunity for all parties to participate.  8.8.2 Relevance. All discussion must be relevant to the issue before  the City Council. A Councilmember is given the floor only for  the purpose of discussing the pending matter; discussion  which departs from the item agendized for discussion is out of  order. Councilmembers should avoid repetition and shall not  discuss matters that are not on the agenda. Arguments for or  against a measure should be stated as concisely as possible.  8.8.3 Council Questions and Deliberations. Councilmembers may obtain  the floor by seeking recognition from the Mayor. Following  presentations to Council on an agenda item, Councilmembers  shall each be given five minutes to ask questions of any presenter.  The Mayor may allow additional time for questions where  appropriate. Following public comment, the Mayor may request  that a motion be made and seconded. After the motion has been  stated to the Council and seconded, any member of the Council  has a right to discuss the motion after obtaining the floor. A  member who has been recognized shall limit their time to five  minutes, but may reserve any portion of their time for further  questions or deliberations, as applicable, by advising the Mayor  before yielding the floor. Councilmembers may yield any unused  speaking time during Councilmember questions or deliberations  to colleagues who have already used their allotted time. The  Mayor may allow additional time for deliberations where  appropriate to encourage meaningful discussion and exchange of  ideas. This rule shall displace any conflicting rule in the City’s  217 CC 03-04-2025 217 of 283 01276.0001/1055450.2 15 adopted rules of procedure.  8.8.4 Opportunity for Equal Participation. It is the policy of the Council to  encourage the full, fair participation of all members of the  Council in discussions and deliberations. The Mayor may impose  reasonable limits on the time any Councilmember is permitted to  speak to advance this policy. In addition, all Councilmembers  wishing to be recognized should be given an opportunity to speak  before any member is allowed to speak a second time.  8.8.5 Civility. While it is appropriate to vigorously debate a motion,  its nature, or its consequences, Councilmembers shall avoid  attacks on the motives, character, or personality of other  Councilmembers, City staff, and members of the public. The  Mayor shall rule out of order any Councilmember who engages  in such attacks.  8.8.6 Role of the Mayor. The Mayor has the responsibility for  controlling and expediting the discussion of an agenda item. It is  the duty of the Mayor to keep the subject clearly before the  Councilmembers, to rule out irrelevant discussion, and to ensure  civil discussion among Councilmembers.  8.9 Meeting Length. Meetings of the City Council shall adjourn by 11:00  p.m. unless the time of adjournment is extended by a vote of a majority  of the City Council. Discussion of an agenda item shall not begin after  10:30 p.m. Any motion to extend the meeting beyond 11:00 p.m. shall  include a list of specific agenda items to be discussed or approved and  shall specify the order these items shall be considered. If a meeting  continues past 11:00 p.m., it shall end at 11:30 p.m. All meetings shall be  adjourned at 11:30 p.m. unless by a vote of a majority of the City  Council suspends this rule and Council votes affirmatively to extend  the meeting past 11:30 p.m. Following the adjournment of the meeting,  any remaining items on the agenda shall be continued to the next  regular meeting of the City Council.  8.10  Public Hearing Procedures. The order of proceeding where there is a  public hearing item (non‐appeal items) before the City Council shall  be as follows:  1. Open Public Hearing  2. Staff Report (preferably 10 minutes)  218 CC 03-04-2025 218 of 283 01276.0001/1055450.2 16 3. Applicant’s presentation (where applicable) (preferably 8 minutes)  4. Questions from the Council  5. Public comment  6. Applicant’s response to public comment (where applicable)  (preferably 2 minutes)  7. Close Public Hearing  8. City Council discussion and vote  Where the public hearing involves an appeal of a decision to the City  Council, the order of proceeding shall be as follows:  1. Open Public Hearing  2. Staff Report (preferably 10 minutes)  3. Appellant’s statement (preferably 8 minutes)  4. Applicant’s statement (where applicable) (preferably 8 minutes)  5. Questions from the Council  6. Public comment  7. Applicant’s response to public comment (where applicable)  (preferably 2 minutes)  8. Appellant’s response to public comment (preferably 2 minutes)  9. Close Public Hearing  10. City Council discussion and vote  8.11  City Council Recess Period. The City Council recess period shall begin  the first Tuesday in August at 12:00 a.m. and end the Tuesday following  Labor Day at 12:00 a.m. During any recess period, the City Manager is  authorized to take such ministerial actions for matters of operational  urgency, including such emergency actions as are necessary for the  immediate preservation of the public peace, health, or safety, as would  normally be taken by the City Council during the period of recess,  except for those duties specifically reserved to the Council by law. This  authority extends throughout the period of recess established by the  City Council and includes the authority to execute agreements and  make expenditures necessary for the exigent operational matters. The  City Manager shall make a full and complete report to the City Council  at its first regularly scheduled meeting following the period of recess of  actions taken by the City Manager pursuant to this section, at which time  the City Council may make such findings as may be required to ratify  the actions of the City Manager. Nothing in this Section prevents the  City Council from calling a special meeting during the recess period.  9. Closed Sessions  219 CC 03-04-2025 219 of 283 01276.0001/1055450.2 17 A closed session may be held at any regular or special meeting for any  purpose authorized by the Brown Act. The City Attorney will schedule  closed session meetings in consultation with the Mayor and the City  Manager. Public comment shall be received in open session prior to a closed  session. To ensure strict compliance with the Brown Act, the City Attorney  or the City Attorney’s designee shall report out in public session any  reportable action taken during closed session and any other information  from closed session authorized to be disclosed based on a majority vote of  the City Council. Any documents referenced or presented during closed  sessions shall be shared with Councilmembers upon request and shared in  the same manner as other closed session materials, with appropriate  protections for confidentiality.  10. Enforcement of Rules; Suspension of Rules. Nothing in this Manual shall be cited  to invalidate a properly noticed and acted upon action of the City Council. Any rule  set forth in this Manual may be suspended by three votes of the Council. The City  Council may enforce repeated or serious violations of the rules set forth in this  Manual through a censure action placed on a Council agenda.  11. Information Memoranda.  11.1 Staff Information Memoranda. Two Councilmembers may request an  information memorandum be provided on any matter within the subject matter  jurisdiction of the City Council. The City Manager shall place requests that  impose a significant workload on staff on the Council agenda for review by the  full Council, along with a statement from one or more requesting  Councilmembers as to why the information is needed.  11.2 Councilmembers Information Memoranda. Individual Councilmembers may  prepare information memoranda for inclusion in their Councilmember  Reports. Councilmember memoranda may address any matter within the  subject matter jurisdiction of the City Council that the Councilmember wishes  to share with their fellow Councilmembers and the public, thereby enhancing  transparency and accountability in City operations; provided however, that  Councilmember memoranda shall not include confidential or deliberative  information or communications or information protected by law from  disclosure.      220 CC 03-04-2025 220 of 283 RESOLUTION NO. 25- A RESOLUTION OF THE CUPERTINO CITY COUNCIL AMENDING THE CUPERTINO CITY COUNCIL PROCEDURES MANUAL WHEREAS, on February 7, 2023, the Cupertino City Council adopted Resolution No. 23-021, adopting the Cupertino City Council Procedures Manual; and WHEREAS, on March 19, 2024, the City Council adopted Resolution No. 24-024, amending the City Council Procedures Manual; and WHERAS, on March 4, 2025, the City Council considered further amendments to the City Council Procedures Manual. NOW, THEREFORE, BE IT RESOLVED that: 1. The City Council hereby adopts the Cupertino City Council Procedures Manual, as amended, attached hereto as Exhibit A. 2. Resolution No. 24-024 and any other procedures, policies, or rules that are inconsistent with the Council Procedures adopted herein are hereby repealed and rescinded. 3. This Resolution shall take effect on March 5, 2025. PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 4th day of March, 2025, by the following vote: Members of the City Council AYES: NOES: ABSENT: ABSTAIN: 221 CC 03-04-2025 221 of 283 Resolution No. 25- Page 2 SIGNED: Liang Chao, Mayor City of Cupertino Date ATTEST: Kirsten Squarcia, City Clerk Date 222 CC 03-04-2025 222 of 283 1 EXHIBIT A City of Cupertino City Council Procedures Manual Attachments: Ex. A – Elected Officials’ Compensation Program Ex. B – Council Technology Policy Ex. C – Resolution No. 07-103 Ex. D – Municipal Code Chapter 2.17 Effective Date: March 4, 2025 Responsible Departments: City Manager’s Office Related Policies & Notes: See Exhibits A–D. 1. Introduction 1.1 Purpose. The purpose of this Manual is to promote communication, understanding, fairness, and trust among the members of the City Council, City staff, and members of the public concerning their roles, responsibilities, and expectations for management of the business of the City of Cupertino. 1.2 Values. Courtesy and respect for individual points of view should be practiced at all times. All Councilmembers shall respect each other’s right to disagree. All Councilmembers shall act with decorum and courtesy. 1.3 Brown Act. All actions of the City Council and City commissions, committees, and subcommittees shall comply with the Ralph M. Brown Act. 1.4 No Cause of Action Against City. This Manual is intended to govern the internal policies and procedures. Violations of this Manual are enforceable solely through enforcement pursuant to Section 10. Nothing in this Manual is intended to give rise to a claim or cause of action against the City, or any City Councilmember or other City official. 2. Selection of the Mayor and Vice Mayor 2.1 Selection of Mayor and Vice Mayor. The Mayor and Vice Mayor shall be selected annually at a special meeting on the second Thursday of December. 223 CC 03-04-2025 223 of 283 2 2.2 Removal of Mayor and Vice Mayor. The Mayor or Vice Mayor may be removed from office, for cause, by a 4/5ths affirmative vote of the members. Removal for cause shall mean removal of a Councilmember because of such member’s (a) willful and continued failure substantially to perform their duties, (b) conviction for, or guilty plea to, a felony, or a crime involving moral turpitude, (c) abuse of illegal drugs or other controlled substances or habitual intoxication, or (d) other illegal activities. The removal should proceed with a form al warning, which states with proven evidence of the member’s failure to perform their duties and proposed corrective measures. The Mayor or Vice Mayor must be advised of the proposed cause for removal at least 72 hours before any action is taken. If the Mayor is removed from office, the Vice Mayor shall become Mayor. If either officer is removed from office, the Vice Mayor 3. Councilmember Committees and Subcommittees 3.1 Appointment. The Mayor shall appoint Councilmembers to standing and ad hoc committees and subcommittees established by the City Council, subject to ratification by the Council at its next regular meeting. It will be the responsibility of the committees and subcommittees to inform and submit recommendations to the Council. 3.2 Instructions and Expectations. The Council shall make certain that all Council committees and subcommittees are properly instructed in their assigned scope of work and responsibilities. The committee’s or subcommittee’s jurisdiction shall be defined in writing and approved by a majority of the City Council. All Council committees and subcommittees having a continuing or indefinite jurisdiction shall be subject to the Brown Act. 3.3 Reporting. Council committee and subcommittee members are to keep the Council informed of the work and progress of their committee or subcommittee. These reports or minutes shall be made in writing whenever a recommendation is made to the Council. 4 Other City Commissions and Committees 4.1 Responsibility. The Council will make appointments to City’s commissions and committees. Qualifications to serve on commissions and committees shall be set forth in the Municipal Code or by a resolution or motion of the Council that is not inconsistent with the 224 CC 03-04-2025 224 of 283 3 Municipal Code. Appointment of Councilmembers to City committees shall be governed by the procedures in Section 3. 4.2 Attendance at Council Meetings. The Chair or another commission member appointed by the Chair shall attend City Council meetings whenever the commission makes a recommendation to Council regarding an item of business on the Council agenda. The commission liaison shall promptly notify the Chair after an item requiring a commissioner’s appearance is placed on a future City Council agenda. 4.3 Performance Expectations. The Council shall make certain that all commissions and committees are properly instructed on their responsibilities and performance expectat ions. This will include the issuance of a Council-approved Commission and Committee Handbook and a mandatory annual training session for all Commission and Committee members. 4.4 Appointment. Commission and Committee applicants will be interviewed by the Council before being voted on by the Council in a noticed public meeting. Applicants are considered by motion and appointed by a majority vote of Council. Two members of an immediate family or persons residing in the same household shall not be allowed to serve simultaneously on the same commission or committee. Immediate family members residing in the same household as a Councilmember are not eligible for appointment to any commission or committee. 4.5 Removal. The City Clerk shall notify the City Council and make a recommendation for potential removal of commission members for failure to comply with attendance policies adopted in the Commissioner’s Handbook. Council retains full discretion to review commission and committee member performance and may take disciplinary action as needed, including removal from the commission or committee. 4.6 Undue Influence on Commissioners. Councilmembers should not attempt to influence or publicly criticize commission recommendations or to influence or lobby individual commission members on any item under their consideration. It is important for commissions to be able to make objective recommendations to the City Council on items before them. Councilmembers that attempt to influence commission positions on an item may prejudice or hinder their role in reviewing the 225 CC 03-04-2025 225 of 283 4 commission’s recommendation as a member of the City Council. Individual Councilmembers shall have the right to attend meetings of Cupertino commissions and other Cupertino governmental bodies but shall refrain from speaking or becoming involved in deliberations. 5. Administrative Matters 5.1 Attendance. City Councilmembers acknowledge that attendance at lawful meetings of the City Council is part of their official d uty. Councilmembers shall make a good faith effort to attend all such meetings. Council members shall notify the Mayor or the City Clerk if they will be absent from a meeting. Council attendance will be noted in the agenda of the next regular meeting and thereafter for that calendar year, if five or more regular meetings are missed. 5.2 Correspondence. Proposed correspondence from the Mayor or other Councilmembers on City stationery should generally be reviewed by the Council in draft form prior to release. On occasion, there are urgent requests from the League of California Cities for correspondence concerning legislation directly affecting municipalities. If the Mayor and the City Manager agree that the League’s position corresponds with that of the Council, the Mayor may send a letter without first obtaining Council approval. City letterhead will be made available for routine correspondence (e.g., thank you notes). Official correspondence (including email) from Councilmembers should be respectful and professional. 5.3 Regional Bodies. The Mayor shall appoint Councilmembers to represent the City of Cupertino on regional bodies subject to ratification by the Council at its next regular meeting. The Mayor should endeavor to provide all Councilmembers a fair opportunity to represent the City. The positions taken by the appointed representatives should be in alignment with the positions that Council has taken on issues that directly impact the City of Cupertino. If an issue arises that is specific to Cupertino and Council has not taken a position, the issue should be discussed by Council prior to taking a formal position at a regional board meeting to assure that it is in alignment with Council’s position. Council representatives to such various boards shall keep the Council informed of ongoing business through brief oral or written reports to the Council. Councilmembers shall make a good faith effort to attend all regional meetings that require a quorum of the appointed members to convene a 226 CC 03-04-2025 226 of 283 5 meeting. Attendance should not be less than 75% of all scheduled meetings. If a Councilmember is unable to attend, they should notify their alternate as far in advance of the meeting as possible so as to allow the alternate to attend. To ensure continuity of the City’s representation, the alternate should receive all correspondence from the regional bodies that is sent to the primary representative. 5.4 Responses to Public. It will be the responsibility of the City Manager to ensure a response is provided to public correspondence for informational requests addressed to the Council. Staff shall respond to all requests for services as appropriate, and the City Manager shall keep Council informed of the City response. 5.5 Reimbursement. City Councilmembers may be reimbursed for expenses for travel to and lodging at conferences or meetings related to their role as a Councilmember as stated in the Elected Officials’ Compensation Program, as may be amended from time to time (Exhibit A). Any additional expenses that fall outside the scope of this policy may be reimbursed only if approved by the City Council, at a public meeting before the expenses are incurred. Any request for reimbursement of expenses shall be accompanied by an expense f orm and receipts to document the expenditure. These documents are public records subject to disclosure under the California Public Records Act. Councilmembers shall be eligible to receive City -issued hardware and software for the conduct of official business pursuant to the Council Technology Policy (Exhibit B). 5.6 Council Training. Any member of the City Council and City commissions or advisory committees formed by the City Council shall receive ethics and anti-harassment training required by state law. New members must receive the training within their first year of service and shall comply with ongoing training requirements imposed by state law and shall attend training on the Brown Act and Rosenberg’s Rules of Order. Members shall attend training sessions that are offered locally in the immediate vicinity of Santa Clara County, by completing online a state-approved public service ethics education program, or through a state-approved training which may be provided at a conference attended by the member. The City Clerk shall keep ethics training records for five years. 5.7 Mayor’s Initiative Budget. The Mayor may use the Mayor’s initiative budget established as part of the City Manager’s discretionary fund for 227 CC 03-04-2025 227 of 283 6 projects that the Mayor deems appropriate during the Mayor’s term of office, subject to the requirements of Resolution No. 07-103 (Exhibit C). The amount of the Mayor’s initiative budget is determined by the City Council. 6. Relationship with City Staff 6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal Code Chapter 2.17 (Exhibit D) governs the City Council’s relationship with the City Manager and their staff under the Council-Manager form of government. To the extent that the provisions of Chapter 2.17 are not set below, they are incorporated by reference into this Manual. 6.2 Council/Manager Form of Government. Under the Council/Manager form of government, the City Council sets policy direction as the direct representatives of the community. The City Manager provides professional expertise to manage the organization and carry out the Council’s direction. To enable the City Council to make informed decisions while weighing community input, the City Manager provides staff recommendations and presents options, along with their associated pros and cons. The City Manager is responsible for carrying out the Council’s policy direction through the day-to-day management of City functions, including the oversight of City operating departments. Neither individual Councilmembers nor the Council as a whole shall interfere with the City Manager’s performance of the administrative duties conferred upon them in Cupertino Municipal Code section 2.28.040. 6.3 Council-Manager Relations. The City Council and its members shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry, and neither the City Council nor any Councilmember shall give orders to any subordinates of the City Manager. The City Manager shall take instructions from the City Council only when given at a duly held meeting of the City Council, and no individual Councilmember shall give any instructions to the City Manager. In the event that any suggestion or comment from an individual Councilmember might be perceived as an instruction by the City Manager or any staff, the City Manager and/or staff should assume positive intent and treat it as a suggestion or comment. 6.4 Individual Councilmember Influence on Staff Decisions Prohibited. Individual Councilmembers shall not attempt to influence 228 CC 03-04-2025 228 of 283 7 staff decisions, recommendations, workloads, and schedules, and department priorities without prior knowledge and approval of the City Council. If a Councilmember wishes to influence the actions, decisions, recommendations, workloads, work schedules and priorities of staff, that member must prevail upon the City Council to do so as a matter of Council policy. 6.5 Decorum. All Councilmembers and City staff shall treat each other with dignity, courtesy, and respect. In exercising the City Council’s policymaking authority, Councilmembers must often critique, modify, or reject a staff recommendation. While thorough vetting and criticism of staff policy recommendations or decisions is a necessary component of Council’s policymaking role, criticism should focus on the policy recommendations and decisions and should avoid personal attacks. Councilmembers shall refrain from publicly criticizing the general abilities, character, or motivations of any s taff member and should share any such concerns privately with the City Manager or City Attorney. 6.6 Councilmember Access to Information. City Councilmembers have free access to the flow of any information related to the operation of the City. The City Manager shall ensure that such information is communicated by staff in full and with candor to the Council. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council, based on the guidelines set forth in Cupertino Municipal Code section 2.17.043. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from that Councilmember as to why the information is needed.’ A Councilmember may file a request for information by seeking information through a Public Records Act request to the same extent as any member of the public. 6.7 Authority of City Council. Nothing in this Manual shall limit the City Council’s power to accept, reject, amend, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, department priorities, and the conduct of city business through the 229 CC 03-04-2025 229 of 283 8 office of the City Manager. This power cannot be delegated to individual Councilmembers, nor to committees composed of Councilmembers consisting of less than a quorum of the City Council. 7. Agendas and Staff Reports 7.1 Future Agenda Items. The City Manager, the City Attorney, the Mayor, or any two Councilmembers may request that an item be added to a future agenda for Council action . The City Manager shall provide a quarterly report to Council regarding the status of future agenda items, which may include a request to remove items from the list of future agenda items. At the requestor’s discretion, the agenda request may also include additional information explaining the rationale for or timing of the agenda item. Under the “Future Agenda Items” section of each regular Council meeting agenda, the City Manager shall include a document listing all current future agenda requests. 7.2 Preparation of Agenda. The City Clerk shall prepare the agenda in consultation with the City Manager, the Mayor, and the City Attorney. Absent exigent circumstances, an item will be scheduled for Council action no sooner than 14 days after receipt of a request to add the item to the future agenda items list. Any item requiring preparation of a staff report requires City Manager approval or, in case of a report prepared by City Attorney’s Office staff, City Attorney approval, before being added to an agenda. The Mayor, in consultation with the City Manager and the City Clerk, shall determine the order of items on the agenda. 7.3 Agenda Item Descriptions. Each agenda item shall include a brief general description of the matter to be discussed (approximately 20 words in length), including any action that may be taken under the California Environmental Quality Ac t, and should generally include the recommendation of the City Manager. If the agenda item includes any budget request or modification, the amount of the request or modification should be stated when possible. The brief description of the agenda item should be comprehensible by a typical resident. For example, an amendment to the Municipal Code should include a description of the amendment, rather than only the Code section to be amended; similarly, an item related to a development project should include not only the street address, but the common name of the project when applicable. Where practicable, the second reading of an ordinance should have the same agenda title as the first reading. 230 CC 03-04-2025 230 of 283 9 7.4 Staff Reports. Staff reports should include the following sections: 1. Subject 2. Recommended Action 3. Executive Summary (optional) 2. Background 3. Reasons for Recommendation and Available Options 4. Sustainability Impact 5. Fiscal Impact 6. City Work Program Item 7. City Work Program Item Description 8. Council Goal 9. California Environmental Quality Act The “Background” section should include the date, at least the month and the year, previous meetings were held and decisions were made on the item. Where applicable, maps and charts should be provided in the staff report for easy reference. 7.5 Agenda Publication. Agenda packets for a regular meeting should be published and delivered to Councilmembers no later than the Wednesday prior to a Tuesday Council meeting. Councilmembers are encouraged to contact staff in advance for answers to questions regarding an agenda packet. Written communications addressed to Council shall be forwarded to Council and made available to members of the public, consistent with the requirements of the Brown Act. 7.6 Supplemental Materials. Supplemental reports and materials received by the City Clerk after the agenda is published but before 12:00 p.m. on the Monday prior to the City Council meeting shall be published and delivered to Councilmembers at 5:00 p.m. on Monday. Supplemental reports and materials received by the City Clerk after 12:00 p.m. on Monday but before 4:00 p.m. on the day of the meeting shall be published and delivered to Councilmembers prior to the Council meeting. Council questions and staff -prepared responses will be included in supplemental materials provided to Council and the public. 7.7 Written Communication. All written communications on an agenda item sent after the meeting agenda is posted shall be included with the Council agenda materials and made available to the public. Any written communications on items not on the agenda shall be included with the Council agenda materials and made available to the public if the sender requests that the communication be so included. Written communication received before 4:00 p.m. on the day of 231 CC 03-04-2025 231 of 283 10 a regular City Council meeting will be posted by 5:00 p.m. Written communication received after 4:00 p.m. on the day of the regular City Council meeting will be posted on the business day following the meeting. 8. Meeting Procedures 8.1 Meeting Schedule. The City Council conducts its regular meetings on the first and third Tuesdays of the month, except when Council is in recess. The City Council will approve the schedule of meetings for the calendar year, which in addition to the regular meeting schedule may include the cancellation of regular meetings and the addition of special meetings and study sessions. This practice does not, however, preclude the Mayor or a majority of the members of the City Council from calling additional meetings pursuant to the Brown Act. The City Council may by resolution reschedule regular meetings that occur the day after a Monday holiday on Wednesday of the holiday week. When a regular City Council meeting is rescheduled to a Wednesday, the agenda shall be published the prior Wednesday; the meeting shall start at 6:45 p.m. and follow the adopted Order of Business for regular City Council meetings. 8.2 Rules of Order. City Council meetings shall be governed by Rosenberg’s Rules of Order except as otherwise provided by this Manual. Unless otherwise required by state law or City ordinance, decisions of the Council shall be made by a majority of members present and voting. The Mayor may impose additional reasonable procedural rules not inconsistent with Rosenberg’s Rules of Order and the provisions of this Manual, unless objected to by a majority of Councilmembers present. 8.3 Order of Business. The order of agenda items for regular Council meetings is as follows: 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Closed Session Report 5. Ceremonial Items 6. Postponements and Orders of the Day 7. Oral Communications (public comment on non-agenda matters) 8. Consent Calendar 9. Public Hearings 10. Action Calendar 232 CC 03-04-2025 232 of 283 11 11. Items Removed from the Consent Calendar 12. City Manager Report 13. Oral Communications (continued) 14. Councilmember Reports 15. Future Agenda Items 16. Adjournment Oral communications shall be limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time to speak at the end of the agenda, after the City Manager’s report. Councilmember Reports should focus on Council committee assignments and ceremonial appearances and may include other information relevant to matters within the jurisdiction of the City Council. In the absence of an objection made by a majority of Councilmembers present and voting, the Mayor may modify the order of business to facilitate the fair and efficient conduct of Council meetings. The Mayor shall determine the Order of Business of a special City Council meeting, subject to overruling by any objections sustained by a majority of vote of the City Council. 8.4 Consent Calendar. 8.4.1 Adding Item to Consent Calendar. The Mayor, the City Manager, the City Attorney, or the City Clerk may recommend that items appearing on the agenda be placed on the consent calendar for action by the City Council. All items placed on the consent calendar shall appear together on the agenda with the recommendation as to the action to be taken by the City Council with respect to such item. Upon the motion of any member of the City Council, all items placed upon the consent calendar may be acted upon together, and each shall be deemed to have received the action recommended. 8.4.2 Removing Item from Consent Calendar. Items may be removed from the consent calendar only by a member of the City Council. Any member of the City Council who would like to remove any item from the consent calendar shall notify the City Manager and the City Clerk no later than 12:00 p.m. on the day of the City Council meeting. A request to remove a consent calendar item shall be made in writing and shall state the reason for removing the item from the consent calendar. Items may be removed from the consent calendar after 12:00 p.m. on the day 233 CC 03-04-2025 233 of 283 12 of the City Council meeting only by a majority vote of the Council. Items removed from the consent calendar shall be placed on the agenda for consideration after the action calendar. 8.5 Public Comment. An opportunity for public comment shall be provided for the consent calendar, each other agenda item under consideration, and, during regular meetings, on any matter that is within the subject matter jurisdiction of the City Council. The Mayor may consolidate public comment for related agenda items, subject to overruling by a majority vote of the Council. Non- agenda matters (including Council and staff reports) may be addressed by the public during oral communications. Members of the public wishing to speak regarding an item shall submit a request to comment to the Clerk ("blue card") or, where applicable, raise their hand in Zoom within nine minutes of the time the Mayor opens public comment or prior to the close of public comment on the item, whichever is earlier. Each individual speaker will ordinarily have up to three minutes to address the Council. If a speaker representing two or m ore members of the public in attendance and wishing to comment on the item but electing not to speak, the speaker may have up to two minutes per group member to speak, up to a total of 10 minutes, to address the Council. Consolidation of time among speakers is not otherwise allowed. If a large number of speakers wish to address Council on an item, the Mayor may reduce the time allotted to each speaker consistent with the Brown Act. Twice the speaking time will be provided to any member of the public who uses a translator. 8.6 Communications with Members of the Public. The City Council may ask questions of speakers providing public comment but should avoid an extended discussion with members of the public during meetings. Additionally, when a member of the public provides comments regarding a matter that is not on the agenda, Councilmembers may (1) refer the speaker to staff; (2) refer the speaker to appropriate reference material; (3) request that staff report back at a future meeting; or (4) request that staff place the item on a future agenda. Councilmembers should not otherwise respond to or comment on an item of business that is not on the agenda. City staff should generally avoid responding to comments or questions from mem bers of the public during Council meetings, although the City Manager or City Attorney may offer to arrange a time to discuss the subject matter of public comments with members of the public subsequent to the Council 234 CC 03-04-2025 234 of 283 13 meeting. 8.7 Conduct of Meetings 8.7.1 Councilmembers. Members of the City Council value and recognize the importance of the trust invested in them by the public to accomplish the business of the City. Councilmembers shall accord courtesy to each other, to City employees, and to members of the public appearing before the City Council. 8.7.2 City Employees. City staff shall observe the same rules of decorum applicable to the City Council. City staff shall act at all times in a businesslike and professional manner towards Councilmembers and members of the public. 8.7.3 Members of the Public. Members of the public attending City Council meetings are encouraged to treat Councilmembers, City staff, and other members of the public with the same courtesy that Councilmembers and City staff must accord to them. Any members of the public who engages in conduct that disrupts a City Council meeting shall be removed from the meeting. Nothing in this Manual or any rules of conduct that may be adopted by the City Council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City, or of the acts or omissions of the City Council, City advisory bodies, or City staff. 8.8 Discussion and Deliberation 8.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte communications prior to deliberation on a quasi-judicial matter. A quasi- judicial matter is typically a hearing in which the City Council hears evidence and makes findings of fact to reach a conclusion based on the applicable law. An ex parte communication occurs when a Councilmember hearing a quasi- judicial matter communicates directly or indirectly with any person or party in connection with a matter before the Council, without notice and the opportunity for all parties to participate. 8.8.2 Relevance. All discussion must be relevant to the issue before the City Council. A Councilmember is given the floor only for the purpose of discussing the pending matter; discussion 235 CC 03-04-2025 235 of 283 14 which departs from the item agendized for discussion is out of order. Councilmembers should avoid repetition and shall not discuss matters that are not on the agenda. Arguments for or against a measure should be stated as concisely as possible. 8.8.3 Council Questions and Deliberations. Councilmembers may obtain the floor by seeking recognition from the Mayor. Following presentations to Council on an agenda item, Councilmembers shall each be given five minutes to ask questions of any presenter. The Mayor may allow additional time for questions where appropriate. Following public comment, the Mayor may request that a motion be made and seconded. After the motion has been stated to the Council and seconded, any member of the Council has a right to discuss the motion after obtaining t he floor. A member who has been recognized shall limit their time to five minutes. Councilmembers may yield any unused speaking time during Councilmember questions or deliberations to colleagues who have already used their allotted time. The Mayor may allow additional time for deliberations where appropriate to encourage meaningful discussion and exchange of ideas. ’ 8.8.4 Opportunity for Equal Participation. It is the policy of the Council to encourage the full, fair participation of all members of the Council in discussions and deliberations. The Mayor may impose reasonable limits on the time any Councilmember is permitted to speak to advance this policy. In addition, all Councilmembers wishing to be recognized should be given an opportunity to speak before any member is allowed to speak a second time. 8.8.5 Civility. While it is appropriate to vigorously debate a motion, its nature, or its consequences, Councilmembers shall avoid attacks on the motives, character, or personality of other Councilmembers, City staff, and members of the public. The Mayor shall rule out of order any Councilmember who engages in such attacks. 8.8.6 Role of the Mayor. The Mayor has the responsibility for controlling and expediting the discussion of an agenda item. It is the duty of the Mayor to keep the subject clearly before the Councilmembers, to rule out irrelevant discussion, and to ensure civil discussion among Councilmembers. 236 CC 03-04-2025 236 of 283 15 8.9 Meeting Length. Meetings of the City Council shall adjourn by 11:00 p.m. unless the time of adjournment is extended by a vote of a majority of the City Council. Discussion of an agenda item shall not begin after 10:30 p.m. Any motion to extend the meeting beyond 11:00 p.m. shall include a list of specific agenda items to be discussed or approved and shall specify the order these items shall be considered. If a meeting continues past 11:00 p.m., it shall end at 11:30 p.m. All meetings shall be adjourned at 11:30 p.m. unless by a vote of a majority of the City Council suspends this rule and Council votes affirmatively to extend the meeting past 11:30 p.m. Following the adjournment of the meeting, any remaining items on the agenda shall be continued to the next regular meeting of the City Council. 8.10 Public Hearing Procedures. The order of proceeding where there is a public hearing item (non-appeal items) before the City Council shall be as follows: 1. Open Public Hearing 2. Staff Report (preferably 10 minutes) 3. Applicant’s presentation (where applicable) (preferably 8 minutes) 4. Questions from the Council 5. Public comment 6. Applicant’s response to public comment (where applicable) (preferably 2 minutes) 7. Close Public Hearing 8. City Council discussion and vote Where the public hearing involves an appeal of a decision to the City Council, the order of proceeding shall be as follows: 1. Open Public Hearing 2. Staff Report (preferably 10 minutes) 3. Appellant’s statement (preferably 8 minutes) 4. Applicant’s statement (where applicable) (preferably 8 minutes) 5. Questions from the Council 6. Public comment 7. Applicant’s response to public comment (where applicable) (preferably 2 minutes) 8. Appellant’s response to public comment (preferably 2 minutes) 9. Close Public Hearing 10. City Council discussion and vote 237 CC 03-04-2025 237 of 283 16 8.11 City Council Recess Period. The City Council recess period shall begin the first Tuesday in August at 12:00 a.m. and end the Tuesday following Labor Day at 12:00 a.m. During any recess period, the City Manager is authorized to take such ministerial actions for matters of operational urgency, including such emergency actions as are necessary for the immediate preservation of the public peace, health, or safety, as would normally be taken by the City Council during the period of recess, except for those duties specifically reserved to the Council by law. This authority extends throughout the period of recess established by the City Council and includes the authority to execute agreements and make expenditures necessary for the exigent operational matters. The City Manager shall make a full and complete report to the City Council at its first regularly scheduled meeting following the period of recess of actions taken by the City Manager pursuant to this section, at which time the City Council may make such findings as may be required to ratify the actions of the City Manager. Nothing in this Section prevents the City Council from calling a special meeting during the recess period. 9. Closed Sessions A closed session may be held at any regular or special meeting for any purpose authorized by the Brown Act. The City Attorney will sc hedule closed session meetings in consultation with the Mayor and the City Manager. Public comment shall be received in open session prior to a closed session. To ensure strict compliance with the Brown Act, the City Attorney or the City Attorney’s designee shall report out in public session any reportable action taken during closed session and any other information from closed session authorized to be disclosed based on a majority vote of the City Council. Any documents referenced or presented durin g closed sessions shall be shared with Councilmembers upon request and shared in the same manner as other closed session materials, with appropriate protections for confidentiality. 10. Enforcement of Rules; Suspension of Rules. Nothing in this Manual shall be cited to invalidate a properly noticed and acted upon action of the City Council. Any rule set forth in this Manual may be suspended by three votes of the Council. The City Council may enforce repeated or serious violations of the rules set forth in this Manual through a censure action placed on a Council agenda. 11. Information Memoranda. 11.1 Staff Information Memoranda. Two Councilmembers may request an 238 CC 03-04-2025 238 of 283 17 information memorandum be provided on any matter within the subject matter jurisdiction of the City Council. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from one or more requesting Councilmembers as to why the information is needed. 11.2 Councilmembers Information Memoranda. Individual Councilmembers may prepare information memoranda for inclusion in their Councilmember Reports. Councilmember memoranda may address any matter within the subject matter jurisdiction of the City Council that the Councilmember wishes to share with their fellow Councilmembers and the public, thereby enhancing transparency and accountability in City operations; provided however, that Councilmember memoranda shall not include confidential or deliberative information or communications or information protected by law from disclosure. 239 CC 03-04-2025 239 of 283 EXHIBIT A 240 CC 03-04-2025 240 of 283 1 EXHIBIT A City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 1 PROGRAM PURPOSE AND DEFINITIONS FOR ELIGIBILITY It is City of Cupertino policy that those certain persons holding positions hereinafter defined and designated as elected official positions shall be eligible for participation under the Elected Officials Compensation Program as hereby adopted by action of the City Council and as same may be amended or as otherwise modified from time to time. Eligibility for inclusion with this Compensation program is limited to persons holding positions as elected officials. These are designated by the voters and may be modified as circumstances warrant. The position in the following classification has been designated as elected official. ELECTED OFFICIAL CLASSIFICATIONS: Classification Title City Council Member Adopted by Action of the City Council, July 2013 241 CC 03-04-2025 241 of 283 2 City of Cupertino ELECTED OFFICIALS COMPENSATION PROGRAM Policy No. 2 SALARY SCHEDULE As rates of pay are set forth under the Cupertino Municipal Code 2.16.020, and hereby adopted by action of the City Council, so are those rates of pay included herein as a part of this Compensation program. The inclusion herein of said rates and schedules does not affect any effective dates or otherwise reflect on the approval processes required but is shown as an integral part of this Program for completeness of record. Adopted by Action of the City Council July, 2013, October 2016 242 CC 03-04-2025 242 of 283 3 City of Cupertino ELECTED OFFICIALS COMPENSATION PROGRAM Policy No. 3 TRAINING AND CONFERENCES I. POLICY It is City of Cupertino policy that members of the City Council and the Council's commissions and committees, shall be reimbursed or receive a direct advance according to the schedules, terms and conditions as set forth herein for the expenses authorized below. This policy is established in accordance with California Government Code Sections 53232.2 and 53232.3. III. AUTHORIZED EXPENSES The City Council and their comm1ss1on and committee members can receive reimbursements or advances toward actual and necessary expenses incurred by participating in the following activities or events: 1. Communicating with representatives of regional, state and national government on City adopted policy positions; 2. Attending seminars, conferences, and training to improve skill and information levels; 3. Participating in regional, state and national organizations whose activities affect the City's interests (such as the League of California Cities); 4. Attending International Conferences, budget limited to $2,500 per fiscal year, provided there is a benefit to the City; 5. Attending City events; 1. Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member's attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill- De Anza Community College District, Silicon Valley Leadership Group, Cupertino American Cancer Society (ACS) Relay for Life and Cupertino Chamber of Commerce activities. 243 CC 03-04-2025 243 of 283 4 The City will not reimburse or advance payment toward expenses including, but not limited to: 1. The personal portion of any trip; 2. Family expenses, including those of a partner when accompanying Council or commission member on City related business, as well as child or pet related expenses. 3. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 4. Meals and entertainment paid on behalf of third parties outside of the City; 5. Gifts of any kind for any purpose; 6. Alcoholic beverages; 7. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 8. Personal losses incurred while on City business. IV. BUDGETARY LIMITATIONS Reimbursement or advancement of expenses shall not exceed budgetary limitations. Changes in appropriations will be done through the budget process. V. REIMBURSEMENT AND ADVANCE SCHEDULE A. Intent This schedule is written with the intent that the City Councilmember, commissioner, or committee member will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive than paying for a taxi or airport shuttle, then officials should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out-of-town location, then a car should be rented. Air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. 244 CC 03-04-2025 244 of 283 5 B. Local Area The local area is defined to be within Santa Clara and San Mateo Counties and within a 40 mile distance from Cupertino when traveling to Alameda County. C. Registration The City will pay the registration fee for authorized attendance at a convention, conference, seminar or meeting. D. Transportation The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee's home and airport, destination or airport parking charges, taxi and shuttle services at the out-of-town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available. E. Lodging Hotel or lodging expenses of the City official resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occur outside the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organized educational activity, City-paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non-conference lodging policy described in the next paragraph should be followed to find another comparable hotel. Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or government 245 CC 03-04-2025 245 of 283 6 rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement. F. Meals 1. No Conference The actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City officials are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on an actual cost basis. The actual cost rate shall follow the rules described in the meals with no conference paragraph. G. Other Expenses Payments toward or reimbursement of other expenses related to authorized activities or events shall be limited to the actual costs consistent with the application of reasonable standards. Receipts must be kept and submitted for all expenses. VI. DIRECT CASH ADVANCE POLICY From time to time, it may be necessary for a City official to request a direct cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to the City Manager or Department Head no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the official's return on the expense report described in Section VII. 246 CC 03-04-2025 246 of 283 7 VII. EXPENSE REPORT REQUIREMENTS All expense reimbursement requests or final accounting of advances received must be approved by the City Manager or Department Head, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, accompanied by a business purpose for all expenditures and a receipt for each item other than mileage. The report will be a public record subject to disclosure under the Public Records Act. VIII. REPORTS TO CITY COUNCIL OR COMMISSIONS At the next regular City Council or commission meeting, each councilmember or commissioner shall briefly report on publicly noticed meetings attended at City expense. If multiple members attended the meeting, a joint report may be made. IX. POLICY VIOLATIONS Violations of this policy including falsifying expense reports may result in any or all of the following: (1) loss of reimbursement privileges, (2) demand for restitution to the City, (3) civil penalties of up to $1,000 per day and three times the value of the resources used, and 4) prosecution for misuse of public resources. Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07, 7/10 247 CC 03-04-2025 247 of 283 8 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 4 MILEAGE REIMBURSEMENTS It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated fairly for the use of personal automotive vehicles on City business. Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at the established IRS rates. Submission of reimbursement requests must be approved by the City Manager. Adopted by Action of the City Council July, 2013 248 CC 03-04-2025 248 of 283 9 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 5 ASSOCIATION MEMBERSHIPS AND PROFESSIONAL PUBLICATIONS It is City of Cupertino policy that eligible persons under this Compensation Program shall be entitled to City sponsored association memberships as well as receiving subscriptions to professional and technical publications. Such sponsorship, however, shall be conditioned upon the several factors as set forth below. Each association for which membership is claimed must be directly related to the field of endeavor of the person to be benefited. Each claim for City sponsored membership shall be submitted with their concurrence to the City Manager for approval. Subscriptions to or purchase of professional and technical publications may be provided at City expense when such have been authorized by the City Manager providing the subject matter and material generally contained therein are related to municipal governmental operations. Adopted by Action of the City Council July, 2013 249 CC 03-04-2025 249 of 283 10 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 7 HEALTH BENEFITS PLAN - CITY CONTRIBUTION It is the policy of the City of Cupertino to provide group hospital and medical insurance under which the elected official positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees and their families through comprehensive health plans available only through employer sponsorship. Although the premium cost for the insurance provided remains the ultimate responsibility of the employee in these positions, the City shall contribute the amounts listed below towards the premium or pay the full cost of the premium if less than the stated amounts. If the premium amounts for any employee covered by this policy are less than the amounts listed below per month, the difference between the premium amount and the stated amounts will be retained by the City. Effective January 1, 2020 City Max Health Contribution City Max *Dental Contribution City Total Max Contribution Employee 848.87 126.78 975.65 Employee +1 1,443.09 126.78 1,569.87 Employee +2 1,876.01 126.78 2,002.79 January 1, 2021 City Max Health Contribution City Max *Dental Contribution City Total Max Contribution Employee 891.32 126.78 1,018.10 Employee +l 1,515.24 126.78 1,642.02 Employee +2 1,969.81 126.78 2,096.59 January 1, 2022 City Max Health Contribution City Max *Dental Contribution City Total Max Contribution Employee 935.88 126.78 1,062.66 Employee +1 1,591.01 126.78 1,717.79 Employee +2 2,068.31 126.78 2,195.09 250 CC 03-04-2025 250 of 283 11 *Dental Coverage: Effective the first month after Council adoption of MOU, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract. Adopted by Action of the City Council July, 2013, October 2016, July 2019, December 2019, January, 2023 251 CC 03-04-2025 251 of 283 12 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 9 LIFE INSURANCE It is the policy of the City of Cupertino to provide life insurance benefits to the elected officials to a maximum of $16,000. The elected officials may enroll in the life insurance program offered if eligible under the contract provisions of the policy and the personnel rules of the City. The full cost of premiums for these programs shall be paid by the City for such individuals. Adopted by Action of the City Council July, 2013 252 CC 03-04-2025 252 of 283 13 City of Cupertino ELECTED OFFICIALS COMPENSATION PROGRAM Policy No. 10 DEFERRED COMPENSATION It is the policy of the City of Cupertino to provide equitable current compensation and reasonable retirement security for the elected officials for services performed for the City. The City participates in the California Public Employees' Retirement System (PERS) and deferred compensation plans have been established. Both the elected official and City may make contributions from current earnings to these plans. The purpose of this policy is to promote means by which compensation may be provided in such manner and form to best meet the requirements of the City and the needs of the elected officials.. The City shall maintain and administer means by which the elected officials in these positions may defer portions of their current earnings for future utilization. Usage of such plans shall be subject to such agreements, rules and procedures as are necessary to properly administer each plan. Individual contributions to such plans may be made in such amounts as felt proper and necessary to the elected official. The City contributions shall be as determined by the City Council. Adopted by Action of the City Council July, 2013 253 CC 03-04-2025 253 of 283 14 City of Cupertino ELECTED OFFICIALS COMPENSATION PROGRAM Policy No. 11 PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTION A. Council Members occupying office on or before December 29, 2012 Only: For Council Members occupying office on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 retirement formula. Effective in the first full pay period in July 2017, each employee shall pay the full 8.0% of applicable salary of the employee's contribution towards CalPERS. B. Council Members occupying office on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only. For Council Members hired on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation Effective January 1, 2017, the City shall not pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) and each employee shall pay the full 7% of applicable salary of the employee's contribution towards CalPERS. C. For Council members occupying office on of after January 1, 2013, or former CalPERS employees that do not qualify as Classic employees hired by the City of Cupertino on or after January 1, 2013 For Council Members occupying office on or after January 1, 2013 CalPERS has by statute implemented a 2% @ 62 formula, three year average and employees in this category shall pay 50% of the normal cost rate as determined by CalPERS. Adopted by Action of the City Council July, 2013, October 2016, July 2019 254 CC 03-04-2025 254 of 283 15 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 12 DENTAL INSURANCE - CITY CONTRIBUTION It is the policy of the City of Cupertino to provide dental insurance under which the elected official positions and their dependents may be covered. The premium cost for the insurance provided by the City shall not exceed $126.78* per month per individual. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with Personnel Rules of the City and the provisions of the contract for such insurance between the City and carrier or carriers. *Dental Coverage: Effective the first month after Council adoption of agreement, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract. Adopted by Action of City Council July, 2013, October 2016, July 2019 255 CC 03-04-2025 255 of 283 16 City of Cupertino ELECTED OFFICIALS COMPENSATION PROGRAM Policy No. 14 EMPLOYEE ASSISTANCE PROGRAM It is the policy of the City of Cupertino to provide an Employee Assistance Program for the benefit of the elected officials and their eligible dependents. The purpose of this program is to provide professional assistance and counseling concerning financial, legal, pre-retirement, and other matters of a personal nature. Adopted by Action of the City Council July, 2013 256 CC 03-04-2025 256 of 283 17 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 17 VISION INSURANCE - CITY CONTRIBUTION It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The premium cost for the insurance provided by the City shall not exceed $14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage, Adopted by Action of the City Council July, 2013 257 CC 03-04-2025 257 of 283 18 City of Cupertino ELECTED OFFICIALS' COMPENSATION PROGRAM Policy No. 18 TECHNOLOGY POLICY Purpose This policy establishes guidelines and standards regarding the provision of technology hardware and software for Councilmembers. Scope and Applicability This policy applies to all City Councilmembers for the provision and maintenance of City issued technology hardware and software This technology is in addition to City technology equipment and software residing within the Mayor's and Council's office at City Hall. Technology Provision To facilitate communications with citizens, staff and other Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term. • 1 Laptop • 1 Docking Station • 1 Monitor • 1 Webcam • 1 Keyboard & Mouse • 1 Phone with Voice/Data Plan Each Councilmember's issued laptop will have the following additional software applications: • Office productivity platform, e.g., Microsoft 0365 • Cybersecurity Tools, e.g.., end point protection and multifactor authentication • Video Conferencing, e.g., Zoom 258 CC 03-04-2025 258 of 283 19 Each Councilmember's issued phone will have the following additional software applications • Office productivity platform • Cybersecurity Tools • Video Conferencing Issued technology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support. Councilmembers who wish to not use City issued equipment must provide written acknowledgement that the technology they will use has current antivirus software and all software applications are up to date from a cyber security standpoint. Councilmembers use the issued equipment for the performance of official City business. Data contained within the equipment is public property and considered a public record, therefore subject to all Public Records Act and Brown Act policies. Councilmembers, upon completion of their term, will return all issued equipment to the Innovation & Technology Department. City equipment and/or software is not available for purchase. City Support Innovation & Technology staff are solely responsible to provide technical support and maintenance for issued equipment and may be reached at helpdesk@cupertino.org or (408) 777-3381. If required, Councilmembers shall bring their equipment to City Hall for repair and/or service. Adopted by Action of the City Council July, 2019, January, 2023 259 CC 03-04-2025 259 of 283 20 City of Cupertino City Council and Planning Commission Compensation Effective January 1, 2017 260 CC 03-04-2025 260 of 283 21 CITY OF CUPERTINO CITY COUNCIL AND PLANNING COMMISSION EFFECTIVE January 1, 2017 The salaries, wages or rates of pay for members of the City Council and Planning Commission are set forth below. Only the City Council can modify these rates. Members of the City Council Members of the Planning Commission* Effective first full pay period in July 2017 Members of the City Council Members of the Planning Commission* $737.54/month $50.00/meeting (maximum $200 monthly) $743.07/month $50.00/meeting (maximum $200 monthly) *Benefits as set forth in this document do not apply to members of the Planning Commission. 261 CC 03-04-2025 261 of 283 EXHIBITB a Council Technology CUPERTINO Policy Citywide Policy Manual Policy# Attachments: NIA Effective Date: December 12, 2022 Responsible Department: Innovation & Technology Related Policies & Notes: This policy supersedes previous Council Technology Polices from 2005, 2012, and 2018 Purpose This policy establishes guidelines and standards regarding the provision of technology hardware and software for Councilmembers. Scope and Applicability This policy applies to all City Councilmembers for the provision and maintenance of City issued technology hardware and software This technology is in addition to City technology equipment and software residing within the Mayor's and Council's office at City Hall. Technology Provision To facilitate communications with citizens, staff and othe r Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term. • 1 Laptop • 1 Docking Station • 1 Monitor • 1 Webcam • 1 Keyboard & Mouse • 1 Phone with Voice/Data Plan Each Councilmember's issued laptop will have the following additional software applications: • Office productivity platform, e.g., Microsoft 0365 • Cybersecurity Tools, e.g.., end point protection and multifactor authentication • Video Conferencing, e.g., Zoom 262 CC 03-04-2025 262 of 283 Each Councilmember's issued phone will have the following additional software applications • Office productivity platform • Cybersecurity Tools • Video Conferencing Issued technology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support. Councilmembers who wish to not use City issued equipment must provide written acknowledgement that the technology they will use has current antivirus software and all software applications are up to date from a cyber security standpoint. Councilmembers use the issued equipment for the performance of official City business. Data contained within the equipment is public property and considered a public record, therefore subject to all Public Records Act and Brown Act policies. Councilmembers, upon completion of their term, will return all issued equipment to the Innovation & Technology Department. City equipment and/or software is not available for purchase. City Support Innovation & Technology staff are solely responsible to provide technical support and maintenance for issued equipment and may be reached at helpdesk@cupertino.org or (408) 777-3381. If required, Councilmembers shall bring their equipment to City Hall for repair and/or service. Submitted By: Printed Name: Bill Mitchell Approved By: Printed Name: Pamela Wu Title: CTO Title: City Manager Signature: Signature: Bi,,{£M Date: December 11, 2022 Date: 263 CC 03-04-2025 263 of 283 EXHIBIT C RESOLUTION NO. 07-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO PROVIDING FOR A DISCRETIONARY FUND TO BE ADMINISTERED BY THE CITY MANAGER TO PROVIDE A FUNDING SOURCE FOR PROJECTS THAT THE MAYOR MAY WISH TO PROPOSE FROM TIME TO TIME DURING THE MAYOR':S TERM OF OFFICE WHEREAS, The City Council wishes to provide a small source of funds for projects that may be proposed at the discretion of the Mayor during the Mayor's term of office; and, WHEREAS, The City Council wishes to establish a Mayor's initiative budget that will be included as part of the City Manager's Office budget in the City Manager's discretionary account; and, WHEREAS, The City Council wishes to determine, as part of the budget process, the amount of funding for the duration of th e Mayoral term; NOW, THEREFORE, BE IT RESOLYEO by the City Council of the City of Cupertino that Mayor's initiative budget is established in an amount to be determined by the City Council as part of the City Manager's discretionary fund to be used for projects that the Mayor deems appropriate during the Mayor's term of office; and, BE IT FURTHER RESOLVED that the decision to spend money on a Mayor's project will be jointly determined by the Mayor and the City Manager, except that the City Manager may, at his or her sole discretion escalate the spending decision to the City Council if he or she determines that to be necessary or appropriate; and, BE IT FURTHER RESOLVED that the City Council will be advised by an item on the Council Agenda prior to the date of the Mayor's State of the City Address, of any new project or initiative that the Mayor may wish to propose during the State of the City Address. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of June 2007, by the following vote: Vote AYES: NOES: ABSENT: ABSTAIN: ATTEST: ls/Kimberly Smith Members of the City Council Wang, Kwok, Lowenthal, Mahoney, Sandoval None None None APPROVED: ls/Kris Wang City Clerk Mayor, City of Cupertino 264 CC 03-04-2025 264 of 283 EXHIBITD CHAPTER 2.17: CITY COUNCIL/CITY STAFF RELATIONSHIPS ec I0n 2.17.010 Preamble. 2.17.020 Intent and purpose. 2.17.030 Council and Council members. 2.17.031 Council power. 2.17.032 Individual Council members. 2.17.033 Council Policy. 2.17.034 Information. 2.17.040 Staff. 2.17.041 Execution of Council direction. 2.17.042 Undue influence. 2.17.043 Timely response. 2.17.010 Preamble. After the City of Cupertino's incorporation, the City Council enacted Ordinance No. 106 creating and establishing the Council/City Manager form of government whereby the City Council controls the administrative services of the City only through the City Manager. The Council/Manager form of government is intended to provide the best of unencumbered professional/technical staff input balanced with the collective oversight of elected officials. Under the Council/Manager form of government neither the City Council, nor individual Council members, can give orders to any subordinates of the City Manager. The City Manager takes his or her orders and instructions from the City Council only when given at a duly held meeting of the City Council. No individual council member can give any orders or instructions to the City Manager. Although this provision has worked well over the years, a number of specific issues and questions have arisen from time to time regarding the respective roles of the City Council and City Manager due, in part, to the City's expanding involvement into a variety of new areas of society. It therefore has become necessary and convenient for the City Council to delineate with more specificity the respective roles of City Manager, the City Council and individual Council members. (Ord. 2009, 2007) 2.17.020 Intent and Purpose. The intent of this chapter is to address and clarify the relationship between the City Council, individual Council members, and city staff by: A. Maintaining control and direction of the City by the City Council as a whole; B. Insuring that City Council members have free access to the flow of any information relative to the operation of the City and insuring that such information is communicated by staff in full and with candor to the Council; C. Ensuring that the Council decision making process benefits from the unencumbered input and advice from the professional staff free from undue influence in staff decision making, formation of staff recommendations, scheduling of work, and executing department priorities without intervention by individual Council members; D. Allowing city staff to execute priorities given by management and the City Council and protecting city staff from undue influence from individual Council members . (Ord. 2009, 2007) 2.17.30 Council and Council members. 2.17.31 Council Power. The City Council retains the full power to accept, reject, amend, or otherwise guide and direct staff actions , decisions, recommendations, workloads and schedules, department priorities, and the conduct of city business through the office of the City Manager. This power cannot be delegated to individual Council members, nor to committees composed of council members consisting of less than a quorum of the City Council. (Ord. 2009, 2007) 2.17.32 Individual Council members. Individual Council members shall not attempt to influence staff decisions, recommendations, workloads, and schedules, and department priorities without prior knowledge and approval of the City Council. (Ord. 2009, 2007) 2.17.33 Council Policy. If a Council member wishes to influence the actions, decisions, recommendations, workloads, work schedules and priorities of staff, that member must prevail upon the City Council to do so as a matter of council policy. (Ord. 2009, 2007) 265 CC 03-04-2025 265 of 283 2.17.34 Information. Individual Council members as well as the City Council as a whole, have complete freedom of access to any information requested of staff (except information which is otherwise protected by law from disclosure) and will receive the full cooperation and candor of City staff in being provided with any requested information. Information sought by an individual council member may, at the discretion of the City Manager, be automatically provided to the City Council as a whole. In exercising this discretion, the City Manager will consider whether the information is significant or new or otherwise not available to the Council or is of interest to the Council. (Ord. 2009, 2007) 2.17.40 Staff. 2.17.41 Execution of Council Direction. The primary functions of City staff is the execution of Council policy and actions taken by the Council as well as keeping the Council informed regarding the general operations of the city. (Ord. 2009, 2007) 2.17.42 Undue Influence. City staff may take guidance and direction only from management or the City Council as a whole. Staff is prohibited from accepting direction or being unduly influenced by individual Council members to pressure staff members into making, changing or otherwise suppressing staff decisions or recommendations, or changing departmental work schedules and priorities. Staff members will report such attempts to influence them in confidence to the City Manager, who may inform the City Council as a whole of such attempts. Any staff member who violates this prohibition may be subject to disciplinary action at the discretion of the City Manager. (Ord. 2009, 2007) 2.17.43 Timely Response. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of work load or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council. In terms of making this judgment, the following guidelines should be considered: A. Is the request specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments? B. Is the request a "one time" work requirement, as opposed to an on-going work requirement? C. Does the response to a request require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the request in excess of two hours)? (Ord. 2009, 2007) 266 CC 03-04-2025 266 of 283 CITY OF CUPERTINO Agenda Item 25-13786 Agenda Date: 3/4/2025 Agenda #: 10. Subject:Study Session on updates to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to international travel Study Session to consider, discuss and provide direction on revisions to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to 1) international travel, including the addition of appropriate prior approvals for travel expenses and staff time away from usual duties at the City, and other related matters, and 2) staff time focused on supporting delegation visits to the City from Sister Cities and Friendship Cities CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™267 CC 03-04-2025 267 of 283 CITY COUNCIL STAFF REPORT Meeting: March 4, 2025 Subject Study Session on updates to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to international travel Recommended Action Study Session to consider, discuss and provide direction on revisions to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to 1) international travel, including the addition of appropriate prior approvals for travel expenses and staff time away from usual duties at the City, and other related matters, and 2) staff time focused on supporting delegation visits to the City from Sister Cities and Friendship Cities. Reasons for Recommendation Over the past two years City staff have increased the time devoted to the Sister Cities and Friendship Cities programs. Clearer and defined expectations on these issues would be helpful. The Sister Cities and Friendship Cities policy was adopted in 2005, and last updated in October 2023. The current policy is included as Attachment A. Sustainability Impact No sustainability impact anticipated. Fiscal Impact If updates are eventually adopted, such updates might permit the City Council to limit the number of trips and officials traveling to sister cities on an annual basis, which will result in savings. California Environmental Quality Act No California Environmental Quality Act impact. _____________________________________ 268 CC 03-04-2025 268 of 283 CUP - Staff Report re Sister City Travel Discussion(1055413.1).odt Prepared by: Floy Andrews, City Attorney Approved for Submission by: Pamela Wu, City Manager Attachments: A – 2023 Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations 269 CC 03-04-2025 269 of 283 POLICIES AND GUIDELINES ON SISTER CITIES, FRIENDSHIP CITIES, AND INTERNATIONAL DELEGATIONS FOR THE CITY OF CUPERTINO Citywide Policy Manual Policy # Attachments: Effective Date: October 2023 Responsible Department: City Manager’s Office Related Policies & Notes: Prior versions: 2005, 2013, 2016, 2018 Background: Cupertino has four active Sister Cities registered with Sister Cities International; the cities of Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India. In addition, Cupertino has established several Friendship City relationships and attracts many international delegations for cultural, educational, business, and economic development reasons. SISTER CITIES Intent of Sister City Affiliations: The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Sister City partnerships have proved very successful in fostering educational, technical, economic and cultural exchanges. Sister City relationships are effective only when organizations of interested residents in one community work with interested residents in another city to promote communication and understanding among people of different cultures. The ideal affiliation should involve a large number of citizens and organizations in both cities, engaging in exchanges of people, ideas and cultures on a long-term, continuing basis. The City intends to provide limited financial support to those Sister City Committees that operate student exchange programs. Those Sister City organizations which do not operate student exchange programs shall be completely financially independent from the City, except for limited City facility use. 270 CC 03-04-2025 270 of 283 Sister City Citizen Committee Responsibilities (Receiving City Support): • Identify, manage, coordinate and implement all activities related to the Sister City Program. • Establish a formal, incorporated 501(c)(3) structure, with officers and subcommittees. • Solicit donations and in-kind contributions from the local community as appropriate. • Maintain communication with the affiliate Sister City Committee, ensuring the counterpart committee is equally committed to the program. • Finance activities from fundraising efforts and resources other than public funding, including all travel and program expenses, postage, fax, copying, and printing costs for events in which the City is participating. This includes fundraising or securing gifts for special celebrations, such as anniversaries. • Prepare a detailed budget including funds raised through fundraising efforts and public (City) funding for events and activities and keep track of expenses. The budget should show funds available and should identify adequate, ongoing funding sources for program activities. • Work with City staff at least one month in advance in arranging official promotional gifts and meetings for foreign delegations. For local groups traveling abroad and bringing promotional gifts, similar notice is required, unless waived by the City Manager. • Meet the following eligibility requirements/annual submittals: o Proof of 501(c)(3) status o Detailed accounting of prior year actual revenue and expenses o Summary of prior year activities o Proposed budget plan o Fundraising plan Sister City Citizen Committee Responsibilities (Not Receiving City Support): • Identify, manage, coordinate, and implement all activities related to the Sister City Program. • Establish a formal, incorporated 501(c)(3) structure, with officers and appropriate functional sub committees. • Solicit donations and in-kind contributions from the local community as appropriate. • Maintain communication with the affiliate Sister City Committee, ensuring the counterpart committee is equally committed to the program. 271 CC 03-04-2025 271 of 283 City of Cupertino Responsibilities (With regard to City supported Sister City Committees): Coordinated through the City Manager’s Office, the City will serve as a support for programs and activities by: • Providing for set-up and complimentary access to a large City facility for three community events per Sister City per fiscal year. All cost of food, drinks, and materials are the responsibility of the Sister City Committee. • The City shall accept gifts from the Sister City, which will be considered the property of the City and may be displayed at a City facility or offered to the Sister City Committee at City’s discretion. • The City will establish and maintain a written record of said gifts, regardless of actual or perceived monetary value. The written gift log will include: donation City, gift date, gift occasion (if applicable), and whether they are being offered to the Sister City Committee. • Providing up to $2,500 per year for a Sister City with a student exchange program of up to 9 student delegates and up to $5,000 per year for a Sister City with a student exchange program of 10 or more student delegates . Coordinated through the City Manager's Office, the City will serve as a support for Sister City programs and activities by: • Providing access to postage, fax, copying and printing equipment to Sister City Committee members for support of Sister City events in which the City is participating. City staff is not responsible for preparing mailings or printed materials. • Providing the use of meeting room space (up to 18 per calendar year) at no cost to the Sister City Committee for related activities. Meeting room space does not include Cupertino Community Hall or the Quinlan Community Center’s Cupertino Room. • Providing City promotional gift items, when budget allows, typically given at community events to government representatives and student delegations from visiting countries. These include but are not limited to: branded t-shirts, pens, reusable bags, and lapel pins. The cost of each promotional gift or gift bag shall not exceed $25. Additional gifts presented to members of a Sister City delegation are the responsibility of the Sister City Committee. • Facilitating participation of City officials. City of Cupertino Responsibilities (With regard to non-City supported Sister City Committees): 272 CC 03-04-2025 272 of 283 • The City shall maintain registration with the Sister Cities International organization. • Provide the use of meeting room space (up to 4 per calendar year) at no cost to the Sister City Committee for related activities. For additional meeting room uses, non-City supported Sister City Committees shall be charged the facility use resident rate on the rental of any City facility. Meeting room space does not include Cupertino Community Hall or the Quinlan Community Center’s Cupertino Room. Travel and Program Expenses: Program Expenses: • The City Council will, as part of its annual budget adoption process, establish a program budget for anticipated City supported Sister City program activities. This budget will include up to $2,500 for a Sister City with a student exchange program of up to 9 student delegates and up to $5,000 for a Sister City with a student exchange program of 10 or more student delegates, as funds allow. This adopted budget, less the cost of the Sister City membership fee, will be remitted to the Committee once an accounting of the prior year's expenditures has been received and reviewed by the Finance Department. These funds represent the City's sole monetary commitment each fiscal year with the exception of the items listed above. Travel Expenses: • The City will pay for 50% of one trip per year for the Mayor or their designee, provided the trip is in conjunction with an official delegation. • All other Council travel for Sister City programs shall be funded by Sister City Committee fundraising activities, when feasible, or by the individual traveling councilmember, unless authorized in advance by the City Council. • The City will budget for one Sister City delegation trip per year. The number of current Sister City relationships will determine the rotating frequency of delegate visits (e.g. visits to each Sister City will occur every three years when three current Sister City relationships exist, every ten years when ten relationships exist, etc.) Travel expenses for Sister City visits occurring outside this annual rotating schedule will be the sole responsibility of the persons traveling. New Affiliations: To ensure that there is a broad base of community support for a global partnership, the citizen committee responsible for implementing the Sister City program should include at least 10 active Cupertino residents who are committed to making a new affiliation successful. No more than one Sister City relationship may be established in any given country. 273 CC 03-04-2025 273 of 283 Proposal Process The new Sister City Committee will prepare and submit the following to the City of Cupertino: • Detailed demographic profile of the prospective city • Application for a formal, incorporated 501(c)(3) structure, with officers and appropriate subcommittees • Documentation of broad-based community support, with a minimum of 10 members on the organizing committee • A preliminary program plan outlining objectives and funding sources If the City Council adopts a resolution establishing a new Sister City relationship, the City shall register that new Sister City with Sister Cities International. If the proposed new Sister City Committee desires to operate a student exchange program (open to any school within the Cupertino Union School District and/or Fremont Union High School District boundaries) and demonstrates that it can meet its responsibilities as a Cit y supported Sister City Committee, the budget for the following year shall be adjusted, if approved by Council, to provide for financial support. Terminating a Sister City Affiliation While regrettable, it is sometimes necessary for a city to terminate a Sister City affiliation. Sister City affiliations are meant to be long-standing, official city linkages that involve extensive community participation beyond government. For a variety of reasons, a Sister City relationship may lose community interest and support, and Cupertino or the Sister City may opt to terminate the Sister City relationship. If a Sister City affiliation is inactive for a period of three years and there is a lack of community support for the Sister City relationship to continue, the City may initiate the process to terminate the Sister City affiliation with the Sister City and Sister Cities International. Termination process resulting from inactivity shall be administered by the City Manager or designee, who shall inform the partner sister city of the decision through a written letter. City Manager’s Office shall also inform the Council of the termination through an informational memo. FRIENDSHIP CITIES Intent of Friendship City Affiliations: The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Friendship city partnerships can be effective in fostering increased global cooperation and communication. Friendship cities 274 CC 03-04-2025 274 of 283 may be established, however, they will not be considered official Sister Cities and are not eligible for City funding. New Affiliations: All proposed Friendship City relationships must have Councilmember or community sponsorship and be approved by the City Council. The Friendship City will submit a Friendship City application to the City of Cupertino, which requires sponsorship from a Council Member and a citizen' s committee to ensure the new affiliation is successful. If approved, the City will issue a signed Letter of Intent establishing the Friendship City relationship. A Friendship City affiliation will be effective for two years and may be renewed administratively every two years. Friendship City Committee Responsibilities: • Identify, manage, coordinate and implement all activities related to the Friendship City program. • Maintain communication with the affiliate Friendship City, ensuring the counterpart is equally committed. • Work with City staff at least one month in advance in arranging official promotional gifts and meetings for foreign delegations. For local groups traveling abroad and bringing city gifts, similar notice is required , unless waived by the City Manager. City of Cupertino Responsibilities: Coordinated through the City Manager’s Office, the City will: • Issue a signed Letter of Intent establishing a new Friendship City relationship in an effort to assist international delegation visits from the Friendship City. • Provide City promotional items typically given at community events to government representatives from visiting countries as the budget allows. These may include, but are not limited to: City t-shirts, pens, reusable bags, and lapel pins, to the extent there remains a budgeted amount to purchase such gifts and promotional items. • Facilitate meetings with City officials. • Conduct tours of city facilities. Travel and Program Expenses: 275 CC 03-04-2025 275 of 283 Friendship City travel and program expenses will be treated as those of international delegations and will follow the guidelines outlined in this policy in the “Travel and Program Expenses” section under “INTERNATIONAL DELEGATIONS.” Friendship Cities must establish a 501(c)(3) tax exempt organization before participating in the travel program. Renewal of Friendship City Relationship Friendship City renewals should be requested by an official of the Friendship City with support of the Friendship City Committee. The Friendship City Committee should submit a renewal application, which includes: • Intent to renew letter from Friendship City official on official letterhead. • Summary of Friendship City delegation visits to Cupertino hosted by the Committee over the last two years. • Summary of Cupertino delegation visits hosted by Friendship City. • Description of activities held and outcomes. • How the relationship has been mutually beneficial for Cupertino and the friendship community. • An updated profile of the Friendship City Committee. Notification of the intent to renew the Friendship City relationship should be sent to the City at least 60 days in advance to ensure sufficient time to process the renewal. Renewals will be processed administratively through the City Manager’s Office. Friendship City committees are not required to prepare a presentation for the City Council. However, Friendship City committees may submit presentation materials to be included as part of the renewal process. Terminating a Friendship City Affiliation: A Friendship City affiliation will be effective for two years. After two years the Friendship City affiliation will automatically expire unless renewed. Renewal requests after the expiration date has passed will be considered at the City Manager’s discretion. While regrettable, it is sometimes necessary for a city to terminate a Friendship City affiliation prior to the end of the two-year term. For a variety of reasons, a Friendship City relationship may no longer be mutually beneficial, and Cupertino or the Friendship City may opt to terminate the Friendship City relationship by notifying the City Manager’s Office in writing, INTERNATIONAL DELEGATIONS Intent of International Delegations: The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. 276 CC 03-04-2025 276 of 283 Delegations must contact city staff at least 60 days in advance in arranging meetings, unless waived by the City Manager. Travel and Program Expenses: Program Expenses - The City Council will, as part of its annual budget adoption process, establish a program budget for promotional items for delegations. Promotional gifts shall not exceed the cost of $25 each. Councilmembers on an official delegation visit to a Sister City or Friendship City typically present a gift to the host city dignitary, such as the Mayor. This host-City dignitary gift should not exceed $200. Travel Expenses - International travel shall be at the expense of the traveling Councilmember or any accompanying staff member unless authorized in advance by the City Council. 277 CC 03-04-2025 277 of 283 CITY OF CUPERTINO Agenda Item 24-13566 Agenda Date: 3/4/2025 Agenda #: 11. Subject: Councilmember Reports CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1 powered by Legistar™278 CC 03-04-2025 278 of 283 1 CITY COUNCILMEMBER REPORT Meeting: March 4, 2025 Reporting Councilmember: Councilmember J.R. Fruen Report Dates: 2/11/25 to 2/24/25 Item Date, Title, and Description: Event 1. February 11, 2025 – Meeting with Representatives of SummerHill re Development Applications – I met with representatives of SummerHill Homes about their pending development applications in the city. It was a productive meeting and exchange of views. Event 2. February 14, 2025 – Meeting of Council Subcommittee to Negotiate Contract with Aleshire and Wynder for Interim City Attorney Services – Per council direction, this subcommittee, consisting of Vice Mayor Moore and myself, met with Assistant City Attorney Michael Woo met to discuss the negotiation of a contact with Aleshire and Wynder for Interim City Attorney Services. The ultimate contract was approved by council at the February 19, 2025 meeting. Event 3. February 21, 2025 – Briefing from City Staff on City Work Program Process – Subsequent to the publication of the agenda and related materials for the March 3 council workshop on the city work program prioritization, Councilmember Mohan and I attended a briefing with city staff to review the revised, consolidated list of council-initiated work program items and to discuss the prioritization process. Event 3. February 24, 2025 – Meeting with Constituent re 20865 McClellan Road – I met with a neighbor of this property living on Bonny Drive who sought to better understand the pending project application at this site and opportunities for community engagement in the application review process and how its impacts could be mitigated. 279 CC 03-04-2025 279 of 283 1 CITY COUNCILMEMBER REPORT Meeting: March 4, 2025 Reporting Councilmember: Councilmember Sheila Mohan Report Dates: 2/11/25 to 2/24/25 Item Date, Title, and Description: 2/11/25 Along with city CDD staff, I participated in a meeting with representatives from Toll Brothers, the homebuilding company. They reached out to share their proposal to build 55 units (townhomes and ADU’s) on a 15-acre property site on East Estates Drive. The proposal will be reviewed by the Planning Commission in May/June and groundbreaking is planned for the summer of 2026. 2/12/25 I was honored to participate in the grand opening of AlphaX Capital, a real estate investment group that specializes in ensuring optimized returns through investing in property acquisition, financing, construction and asset management. The company is founded by two women with expertise in knowledge of the constantly changing real-estate landscape. The event was attended by a large number of elected officials, including State Treasurer Fiona Ma, State Representative Alex Lee, County Supervisors Otto Lee and Margaret Abe Koga among others. 2/13/25 As the City’s liaison with the CUSD and FUHSD school districts, I attended a joint strategic partnership meeting (2x2x2) to discuss items of mutual interest, such as Safe Routes to School and Bike Paths, Finch Property, enrollment concerns and yearlong celebration of Cupertino’s 70th anniversary. Mayor Chau also attended. 2/13/25 As a member of the Audit Committee, I attended the Mandatory Annual Commissioner Training. City staff, led by City Clerk, City Attorney and City Manager made presentations on information critical to optimal functioning of commissioners and committee members. The Brown Act and Rosenberg Rules of 280 CC 03-04-2025 280 of 283 City Council Councilmember Report 2 Order were explained, and staff emphasized the need to follow rules pertaining to Form 700 (financial disclosure), attendance and civil behavior at meetings. 2/14/25 I met with Assemblymember Patrick Aherns to follow up on last year’s issues like collaboration with De Anza re: fireworks, drone display, parking for our school students and medical services for De Anza and the City community. 2/18/25 Council Prep session re: McClellan Road property rezoning. This was an item that appeared on the 2/19/25 Council agenda – and involved an inadvertent mismatch between zoning regulations and the general plan. Staff from CDD filled in details about noticing requirements, likely responses from HCD, and impact on the community if item was not approved by Council. 2/18/25 I attended a meeting with representatives from Summer Hill Homes who presented their proposal to build 32 townhomes on 1.5 acres. Both staff and I emphasized the need to retain some retail on the site. 2/18/25 As the Council representative on the Audit Committee, I, along with Vice Mayor Moore, attended the special meeting of the Audit Committee which focused on the budget format review presented by Baker Tilly. Several changes were proposed, and these will be brought to the Council for discussion and approval. 2/22/25 I was honored to participate in the ribbon cutting of Be Natural, a Jazz and Rock music school program, which was celebrating its 3rd anniversary. The event was organized by the Chamber of Commerce and the founder, staff and students participated in the celebrations. I made some remarks congratulating the music school for being a part of Cupertino and providing much needed education and entertainment to the community. 281 CC 03-04-2025 281 of 283 1 CITY COUNCILMEMBER REPORT Meeting: March 4, 2025 Reporting Councilmember: Vice Mayor Kitty Moore Report Dates: 2/11/25 to 2/25/25 Item Date, Title, and Description: February 12, 2025. Special City Council Meeting Closed Session. February 13, 2025. Cupertino Chamber of Commerce Lunar New Year Luncheon. February 13, 2025. VTA Policy Advisory Committee. Recording: https://santaclaravta.iqm2.com/Citizens/SplitView.aspx?Mode=Video&MeetingID= 4288&Format=Agenda Agenda Packet: https://santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=4111&Inline=T rue February 13, 2025. Cities Association of Santa Clara County Joint Powers Authority Legislative Action Committee. February 13, 2025. Cities Association of Santa Clara County Board of Directors. February 14, 2025. Staff meeting. February 15, 2025. Tutoring Center Visit. February 15, 2025. Presented Proclamation to Chinese Americans for the Future Generations Lunar New Year Celebration and attended performances by 282 CC 03-04-2025 282 of 283 City Council Vice Mayor Moore Report 2 performing artists. February 16, 2025. Attended Thomas Foon Chew presentation at the Alviso Yacht Club. February 18, 2025. Council prep. session. February 18, 2025. Cupertino Audit Committee Meeting. Review of Budget modification recommendations. Report by Baker Tilly available here: https://cupertino.legistar.com/gateway.aspx?M=F&ID=36652f3e-2aa2-463a-94b0- 25ce8ecda787.pdf February 19, 2025. Special Cupertino City Council Meeting. February 21, 2025. Attended CWP prep session meeting. February 22, 2025. Participated in San Jose Neighborhood Beautification project hosted by SJ Mayor Matt Mahan. February 22, 2025. Attended N. Blaney neighborhood meeting to here concerns. February 22, 2025. Attended informal meeting with local legislators. February 24, 2025. Staff meeting. 283 CC 03-04-2025 283 of 283