CC 05-19-2020 Item No. 1 Study Session_FY 2021 Proposed Budget_Written CommunicationsCC 05-19-20
Special Meeting
Study Session #1,
Proposed FY
2010-2021 Budget
Written Comments
1
Cyrah Caburian
From:Sashi Begur <sashibegur@gmail.com>
Sent:Sunday, May 17, 2020 11:09 PM
To:City Council
Cc:Cupertino City Manager's Office
Subject:Proposed Budget 20-21 - Budget Review Session
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Dear Council members,
I looked at the proposed budget the link to which is https://www.cupertino.org/home/showdocument?id=27577
(1) (i) There is only been 1 hour allocated for Budget Review Why is that? (ii)Can we schedule a few more hours of
budget review?
(2.a) (i)Who generated this budget ‐ was it city staff or was it another consultant? (ii) If it is the city staff I thank them for
the work and I request that they re‐do the details based upon the questions below 3‐5
(2.b) If it is a consultant ‐ (i) why do we need to use this consultant (ii) how much have we paid this consultant? (iii) Can
we cancel the contract ASAP if not why not? (iv) if we have to use their services how much more will we owe them for
the details required in questions 3‐5
(3.a)Where are the details of the revenue specified in the proposed budget on Page 86
(3.b) The revenue breakdown seems very optimistic. Given the current financial state of the country and the world we
can only assume that things will get worse before they get better. (i)Please re‐do the revenues with the worst case
scenario (ii) justification for why that case is the worst case needs to be provided as well
(4) (i)Where are the details of the expenditures specified in the proposed budget on page 86, why do we need $8M of
materials, who are we paying $30M for contract services, what are the special projects and are they required under
these circumstances, what contingencies are we planning for we already are in the bad situation! Each line item must
have a link to the details of the numbers to which it rolls up. There must be numbers from previous years which I am
assuming are being used. The employee compensation does it include contractors as well. (ii)Also are there any
overlaps?
(5.a) (i) I would like to request a Budget task force be setup comprising of City council and residents so we can see what
is being put forth before it comes to the council for review. Ideally we need a finance commission, so we don’t have this
issue the next time around (ii) the commissions that exist now, must also get a chance to review the budget, can it be
sent to all the commissions, so we understand what projects we think can be cancelled or are required?
(5.b) speaking of commissions ‐ can we also add the Public works commission?
Thank you for the work you do for our city and for patience with my questions.
regards
Sashi
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Cyrah Caburian
From:Viji <viji55665@gmail.com>
Sent:Monday, May 18, 2020 10:10 PM
To:City Council; City Clerk
Subject:Written Communication Agenda Item #1 - May19th, 2020
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Dear City Council Members,
Here are my comments/questions to Item #1 Study Session for proposed budget for 20-21.
Administration – The cost of City administration is approximately 10% of the budget. This has ballooned from
$4.09M actuals in FY 2018 to $8.30M budgeted for FY 20-21. This is more than 100% increase in 4 years. The City
should explain the need for this enormous amount to be allocated to the administration department and it is the
Council’s responsibility to trim this amount.
Contingency Funds: One of the budget balancing strategies for the City is reducing $850,000 (Page 7 of Proposed
Budget FY20-21) in contingency in General fund. The contingency amount allocated was 986K for 20-21(this includes
reduction). In FY 19-20 adopted budget (Page 9) the contingency amount allocated in GF was $1.07M. How did it go
down by 50%? This is not clear and some explanation is needed.
5 limited Term Positions. The City is converting 5 limited Term Positions into permanent positions. The budget
document says, the staff will recommend adding positions if ongoing revenues could support the position long term.
How important is that all 5 positions have to be made permanent. What would be the incremental cost in converting
these positions to permanent positions? Does on going revenues support long term position especially with COVID-19
revenue decline.
Transient Occupancy Tax: TOT went down by 38% (9.7M pre COVID, Impact estimated $3.7M) in FY19-20. TOT is
projected to decrease 21.9% in FY 20-21 This decline represents an effective loss of one full quarter of TOT revenue
for our City. The American Hotel & Lodging Association released new data showing that 70 percent of hotel
employees have been laid off or furloughed as eight in 10 hotel rooms across the nation remain empty. As the
COVID-19 crisis progresses, the impact to the travel industry is nine times worse than 9/11, with forecasted
occupancy rates for 2020 hitting record lows worse than rates in 1933 during the Great Depression.
According to City’s proposed Budget document, TOT revenues are highly correlated with B2B revenue, as TOT
revenues in Cupertino are primarily driven by business travel . What are the assumptions here for just one quarter
decline? International travel is not happening, majority of flights are grounded for a long time, many High-Tech
companies in bay area have asked their employees to work from home until end of the year, so how does the City
assume that Hotel occupancy will go back to normal from September. Did the Staff present you with the best- and
worst-case scenario for TOT revenues? According to American Hotel and Lodging Association, individual hotels and
major operators are projecting occupancies below 20%. At an occupancy rate of 35% or lower, hotels may simply
close their doors. New hotel construction is not happening in Cupertino in FY20-21. I would also like to know if the
Council Member Sinks’ request to the staff to project monthly decline in TOT allocation be presented to the public as
well.
Public Works Administration(PWA): The proposed budget for PWA is $4M higher this year when compared to last
year($37.5 in FY20-21 VS $33.3 in FY19-20). Why did it go up more than 10% this year when we have significant
decline in revenue due to COVID-19? This expenditure should be contained.
The library services budget of $318,340 represents a decrease of $479,700 (-60.1%) from the FY 2019-20 Adopted
Budget and the decreased costs are due to a change in allocation methodology. I see this term, “change in allocation
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methodology” very often in budget. Its very confusing for public to make the interpretation as to what has changed. A
brief explanation as how the methodology has changed has to be part of the budget. Why is library services budget
reduced for 20-21?
Attorney – The budgeted amount to attorney is $2M in FY20-21. Is having an outside attorney cost efficient for the
City?
The City’s $19M economic uncertainty funds should not be touched unless there is a dire need for funds to pay
City’s most important expenses. And this decision should be made by the Council and not to be at the discretion of
the Manager.
I also notice that Budget Study session is less than 75 mins tomorrow. I request the Mayor to let fellow council
members ask all the relevant questions so the Council can recommend a fiscally conservative budget this
year. If you are unable to finish the deliberation in less than 75 mins, then this item should come back as a special
agenda item next week.
I expect the elected council members to do due diligence to take a hard look to reduce the expenditure and not dip
into rainy day funds.
Thank You,
Viji
1
Cyrah Caburian
From:Munisekar <msekar@gmail.com>
Sent:Monday, May 18, 2020 11:28 PM
To:City Council; Cupertino City Manager's Office; City Clerk
Cc:Munisekaran Madhdhipatla
Subject:Closed Session: Agenda 1: Study Session regarding the Proposed Fiscal Year 2020 - 2021 Budget
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sender and know the content is safe.
Dear Mayor & Council,
As an involved resident, I would like provide the following input with regard to 2020‐2021 fiscal budget study session.I
understand that our city is facing a budget shortfall like every other city, county and state due to economic distress
caused by COVID19 Pandemic. We need to handle this carefully to preserve the fiscal strength of our city government.
1. Review every capital projects in the pipeline including the ones already approved in the context of current
situation. Unless the project is essential, please halt it ASAP; even in the mid‐stream; just because you approved
it earlier, it doesn't mean that you need to spend the $$s. The conditions when you approved vs. current
situation are dramatically different.
2. I would like to understand why the management office budget is growing dramatically. It appears it is doubling
in 4 years. Please take a hard look at this.
3. Public works department expense seems to be the biggest spend item; please take a hard look at reducing
spend in this area.
4. Please compare the outsourced legal expenses with previous 2 years and see if there is opportunity to improve.
5. Please DO NOT CUT the law enforcement budget as the crime rate is increasing in our city and residents are not
feeling safe; we don't want to aggravate it further.
6. Please try to balance the budget without dipping into the reserves as we don't know how bad the situation is
going to be next year and the following. The bad economic conditions may persist for a while and so preserving
reserves is important.
7. Please use this opportunity to make surgical cuts where we have excess staff as it is time to operate lean and
mean like a private enterprise.
These are difficult times and call for difficult decisions; this is not the time to get emotional or make popular decisions;
rather time to make tough decisions.
I hope you do what is right for the city and the residents.
Please make this as part of my public comments on this topic.
Cheers
Muni Madhdhipatla
Cupertino Resident
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Cyrah Caburian
From:Govind Tatachari <gtc2k7@gmail.com>
Sent:Tuesday, May 19, 2020 4:00 PM
To:Steven Scharf; Darcy Paul; Liang Chao; Rod Sinks; Jon Robert Willey; Cupertino City Manager's Office;
City Clerk; City Attorney's Office
Subject:Agenda item 20-7311- FY2020-21 Proposed Budget related
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
I have gone through major points of the 516‐page FY2020‐21 proposed budget at the link (id=27577,
name=FY202021ProposedBudgetwTOC.pdf) in the City council meeting notice.
Thank you City Manager for the cover letter which spells out the fiscal uncertainty due to current outbreak and your
overview organized as Budget balancing strategies (3.2 + .85 + .67 + 1.0 + 0.5 = 6.22 Million), Long‐Term financial
planning, Virtual activities, meetings, and services, and Embracing change and innovation.
I wish to thank the City for virtual budget study session (agenda item 20‐7311). Here are some questions and few
suggestions to consider and help with discussions and deliberations, if any.
1) Uncertainty
Our understanding of gravity of outbreak and its potential multiyear occurance, containment strategy requirements
(including SIP) and extent of impact on different businesses and livelihood are quite unknown and evolving.
2) City council, residents and study session
Successive City council with inputs from residents and management have taken decisions to ensure the City continues to
have a solid financial foundation. A one‐hour study session seems insufficient to get inputs from residents and
deliberate on such an important topic.
3) Overall observation
City budget influences City services provided to residents. To help with better understanding and useful discussion, the
council and residents can benefit from a budget presentation that covers multiple scenarios: worst case, projected /
actuals and best case. The rest of this email will assume it.
4) Revenue Management Challenges and Scenarios
W.r. to City’s top three revenue sources have been property, sales, and transient occupancy taxes.
i) Sales tax related ‐ need multiple scenarios
ii) Property tax related (pgs 97‐99)
pg 97 pie‐chart: While it is known that the % breakdown are decided based on certain statutory conditions, a
comparative view of the % breakdown across different cities in Santa Clara county will be very helpful.
iii) Transient occupancy taxes (TOT) related ‐ need multiple scenarios
iv) Encouraging Property improvement
To help stimulate local economy and also help with sustainability and housing goals, can we discuss how the city can
incentivize and increase existing residential property improvements to move towards net‐zero goals and make it more
affordable to add ADUs.
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4) Expense Management Challenges and Scenarios (next email)
5) Others (next email)
Thank you for your consideration,
Govind Tatachari
Cupertino Resident
1
Cyrah Caburian
From:Connie Cunningham <cunninghamconniel@gmail.com>
Sent:Tuesday, May 19, 2020 4:12 PM
To:City Council
Subject:Homeless Encampments--2020 May 19 City Council Study Session, Proposed FY2020-21 Budget
Attachments:F - Budget Message-3.pdf
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Dear Mayor, Vice‐Mayor, Councilmembers and City Manager:
Tonight at 5:30 Cupertino City Council Meeting, there is a Study Session regarding the Proposed FY 2020‐21
Budget
The City Manager has a Budget Message, Attachment F. On page 15, one of the New Initiatives includes the
following:
Homeless Encampments
The Code Enforcement Office is currently working on creating a Standard Operating Procedure
and contract to have public camping sites removed from the Public Right‐of Way and public
property. The City of Cupertino has seen a growth of illegal camping sites along Wolfe Road and
280. The goal of this project is the removal of unlawful encampments and the mitigation of
health, safety and access issues while respecting the rights of the occupants and informing them
of alternative resources within the community.
It does not include any mention about what an alternative resource might be. Has the City not discussed this with
West Valley Community Services? WVCS is the non-profit agency to whom the City has provided grants to assist
many categories of vulnerable citizens. These grants include funding for Rental Assistance due to COVID-19, as
well as annual grants for operating various programs to help those who are vulnerable to loss of food, medicine or
housing — living paycheck to paycheck. This includes helping people suffering from homelessness.
It is unimaginable to me that this sort of New Initiative is being considered at this time of severe need and the
likelihood that there will be more people who lose their homes in the coming months. Governor Newsom has
created a number of different initiatives and funding sources, from trailers to hotel rooms. He has, also, urged
cities, counties and other legal districts to find buildings that can be used to house those suffering homelessness.
It is essential to the good financial running of the City as well as our good health, to ensure safety and health for
everyone. That means EVERYONE!
Below find my email that I sent on April 21, 2020, when this action was first discussed.
Sincerely,
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Connie
Reference: Report on Homeless, April 21, 2020, City Council Meeting
Whose cries are the loudest? Who do we hear?
Dear Mayor, Vice-Mayor and Councilmembers:
Dear Steve, Darcy, Liang, Jon and Rod:
This cannot be how you want Cupertino to be remembered in this hour of world-wide grief and fear.
This cannot be that you would act upon the report that was given to you on April 21, 2020 at your City Council
Meeting.
Say “no” to the inhumanity of sweeping people from the streets of their hometown because we have not yet helped
them find a safe, decent place to live. Say “no” to the inhumanity of sweeping people from their encampments the
DAY AFTER the COVID-19 SHELTER-IN-PLACE ORDER IS LIFTED.
I was horrified by the words coming out of the young man’s mouth. I was horrified at the idea of removing all the
homeless people from the encampments right after the COVID-19 order were to be lifted (really, at any time). It is
simply NOT A PLAN to have the Sheriff’s Office, well-intentioned though they are, hand out pamphlets with
information about how to get help, when WE KNOW THERE IS NOT ENOUGH HELP for all of them. Not enough
help now, and certainly not enough help as the number continues to grow due to the devastating economic
downturn we are experiencing.
The Sheriff reported last night that 22 complaints (about homeless) have come in since January 22, 2020. How
many calls for help has West Valley Community Services received in that same time? Hundreds. Whose cries are
the loudest? Who do we hear?
That report last night was so at odds with everything that was discussed in the January 21, 2020 Report on
Homelessness . Remember-just three months ago? Kathryn Kaminski, County Office of Supportive Housing was
there. Sujatha Venkatraman, West Valley Community Services was there. Rob Mieso, VP of Student Services, De
Anza College was there. Genevieve Kolar, De Anza College Student Trustee, was there. Kerri Heusler, City Staff was
there. I was there. You were there. Many residents were present. Before COVID-19. You seemed to give positive
support to the City helping out on several ideas. I think now that the Council offering to give WVCS $25,000 for bus
coupons wasn’t exactly a roaring success. I had thought it was a start. Please tell me, tell us, the City residents, that
it wasn’t a delay tactic.
You discussed trailers last night. That was good. Please keep talking about that idea, and keep asking City Staff to
find other solutions. There are portable hand-washing stations. There are portable toilets. There are people
working with the homeless every day. Work with those people. That is where the answer lies.
Please do not act upon the report as it is written. Please step back from this precipice.
Connie Cunningham
Horrified Resident
Housing Commissioner, self only. But I think the other Commissioners would agree.
May 1, 2020
To the Residents of Cupertino, Honorable Mayor, and Members of the City Council:
As the City of Cupertino enters a time of economic uncertainty, I am pleased to present
the City Council with a balanced budget for Fiscal Year 2020/2021. Forecasting anything,
be it the economy or the weather, is not an exact science. There are many variables and a
lot that we cannot see. But what we can do, and what we are doing, is preparing for the
worst while taking steps to ensure the continual financial stability of our organization.
The COVID-19 pandemic, and the ensuing lockdowns, has negatively affected the
economies of all countries and likely caused a worldwide recession. The City, for
purposes of our budget forecast, is anticipating at least a two-year recession.
The Fiscal Year 2020/2021 Proposed Budget presents a General Fund with revenues of
$79.5 million and expenditures of $82.3 million. The City’s top three revenue sources
have been property, sales, and transient occupancy taxes. While this will continue to be
true, the City will not see the same level of revenue as in recent years. Sales tax is
anticipated to experience an approximately 20% decline, while transient occupancy tax
is expected to drop by 25%. The City also expects a decline in fee revenues, mostly
attributed to Parks & Recreation Departments programs being ceased, but also due to
economic strains on the local, state, and national levels.
With declining revenues for the next several years, difficult but necessary decisions must
be made to bring expenditures into line. The City is implementing several budget
balancing strategies to the General Fund forecast as noted below:
x Phasing in an increase of vacant staff positions from five (5) to twenty (20) within
a three-year period, which will result in up to $3.2 million in annual savings.
x Reducing contingencies by 50%, which is expected to save approximately
$850,000. This reduction has been implemented in the proposed budget and will
remain as part of the final adopted budget.
x Reducing materials by 10%, which is expected to save approximately $670,000 in
Fiscal Year 2020/2021. This reduction will be implemented as part of the final
adopted budget.
x Reducing contract services by $1 million, which will be part of the final adopted
budget.
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x Reducing special projects by $500,000, which will be part of the final adopted
budget.
While we expect these actions to be enough in the short-term, staff will continue to
monitor the situation and adjust when necessary. Staff fully intends on keeping the City
Council and community informed with regular updates. Having the latest information
and up-to-date data will allow for informed decision making.
It is said that even the darkest cloud has a silver lining. The COVID-19 pandemic has
shone a bright light on quite a few positive things going on in Cupertino. I would like to
highlight them for the City Council and community below:
Long-Term Financial Planning
The foresight of the City Council and staff in previous years to focus on ensuring
healthy reserves is paying off in full. While we will focus on reducing expenditures to
offset declining revenues, we do have healthy reserves that could be used to mitigate
any unforeseen shortfalls.
The City’s Economic Uncertainty Reserve remains intact, with $19 million, and may be
used to mitigate potential shortfalls in future fiscal years. The City’s Section 115 Pension
Trust ($12 million) also could be used to mitigate potential increases to CalPERS’ annual
required contribution rate or further reductions in the discount rate as set by CalPERS.
The City’s unassigned fund balance remains healthy and will be able to assist in
addressing funding gaps.
Virtual Activities, Meetings, and Services
The future is virtual. That we already knew. But the COVID-19 pandemic provided an
impetus to move some of our most significant activities and services online—most likely
permanently.
The City's Innovation Technology Department (IT) had the vision years ago to slowly
migrate full-time employees to laptop computers. This allowed staff to be more mobile.
Coupled with IT's decision to move to a VoIP phone system, which allows staff to
answer their work lines from a computer, the transition from working in the office to
working at home was practically seamless for many employees. With the addition of
Zoom virtual conferencing and Microsoft Teams, an online collaboration tool, staff was
able to keep internal meetings and communication moving forward. It also allowed the
City to quickly offer its services and activities online once the first Shelter-in-Place Order
was given in March 2020.
The City began utilizing standard video conferencing software to provide virtual
inspections for essential activities. In addition, the Geographic Information System (GIS)
Division and the Building Division worked to develop a longer-term solution that
allows applicants to submit building inspection videos in lieu of a physical inspection.
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Applicants upload their submission through an online form, the videos are stored into a
que, and inspectors review the video remotely. While the form was developed in
response to the COVID-19 pandemic, the Building Division expects this new video
inspection review process to remain a part of Cupertino’s inspection process for limited
scopes of work.
The Parks & Recreation Department also began utilizing teleconferencing software in
April 2020 to offer residents free virtual fitness classes. These classes quickly gained in
popularity, going from about 10 attendees in the first week about 100 after just a few
class offerings. Residents have already requested that the City continue some form of
virtual classes once the Shelter-in-Place Order is lifted and in-person classes begin.
Embracing Change and Innovation
Change is difficult for everyone. It can be uncomfortable and stressful. That is why I
have been so impressed with City staff, which has quickly and eagerly embraced change
and innovation. Along with the move to new equipment and software, the reason the
City's was able to continue its services with little interruption was because of our
employees. Work is being completed and internal virtual meetings have been utilized to
a great extent. Our staff has been a critical link to our City's success. It gives me
confidence that our employees will readily accept more changes and continue to
improve our programs and services. The City Council and residents should be
heartened to know that Cupertino is in good hands.
In conclusion, the City—along with every other municipalities—is heading into much
uncertainty. While there is a lot we do not know, the picture will become clearer as we
move forward and receive more information. Fortunately, the City stands on a solid
financial foundation and decisions have already been made, and will continue to be
made, to ensure that stays true into the foreseeable future.
Respectfully Submitted,
Deborah L. Feng
City Manager
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Notable Accomplishments and New Initiatives
ȱ
NOTABLEȱACCOMPLISHMENTSȱINȱFISCALȱYEARȱ2019Ȭ20ȱ
ȱ
ReducingȱYouthȱAccessȱtoȱTobaccoȱ
InȱFebruary,ȱtheȱCityȱapprovedȱaȱtobaccoȱordinanceȱtoȱreduceȱyouthȱaccessȱtoȱtobacco.ȱMostȱ
notablyȱtheȱordinanceȱprohibitsȱtheȱsaleȱofȱvapingȱproductsȱandȱflavoredȱtobacco.ȱThisȱeffortȱ
wasȱfundedȱthroughȱaȱ$48,608ȱgrantȱtheȱCityȱwasȱawardedȱfromȱtheȱSantaȱClaraȱCountyȱPublicȱ
HealthȱDepartment.ȱNextȱyearȱtheȱCityȱwillȱpursueȱoptionsȱtoȱreduceȱexposureȱtoȱsecondhandȱ
smokeȱthroughȱanotherȱgrantȱreceivedȱfromȱtheȱCounty.ȱ
ȱ
ReachȱCode:ȱTheȱCityȱofȱCupertinoȱActsȱonȱFossilȱFuelsȱinȱNewȱBuildingsȱ
Cupertino’sȱClimateȱActionȱPlanȱoutlinesȱaȱpathȱtowardsȱcreatingȱaȱhealthy,ȱlivable,ȱandȱvibrantȱ
placeȱforȱitsȱcurrentȱandȱfutureȱresidentsȱtoȱlive,ȱlearn,ȱwork,ȱandȱplay.ȱItȱwasȱfoundȱthatȱfossilȱ
fuelsȱusedȱinȱbuildingsȱandȱcarsȱpresentsȱtheȱbiggestȱremainingȱchallengeȱtoȱmeetingȱtheȱ2030ȱ
greenhouseȱgasȱemissionsȱtargets.ȱTheȱCityȱCouncilȱtookȱstepsȱtoȱenhanceȱtheȱsafetyȱandȱcostȱ
savingsȱofȱtheȱCity’sȱbuildingsȱbyȱadoptingȱaȱlocalȱreachȱcodeȱthatȱrequiresȱmostȱnewȱbuildingsȱ
toȱutilizeȱcleanȱelectricityȱforȱusesȱlikeȱwaterȱheatingȱandȱcooking.ȱEliminatingȱtheȱnaturalȱgasȱ
lineȱforȱnewȱdevelopmentsȱisȱexpectedȱtoȱsaveȱmoneyȱforȱbothȱconsumersȱandȱcontractorsȱinȱ
mostȱcases.ȱWithȱthisȱstepȱCupertinoȱjoinsȱtheȱvanguardȱofȱ30ȱotherȱCaliforniaȱcities,ȱandȱseveralȱ
acrossȱtheȱnation,ȱinȱstartingȱaȱlongȬtermȱreductionȱinȱfossilȱfuelȱuseȱinȱtheȱ
community.ȱȱOutreachȱwasȱconductedȱbyȱCityȱstaffȱandȱregionalȱpartnersȱSiliconȱValleyȱCleanȱ
Energy.ȱHomeowners,ȱstudents,ȱcontractors,ȱrealȱestateȱprofessionals,ȱandȱbusinessȱownersȱinȱ
CupertinoȱprovidedȱfeedbackȱonȱwhatȱanȱallȬelectricȱreachȱcodeȱwouldȱmeanȱforȱthem.ȱȱ
ȱ
GreenhouseȱGasȱInventoryȱShowsȱCupertinoȱMeetingȱ2020ȱEmissionsȱTargetsȱ
TheȱCityȱofȱCupertinoȱClimateȱActionȱPlanȱgoalȱisȱtoȱreduceȱGHGȱemissionsȱbyȱ15%ȱbyȱ2020,ȱ
comparedȱtoȱ2010ȱGHGȱlevels.ȱSinceȱ2010,ȱCupertinoȱhasȱexperiencedȱanȱestimatedȱ6%ȱincreaseȱ
inȱpopulation,ȱ18%ȱincreaseȱinȱjobs,ȱandȱaȱ10%ȱincreaseȱinȱserviceȱpopulation.ȱHowever,ȱdueȱtoȱ
theȱCity’sȱclimateȱactions,ȱthereȱisȱanȱoverallȱ24%ȱdecreaseȱinȱcommunityȱGHGȱemissionsȱ
duringȱthatȱperiodȱofȱeconomicȱgrowth.ȱTheȱpathȱforwardȱtoȱtheȱ2030ȱtargetȱremainsȱambitious,ȱ
withȱtransportationȱandȱnaturalȱgasȱusedȱinȱbuildingsȱbecomingȱtheȱlargestȱremainingȱ
categoriesȱofȱgreenhouseȱgasȱemissionsȱandȱairȱpollutants,ȱandȱtheȱStateȱofȱCaliforniaȱ
consideringȱplansȱforȱzeroȱemissionsȱbyȱ2045.ȱ
ȱ
ȱȱ
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EmployeeȱCommuteȱProgramȱHelpsȱEmployeesȱGetȱtoȱWorkȱandȱReduceȱClimateȱImpactsȱ
StaffȱcreatedȱaȱpilotȱprogramȱtoȱhelpȱCityȱemployeesȱgetȱtoȱworkȱusingȱalternativesȱtoȱdrivingȱ
alone.ȱTheȱpilotȱprogramȱresultedȱinȱ70ȱemployeesȱsigningȱupȱtoȱreduceȱtheirȱsoloȱcarȱtrips.ȱ
Overȱtheȱcourseȱofȱtheȱpilotȱprogram,ȱwhichȱranȱfromȱAugustȱ2019ȱtoȱMarchȱ2020,ȱemployeesȱ
tookȱ2,541ȱ“alternativeȱtrips”ȱtoȱworkȱwhichȱincludesȱtransit,ȱcarpooling,ȱbiking,ȱorȱtakingȱtheȱ
VIAȱshuttleȱtoȱwork.ȱThisȱresultedȱinȱreducedȱparkingȱimpactsȱatȱCityȱHall,ȱpaycheckȱincentivesȱ
paidȱdirectlyȱtoȱstaff,ȱandȱanȱestimatedȱ12ȱmillionȱpoundsȱofȱcarbonȱemissionsȱavoided.ȱTheȱ
program’sȱearlyȱsuccessȱledȱtoȱaȱsuccessfulȱgrantȱawardȱforȱtheȱCityȱtoȱcontinueȱwithȱaȱPhaseȱIIȱ
employeeȱcommuteȱpilot,ȱwhichȱisȱbeingȱdesignedȱandȱrolledȱoutȱbyȱstaff.ȱȱȱ
ȱ
MasterȱPlanȱAdoptionȱ
Thisȱyear,ȱtheȱParksȱandȱRecreationȱSystemȱMasterȱPlanȱwasȱcompletedȱandȱadopted,ȱfollowingȱ
anȱextensiveȱpublicȱinputȱprocess.ȱȱAȱfinalȱdraftȱMasterȱPlanȱasȱwellȱasȱtheȱassociatedȱ
environmentalȱclearanceȱdocumentsȱwereȱcirculatedȱforȱpublicȱreview.ȱȱTheȱdocumentsȱwereȱ
presentedȱtoȱtheȱPlanningȱCommission,ȱParksȱandȱRecreationȱCommission,ȱandȱEnvironmentalȱ
ReviewȱCommittee.ȱȱOnȱFebruaryȱ18,ȱ2020,ȱtheȱCityȱCouncilȱadoptedȱtheȱenvironmentalȱ
clearanceȱdocumentsȱandȱadoptedȱtheȱParksȱandȱRecreationȱSystemȱMasterȱPlan.ȱ
ȱ
ProgramȱOverviewȱandȱMarketingȱAnalysisȱCompletedȱ
TheȱCityȱcontractedȱwithȱtheȱLearningȱResourceȱNetworkȱ(LERN)ȱtoȱprovideȱaȱtwoȱdayȱ
programȱreviewȱthatȱwouldȱanalyzeȱrecreationȱprogramȱofferingsȱinȱadditionȱto:ȱȱprovideȱ
benchmarkȱtrackingȱtoȱmeasureȱdepartmentȱperformance,ȱprovideȱrecommendationsȱandȱkeyȱ
actionsȱtoȱimplementȱtoȱreduceȱcostsȱandȱboostȱrevenueȱandȱregistration,ȱȱandȱdescribeȱspecificȱ
stepsȱtoȱimproveȱmarketingȱstrategiesȱandȱoverallȱdepartmentȱoperations.ȱȱRecommendationsȱ
onȱbestȱpracticesȱandȱtrendsȱinȱtheȱdeliveryȱofȱrecreationȱservicesȱwereȱpresentedȱtoȱtheȱParksȱ
andȱRecreationȱCommissionȱinȱMarchȱ2020.ȱȱȱ
ȱ
Volunteers,ȱWellness,ȱandȱCollaborationȱ
TheȱSeniorȱCenterȱstrivesȱtoȱcreateȱaȱcultureȱofȱcollaborationȱandȱengagesȱtheȱcommunityȱatȱallȱ
levels—thisȱcanȱbeȱnotedȱinȱtheȱdiverseȱprogramȱofferingsȱatȱtheȱfacility.ȱTheȱCupertinoȱSeniorȱ
Centerȱcelebratedȱtheȱcommitmentȱofȱitsȱ230ȱvolunteersȱwhoȱhaveȱdevotedȱ24,000ȱhoursȱtoȱ
servingȱtheȱcommunityȱthroughȱvariousȱvolunteerȱopportunitiesȱatȱtheȱSeniorȱCenter.ȱTheȱ50+ȱ
Sceneȱnewsletterȱunderwentȱanȱexpansiveȱcontentȱandȱaestheticȱoverhaulȱinȱorderȱtoȱadhereȱtoȱ
theȱOfficeȱofȱCommunication’sȱbrandingȱguidelines,ȱasȱwellȱasȱensureȱtheȱpublicationȱisȱmoreȱ
readableȱandȱuserȬfriendly.ȱTheȱSmartȱLivingȱandȱWellnessȱHealthȱFairȱprovidedȱvaluableȱ
informationȱandȱservicesȱtoȱtheȱ50+ȱcommunityȱonȱhowȱbestȱtoȱmaintainȱaȱhealthyȱandȱ
independentȱlifestyle,ȱcoordinatedȱbyȱtheȱCity’sȱownȱCaseȱManagementȱteam.ȱTheȱyearlyȱ
HiddenȱTreasuresȱeventȱbroughtȱinȱtheȱmostȱsalesȱeverȱatȱ$15,000,ȱwhichȱhelpsȱsupportȱtheȱcaseȱ
managementȱprogramȱandȱtheȱStayȱActiveȱFundȱtoȱkeepȱCupertinoȱseniorsȱstayȱactiveȱandȱ
11
engaged.ȱȱTheseȱinnovativeȱservicesȱforȱtheȱ50+ȱpopulationȱcontinueȱtoȱrespondȱtoȱtheȱCity’sȱ
changingȱcommunityȱneeds.ȱ
ȱ
AppointmentȱofȱCupertino’sȱSixthȱPoetȱLaureateȱȱ
OnȱFebruaryȱ18,ȱ2020ȱCupertino’sȱCityȱCouncilȱapprovedȱtheȱLibraryȱCommission’sȱ
recommendationȱofȱJingȱJingȱYangȱforȱtheȱappointmentȱofȱtheȱnewȱCupertinoȱPoetȱLaureate.ȱAȱ
celebrationȱeventȱwasȱheldȱonȱFebruaryȱ27thȱatȱQuinlanȱCommunityȱCenterȱwithȱnearlyȱ100ȱ
attendeesȱtoȱthankȱtheȱoutgoingȱPoetȱLaureate,ȱKaeceyȱMcCormickȱforȱherȱcontributionsȱtoȱtheȱ
PoetȱLaureateȱprogramȱandȱtoȱwelcomeȱJingȱJingȱYangȱasȱtheȱnewȱPoetȱLaureate.ȱTheȱeventȱalsoȱ
featuredȱtheȱrevealingȱofȱKaecey’sȱfinalȱprojectȱasȱPoetȱLaureate,ȱ“CelebrateȱCreativity:ȱAȱ
CupertinoȱCommunityȱAnthology”,ȱwithȱ350ȱpagesȱfeaturingȱcreativeȱwritingȱfromȱoverȱ80ȱ
contributorsȱfromȱtheȱCupertinoȱcommunity.ȱAȱcopyȱofȱtheȱAnthologyȱwillȱbeȱavailableȱatȱtheȱ
CupertinoȱLibrary.ȱȱ
ȱ
SummerȱEventsȱ
Theȱ Summerȱ Eventsȱ programȱ ranȱ fromȱ Juneȱ 2019ȱ toȱ Septemberȱ 2019ȱandȱ offeredȱ activitiesȱ atȱ 12ȱ
differentȱ sites.ȱ Theȱ programȱ includedȱ themedȱ activities,ȱ 11ȱ Movies,ȱ 11ȱ Concerts,ȱ 10ȱ Freeȱ Fitnessȱ
inȱ theȱ Parkȱ classesȱ (Zumbaȱ andȱ Yoga),ȱ 5ȱ Artȱ inȱ theȱ Parkȱ Parent/Childȱ classes.ȱ Itȱ alsoȱ includedȱ
Shakespeareȱ inȱ theȱ Park,ȱ Cupertino’sȱ firstȱ Nightȱ Market,ȱ Gameȱ Night,ȱ Astronomyȱ Night,ȱ
Hawaiianȱ Luau,ȱ Chess,ȱ Bollywoodȱ Nightȱ andȱ Cupertinoȱ Campoutȱ withȱ 230ȱ campers.ȱ
Attendanceȱ wasȱ slightlyȱ underȱ 12,000.ȱ Otherȱ offeredȱ eventsȱ highlightedȱ celebrityȱ guests,ȱ nonȬ
profits,ȱandȱlocalȱpartnerships.ȱȱ
ȱ
TeenȱOfferingsȱ
TeenȱprogramsȱwereȱenhancedȱtoȱaddressȱtheȱteenȱstressȱlevelsȱinȱCupertinoȱthroughȱ
innovative,ȱcollaborativeȱandȱeducationalȱapproachesȱwhileȱaddressingȱcommunityȱlivabilityȱ
amongstȱtheȱteens.ȱTheȱBobatinoȱeventȱhadȱitsȱsecondȱsuccessfulȱyearȱwithȱoverȱ600ȱteensȱ
enjoyingȱvariousȱactivitiesȱwhileȱdrinkingȱfreeȱmilkȱteaȱprovidedȱbyȱtheȱCity.ȱTechieȱTeensȱ
beganȱinȱAugustȱofȱ2019.ȱTheȱprimaryȱgoalȱofȱCupertino’sȱTechieȱTeensȱvolunteerȱprogramȱatȱ
theȱSeniorȱCenterȱisȱtoȱhelpȱteensȱgiveȱbackȱtoȱtheȱcommunityȱbyȱengagingȱtheȱ50+ȱcommunityȱ
toȱassistȱinȱdevelopingȱtheirȱtechnologicalȱskills.ȱTheȱvolunteersȱcanȱexpectȱtoȱgainȱtheȱfollowingȱ
experiences:ȱleadershipȱroles,ȱpublicȱspeakingȱopportunities,ȱinterpersonalȱcommunication,ȱandȱ
muchȱmore.ȱTheȱCupertinoȱCaféȱrunȱbyȱtheȱYouthȱActivityȱBoardȱstartedȱinȱMayȱ2019ȱbutȱ
expandedȱinȱwinterȱ2020ȱwithȱmoreȱdatesȱandȱpartnershipsȱwithȱtheȱlibrary.ȱ
ȱȱ
12
CorridorȱStrollȱȱ
OnȱFriday,ȱAugustȱ2,ȱtheȱParksȱ&ȱRecreationȱDepartmentȱheldȱtheȱfirstȱannualȱCorridorȱStrollȱ
onȱtheȱStevensȱCreekȱCorridor.ȱParticipantsȱstrollingȱbetweenȱMcClellanȱRanchȱPreserveȱandȱ
BlackberryȱFarmȱenjoyedȱacousticȱmusic,ȱaȱmagician,ȱwineȱtasting,ȱfoodȱtrucks,ȱcrafts,ȱrangerȱ
activities,ȱreptileȱandȱinsectȱpresentationsȱandȱblacksmithȱdemonstrations.ȱ
ȱ
SigningȱSantaȱȱ
OnȱFebruaryȱ27,ȱtheȱParksȱandȱRecreationȱDepartmentȱreceivedȱaȱprogrammingȱawardȱfromȱtheȱ
CaliforniaȱParksȱandȱRecreationȱSociety,ȱforȱtheirȱinnovativeȱSigningȱSantaȱevent.ȱThisȱeventȱ
wasȱtheȱfirstȱofȱitsȱkindȱinȱtheȱBayȱAreaȱandȱprovidedȱanȱopportunityȱforȱdeafȱandȱhardȱofȱ
hearingȱchildrenȱtoȱtalkȱtoȱSantaȱandȱhisȱelvesȱusingȱAmericanȱSignȱLanguage.ȱȱȱMoreȱthanȱ70ȱ
peopleȱattendedȱtheȱeventȱthatȱincludedȱcrafts,ȱcookies,ȱhotȱcocoa,ȱandȱqualityȱtimeȱwithȱSanta.ȱȱ
ȱ
BlacksmithȱShopȱatȱMcClellanȱRanchȱȱ
InȱtheȱFallȱofȱ2019,ȱtheȱrestoredȱBaerȱBlacksmithȱShopȱatȱMcClellanȱRanchȱPreserveȱbecameȱfullyȱ
operational.ȱFreeȱdropȬinȱhoursȱareȱofferedȱoneȱSundayȱaȱmonth,ȱandȱvolunteersȱareȱlearningȱ
blacksmithingȱtechniques.ȱDemonstrationsȱcanȱalsoȱbeȱscheduledȱforȱschoolsȱandȱgroups.ȱTheȱ
blacksmithȱshopȱdoesȱnotȱoperateȱifȱSpareȬtheȬAirȱorȱRedȱFlagȱwarningsȱhaveȱbeenȱissued.ȱȱ
ȱ
GolfȱCourseȱImprovementsȱȱ
InȱtheȱSpringȱofȱ2020,ȱmuchȱneededȱimprovementsȱwereȱmadeȱtoȱtheȱteeȱboxesȱonȱholesȱ#1ȱandȱ
#9.ȱBothȱteeȱboxesȱwereȱleveledȱandȱhadȱnewȱturfȱinstalled.ȱInȱadditionȱtoȱtheseȱtees,ȱtheȱgreenȱ
onȱholeȱ#6ȱwasȱmadeȱlevelȱandȱenlarged.ȱȱ
ȱ
McClellanȱRanchȱPreserveȱMeadowȱHabitatȱRestorationȱȱ
TheȱCity’sȱpartnershipȱwithȱGrassrootsȱEcologyȱcontinuesȱtoȱyieldȱpositiveȱresultsȱforȱtheȱ
restorationȱofȱtheȱmeadowȱatȱMcClellanȱRanchȱPreserve.ȱInȱFYȱ19Ȭ20,ȱoverȱ350ȱvolunteersȱ
plantedȱoverȱ300ȱnativeȱplants,ȱremovedȱinvasiveȱplants,ȱandȱmonitoredȱtheȱwaterȱqualityȱinȱ
thisȱopenȱspace.ȱ
ȱ
AthleticȱFieldsȱUseȱStudyȱȱ
InȱFY19Ȭ20,ȱtheȱParksȱandȱRecreationȱDepartmentȱbeganȱaȱfieldȱuseȱstudyȱtoȱupdateȱtheȱcurrentȱ
FieldȱUseȱPolicy.ȱTheȱstudyȱencompassesȱreviewȱofȱtheȱuserȱgroupȱcategories,ȱtheȱfeesȱandȱhowȱ
theȱCityȱchargesȱusers,ȱtimes,ȱdaysȱforȱuse,ȱandȱrestȱperiodsȱforȱtheȱfields.ȱTheȱnewȱpolicyȱisȱ
expectedȱtoȱbeȱadoptedȱbyȱtheȱFallȱofȱ2020ȱandȱimplementedȱinȱtheȱSpringȱseasonȱofȱ2021.ȱ
ȱȱ
13
AccessoryȱDwellingȱUnitȱOrdinanceȱ
TheȱAccessoryȱDwellingȱUnitȱOrdinanceȱ(ADU)ȱwasȱadoptedȱbyȱCityȱCouncilȱafterȱtheȱitsȱ
secondȱreadingȱonȱMarchȱ3,ȱ2020.ȱThisȱwasȱinȱaȱresponseȱtoȱtheȱStateȱadoptingȱsixȱ(6)ȱseparateȱ
AssemblyȱandȱSenateȱBillsȱthatȱseekȱtoȱstreamlineȱandȱencourageȱtheȱdevelopmentȱofȱADUsȱinȱ
anȱeffortȱtoȱrelieveȱtheȱState’sȱhousingȱcrisis.ȱSuchȱrevisionsȱallowȱaȱshorter,ȱmoreȱaffordableȱ
reviewȱprocessȱwhichȱwillȱalsoȱfurtherȱflexibilityȱonȱcertainȱdevelopmentȱstandards.ȱ
ȱ
DeȱAnzaȱHotelȱProjectȱApprovalȱ
TheȱDeȱAnzaȱHotelȱProjectȱwasȱpartȱofȱaȱGeneralȱPlanȱAmendmentȱproposalȱtoȱdevelopȱaȱ155ȱ
room,ȱsevenȱstoryȱboutiqueȱhotelȱonȱtheȱsiteȱcurrentlyȱoccupiedȱbyȱGoodyearȱTiresȱatȱ10931ȱNȱ
DeȱAnzaȱBlvd.ȱTheȱdeveloper,ȱJohnȱVidovichȱofȱDeȱAnzaȱProperties,ȱhasȱagreedȱtoȱaȱ
DevelopmentȱAgreementȱthatȱwouldȱcontributeȱaȱoneȬtimeȱpaymentȱ$500,000ȱtoȱtheȱCityȱtoȱ
fundȱvariousȱprojects,ȱreducedȱpriceȱshuttleȱserviceȱforȱCityȱresidentsȱtoȱutilizeȱforȱAirportȱ
transportationȱasȱwellȱasȱconnectionsȱtoȱjobȱcenters,ȱfreeȱuseȱofȱhotelȱfacilitiesȱforȱtheȱCityȱandȱ
localȱschools,ȱandȱpublicȱaccessȱtoȱaȱroofȱtopȱbarȱ&ȱrestaurant.ȱȱȱȱ
ȱ
CaliforniaȱDepartmentȱofȱHousingȱandȱCommunityȱDevelopmentȱ(HCD)ȱSBȱ2ȱPlanningȱGrantsȱ
Programȱ
TheȱCaliforniaȱDepartmentȱofȱHousingȱandȱCommunityȱDevelopmentȱ(HCD)ȱannouncedȱthatȱ
theȱCityȱofȱCupertinoȱwasȱawardedȱ$310,000ȱinȱgrantȱfundsȱunderȱtheȱHCD’sȱSBȱ2ȱPlanningȱ
GrantsȱProgram.ȱTheȱCityȱwillȱuseȱtheȱfundsȱtoȱimproveȱtheȱPermitȱCenterȱtoȱofferȱcommunityȱ
accessȱtoȱgovernmentȱservicesȱutilizingȱadvancingȱtechnologies.ȱAsȱpartȱofȱtheȱPermitȱCenterȱ
improvements,ȱstaffȱisȱredesigningȱtheȱcustomerȱexperienceȱthroughȱprojectsȱrangingȱfromȱ
physicalȱonȬsiteȱenhancements,ȱavailabilityȱofȱonlineȱresourcesȱandȱservices,ȱpermitȱsoftwareȱ
andȱprograms,ȱandȱupdatesȱtoȱdistributionalȱhandoutsȱonȱdevelopmentȱregulations.ȱTheȱSB2ȱ
PlanningȱGrantsȱfundsȱwillȱbeȱusedȱspecificallyȱtoȱoffsetȱtheȱdigitalȱprogramȱimprovementsȱandȱ
onlineȱaccessȱsolutions.ȱ
ȱ
CupertinoȱVillageȱHotelȱProjectȱApprovalȱ
TheȱCupertinoȱVillageȱHotelȱProjectȱwasȱpartȱofȱaȱGeneralȱPlanȱAmendmentȱproposalȱtoȱ
developȱaȱ185ȱroom,ȱ5Ȭstoryȱhotelȱwithȱeventȱmeetingȱrooms,ȱrestaurant,ȱandȱrooftopȱbar.ȱTheȱ
developer,ȱKimcoȱRealty,ȱagreedȱtoȱaȱDeveloperȱAgreementȱthatȱwouldȱcontributeȱ$1.85ȱmillionȱ
($10,000ȱperȱroom)ȱtowardsȱCommunityȱAmenityȱFunding,ȱparticipationȱinȱaȱTransportationȱ
ManagementȱAssociation,ȱshuttleȱserviceȱaccess,ȱmeetingȱroomȱavailabilityȱforȱofficialȱCityȱ
business,ȱreducedȱratesȱforȱpeopleȱvisitingȱCupertinoȱforȱofficialȱCityȱbusiness,ȱandȱinternshipȱ
opportunities.ȱWhenȱconstructed,ȱtheȱprojectȱisȱanticipatedȱtoȱhaveȱaȱnetȱfiscalȱimpactȱofȱ$1.78ȱ
millionȱonȱtheȱCity’sȱGeneralȱFund.ȱ
ȱ
ȱ
14
HomelessȱEncampmentsȱ
TheȱCodeȱEnforcementȱOfficeȱisȱcurrentlyȱworkingȱonȱcreatingȱaȱStandardȱOperatingȱProcedureȱ
andȱcontractȱtoȱhaveȱpublicȱcampingȱsitesȱremovedȱfromȱtheȱPublicȱRightȬofȱWayȱandȱpublicȱ
property.ȱTheȱCityȱofȱCupertinoȱhasȱseenȱaȱgrowthȱofȱillegalȱcampingȱsitesȱalongȱWolfeȱRoadȱ
andȱ280.ȱTheȱgoalȱofȱthisȱprojectȱisȱtheȱremovalȱofȱunlawfulȱencampmentsȱandȱtheȱmitigationȱofȱ
health,ȱsafetyȱandȱaccessȱissuesȱwhileȱrespectingȱtheȱrightsȱofȱtheȱoccupantsȱandȱinformingȱthemȱ
ofȱalternativeȱresourcesȱwithinȱtheȱcommunity.ȱ
ȱ
PermitȱTrackingȱandȱElectronicȱPlanȱReviewȱSystemȱ
Cupertino’sȱinitiativeȱtoȱreplaceȱitsȱobsoleteȱpermitȱtrackingȱsystemȱwasȱrealizedȱonȱJulyȱ22,ȱ
2019,ȱwithȱtheȱimplementationȱofȱAccelaȱandȱtheȱsuccessfulȱintegrationȱtoȱtheȱelectronicȱplanȱ
reviewȱsystem,ȱProjectDox.ȱCupertino’sȱnewȱsystemȱgivesȱstaffȱbetterȱtrackingȱandȱmanagementȱ
ofȱpermittingȱprocessesȱwithȱaȱcentralizedȱdatabaseȱandȱGISȱcentricȱcontrolsȱwhichȱallowsȱ
informationȱtoȱbeȱsharedȱacrossȱDepartmentsȱforȱimprovedȱcommunication.ȱȱ
ȱ
PlanȱReview,ȱPermitȱandȱInspectionȱServices:ȱSmoothȱtransitionȱafterȱShelterȬInȬPlaceȱorderȱȱȱȱ
TheȱDevelopmentȱReviewȱprocessȱwhichȱincludesȱBuilding,ȱPlanning,ȱPublicȱWorks,ȱFire,ȱ
SanitaryȱDistrict,ȱandȱCodeȱEnforcementȱtoȱreviewȱplans,ȱissueȱpermitsȱandȱprovideȱobservationȱ
inspectionsȱsuccessfullyȱtransitionedȱcrucialȱCityȱServiceȱfunctionsȱasȱaȱtelecommutingȱ
operationȱonȱdayȱoneȱofȱtheȱShelterȬinȬPlaceȱorderȱdueȱtoȱCOVIDȬ19.ȱAllȱservicesȱareȱ
electronicallyȱprocessedȱremotelyȱwithȱtechnologyȱthatȱeachȱDepartmentȱworkedȱtirelesslyȱoverȱ
theȱpastȱfourȱyearsȱtoȱimplement.ȱȱWhileȱotherȱjurisdictionsȱhadȱnoȱchoiceȱbutȱtoȱshutȱdownȱ
theirȱDepartments,ȱCupertinoȱwasȱableȱtoȱseamlesslyȱcontinueȱoperationsȱremotelyȱwithȱ
minimalȱimpacts.ȱ
ȱ
ReachȱCodesȱ
InȱJanuaryȱ2020,ȱtheȱCityȱCouncilȱconsideredȱandȱadoptedȱaȱlocalȱadditionȱtoȱtheȱbuildingȱcodesȱ
inȱCupertinoȱthatȱwillȱlowerȱgreenhouseȱgasȱimpactsȱfromȱnewlyȱconstructedȱbuildings,ȱknownȱ
asȱtheȱallȬelectricȱbuildingȱreachȱcode.ȱStaffȱisȱpleasedȱtoȱreportȱthatȱtheȱCupertinoȱreachȱcodeȱ
hasȱbeenȱheardȱatȱaȱpublicȱmeetingȱofȱtheȱCaliforniaȱEnergyȱCommissionȱonȱAprilȱ8,ȱ2020.ȱCECȱ
staffȱfoundȱthatȱtheȱCupertinoȱreachȱcodeȱmetȱallȱrequirementsȱinȱorderȱtoȱbeȱadopted.ȱȱ
CECȱstaffȱissuedȱaȱresolutionȱstatingȱthat,ȱ“CECȱapplaudsȱtheȱCityȱofȱCupertinoȱforȱseekingȱtoȱ
achieveȱadditionalȱenergyȱdemandȱreductions,ȱenergyȱsavings,ȱandȱotherȱbenefitsȱexceedingȱ
thoseȱofȱtheȱ2019ȱEnergyȱCode.”ȱ
AȱcopyȱofȱtheȱCECȱresolutionȱcanȱbeȱviewedȱatȱ(outsideȱlink):ȱ
https://ww2.energy.ca.gov/business_meetings/2020_packets/2020Ȭ04Ȭ
08/Item_04f_CUPERTINO_ADA.pdfȱ
ȱ
ȱ
15
RealȱEstateȱSignȱPickupsȱ
TheȱCodeȱEnforcementȱOfficeȱconductedȱtheȱremovalȱandȱstorageȱofȱillegallyȱplacedȱrealȱestateȱ
signsȱfromȱtheȱPublicȱRightȬofȬWay.ȱTheȱprojectȱinvolvedȱaȱcodeȱenforcementȱofficerȱpatrollingȱ
onȱtheȱweekendsȱforȱunlawfullyȱplacedȱrealȱestateȱsignsȱandȱpromptlyȱremovingȱthemȱforȱ
storageȱatȱtheȱCupertinoȱServiceȱCenter.ȱTheȱinvestigatingȱofficerȱwouldȱnotifyȱtheȱoffendingȱ
agent(s)ȱandȱadviseȱthemȱofȱtheȱnumberȱofȱsign(s)ȱremovedȱincludingȱinstructionsȱonȱhowȱtoȱ
retrieveȱtheȱsignsȱwithȱaȱfee.ȱȱNoȱAdministrativeȱCitationsȱwereȱissuedȱforȱthisȱproject.ȱȱ
ȱ
RecruitmentsȱandȱOnboardingȱSoftwareȱImplementationȱ
Cupertinoȱpridesȱitselfȱinȱtheȱhighȱlevelȱofȱservicesȱprovidedȱtoȱtheȱcommunity,ȱalwaysȱstrivingȱ
toȱhireȱtheȱbestȱemployees.ȱȱHumanȱResourcesȱconductedȱ17ȱfullȬtimeȱrecruitmentsȱresultingȱinȱ
21ȱnewȱhiresȱorȱpromotions.ȱȱAdditionally,ȱphaseȱtwoȱofȱNeoGov,ȱanȱonlineȱsystemȱforȱ
onboarding,ȱrecruitmentȱandȱapplicantȱtracking,ȱwasȱimplementedȱtoȱstreamlineȱtheȱnewȱhireȱ
andȱonboardingȱprocessȱforȱallȱdepartments.ȱȱImplementingȱtheȱOnboardingȱmoduleȱwasȱ
comprisedȱofȱstaffȱtraining,ȱconvertingȱallȱnewȱhireȱpayroll,ȱpolicies,ȱandȱbenefitȱinformationȱ
intoȱdigitalȱformat,ȱcreatingȱaȱWelcomeȱPortalȱpage,ȱuploadingȱcontentȱforȱnewȱhires,ȱandȱ
testing.ȱTheȱnewȱonboardingȱmoduleȱhasȱbeenȱaȱgreatȱsuccessȱwithȱnewȱhires.ȱHumanȱ
Resourcesȱhasȱbeenȱableȱtoȱcompleteȱnewȱhireȱonboardingȱwithȱteleworkȱinȱplace.ȱ
ȱ
COVIDȬ19ȱLeavesȱImplementationȱ
TheȱFamiliesȱFirstȱCoronavirusȱResponseȱActȱ(FFCRA)ȱisȱanȱemergencyȱlawȱpassedȱbyȱCongressȱ
andȱsignedȱbyȱtheȱPresidentȱonȱMarchȱ18,ȱ2020,ȱinȱresponseȱtoȱtheȱCOVIDȬ19ȱPandemic.ȱTheȱlawȱ
requiredȱtheȱCityȱofȱCupertinoȱtoȱprovideȱemployeesȱwithȱEmergencyȱPaidȱSickȱLeaveȱ(EPSL),ȱ
and/orȱEmergencyȱFamilyȱandȱMedicalȱLeaveȱExpansionȱ(EFMLEA),ȱforȱreasonsȱrelatedȱtoȱ
COVIDȬ19.ȱHumanȱResourcesȱquicklyȱimplementedȱtheseȱnewȱpaidȱleavesȱeffectiveȱAprilȱ1,ȱ
2020.ȱStaffȱoutreachȱandȱtrainingȱincludedȱwebinars,ȱdevelopmentȱofȱwebpage,ȱinfographicsȱandȱ
individualȱmeetingsȱwithȱallȱemployeesȱasȱneeded.ȱȱ
ȱ
CitywideȱEmployeeȱTrainingȱȬȱBESTȱ
“BEST”ȱ(BuildingȱEmployeeȱSkillsȱthroughȱTraining)ȱprogramȱfocusedȱonȱprofessionalȱ
developmentȱasȱpartȱofȱCupertino’sȱsuccessionȱplanningȱandȱemployeeȱretentionȱinitiatives.ȱ
HumanȱResourcesȱofferedȱ7Ȭ8ȱworkshopsȱeachȱquarterȱonȱsubjectsȱsuchȱasȱPublicȱSpeakingȱandȱ
TimeȱManagement.ȱHumanȱResourcesȱalsoȱlaunchedȱpopularȱquarterlyȱEmployeeȱOrientationsȱ
andȱRefreshersȱforȱtheȱdepartmentsȱtoȱshareȱtheȱlatestȱCitywideȱpoliciesȱandȱprogramsȱavailableȱ
toȱemployees.ȱȱȱ
ȱȱ
16
EmployeeȱEngagementȱInitiativeȱ
HumanȱResourcesȱimplementedȱitsȱfirstȱcitywideȱEmployeeȱEngagementȱInitiativeȱtoȱsupportȱ
eachȱotherȱandȱworkȱtogetherȱtowardsȱtheȱCity’sȱmissionȱtoȱprovideȱexceptionalȱservice,ȱ
encourageȱallȱmembersȱofȱtheȱcommunityȱtoȱtakeȱresponsibilityȱforȱoneȱanother,ȱandȱsupportȱtheȱ
valuesȱofȱeducation,ȱinnovation,ȱandȱcollaboration.ȱȱCityȱemployeesȱwereȱassignedȱtoȱaȱWorkȱ
Group,ȱparticipatedȱinȱaȱcitywideȱEmployeeȱEngagementȱsurvey,ȱandȱcreatedȱActionȱPlanȱ
Teamsȱtoȱbrainstormȱsolutionsȱforȱanyȱissuesȱidentifiedȱinȱtheȱsurvey.ȱȱEmployeeȱEngagementȱisȱ
aȱmutualȱcommitmentȱbetweenȱtheȱorganizationȱandȱtheȱemployee,ȱandȱthisȱinitiativeȱwasȱaȱ
successfulȱfirstȱstepȱtowardsȱtheȱgoalȱofȱhavingȱengagedȱemployeesȱwhoȱfeelȱvalued,ȱareȱ
listenedȱto,ȱandȱareȱenthusedȱaboutȱtheirȱwork.ȱ
ȱ
InvestmentȱManagementȱ
ThroughȱaȱformalȱRequestȱforȱProposalȱ(RFP)ȱprocess,ȱtheȱFinanceȱDivisionȱengagedȱChandlerȱ
AssetȱManagementȱforȱinvestmentȱmanagementȱservicesȱinȱFYȱ2018Ȭ19.ȱManagingȱtheȱCity’sȱ
investmentȱportfolioȱwithȱthreeȱkeyȱprinciplesȱinȱmind:ȱsafetyȱtoȱensureȱtheȱpreservationȱofȱ
capitalȱinȱtheȱoverallȱportfolio,ȱprovideȱsufficientȱliquidityȱforȱcashȱneedsȱandȱaȱmarketȱrateȱofȱ
returnȱconsistentȱwithȱtheȱinvestmentȱprogram.ȱSinceȱinceptionȱinȱJanuaryȱ2019,ȱtheȱCity’sȱ
portfolioȱhasȱyieldedȱaȱtotalȱrateȱofȱreturnȱofȱ4.96%,ȱsignificantlyȱhigherȱthanȱU.S.ȱTreasuryȱandȱ
LocalȱAgencyȱInvestmentȱFundȱratesȱduringȱthatȱtimeȱperiod.ȱȱAsȱaȱresult,ȱtheȱCity’sȱinvestmentȱ
portfolioȱisȱwellȬpositionedȱtoȱmoveȱforwardȱasȱtheȱCOVIDȬ19ȱpandemicȱcontinuesȱtoȱevolve.ȱ
ȱ
InternalȱAuditȱFunctionȱȱ
ThroughȱaȱformalȱRequestȱforȱProposalȱ(RFP)ȱprocess,ȱtheȱFinanceȱDivisionȱengagedȱMossȱ
AdamsȱLLPȱforȱinternalȱauditȱservicesȱinȱFYȱ2019Ȭ20.ȱȱThisȱfunctionȱwillȱbeȱassistingȱtheȱCityȱinȱ
accomplishingȱitsȱobjectivesȱbyȱbriningȱaȱsystematic,ȱdisciplinedȱapproachȱtoȱevaluateȱandȱ
improveȱtheȱeffectivenessȱofȱriskȱmanagement,ȱcontrol,ȱandȱgovernanceȱprocesses.ȱȱWhileȱtheȱ
timingȱofȱtheȱonboardingȱandȱinitialȱriskȱassessmentȱhaveȱbeenȱdelayedȱdueȱtoȱCOVIDȬ19,ȱtheȱ
Cityȱisȱeagerȱtoȱresumeȱitsȱinternalȱauditȱfunction.ȱ
ȱȱ
17
InnovationȱTechnologyȱStrategicȱPlanȱ
TheȱInnovationȱTechnologyȱDepartmentȱconcludedȱtheȱfinalȱphaseȱofȱaȱthreeȬyearȱstrategicȱplan,ȱ
publishedȱinȱOctoberȱ2017.ȱȱȱȱTheȱplanȱrevolvedȱaroundȱtheȱimplementation/executionȱofȱ54ȱ
technicalȱinfrastructureȱorȱenterpriseȱapplicationȱprojects.ȱȱȱAsȱofȱJulyȱ2020,ȱallȱ54ȱprojectsȱareȱ
complete.ȱȱȱHighlightsȱofȱthisȱyear’sȱeffortsȱinclude:ȱȱ
ȱ
Applicationsȱ
xGoingȱliveȱwithȱAccelaȱLandȱManagementȱSystem;ȱaȱcloudȬbasedȱapplicationȱthatȱ
includesȱurbanȱplanning,ȱpermittingȱandȱbuildingȱinspections.ȱȱȱAccela’sȱwebȬbasedȱ
customerȱportalȱprovidesȱeasyȱaccessȱandȱuseȱtoȱcustomersȱapplying,ȱreviewingȱstatusȱ
orȱpayingȱforȱaȱpermit.ȱ
xImplementationȱofȱtheȱNeoGovȱOnboardingȱapplication;ȱaȱcloudȬbasedȱapplicationȱ
utilizedȱbyȱHumanȱResourcesȱtoȱonboardȱnewȱstaffȱ
xDevelopmentȱofȱanȱElectronicȱContentȱManagementȱthreeȬyearȱroadmapȱthatȱguidesȱ
theȱexpansionȱandȱbestȱpracticesȱforȱtheȱCity’sȱrecordȱmanagementȱsystem.ȱȱȱ
xExpansionȱofȱtheȱCity’sȱcloudȬbasedȱassetȱmanagementȱsystem,ȱCityworksȱtoȱincludeȱ
storeroom.ȱȱUpdateȱassetȱinventoryȱforȱstreetȱlegendsȱandȱstripingȱasȱwellȱasȱ
streetlightȱcabinets.ȱȱ
xImplementationȱofȱChyronȱutilizedȱbyȱtheȱVideoȱDivisionȱforȱtelevisionȱgraphicsȱ
xUpgradedȱBuildingEyeȱtoȱCivicȱCentral.ȱȱIntegratedȱCivicȱCentralȱwithȱAccelaȱLandȱ
Managementȱ
xImplementedȱNextRequest,ȱcloudȬbasedȱapplicationȱthatȱstreamlinesȱtheȱpublicȱ
recordsȱactȱrequestȱprocess.ȱȱ
xMicrosoftȱO365ȱandȱExchangeȱcitywideȱimplementationȱ
xImplementȱZoomȱasȱCity’sȱteleconferencingȱsolution.ȱ
xCobblestone,ȱcloudȬbasedȱcontractȱmanagementȱworkflowȱapplicationȱwasȱ
implemented.ȱȱ
TechnicalȱInfrastructureȱ
xBuild/testȱofȱdisasterȱrecoveryȱenvironmentȱoutsideȱofȱCaliforniaȱ
xUpdatedȱEmergencyȱOperationsȱCenterȱtoȱincludeȱstateȬofȬtheȬartȱAVȱandȱ
teleconferencingȱequipmentȱ
xWindowsȱ10ȱandȱServerȱ2019ȱupgradesȱcitywide.ȱ
ȱ
ProjectsȱCompletedȱoutsideȱofȱStrategicȱPlanȱ
xTransitionedȱ10ȱconferenceȱroomsȱtoȱ“ZoomȱRooms”ȱprovidingȱtheȱabilityȱtoȱ
teleconference.ȱ
xInstalledȱ300ȱterabyteȱvideoȱstorageȱsystemȱ
18
xDevelopedȱBidȱManagementȱapplicationȱforȱpublishingȱCityȱRFPsȱandȱprovidingȱ
capabilityȱofȱvendorsȱtoȱsubmitȱbidsȱelectronically.ȱȱ
xUpgradedȱtheȱCity’sȱrecordȱretentionȱscheduleȱtoȱalignȱwithȱbestȱpracticesȱ
xUpgradedȱPermitȱParkingȱapplicationȱwhichȱallowsȱresidentsȱtoȱrenewȱparkingȱ
applicationsȱonline.ȱ
xUpgradedȱCommunityȱHallȱprojectorȱsystemȱ
xImplementedȱaȱQueueȱManagementȱsystemȱtoȱprovideȱaȱmoreȱstreamlinedȱandȱ
friendlyȱexperienceȱforȱpermitȱcenterȱcustomers.ȱ
ȱ
InnovationȱTechnologyȱDataȱVisualizationȱandȱAnalyticsȱ
Dataȱvisualizationȱisȱtheȱpresentationȱofȱdataȱinȱaȱpictorialȱorȱgraphicalȱformatȱprovidingȱtoolsȱ
toȱbetterȱunderstandȱtheȱdataȱand/orȱidentifyȱpatterns.ȱȱȱCupertinoȱpridesȱitselfȱonȱmakingȱ
transparentȱdataȬdrivenȱdecisionsȱ–ȱthisȱisȱoneȱmoreȱtoolȱtoȱassistȱinȱthatȱprocess.ȱȱȱTheȱfollowingȱ
dashboardsȱandȱstorymapsȱwereȱaddedȱthisȱyear.ȱȱ
ȱ
xCapitalȱImprovementȱPlanȱStorymap.ȱȱDefineȱproject,ȱstatusȱandȱlocationȱofȱCIPȱ
projects.ȱȱ
x311ȱDashboard.ȱȱȱProvidesȱgraphicalȱrepresentationȱofȱ311ȱ(workȱrequest)ȱtickets.ȱȱȱ
Howȱmany,ȱstatus,ȱlocationȱandȱtimeȱtoȱrespond.ȱȱ
xPavementȱConditionȱIndexȱStorymap.ȱȱȱProvidesȱCitywideȱviewȱofȱtheȱPCIȱvalueȱforȱ
Cityȱstreets.ȱȱ
xBike/PedȱStorymapȱ–ȱDefineȱproject,ȱstatusȱandȱlocationȱofȱbikeȱandȱpedestrianȱ
projectsȱthroughoutȱtheȱCity.ȱ
xCivicȱCentralȱ–ȱViewȱpermitsȱgeographicallyȱbyȱstreet,ȱneighborhood,ȱorȱtheȱentireȱ
City.ȱȱȱȱResidentsȱcanȱbeȱnotifiedȱofȱnewȱpermitsȱifȱdesired.ȱȱ
ȱ
InnovationȱTechnologyȱResponseȱtoȱCOVIDȬ19ȱ
BusinessȱContinuityȱ(BC)ȱisȱaȱmajorȱandȱnecessaryȱgoalȱforȱallȱorganizations.ȱȱȱTheȱabilityȱtoȱ
continueȱbusinessȱoperationȱduringȱandȱafterȱaȱnaturalȱorȱpersonȬmadeȱdisruptionȱisȱaȱtrueȱtestȱ
ofȱanȱorganization’sȱBC.ȱȱȱȱCOVIDȬ19ȱprovidedȱsuchȱaȱtestȱ–ȱandȱIT’sȱresponseȱwasȱexemplary.ȱȱȱȱȱ
WithinȱaȱdayȱofȱtheȱShelterȬinȬPlaceȱorder,ȱ95%ȱofȱallȱcomputerȬbasedȱstaffȱwereȱableȱtoȱ
teleworkȱasȱifȱtheyȱwereȱinȱtheȱoffice.ȱȱȱStaffȱhadȱtheȱequipmentȱ(laptopȱ&ȱsoftphone),ȱ
applications,ȱcollaborationȱtools,ȱandȱnecessaryȱcybersecurityȱmeasuresȱtoȱseamlesslyȱ&ȱsecurelyȱ
continueȱtheirȱdailyȱwork.ȱȱȱȱȱCupertinoȱleadȱtheȱwayȱinȱprovidingȱaȱsecure,ȱyetȱeasyȱtoȱuseȱ
teleconferencingȱsolutionȱforȱCouncil,ȱCommissionȱandȱCommitteeȱmeetings.ȱȱȱAdditionally,ȱITȱ
providedȱaȱquickȱturnaroundȱforȱCOVIDȬ19ȱrelatedȱapplicationsȱsuchȱas:ȱCOVIDȬ19ȱupdateȱ
page,ȱWhatȱBusinessesȱareȱOpenȱwebȱpage,ȱHRȱInformationȱPage,ȱanȱelectronicȱbidȱsubmission,ȱ
andȱelectronicȱsignaturesȱonȱcitywideȱcontractsȱtoȱnameȱaȱfew.ȱȱȱ
ȱ
19
VERBSȱGrantȱAwardȱ
TheȱMcClellanȱRoadȱSeparatedȱBikewayȱprojectȱwasȱawardedȱtheȱVehicleȱEmissionsȱReductionsȱ
BasedȱatȱSchoolsȱ(VERBS)ȱAwardȱforȱ$1MȱfromȱtheȱMetropolitanȱTransportationȱCommission.ȱȱ
ȱ
McClellanȱRoadȱSeparatedȱBikeȱLaneȱPhaseȱ1ȱ
TheȱCapitalȱImprovementȱProgramȱmostȱnotablyȱcompletedȱtheȱfirstȱphaseȱofȱtheȱMcClellanȱ
RoadȱBikeȱCorridorȱfromȱStellingȱRoadȱtoȱImperialȱAvenue,ȱwhichȱisȱpartȱofȱtheȱ2016ȱBicycleȱ
TransportationȱPlanȱtoȱenhanceȱandȱpromoteȱsaferȱbicycleȱtransportationȱinȱtheȱCity.ȱȱ
ȱ
SidewalkȱImprovementsȱ–ȱByrneȱAvenueȱȱ
TheȱCapitalȱImprovementȱProgramȱalsoȱcompletedȱstandardȱrightȬofȬwayȱimprovementsȱonȱ
ByrneȱAvenueȱfromȱMcClellanȱRoadȱtoȱGranadaȱAvenue,ȱincludingȱsidewalks,ȱcurbȱandȱgutterȱ
andȱrelocatedȱutilityȱpoles.ȱAddingȱsidewalksȱwillȱimproveȱpedestrianȱsafetyȱinȱtheȱMontaȱVistaȱ
TriȬschoolȱarea.ȱȱ
ȱ
McClellanȱRanchȱWestȱParkingȱLotȱImprovementȱ
Thisȱ projectȱ formalizedȱ theȱ existingȱ useȱ ofȱ theȱ siteȱ locatedȱ atȱ 22241ȱ McClellanȱ Road.ȱ Thisȱ newȱ
“green”,ȱ meadowȬstyleȱ parkingȱ lotȱ hasȱ aȱ permeableȱ concreteȱ pavingȱ andȱ appropriateȱ
landscaping.ȱȱ Theȱ parkingȱ lotȱ andȱ landscapingȱ hasȱ beenȱ designedȱ toȱ beȱ compatibleȱ withȱ andȱ
sensitiveȱtoȱtheȱcreekȱenvironmentȱinȱorderȱtoȱhaveȱminimalȱimpactȱtoȱtheȱsite.ȱȱ
ȱ
SeniorȱCenterȱADAȱSidewalkȱ
TheȱCapitalȱImprovementȱProgramȱalsoȱcompletedȱconstructionȱofȱanȱADAȱcompliantȱsidewalkȱ
adjacentȱtoȱtheȱSeniorȱCenterȱparkingȱlot.ȱȱTheȱnewȱsidewalkȱprovidesȱaȱsafeȱpedestrianȱpathȱofȱ
travelȱconnectingȱtheȱpermitȱparkingȱareasȱtoȱtheȱSeniorȱCenterȱcomplex.ȱ
ȱ
StreetlightȱInstallationȱ–ȱRandyȱLaneȱ&ȱLarryȱWayȱȱ
TheȱCapitalȱImprovementȱProgramȱcompletedȱtheȱinstallationȱofȱLEDȱstreetlightsȱonȱRandyȱ
LaneȱbetweenȱMerrittȱDriveȱandȱLucilleȱAvenueȱ&ȱLarryȱWayȱbetweenȱMerrittȱDriveȱandȱ
LucilleȱAvenueȱ
ȱ
Projectsȱthatȱhaveȱmetȱsignificantȱprogressȱmilestonesȱincludeȱ
xMcClellanȱRoadȱBikewayȱPhaseȱ2ȱ(StellingȱRdȱtoȱTorreȱAve)ȬȱdesignȱComplete;ȱ
xRegnartȱCreekȱTrailȱ–ȱDesignȱandȱEnvironmentalȱClearanceȱcompletedȱ
xBlackberryȱFarmȱEntranceȱRoadȱFeasibilityȱStudyȱȬȱStudyȱCompleteȱ
xStevensȱCreekȱBlvdȱClȱIVȱBikewayȱPhaseȱ1ȱ–ȱDesignȱCompleteȱ
xCivicȱCenterȱParkingȱAnalysisȱ–ȱStudyȱCompleteȱ
ȱ
ȱȱ
20
ViaȱCommunityȱShuttleȱLaunchȱ
PublicȱWorksȱTransportationȱstaffȱwasȱintegralȱinȱlaunchingȱVia,ȱanȱonȬdemandȱmicroȱtransitȱ
systemȱtoȱallȱofȱCupertinoȱandȱbeyond,ȱconnectingȱtheȱCityȱtoȱregionalȱrailȱserviceȱforȱtheȱfirstȱ
timeȱever.ȱTheȱprogramȱincludesȱdiscountedȱfaresȱforȱlowȬincomeȱriders,ȱseniors,ȱandȱDeȱAnzaȱ
Collegeȱstudents.ȱ
ȱ
ArborȱDayȱFoundationȱTreeȱCityȱUSAȱdesignationȱandȱGrowthȱAwardȱ
TheȱArborȱDayȱFoundationȱnamedȱtheȱCityȱofȱCupertinoȱ“TreeȱCityȱUSA”ȱforȱtheȱeighthȱ
consecutiveȱyearȱandȱwasȱawardedȱtheȱ“GrowthȱAward”ȱforȱtheȱsixthȱtime.ȱTreeȱCityȱUSAȱ
distinctionȱactivitiesȱincludeȱtwoȱpublicȱplantingȱevents,ȱ188ȱnewȱtreesȱplanted,ȱ3387ȱtreesȱ
prunedȱandȱcommunityȱoutreachȱeffortsȱaboutȱtheȱimportanceȱofȱaȱhealthyȱUrbanȱForest.ȱ
GrowthȱAwardȱactivitiesȱincludeȱenhancingȱtheȱassetȱmanagementȱsystemȱwithȱtreeȱInventoryȱ
andȱongoingȱeffortsȱofȱpublicȱeducationȱ/ȱpublicȱrelations.ȱ
ȱ
CleanȱWaterȱ&ȱStormȱProtectionȱFeeȱ
PublicȱWorksȱEnvironmentalȱProgramȱstaffȱconductedȱextensiveȱcommunityȱoutreach,ȱ
education,ȱandȱpublicȱhearingsȱresultingȱinȱsuccessfullyȱpassingȱtheȱballotȱinitiativeȱtoȱupdateȱ
Cupertino’sȱCleanȱWaterȱandȱStormȱProtectionȱFeesȱforȱtheȱfirstȱtimeȱsinceȱ1992.ȱTheseȱfeesȱwillȱ
helpȱprotectȱstormwaterȱinfrastructure,ȱlocalȱcreeks,ȱregionalȱwetlands,ȱtheȱSanȱFranciscoȱBayȱ
andȱocean.ȱȱ
ȱȱȱ
ȱȱ
21
ȱ
NEWȱINITIATIVESȱFORȱFISCALȱYEARȱ2020Ȭ21ȱ
ȱ
BlackberryȱFarmȱGolfȱCourseȱ
DetermineȱshortȬtermȱandȱlongȬtermȱimprovementsȱtoȱtheȱgolfȱcourseȱandȱamenities.ȱToȱbeȱ
completedȱbyȱtheȱSpringȱofȱ2021.ȱ
ȱ
DogȱOffȱLeashȱAreasȱ
Identifyȱadditionalȱareasȱsuitableȱforȱpermittingȱdogsȱtoȱbeȱoffȱleashȱandȱestablishȱoneȱsuchȱarea,ȱ
ifȱtheȱcurrentȱtrialȱperiodȱisȱsuccessful.ȱTheȱParksȱandȱRecreationȱCommissionȱwillȱevaluateȱtheȱ
DOLAȱatȱJollymanȱParkȱafterȱtheȱtrialȱperiodȱconcludesȱinȱJulyȱ2020ȱbeforeȱconsideringȱ
additionalȱsitesȱinȱtheȱcommunity.ȱToȱbeȱcompletedȱbyȱSpringȱofȱ2021.ȱ
ȱ
Pilotȱ–ȱSensorȱTechnologyȱbasedȱonȱIOTȱ(InternetȱofȱThings)ȱ
Sevenȱprojectsȱfallȱunderȱthisȱclassification:ȱȱAdaptiveȱtrafficȱsignaling,ȱmultiȬmodalȱtrafficȱ
count,ȱnoiseȱmeasurement,ȱpollutionȱmonitoring,ȱtrashȱcollectionȱandȱwaterȱscheduling.ȱȱȱȱAllȱ
projectsȱareȱpartȱofȱtheȱCityȱCouncilȱWorkȱProgram.ȱȱȱȱTheȱgoalȱisȱtoȱextendȱtheȱCity’sȱnetworkȱ
andȱdatabaseȱstructureȱtoȱincludeȱIOTȱbasedȱsensorsȱtoȱdetermineȱtheȱcost/benefitȱandȱ
practicalityȱofȱutilizingȱthisȱtechnologyȱtoȱprovideȱenhancedȱserviceȱandȱdataȱthatȱwillȱdriveȱ
futureȱbusinessȱdecisions.ȱȱȱȱȱ
ȱ
ESRIȱIOTȱforȱAnalyticsȱisȱaȱcloudȬbasedȱsolutionȱthatȱwillȱbeȱimplementedȱforȱtheȱCityȱtoȱingest,ȱ
visualize,ȱandȱanalyzeȱspatialȱbigȱdataȱrealȬtimeȱtoȱgainȱinsightsȱthatȱallowȱforȱanalysisȱandȱdataȱ
drivenȱaction.ȱThisȱapplicationȱwillȱallowȱtheȱCityȱtoȱcategorizeȱandȱmakeȱsenseȱofȱtheȱdataȱ
generatedȱfromȱtheȱaboveȱmentionedȱIOTȱsensors.ȱ
ȱ
ProjectDoxȱExpansionȱandȱUpgradeȱ
ProjectDoxȱisȱanȱonȬpremiseȱapplicationȱthatȱprovidesȱforȱelectronicȱplanȱsubmissionȱandȱ
review.ȱȱProjectDoxȱisȱintegratedȱwithȱtheȱCity’sȱlandȱmanagementȱsystem,ȱAccela.ȱȱȱTheseȱtwoȱ
applicationsȱhaveȱbroughtȱsignificantȱimprovementsȱ(forȱbothȱstaffȱandȱcustomers)ȱinȱtheȱwayȱ
permitsȱareȱprocessedȱbyȱtheȱBuildingȱDivision.ȱȱȱȱTheȱgoalȱofȱthisȱrequestȱisȱtoȱextendȱtheseȱ
improvementsȱtoȱtheȱPlanningȱDivisionȱandȱPublicȱWorksȱEngineering.ȱȱȱȱAdditionally,ȱ
ProjectDoxȱwillȱbeȱmigratedȱtoȱaȱcloudȬbasedȱapplicationȱallowingȱforȱenhancedȱbusinessȱ
continuityȱandȱdisasterȱrecovery.ȱȱ
ȱ
ȱȱ
22
AIȱCybersecurityȱToolsȱ
ThisȱpastȱyearȱhasȱseenȱmultipleȱmunicipalitiesȱfallȱvictimȱtoȱRansomwareȱattacks.ȱȱȱTheȱ
remediationȱofȱtheseȱattacksȱhasȱcostȱmillionsȱofȱdollarsȱonȱtopȱofȱtheȱextendedȱdownȱtimeȱforȱ
crucialȱCityȱservices.ȱȱȱThisȱprojectȱwillȱaddȱartificialȱintelligenceȱ(AI)ȱtoȱtheȱCity’sȱcybersecurityȱ
defenses.ȱȱȱȱȱWhileȱAIȱwillȱnotȱstopȱanȱattackȱ–ȱitȱcanȱquicklyȱisolateȱtheȱimpactedȱfilesȱandȱ
mitigateȱtheȱspreadȱofȱRansomware.ȱȱȱȱAsȱhackersȱcontinueȱtoȱimproveȱtheirȱattackȱprofileȱ–ȱsoȱ
mustȱCupertinoȱimproveȱitsȱdefenses.ȱ
ȱ
ReviewȱofȱCity’sȱHousingȱandȱHumanȱservicesȱgrantȱfundsȱ
Reviewȱ existingȱ grantȱ fundsȱ toȱ determineȱ allowableȱ usesȱ forȱ emergencyȱ financialȱ assistanceȱ
programs.ȱȱ Considerȱ increasingȱ Belowȱ Marketȱ Rateȱ Affordableȱ Housingȱ Fundȱ Publicȱ Serviceȱ
allocation.ȱ
ȱ
HousingȱStrategiesȱ
Exploreȱ theȱ developmentȱ ofȱ strategiesȱ thatȱ providesȱ aȱ varietyȱ ofȱ productsȱ acrossȱ theȱ
affordabilityȱ levelsȱ includingȱ housingȱ forȱ theȱ developmentallyȱ disabled,ȱ asȱ wellȱ asȱ thoseȱ withȱ
moderate,ȱlow,ȱveryȱlow,ȱandȱextremelyȱlowȱincome.ȱȱ*ContinuedȱfromȱFYȱ19Ȭ20ȱworkȱprogram.ȱ
ȱ
HeartȱofȱtheȱCityȱ
Amendȱ theȱ Heartȱ ofȱ theȱ Cityȱ Specificȱ Plan:ȱ 1)ȱ Forȱ clarificationsȱ toȱ theȱ minimumȱ streetȱ sideȱ
setbackȱ requirements.ȱ 2)ȱ Toȱ reviewȱ streetȱ treeȱ requirementsȱ toȱ allowȱ largerȱ trees,ȱ increaseȱ
diversityȱ ofȱ treeȱ typeȱ andȱ encourageȱ droughtȬtolerantȱ andȱ nativeȱ treeȱ types.ȱ 3)ȱ Updateȱ sectionsȱ
suchȱ asȱ transitȱ corridorsȱ inȱ theȱ City.ȱ 4)ȱ Maintainȱexistingȱ setbacksȱ andȱ considerȱ minimumȱ retailȱ
percentageȱtoȱmaintainȱaȱcommercialȱstrip.ȱ5)ȱMinimumȱretailȱspace.ȱ
ȱ
VallcoȱSpecificȱPlanȱ
CreateȱaȱcommunityȬbasedȱvisionȱandȱobjectiveȱstandardsȱforȱdevelopmentȱatȱVallco.ȱ
ȱ
TrafficȱCongestionȱMapȱandȱIdentifyȱSolutionsȱ
Indentifyȱ trafficȱ congestionȱ areasȱ inȱ aȱ heatȱ map.ȱ Identify,ȱ implementȱ andȱ measureȱ effectivenessȱ
ofȱdataȱdrivenȱsolutionsȱtoȱimproveȱtrafficȱflowȱinȱmostȱcongestedȱareas.ȱ
ȱ
SingleȬUseȱPlasticsȱOrdinanceȱ
SingleȬuseȱplastics,ȱespeciallyȱthoseȱusedȱasȱfoodwareȱ(plasticȱutensils,ȱfoodȱpackaging,ȱstraws,ȱ
coffeeȱstirrers,ȱlidsȱforȱcoffeeȱcups,ȱspillȬpreventionȱplugsȱtoȱgoȱintoȱthoseȱlids,ȱetc.)ȱareȱnotȱ
recyclableȱandȱcreateȱsignificantȱamountsȱofȱwasteȱthatȱendȱupȱinȱlandfillsȱandȱasȱlitteredȱitemsȱ
thatȱreachȱandȱharmȱtheȱmarineȱenvironment.ȱȱJurisdictionsȱinȱtheȱBayȱAreaȱareȱbeginningȱtoȱ
considerȱandȱimplementȱordinancesȱthatȱaimȱtoȱreduceȱsingleȬuseȱfoodwareȱwhereȱpossible.ȱ
ThisȱalignsȱwithȱCupertino’sȱZeroȱWasteȱPolicyȱ(adoptedȱinȱDecemberȱ2017)ȱwhichȱspecifiesȱaȱ
23
goalȱtoȱ“Reduceȱtheȱproliferationȱofȱunnecessaryȱplasticȱreusableȱfoodȱserviceȱwareȱandȱ
packagingȱinȱdailyȱcommerce,ȱtoȱtheȱextentȱpracticable.”ȱEnvironmentalȱProgramsȱstaffȱ
participateȱonȱCountyȱandȱwiderȱBayȱAreaȱworkȱgroupsȱdevelopingȱmodelȱordinanceȱlanguageȱ
whichȱincludesȱenablingȱreȬusableȱfoodwareȱbusinessȱmodelsȱthatȱallowȱforȱuse,ȱsterilization,ȱ
andȱreȬuseȱofȱtoȬgoȱfoodware.ȱȱȱ
ȱ
ClimateȱActionȱandȱAdaptationȱPlanȱupdatesȱ
TheȱCupertinoȱClimateȱActionȱPlanȱwasȱcreatedȱnearlyȱtenȱyearsȱagoȱandȱhasȱguidedȱtheȱCityȱtoȱ
aȱsuccessfulȱreductionȱofȱcarbonȱemissions,ȱevenȱwhileȱtheȱCityȱhasȱexperiencedȱstellarȱ
economicȱgrowth.ȱSinceȱadoptingȱtheȱCAP,ȱtheȱStateȱofȱCaliforniaȱhasȱevolvedȱtheȱguidelinesȱtoȱ
addressȱnotȱonlyȱcarbonȱemissions,ȱbutȱalsoȱadaptationȱtoȱchangingȱclimateȱrisksȱlikeȱwildfiresȱ
andȱdroughts.ȱTheȱSustainabilityȱCommissionȱandȱCityȱStaffȱareȱplanningȱanȱupdateȱofȱtheȱCAPȱ
toȱalignȱwithȱnewȱscienceȬbasedȱtargetsȱforȱcarbonȱemissionsȱandȱresilientȱinfrastructure.ȱThisȱ
budgetȱincludesȱfundingȱtoȱsupportȱthisȱupdateȱtoȱtheȱPlan.ȱAnȱupdateȱtoȱtheȱCAPȱwouldȱ
includeȱpublicȱoutreachȱactivitiesȱandȱtechnicalȱanalysisȱofȱtheȱbestȱoptionsȱtoȱsupportȱ
Cupertino’sȱresilientȱandȱclimateȬfriendlyȱgrowth.ȱTheȱEarthȱDayȱvolunteerȱnetworkȱandȱallȱ
interestedȱresidentsȱareȱencouragedȱtoȱbeginȱconversationsȱaboutȱwhatȱCupertino’sȱ
sustainabilityȱstrategyȱshouldȱbeȱforȱtheȱnextȱ10ȱyears.ȱȱ
ȱ
ReduceȱSecondhandȱSmokeȱExposureȱ
Reviseȱandȱdevelopȱpoliciesȱtoȱreduceȱexposureȱtoȱsecondhandȱsmoke.ȱPotentialȱoptionsȱincludeȱ
smokeȬfreeȱmultiȬunitȱhousing,ȱsmokeȬfreeȱserviceȱareas,ȱandȱsmokeȬfreeȱpublicȱevents.ȱ
ȱ
ȱ
ȱ
24
Proposed Budget Overview
TheȱProposedȱBudgetȱreflectsȱaȱtotalȱCityȱbudgetȱofȱ$113.8ȱmillion,ȱaȱdecreaseȱofȱ$36.7ȱmillionȱorȱ
24.4%ȱ whenȱcomparedȱ toȱ theȱ FYȱ 2020ȱ Adoptedȱ Budget.ȱ TheȱCity’sȱ Generalȱ Fundȱ isȱ proposedȱ atȱ
$82.3ȱ million,ȱ representingȱ aȱ $2.2ȱ million,ȱ orȱ 2.7%ȱ increaseȱ overȱ theȱ FYȱ 2020ȱ Adoptedȱ Budget.ȱȱ
Theȱ Generalȱ Fundȱ isȱ fundedȱ throughȱ theȱ useȱ ofȱ Generalȱ Fundȱ revenueȱ ofȱ $79.5ȱ million,ȱ $2.8ȱ
millionȱ ofȱ unassignedȱ fundȱ balance,ȱ andȱ isȱ projectedȱ toȱ endȱ FYȱ 2021ȱ withȱ approximatelyȱ $14.7ȱ
millionȱ inȱ unassignedȱ fundȱ balanceȱ thatȱ mayȱ beȱ transferredȱ toȱ theȱ Capitalȱ Reserveȱ perȱ theȱ
Reserveȱ andȱ Oneȱ Timeȱ Useȱ Policyȱ asȱ partȱ ofȱ theȱ City’sȱ FY20Ȭ21ȱ MidȬYearȱ Financialȱ ReportȱȱTheȱ
transferȱisȱnotȱreflectedȱinȱtheȱProposedȱBudget.ȱȱ
ȱ
ȱ
ȱ
Asȱshownȱinȱtheȱchartȱbelow,ȱtheȱProposedȱBudget’sȱlargestȱfundȱisȱtheȱGeneralȱfundȱatȱ72%.ȱ
ȱ
ȱ
ȱ
ȱ
FundȱType TotalȱProposedȱ
Expenditures
TotalȱProposedȱ
Revenue
Changeȱ in ȱFundȱ
Balance/Netȱ
Position
General ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱ82,287,295ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱ79,450,892ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ(2,836,403)
SpecialȱRevenueȱ ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱ10,573,245ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱ11,926,643ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ1,353,398ȱ
DebtȱService ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ3,169,138ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ3,169,138ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȬȱȱȱ
CapitalȱProjects ȱ ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ343,274ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȬȱȱȱ ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ(343,274)
Enterprise ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ9,016,263ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ8,631,042ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ(385,221)
InternalȱService ȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ8,396,030ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ5,245,334ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ(3,150,696)
Total ȱ $ȱȱȱȱȱȱȱȱȱȱȱ113,785,245ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱ108,423,049ȱȱ$ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ(5,362,196)
25
TheȱgraphȱbelowȱsummarizesȱtheȱchangesȱinȱtheȱCity’sȱGeneralȱFundȱforȱaȱfiveȬyearȱperiod:ȱ
ȱ
ȱ
ȱ
Aȱ totalȱ ofȱ 202.75ȱ positionsȱ areȱ proposedȱ inȱ FYȱ 2020Ȭ21.ȱȱPriorȱ toȱ COVIDȬ19,ȱ theȱ Cityȱ wasȱ
anticipatingȱ bringingȱ aȱ numberȱ ofȱ newȱ positionȱ requestsȱ toȱ Cityȱ Councilȱ overȱ aȱ threeȬyearȱ
period;ȱ however,ȱ givenȱ theȱ levelȱ ofȱ fiscalȱ uncertaintyȱ surroundingȱ COVIDȬ19,ȱ theȱ Cityȱ hasȱ
removedȱ allȱ positionȱrequestsȱinȱFYȱ2020Ȭ21.ȱȱAsȱ theȱ COVIDȬ19ȱ situationȱ evolves,ȱ Cityȱ staffȱ willȱ
bringȱ forwardȱ requestsȱ forȱ Cityȱ Councilȱ approvalȱ asȱ moreȱ informationȱ becomesȱ availableȱ forȱ
purposesȱofȱmakingȱinformedȱdecisions.ȱȱ
ȱ
ȱ
ȱ
Inȱ theȱ past,ȱ staffȱ recommendedȱ addingȱ positionsȱ onlyȱ onȱ aȱ limitedȱ termȱ basisȱ unlessȱ staffȱ wasȱ
confidentȱ thatȱ theȱ neededȱ levelȱ ofȱ serviceȱ wouldȱ beȱ permanent,ȱ orȱ ongoingȱ revenuesȱ couldȱ
supportȱ theȱ positionȱ longȱ term,ȱ orȱ staffȱ couldȱ notȱ recruitȱ and/orȱ retainȱ theȱ staffȱ resourceȱ onȱ aȱ
FYȱ2019Ȭ20ȱAdoptedȱBudget 202.75
MaintenanceȱWorkerȱI/II 1.00
FYȱ2020Ȭ21ȱProposedȱBudget
None 0.00
FYȱ2020Ȭ21ȱBenefittedȱPositions 203.75
26
limitedȱtermȱbasis.ȱȱTheȱCityȱcurrentlyȱhasȱfiveȱ(5)ȱlimitedȬtermȱpositionsȱareȱstaffȱareȱrequestingȱ
thatȱtheyȱbeȱconvertedȱtoȱaȱpermanentȱbasis.ȱȱȱ
ȱ
ȱ
ȱ
ChangesȱtoȱtheȱBudgetȱandȱPoliciesȱȱ
CityȱstaffȱperformedȱaȱzeroȬbaseȱbudgetȱforȱtheȱFYȱ2020ȱbudgetȱdocumentȱinȱwhichȱallȱexpensesȱ
wereȱjustifiedȱandȱeveryȱfunctionȱwithinȱtheȱCityȱwasȱanalyzedȱforȱitsȱneedsȱandȱcosts.ȱȱTheȱCityȱ
hadȱplannedȱtoȱ convertȱtoȱaȱbiennialȱbudgetȱprocess;ȱ however,ȱ givenȱ theȱtimingȱandȱ constraintsȱ
ofȱ COVIDȬ19,ȱ theȱ Cityȱ willȱ beȱ deferringȱ theȱ conversionȱ untilȱ nextȱ fiscalȱ year.ȱ Belowȱ areȱ aȱ fewȱ
highlightsȱfromȱtheȱbudgetȱandȱprocess:ȱ
ȱ
RevisedȱFeesȱandȱCostȱAllocationȱPlanȱ(CAP)ȱ
Whileȱ theȱ Costȱ Allocationȱ Planȱ remainedȱ relativelyȱ consistentȱ overȱ theȱ previousȱ fiscalȱ year,ȱ aȱ
changeȱ inȱ methodologyȱ wasȱ implementedȱ inȱ theȱ FYȱ 2020Ȭ21ȱ model.ȱȱCostsȱ attributableȱ toȱ
groundsȱandȱfacilities,ȱspecificallyȱandȱonlyȱrelatedȱtoȱtheȱCity’sȱCivicȱCenter,ȱareȱbeingȱchargedȱ
outȱforȱmoreȱequitableȱandȱreasonableȱcostȱsharingȱamongȱserviceȱprovidersȱinȱtheȱCity.ȱȱ
ȱ
Additionally,ȱ Cityȱ Councilȱ approvedȱ theȱ feeȱ schedulesȱ effectiveȱ forȱ FYȱ 2020Ȭ21ȱ onȱ Aprilȱ 21,ȱ
2020.ȱȱDueȱ toȱ impactsȱ relatedȱ toȱ COVIDȬ19,ȱ andȱ theȱ City’sȱ intentȱ toȱ provideȱ financialȱ reliefȱ
duringȱ thisȱ timeȱ ofȱ greatȱ uncertainty,ȱ theȱ increasesȱ toȱ theȱ City’sȱ feesȱ wereȱ delayedȱ andȱ willȱ notȱ
becomeȱeffectiveȱuntilȱ Octoberȱ 1,ȱ2020.ȱȱTheȱ increasesȱ toȱ theȱvariousȱ feeȱschedulesȱ areȱ estimatedȱ
toȱ resultȱ inȱ increasedȱ revenuesȱ ofȱ approximatelyȱ $900,000ȱ overȱ theȱ previousȱ fiscalȱ year;ȱ
however,ȱ theȱ timingȱ ofȱ servicesȱ toȱ beȱ providedȱ andȱ revenuesȱ toȱ beȱ collectedȱ mayȱ beȱ impactedȱ
byȱCOVIDȬ19ȱthroughoutȱfiscalȱyearȱ2020Ȭ21.ȱ
ȱ
InvestmentȱPolicyȱ
Theȱ Cityȱ Councilȱ annuallyȱ updatesȱ andȱ adoptsȱ aȱ Cityȱ Investmentȱ Policyȱ thatȱ isȱ inȱ complianceȱ
withȱStateȱstatutesȱonȱallowableȱinvestments.ȱByȱpolicy,ȱtheȱAuditȱCommitteeȱreviewsȱtheȱpolicyȱ
andȱ actsȱ asȱ anȱ oversightȱ committeeȱ onȱ investments.ȱ Theȱ policyȱ directsȱ thatȱ anȱ externalȱ auditorȱ
performȱagreedȬuponȱproceduresȱtoȱreviewȱCityȱcomplianceȱwithȱtheȱpolicy.ȱTheȱfullȱpolicyȱwillȱ
beȱavailableȱonȱtheȱCityȱwebsiteȱasȱpartȱofȱtheȱMayȱ19,ȱ2020ȱCityȱCouncilȱagendaȱpacket.ȱ
ȱ
GANNȱAppropriationsȱLimitȱ
Forȱ FYȱ 2021,ȱ theȱ City’sȱ estimatedȱ appropriationsȱ ofȱ proceedsȱ fromȱ taxes,ȱ lessȱ statutoryȱ
exclusions,ȱ areȱ unchangedȱ asȱ ofȱ theȱ Proposedȱ Budget.ȱȱDataȱ neededȱ toȱ calculateȱ theȱ FYȱ 2021ȱ
Department Position
AdministrativeȱServices SeniorȱManagementȱAnalyst
Public ȱWorks SeniorȱTransportationȱPlanner
Public ȱWorks AssistantȱCivilȱEngineer
Public ȱWorks Public ȱWorksȱProjectȱManager
Parksȱ&ȱRecreation RecreationȱCoordinator
LimitedȬTermȱConversions
27
appropriationsȱlimitȱwillȱnotȱbeȱavailableȱuntilȱmidȬMay.ȱȱȱIfȱaȱcityȱexceedsȱtheȱlegalȱlimit,ȱexcessȱ
taxȱ revenueȱ mustȱ beȱ returnedȱ toȱ theȱ Stateȱ orȱ citizensȱ throughȱ aȱ processȱ ofȱ refunds,ȱ rebates,ȱ orȱ
otherȱ meansȱ thatȱ mayȱ beȱ determinedȱ atȱ thatȱ time.ȱȱTheȱ appropriationsȱ limitȱ isȱ notȱ expectedȱ toȱ
presentȱ aȱ constraintȱ onȱ currentȱ orȱ futureȱ budgetȱ deliberations.ȱȱThisȱ reflectsȱ theȱ priorȱ yearȱ limitȱ
andȱ willȱ notȱ beȱ updatedȱ untilȱ theȱ Adoptedȱ Budgetȱ whenȱ theȱ informationȱ requiredȱ forȱ thisȱ
calculationȱisȱavailable.ȱ
ȱ
RevisedȱCommunityȱFundingȱPolicyȱ
Theȱ firstȱ Communityȱ Fundingȱ policyȱ wasȱ adoptedȱ byȱ Cityȱ Councilȱ inȱ FYȱ 2012Ȭ13,ȱ andȱ theȱ mostȱ
recentȱ policyȱ wasȱ adoptedȱ asȱ partȱ ofȱ theȱ FYȱ 2015Ȭ16ȱ Adoptedȱ Budget.ȱȱAtȱ theȱ Budgetȱ Adoptionȱ
hearingȱinȱJuneȱ2018,ȱCityȱCouncilȱrequestedȱthatȱtheȱCommunityȱFundingȱProgramȱbeȱupdatedȱ
inȱ orderȱ toȱ assureȱ thatȱ allȱ applicationsȱ receivedȱ dueȱ considerationȱ andȱ thatȱ Cityȱ Councilȱ isȱ
providedȱwithȱallȱinformationȱnecessaryȱtoȱmakeȱfinalȱfundingȱdecisions.ȱȱȱAtȱthatȱmeeting,ȱCityȱ
Councilȱ requestedȱ thatȱ theȱ Parksȱ andȱ Recreationȱ Commissionȱ evaluateȱ allȱ grantȱ applications,ȱ
andȱ provideȱ fundingȱ recommendationsȱ toȱ Councilȱ forȱ consideration.ȱȱAnȱ updatedȱ policyȱ withȱ
minimalȱsubstantiveȱchangesȱwasȱapprovedȱbyȱCityȱCouncilȱinȱ2020.ȱȱ
ȱ
BudgetȱbyȱFundȱ
GeneralȱFundȱ
Theȱ Generalȱ Fundȱ paysȱ forȱ coreȱ servicesȱ suchȱ asȱ publicȱ safety,ȱ recreationȱ andȱ communityȱ
services,ȱ planningȱ andȱ communityȱ development,ȱ streetsȱ andȱ trees,ȱ andȱ aȱ hostȱ ofȱ otherȱ vitalȱ
services.ȱ Theȱ revenueȱ usedȱ toȱ payȱ forȱ theseȱ servicesȱ comesȱ primarilyȱ fromȱ localȱ taxesȱ suchȱ asȱ
propertyȱ taxȱ andȱ salesȱ tax,ȱ transientȱ occupancyȱ tax,ȱ chargesȱ forȱ service,ȱ andȱ aȱ varietyȱ ofȱ otherȱ
discretionaryȱsources.ȱȱ
ȱ
Generalȱ Fundȱ revenueȱ isȱ estimatedȱ atȱ $79.5ȱ millionȱ inȱ theȱ FYȱ 2021ȱ Proposedȱ Budget.ȱȱThisȱ isȱ anȱ
overallȱ decreaseȱ ofȱ $7.6ȱ millionȱ (8.7%)ȱ whenȱ comparedȱ toȱ theȱ FYȱ 2020ȱ Adoptedȱ Budget.ȱ Inȱ
recentȱyears,ȱtheȱCityȱhasȱexperiencedȱlocalȱeconomicȱboomȱthatȱhadȱdrivenȱstrongȱgainsȱinȱsalesȱ
tax,ȱ propertyȱ tax,ȱ andȱ transientȱ occupancyȱ taxȱ revenues,ȱ whichȱ wereȱ partiallyȱ offsetȱ byȱ
decreasesȱ inȱ developmentȬrelatedȱ fees.ȱȱFYȱ 2021ȱ willȱ experienceȱ significantȱ Generalȱ Fundȱ
declinesȱinȱsalesȱtaxȱ ($4.7ȱ millionȱorȱ18%)ȱ andȱ transientȱoccupancyȱ taxȱ ($2.1ȱmillionȱ orȱ 22%)ȱdueȱ
toȱ COVIDȬ19ȱ impacts.ȱȱPropertyȱ taxȱ isȱ notȱ anticipatedȱ toȱ beȱ affectedȱ byȱ COVIDȬ19ȱ inȱ FYȱ 20Ȭ21ȱ
dueȱtoȱtheȱtimingȱofȱassessedȱmarketȱvaluations;ȱhowever,ȱtheȱCityȱanticipatesȱaȱflatteningȱofȱtheȱ
propertyȱtaxȱrevenuesȱinȱFYȱ21Ȭ22.ȱȱȱ
ȱ
InȱanȱeffortȱtoȱmitigateȱtheȱimpactsȱtoȱCOVIDȬ19,ȱtheȱCityȱisȱtakingȱstepsȱtoȱreduceȱexpendituresȱ
byȱ increasingȱ vacancyȱ levelsȱ throughȱ attritionȱ (upȱ toȱ $3.2ȱ millionȱ annually),ȱ reducingȱ materialsȱ
andȱ contractȱ servicesȱ spendingȱ ($650,000ȱ andȱ $1ȱ million,ȱ respectively),ȱ reducingȱ contingencyȱ
amountsȱ byȱ 50%ȱ orȱ $850,000),ȱ andȱ reducingȱ theȱ amountȱ ofȱ specialȱ projectȱ andȱ capitalȱ outlayȱ
spendingȱonȱanȱannualȱbasis.ȱȱȱȱ
ȱ
AlthoughȱitȱisȱdifficultȱtoȱestimateȱtheȱfullȬimpactsȱofȱCOVIDȬ19ȱintoȱtheȱnearȱandȱlongȬterm,ȱtheȱ
City’sȱfiscalȱfoundationȱremainsȱstrong.ȱWithȱtheȱGeneralȱFund’sȱEconomicȱUncertaintyȱReserveȱ
28
intactȱ andȱ aȱ healthyȱ unassignedȱ fundȱ balance,ȱ theȱ Cityȱ isȱ poisedȱ toȱ withstandȱ theȱ impactsȱ ofȱ
COVIDȬ19ȱintoȱtheȱfuture.ȱȱȱ
ȱ
Theȱ followingȱ chartȱ showsȱ fourȱ yearsȱ ofȱ totalȱ revenue,ȱ expendituresȱ andȱ changesȱ toȱ fundȱ
balanceȱforȱtheȱGeneralȱFund:ȱ
ȱ
GeneralȱFundȱRevenue,ȱExpendituresȱandȱChangesȱinȱFundȱBalanceȱ
ȱ
ȱ
Theȱ Generalȱ Fundȱ unassignedȱ fundȱ balanceȱ isȱ projectedȱ toȱ decreaseȱ fromȱ theȱ currentȱ yearȱ
estimateȱ ofȱ $17.5ȱ millionȱ toȱ $14.7ȱ millionȱ inȱ FYȱ 2021.ȱ Asȱ shownȱ inȱ theȱ chartȱ below,ȱ theȱ FYȱ 2021ȱ
endingȱ fundȱ balanceȱ isȱ estimatedȱ toȱ beȱ $50.6ȱ million,ȱ orȱ 5.3%ȱ lowerȱ thanȱ theȱ FYȱ 2020ȱ yearȬendȱ
estimate.ȱȱThisȱ isȱprimarilyȱ attributableȱtoȱaȱnotableȱdeclineȱinȱsalesȱtaxȱandȱtransientȱoccupancyȱ
taxȱrevenuesȱdueȱtoȱCOVIDȬ19.ȱȱȱ
ȱ
ȱ
Classification
FYȱ17Ȭ18ȱ
Actual
FYȱ18Ȭ19ȱ
Actual
FYȱ19Ȭ20ȱ
Estimated
FYȱ20Ȭ21ȱ
Proposed
Percentȱ
Change
Unassigned 21,704,922$ȱȱȱ 27,896,128$ȱȱ 17,500,000$ȱ 14,672,597$ȱȱȱȱȱ Ȭ16%
AllȱOtherȱClassification 30,805,535ȱȱȱȱȱ 31,026,457ȱȱȱȱ 35,938,546ȱȱȱ 35,929,546ȱȱȱȱȱȱȱ 0%
TotalȱFundȱBalance 52,510,457$ȱȱȱ 58,922,585$ȱȱ 53,438,546$ȱ 50,602,143$ȱȱȱȱȱ Ȭ5.3%
GENERALȱFUNDȱFUNDȱBALANCE
29
ȱ
Asȱ shownȱ inȱ theȱ graphȱ below,ȱ theȱ majorityȱ ofȱ Generalȱ Fundȱ resourcesȱ areȱ usedȱ toȱ supportȱ
PublicȱWorksȱ(29%),ȱNonȬDepartmentalȱexpendituresȱ(12%),ȱLawȱEnforcementȱ(18%),ȱParksȱandȱ
Recreationȱ(9%),ȱAdministrationȱ(10%),ȱandȱCommunityȱDevelopmentȱandȱPlanningȱ(12%).ȱ
ȱ
ȱ
ȱ
SpecialȱRevenueȱFundsȱ
Specialȱ Revenueȱ Fundsȱ areȱ aȱ fundȱ typeȱ usedȱ toȱ accountȱ forȱ theȱ proceedsȱ ofȱ specificȱ revenueȱ
sourcesȱ thatȱ areȱ legallyȱ restrictedȱ toȱ expendituresȱ forȱ specificȱ purposes.ȱ Specialȱ Revenueȱ Fundsȱ
accountȱ forȱ 9%ȱ ofȱ theȱ citywideȱ expenditureȱ budget.ȱ Theȱ largestȱ Specialȱ Revenueȱ Fundȱ accountsȱ
forȱ streets,ȱ roads,ȱ andȱ transportation.ȱ Otherȱ fundsȱ accountȱ forȱ stormȱ drainȱ management,ȱ
affordableȱ housingȱ programs,ȱ andȱ parkȱ development.ȱ Theȱ Proposedȱ Budgetȱ forȱ Specialȱ
Revenueȱ Fundsȱ forȱ FYȱ 2020ȱ isȱ $10.6ȱ million,ȱ whichȱ isȱ anȱ $800,000,ȱ orȱ 8%,ȱ increaseȱ fromȱ FYȱ 2020ȱ
Adoptedȱ Budgetȱ primarilyȱ dueȱ toȱ stormȱ drainȱ activities,ȱ previouslyȱ budgetedȱ inȱ theȱ Generalȱ
Fund,ȱthatȱwereȱreallocatedȱtoȱtheȱEnvironmentalȱManagementȱSpecialȱRevenueȱFund.ȱȱȱȱ
ȱ
Budgetsȱ withinȱ theȱ Specialȱ Revenueȱ Fundsȱ areȱ fundedȱ byȱ $8.1ȱ millionȱ inȱ restrictedȱ departmentȱ
revenue,ȱ andȱ $3.8ȱ millionȱ inȱ transfers,ȱ bringingȱ totalȱ fundingȱ sourcesȱ forȱ theȱ fundȱ toȱ $11.9ȱ
million.ȱ Thisȱ willȱ resultȱ inȱ aȱ projectedȱ increaseȱ toȱ fundȱ balanceȱ ofȱ $1.4ȱ million.ȱ Theȱ Specialȱ
RevenueȱFundsȱareȱprojectedȱtoȱendȱtheȱyearȱwithȱfundȱbalancesȱofȱ$24.8ȱmillion.ȱȱ
ȱ
CapitalȱProjectsȱFundsȱ
TheȱCapitalȱImprovementȱProjectȱFund,ȱStevensȱCreekȱCorridorȱParkȱFund,ȱandȱCapitalȱReserveȱ
Fundȱ areȱ currentlyȱ inȱ theȱ Capitalȱ Projectsȱ Fundȱ typeȱ category.ȱ Thisȱ fundȱ typeȱ isȱ typicallyȱ usedȱ
toȱ accountȱ forȱ financialȱ resourcesȱ thatȱ areȱ usedȱ forȱ theȱ acquisitionȱ orȱ constructionȱ ofȱ majorȱ
30
capitalȱ facilitiesȱ orȱ toȱ provideȱ facilitiesȱ forȱ Cityȱ departments,ȱ andȱ areȱ identifiedȱ inȱ theȱ fiveȬyearȱ
CapitalȱImprovementȱProgramȱ(CIP).ȱȱ
ȱ
Theȱ Proposedȱ Budgetȱ forȱ theȱ Capitalȱ Projectsȱ Fundsȱ forȱ FYȱ 2021ȱ isȱ $343,274.ȱȱTheȱ FYȱ 2021ȱ
budgetȱ isȱ $37.6ȱ millionȱ lowerȱ thanȱ FYȱ 2020ȱ Adoptedȱ Budgetȱ appropriationsȱ untilȱ theȱ Capitalȱ
ImprovementȱProgramȱbudgetȱisȱincorporatedȱinȱtheȱAdoptedȱBudget.ȱȱ
ȱ
EnterpriseȱFundsȱȱ
Enterpriseȱ Fundsȱ areȱ setȱ upȱ forȱ specificȱ servicesȱ thatȱ areȱ fundedȱ directlyȱ byȱ feesȱ chargedȱ forȱ
goodsȱ orȱ services.ȱ Enterpriseȱ Fundsȱ consistȱ ofȱ Resourceȱ Recoveryȱ forȱ theȱ solidȱ wasteȱ collectionȱ
franchise,ȱ Blackberryȱ Farmȱ forȱ theȱ CityȬownedȱ golfȱ course,ȱ theȱ Cupertinoȱ Sportsȱ Center,ȱ andȱ
RecreationȱProgramsȱforȱcultural,ȱyouth,ȱteen,ȱsports,ȱandȱphysicalȱrecreationȱprograms.ȱȱ
ȱ
TheȱProposedȱBudgetȱforȱEnterpriseȱFundsȱforȱFYȱ2021ȱisȱ$9.0ȱmillion,ȱaȱdecreaseȱofȱ$2.5ȱmillionȱ
fromȱ theȱ FYȱ 2020ȱ Adoptedȱ Budget.ȱ Budgetsȱ withinȱ theȱ Enterpriseȱ Fundsȱ areȱ fundedȱ byȱ $6.1ȱ
millionȱinȱ programȱrevenueȱ andȱ$2.5ȱmillionȱinȱtransfersȱfromȱtheȱ GeneralȱFund.ȱTheȱ Enterpriseȱ
Fundsȱalsoȱrelyȱonȱ$5.0ȱmillionȱofȱpriorȱyearȱfundȱbalance,ȱbringingȱtotalȱfundingȱsourcesȱforȱtheȱ
fundsȱ toȱ $13.6ȱ million.ȱ Theȱ Enterpriseȱ Fundsȱ areȱ projectedȱ toȱ beginȱ theȱ fiscalȱ yearȱ withȱ $5.0ȱ
millionȱ inȱ retainedȱ earningsȱ andȱ areȱ projectedȱ toȱ endȱ theȱ yearȱ withȱ retainedȱ earningsȱ ofȱ $4.6ȱ
million.ȱȱImpactsȱ toȱ Enterpriseȱ Fundȱ revenuesȱ asȱ aȱ resultȱ ofȱ COVIDȬ19ȱ areȱ significant,ȱ
particularlyȱ whileȱ shelterȬinȬplaceȱ ordersȱ remainȱ inȱ effect.ȱȱFYȱ 2020ȱ experiencedȱ sharpȱ declinesȱ
inȱ theȱ fourthȱ quarterȱ andȱ asȱ such,ȱ staffȱ areȱ conservativelyȱ budgetingȱ forȱ anticipatedȱ reductionsȱ
inȱ overallȱ revenueȱ andȱ expenditures.ȱȱWhileȱ itȱ isȱ difficultȱ toȱ estimateȱ theȱ extentȱ ofȱ shelterȬinȬ
placeȱ ordersȱ forȱ FYȱ 2020Ȭ21,ȱ staffȱ willȱ continueȱ toȱ monitorȱ theȱ activitiesȱ andȱ reportȱ toȱ Cityȱ
Councilȱonȱaȱregularȱbasis.ȱȱ
ȱ
InternalȱServiceȱFundsȱ
Internalȱ Serviceȱ Fundsȱ areȱ usedȱ forȱ areasȱ whereȱ goodsȱ orȱ servicesȱ areȱ providedȱ toȱ otherȱ Cityȱ
departmentsȱ orȱ governmentsȱ onȱ aȱ costȬreimbursementȱ basis.ȱ Internalȱ Serviceȱ Fundsȱ includeȱ
fundsȱ andȱ programsȱ forȱ informationȱ technology,ȱ workers’ȱ compensation,ȱ equipment,ȱ
compensatedȱabsence,ȱlongȬtermȱdisability,ȱandȱretireeȱmedicalȱinsurance.ȱȱ
ȱ
TheȱProposedȱ Budgetȱ forȱ theȱ InternalȱServiceȱ Fundsȱisȱ$8.4ȱmillion,ȱ whichȱ isȱ $0.5ȱ millionȱ higherȱ
thanȱ theȱ FYȱ 2020ȱ Adoptedȱ Budget.ȱȱBudgetsȱ withinȱ Internalȱ Serviceȱ Fundsȱ areȱ fundedȱ byȱ $4.6ȱ
millionȱinȱdepartmentȱrevenue,ȱ$0.7ȱmillionȱinȱtransfersȱfromȱtheȱGeneralȱFund,ȱandȱ$3.2ȱmillionȱ
fromȱ aȱ combinationȱ ofȱ depreciationȱ reservesȱ andȱ retainedȱ earnings.ȱ Theȱ Internalȱ Serviceȱ Fundsȱ
areȱ projectedȱ toȱ beginȱ theȱ fiscalȱ yearȱ withȱ $6.8ȱ millionȱ inȱ retainedȱ earningsȱ andȱ areȱ projectedȱ toȱ
endȱtheȱyearȱwithȱretainedȱearningsȱofȱ$3.7ȱmillion.ȱ
ȱ
SpecialȱProjectsȱ
Theȱ FYȱ 2021ȱ Proposedȱ Budgetȱ includesȱ fundingȱ forȱ severalȱ oneȬtimeȱ Specialȱ Projects.ȱȱTheseȱ
projectsȱ areȱ identifiedȱ asȱ partȱ ofȱ theȱ Specialȱ Projectȱ sectionȱ withinȱ eachȱ programȱ andȱ areȱ
summarizedȱ inȱ theȱ tableȱ onȱ theȱ nextȱ page.ȱȱThisȱ listȱ excludesȱ oneȬtimeȱ capitalȱ outlaysȱ andȱ
ongoingȱpavementȱmanagementȱcosts.ȱ
31
FYȱ2020Ȭ21ȱSpecialȱProjectsȱ
ProgramȱBudgetȱ ProjectȱNameȱ Expenditureȱ FundingȱSourceȱ
Workȱ
Programȱ
120ȱCityȱManagerȇsȱ
Officeȱ
ReduceȱSecondȱHandȱSmokeȱ
Exposureȱ ȱ$ȱȱȱȱȱȱȱȱ27,592ȱȱ GeneralȱFundȱ Yesȱ
122ȱSustainabilityȱ ClimateȱActionȱPlanȱ ȱ$ȱȱȱȱȱȱ212,000ȱȱ GeneralȱFundȱ Yesȱ
300ȱI&TȱAdministrationȱ PilotȱAdaptiveȱTrafficȱSignalingȱ ȱ$ȱȱȱȱȱȱȱȱ65,000ȱȱ
InternalȱServiceȱ
Fundȱ Yesȱ
300ȱI&TȱAdministrationȱ PilotȱMultiȬmodalȱTrafficȱCountȱ ȱ$ȱȱȱȱȱȱȱȱ40,000ȱȱ
InternalȱServiceȱ
Fundȱ Yesȱ
300ȱI&TȱAdministrationȱ PilotȱNoiseȱMeasurementȱ ȱ$ȱȱȱȱȱȱȱȱ35,000ȱȱ
InternalȱServiceȱ
Fundȱ Yesȱ
300ȱI&TȱAdministrationȱ PilotȱPollutionȱMonitoringȱ ȱ$ȱȱȱȱȱȱȱȱ35,000ȱȱ
InternalȱServiceȱ
Fundȱ Yesȱ
300ȱI&TȱAdministrationȱ PilotȱTrashȱCollectionȱ ȱ$ȱȱȱȱȱȱȱȱ25,000ȱȱ
InternalȱServiceȱ
Fundȱ Yesȱ
800ȱPWȱAdministrationȱ MunicipalȱWaterȱSystemȱ ȱ$ȱȱȱȱȱȱȱȱ50,000ȱȱ GeneralȱFundȱ Yesȱ
801ȱResourceȱRecoveryȱ SingleȱUseȱPlasticsȱOrdinanceȱ ȱ$ȱȱȱȱȱȱȱȱ30,000ȱȱ Enterpriseȱ Yesȱ
804ȱPlanȱReviewȱ AlternativesȱtoȱNewȱCityȱHallȱ ȱ$ȱȱȱȱȱȱȱȱ25,000ȱȱ GeneralȱFundȱ Yesȱ
845ȱTrafficȱSignalȱ
Maintenanceȱ
AdaptiveȱTrafficȱSignalingȱandȱ
BatteryȱBackupȱ ȱ$ȱȱȱȱȱȱ180,000ȱȱ GeneralȱFundȱ Yesȱ
ȱȱ
ȱȱTOTALȱCITYȱCOUNCILȱWORKȱ
PROGRAMȱ ȱ$ȱȱȱȱȱȱ724,592ȱȱ ȱȱ ȱȱ
ȱȱ ȱȱ ȱȱ ȱȱ ȱȱ
122ȱSustainabilityȱ SustainableȱInfrastructureȱAuditȱ ȱ$ȱȱȱȱȱȱȱȱ10,000ȱȱ GeneralȱFundȱ ȱȱ
300ȱI&TȱAdministrationȱ PilotȱWasteȱManagementȱ ȱ$ȱȱȱȱȱȱȱȱ10,000ȱȱ
InternalȱServiceȱ
Fundȱ ȱȱ
305ȱVideoȱ
CommunityȱHallȱPodiumȱ
Replacementȱ ȱ$ȱȱȱȱȱȱȱȱ15,000ȱȱ GeneralȱFundȱ ȱȱ
305ȱVideoȱ PortableȱSignalȱGenerator/Analyzerȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ9,000ȱȱ GeneralȱFundȱ ȱȱ
305ȱVideoȱ WirelessȱVideoȱTransmissionȱSystemȱ ȱ$ȱȱȱȱȱȱȱȱ11,500ȱȱ GeneralȱFundȱ ȱȱ
308ȱApplicationsȱ VehicleȱMilesȱTraveledȱ ȱ$ȱȱȱȱȱȱȱȱ25,000ȱȱ GeneralȱFundȱ ȱȱ
310ȱInfrastructureȱ ArtificialȱIntelligenceȱRemediationȱ ȱ$ȱȱȱȱȱȱȱȱ50,000ȱȱ
InternalȱServiceȱ
Fundȱ ȱȱ
310ȱInfrastructureȱ FacilityȱBatteryȱ ȱ$ȱȱȱȱȱȱȱȱ40,000ȱȱ
InternalȱServiceȱ
Fundȱ ȱȱ
701ȱCurrentȱPlanningȱ MarinaȱPlazaȱ ȱ$ȱȱȱȱȱȱȱȱ50,000ȱȱ GeneralȱFundȱ ȱȱ
801ȱResourceȱRecoveryȱ TrashȱEnclosureȱSWMPȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ2,500ȱȱ Enterpriseȱ ȱȱ
802ȱNonȬPointȱSourceȱ TrashȱEnclosureȱSWMPȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ2,500ȱȱ SpecialȱRevenueȱ ȱȱ
807ȱServiceȱCenterȱ
Administrationȱ CitywideȱOfficeȱReconfigurationȱ ȱ$ȱȱȱȱȱȱȱȱ95,000ȱȱ GeneralȱFundȱ ȱȱ
812ȱSchoolȱSiteȱ
Maintenanceȱ
IrrigationȱPumpȱforȱHydeȱMiddleȱ
Schoolȱ ȱ$ȱȱȱȱȱȱȱȱ85,000ȱȱ GeneralȱFundȱ ȱȱ
812ȱSchoolȱSiteȱ
Maintenanceȱ
DedicatedȱWaterȱServiceȱatȱCollinsȱ
Schoolȱ ȱ$ȱȱȱȱȱȱȱȱ60,000ȱȱ GeneralȱFundȱ ȱȱ
812ȱSchoolȱSiteȱ
Maintenanceȱ HydeȱMiddleȱSchoolȱFenceȱRepairsȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ6,600ȱȱ GeneralȱFundȱ ȱȱ
32
813ȱNeighborhoodȱParksȱ
MasterȱValveȱandȱFlowȱSensorȱatȱ
HooverȱParkȱ ȱ$ȱȱȱȱȱȱȱȱ12,000ȱȱ GeneralȱFundȱ ȱȱ
813ȱNeighborhoodȱParksȱ TotȱLotȱRubberȱResurfacingȱ ȱ$ȱȱȱȱȱȱȱȱ80,000ȱȱ GeneralȱFundȱ ȱȱ
813ȱNeighborhoodȱParksȱ IrrigationȱandȱDomesticȱServiceȱ ȱ$ȱȱȱȱȱȱȱȱ70,000ȱȱ GeneralȱFundȱ ȱȱ
813ȱNeighborhoodȱParksȱ EnvironmentalȱConsultingȱServicesȱ ȱ$ȱȱȱȱȱȱȱȱ14,000ȱȱ GeneralȱFundȱ ȱȱ
820ȱSidewalkȱCurbȱandȱ
Gutterȱ AnnualȱSidewalkȱCurbȱandȱGutterȱ ȱ$ȱȱȱ1,500,000ȱȱ
Transportationȱ
Fundȱ ȱȱ
820ȱSidewalkȱCurbȱandȱ
Gutterȱ ConcreteȱMaintenanceȱBacklogȱ ȱ$ȱȱȱȱȱȱ550,000ȱȱ
Transportationȱ
Fundȱ ȱȱ
820ȱSidewalkȱCurbȱandȱ
Gutterȱ AnnualȱSidewalkȱGrindingȱProjectȱ ȱ$ȱȱȱȱȱȱȱȱ80,000ȱȱ
Transportationȱ
Fundȱ ȱȱ
821ȱStreetȱPavementȱ
Maintenanceȱ PavementȱMaintenanceȱ ȱ$ȱȱȱ2,000,000ȱȱ
Transportationȱ
Fundȱ ȱȱ
822ȱStreetȱSignȱMarkingȱ StanleyȱCutoffȱ&ȱChainȱSawsȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ5,600ȱȱ
Transportationȱ
Fundȱ ȱȱ
825ȱStreetȱTreeȱ
Maintenanceȱ TreesȱandȱBadgesȱ ȱ$ȱȱȱȱȱȱȱȱ15,000ȱȱ GeneralȱFundȱ ȱȱ
829ȱServiceȱCenterȱ
Maintenanceȱ StorageȱShedȱReplacementȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ7,000ȱȱ GeneralȱFundȱ ȱȱ
829ȱServiceȱCenterȱ
Maintenanceȱ MechanicȱShopȱAsbestosȱRemovalȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ8,000ȱȱ GeneralȱFundȱ ȱȱ
830ȱQuinlanȱCommunityȱ
CenterȱMaintenanceȱ RestroomȱPartitionȱReplacementȱ ȱ$ȱȱȱȱȱȱȱȱ10,000ȱȱ GeneralȱFundȱ ȱȱ
830ȱQuinlanȱCommunityȱ
CenterȱMaintenanceȱ SecurityȱSystemȱRetrofitȱ ȱ$ȱȱȱȱȱȱȱȱ25,000ȱȱ GeneralȱFundȱ ȱȱ
831ȱSeniorȱCenterȱ
Maintenanceȱ DrinkingȱFountainȱReplacementȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ6,000ȱȱ GeneralȱFundȱ ȱȱ
833ȱMontaȱVistaȱ
CommunityȱCenterȱ
Maintenanceȱ
MontaȱVistaȱPartitionȱandȱKeyȱ
Replacementȱ ȱ$ȱȱȱȱȱȱȱȱ57,000ȱȱ GeneralȱFundȱ ȱȱ
846ȱSafeȱRoutesȱ2ȱSchoolȱ PedestrianȱEducationȱ ȱ$ȱȱȱȱȱȱȱȱ41,160ȱȱ GeneralȱFundȱ ȱȱ
848ȱStreetȱLightingȱ StreetȱLightȱPoleȱReplacementȱ ȱ$ȱȱȱȱȱȱ161,000ȱȱ GeneralȱFundȱ ȱȱ
848ȱStreetȱLightingȱ
DonȱBurnettȱBridgeȱPathwayȱLEDȱ
LightȱUpgradeȱ ȱ$ȱȱȱȱȱȱȱȱ47,000ȱȱ GeneralȱFundȱ ȱȱ
848ȱStreetȱLightingȱ LindaȱVistaȱParkȱLEDȱLightȱUpgradeȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ6,000ȱȱ GeneralȱFundȱ ȱȱ
849ȱEquipmentȱ
Maintenanceȱ MechanicȱShopȱHoseȱReelsȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ9,000ȱȱ GeneralȱFundȱ ȱȱ
855ȱStormȱDrainȱ
Maintenanceȱ ServiceȱCenterȱINDȱInspectionȱ ȱ$ȱȱȱȱȱȱȱȱȱȱ5,000ȱȱ GeneralȱFundȱ ȱȱ
985ȱFixedȱAssetȱ
Acquisitionȱ VehicleȱReplacementȱ ȱ$ȱȱȱȱȱȱ959,136ȱȱ GeneralȱFundȱ ȱȱ
986ȱGISȱ IoTȱforȱAnalyticsȱ ȱ$ȱȱȱȱȱȱȱȱ15,000ȱȱ
InternalȱServiceȱ
Fundȱ ȱȱ
ȱȱ
TOTALȱNONȬCITYȱCOUNCILȱ
WORKȱPROGRAMȱ ȱ$ȱȱȱ6,154,996ȱȱ ȱȱ ȱȱ
ȱȱ TOTALȱCITYȱSPECIALȱPROJECTSȱ ȱ$ȱȱȱ6,879,588ȱȱ ȱȱ ȱȱ
ȱ
ȱ
ȱ
33
CurrentȱEconomicȱUpdateȱ
NationalȱandȱStateȱEconomicȱConditionsȱȱ
Throughȱ theȱ fourthȱ quarterȱ ofȱ 2019,ȱ theȱ U.S.ȱ economyȱ continuedȱ toȱ showȱ steadyȱ growth.ȱ U.S.ȱ
Grossȱ Domesticȱ Productȱ (GDP)ȱ increasedȱ byȱ 2.1%ȱ inȱ 2019ȱ accordingȱ toȱ theȱ Bureauȱ ofȱ Economicȱ
Analysis,ȱcomparedȱwithȱanȱincreaseȱofȱ2.2%ȱinȱ2018.ȱTheȱincreaseȱinȱrealȱGDPȱinȱ2019ȱprimarilyȱ
reflectedȱ positiveȱ contributionsȱ fromȱ personalȱ consumption,ȱ exports,ȱ residentialȱ fixedȱ
investment,ȱ federalȱ governmentȱ spending,ȱ andȱ stateȱ andȱ localȱ governmentȱ spendingȱ thatȱ wereȱ
partlyȱ offsetȱ byȱ negativeȱ contributionsȱ fromȱ privateȱ inventoryȱ investmentȱ andȱ nonresidentialȱ
fixedȱinvestment.ȱȱ
ȱ
Throughȱ theȱ firstȱ quarterȱ ofȱ 2020,ȱ financialȱ marketsȱ haveȱ experiencedȱ significantȱ turbulence,ȱ
drivenȱ byȱaȱhighȱ levelȱ ofȱuncertaintyȱ aboutȱtheȱimpactȱ ofȱ theȱ COVIDȬ19ȱpandemicȱ onȱtheȱglobalȱ
economy.ȱȱUSȱTreasuryȱ yieldsȱhaveȱ declined,ȱamidȱaȱ globalȱflightȱ toȱ quality.ȱȱAtȱ theȱ endȱ ofȱ firstȱ
quarter,ȱtheȱyieldȱonȱ2ȬyearȱTreasuriesȱwasȱdownȱ132ȱbasisȱpointsȱyearȬtoȬdate,ȱandȱtheȱyieldȱonȱ
10Ȭyearȱ Treasuriesȱ wasȱ downȱ nearlyȱ 125ȱ basisȱ points.ȱȱTheȱ S&Pȱ 500ȱindexȱ declinedȱ 20.0%ȱ inȱtheȱ
firstȱ quarterȱ asȱ well.ȱȱThereȱ areȱ stillȱ manyȱ unknownsȱ aboutȱ theȱ coronavirusȱ includingȱ howȱ
widespreadȱ itȱ willȱ become,ȱ howȱ longȱ itȱ willȱ takeȱ toȱ containȱ theȱ virus,ȱ andȱ theȱ actualȱ impactȱ onȱ
economicȱ activity.ȱȱDuringȱ thisȱ periodȱ ofȱ uncertainty,ȱ staffȱ believeȱ continuedȱ increasesȱ inȱ
unemploymentȱ andȱ deepȱ contractionsȱ inȱ overallȱ economicȱ activityȱ willȱ beȱ experienced.ȱ
Financialȱ marketsȱ willȱ likelyȱ remainȱ volatileȱ overȱ theȱ nearȱ term,ȱ thoughȱ largeȬscaleȱ globalȱ
monetaryȱ andȱ fiscalȱ stimulusȱ programsȱ willȱ assistȱ inȱ mitigatingȱ theȱ longerȬtermȱ impactȱ ofȱ theȱ
pandemic.ȱ Theȱ Fedȱ hasȱ takenȱ aȱ wideȱ rangeȱ ofȱ aggressiveȱ actionsȱ toȱ helpȱ stabilizeȱ andȱ provideȱ
liquidityȱ toȱ theȱ financialȱ marketsȱ includingȱ theȱ loweringȱ ofȱ theȱ targetȱ rateȱ toȱ taȱ rangeȱ ofȱ 0.0%Ȭ
0.25%.ȱȱFedȱChairȱ PowellȱhasȱindicatedȱthatȱtheȱFedȱwillȱ continueȱtoȱ actȱ “forcefully,ȱ proactively,ȱ
andȱaggressively”ȱuntilȱtheȱeconomyȱisȱsolidlyȱonȱaȱroadȱtoȱrecovery.ȱȱ
ȱ
COVIDȬ19ȱ isȱ havingȱ significantȱ
impactsȱ onȱ theȱ nation’sȱ
unemployment.ȱ Theȱ U.S.ȱ
unemploymentȱ rateȱ stoodȱ atȱ 4.4%ȱ
inȱ Marchȱ 2020,ȱupȱfromȱ3.5%ȱinȱtheȱ
previousȱ month.ȱ Theȱ participationȱ
rateȱ declineȱ toȱ 62.7%ȱ fromȱ 63.4%.ȱȱ
Aȱ broaderȱ measureȱ ofȱ
unemploymentȱ calledȱ theȱ UȬ6,ȱ
whichȱ includesȱ thoseȱ whoȱ areȱ
marginallyȱ attachedȱ toȱ theȱ laborȱ
forceȱ andȱ employedȱ partȬtimeȱ forȱ
economicȱ reasons,ȱ increasedȱ toȱ
8.7%ȱfromȱ7.0%.ȱAlthoughȱtheȱ
unemploymentȱ rateȱ hasȱ improvedȱ significantlyȱ fromȱ aȱ highȱ ofȱ 9.6%ȱ inȱ 2010,ȱ economistsȱ believeȱ
thatȱ ifȱ weȱ areȱ notȱ currentlyȱ inȱ aȱ recession,ȱ theȱ chancesȱ ofȱ enteringȱ oneȱ thisȱ yearȱ areȱ certain,ȱ thusȱ
markingȱtheȱendȱtoȱtheȱnation’sȱlongestȬrunningȱexpansionaryȱperiod.ȱ
Ϭ
ϭ
Ϯ
ϯ
ϰ
ϱ
ϲ
DĂƌͲϭϱ DĂƌͲϭϲ DĂƌͲϭϳ DĂƌͲϭϴ DĂƌͲϭϵ DĂƌͲϮϬhŶĞŵƉůŽLJŵĞŶƚZĂƚĞh^hŶĞŵƉůŽLJŵĞŶƚZĂƚĞ
34
ȱ
Consumerȱ confidence,ȱ asȱ reflectedȱ byȱ theȱ Conferenceȱ Boardȱ Consumerȱ Confidenceȱ Index,ȱ
decreasedȱ overȱ theȱ previousȱ yearȱ andȱ standsȱ atȱ 120.0ȱ asȱ ofȱ Marchȱ 2020,ȱ includingȱ aȱ 12.6ȱ pointȱ
decreaseȱ overȱ theȱ previousȱ month.ȱȱTheȱ yearȬoverȬyearȱ decreaseȱ isȱ theȱ resultȱ ofȱ aȱ deteriorationȱ
inȱ theȱ shortȬtermȱ outlook.ȱȱTheȱ Presentȱ Situationȱ Indexȱ remainedȱ relativelyȱ strong,ȱ reflectiveȱ ofȱ
anȱ economyȱ thatȱ wasȱ onȱ solidȱ footing,ȱ andȱ priorȱ toȱ theȱ recentȱ surgeȱ inȱ unemploymentȱ claims.ȱȱ
However,ȱ theȱ intensificationȱ ofȱ COVIDȬ19ȱ andȱ extremeȱ volatilityȱ inȱ theȱ financialȱ marketsȱ haveȱ
increasedȱ uncertaintyȱ aboutȱ theȱ outlookȱ forȱ theȱ economicȱ andȱ jobs.ȱȱMarch’sȱ declineȱ inȱ
confidenceȱ isȱ moreȱ inȱ lineȱ withȱ aȱ severeȱ contractionȱ –ȱ ratherȱ thanȱ aȱ temporaryȱ shockȱ –ȱ andȱ
furtherȱdeclinesȱareȱsureȱtoȱfollow.ȱȱ
ȱ
ȱ
California’sȱ unemploymentȱ rateȱ
roseȱ toȱ 5.3%ȱ inȱ Marchȱ 2020,ȱ anȱ
improvementȱ comparedȱ toȱ lastȱ
year’sȱ unemploymentȱ rateȱ ofȱ 4.2%.ȱȱ
Perȱ capitaȱ personalȱ incomeȱ
increasedȱ 4.5%ȱ inȱ 2019ȱ overȱ 2018,ȱ
mostlyȱ dueȱ toȱ fasterȱ growthȱ inȱ
wages;ȱ however,ȱ itȱ isȱ reasonableȱ toȱ
anticipateȱdeclinesȱinȱincomeȱinȱ2020ȱ
asȱ aȱ resultȱ ofȱ COVIDȬ19.ȱ Growthȱ inȱ
theȱ housingȱ marketȱ slowedȱ overȱ theȱ
priorȱ yearȱ withȱ theȱ pricesȱ ofȱ singleȬ
familyȱ homesȱ upȱ 8.3%ȱ andȱ salesȱ downȱ 6.1%ȱ comparedȱ toȱ Marchȱ ofȱ lastȱ yearȱ accordingȱ toȱ theȱ
Californiaȱ Associationȱ ofȱ Realtorsȱ (CAR).ȱȱGrowthȱ inȱ Santaȱ Claraȱ Countyȱ slowedȱ overȱ theȱ priorȱ
yearȱ withȱ theȱ pricesȱ ofȱ singleȬfamilyȱ homesȱ upȱ 7.7%ȱ andȱ salesȱ downȱ 19.0%.ȱȱRecognizingȱ thatȱ
theȱ Stateȱ hasȱ aȱ chronicȱ housingȱ shortageȱ andȱ understandingȱ thatȱ inadequateȱ housingȱ hasȱ theȱ
potentialȱ toȱ impedeȱ economicȱ growth,ȱ stateȱ legislatorsȱ haveȱ succeededȱ inȱ passingȱ aȱ legislativeȱ
housingȱpackageȱthatȱhasȱtheȱpotentialȱtoȱmakeȱaȱdifference.ȱ
ȱ
CupertinoȱEconomicȱConditionsȱ
Despiteȱ strongȱ economicȱ performanceȱ continuingȱ inȱ Siliconȱ Valleyȱ andȱ Cupertinoȱ preȬCOVID,ȱ
dataȱ fromȱ theȱ Stateȱ ofȱ Californiaȱ Employmentȱ Developmentȱ Departmentȱ indicatesȱ significantȱ
impactsȱ asȱ aȱ resultȱ ofȱ theȱ virus.ȱ Employmentȱ inȱ theȱ Sanȱ José/Sunnyvale/Santaȱ Claraȱ
Metropolitanȱ Statisticalȱ Areaȱ (MSA)ȱ continuesȱ toȱ increase.ȱ Theȱ preliminaryȱ estimateȱ ofȱ theȱ
Marchȱ 2020ȱ employmentȱ levelȱ inȱ theȱ MSAȱ wasȱ 1.03ȱ million,ȱ representingȱ anȱ approximatelyȱ
300,000ȱ dropȱ fromȱ theȱ Marchȱ 2019ȱ level.ȱȱTheȱ Marchȱ 2020ȱ preliminaryȱ unemploymentȱ rateȱ ofȱ
3.4%ȱ hasȱ increasedȱ fromȱ theȱ 2.8%ȱ rateȱ experiencedȱ aȱ yearȱ ago.ȱ Ourȱ localȱ unemploymentȱ rateȱ isȱ
lowerȱthanȱtheȱnationalȱunemploymentȱrateȱofȱ4.4%.ȱȱȱ
ȱ
Housingȱpricesȱremainȱstrongȱcomparedȱtoȱtheȱsameȱperiodȱinȱ2019.ȱAsȱofȱFebruaryȱ2020,ȱsingleȱ
familyȱ homesȱ soldȱ forȱ aȱ medianȱ homeȱ priceȱ ofȱ $2.08ȱ million,ȱ aȱ notableȱ increaseȱ overȱ theȱ pastȱ
year.ȱ Theȱ increaseȱ inȱ theȱ medianȱ homeȱ pricesȱ correlatesȱ withȱ propertyȱ taxȱ revenueȱ beingȱ
expectedȱ toȱ increaseȱ slightlyȱ comparedȱ toȱ lastȱ yearȱ dueȱ toȱ reassessmentsȱ ofȱ developmentȱ
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35
projects,ȱ andȱ additionalȱ TEAȱ propertyȱ taxȱ share.ȱ Dueȱ toȱ theȱ timingȱ ofȱ propertyȱ appraisalsȱ
enteringȱ theȱ assessor’sȱ role,ȱ theȱ Cityȱ doesȱ notȱ anticipateȱ significantȱ impactsȱ toȱ propertyȱ taxȱ
revenuesȱ inȱ FYȱ 20Ȭ21.ȱȱWhenȱ propertyȱ valuesȱ areȱ appraisedȱ againȱ inȱ Januaryȱ 2021ȱ andȱ areȱ
includedȱ inȱ theȱ FYȱ 21Ȭ22ȱ roll,ȱ onlyȱ thenȱ willȱ theȱ Cityȱ expectȱ toȱ seeȱ adverseȱ impactsȱ resultingȱ
fromȱ COVIDȬ19.ȱ Constructionȱ activity,ȱ althoughȱ strongȱ inȱ previousȱ years,ȱ willȱ continueȱ toȱ
flattenȱ outȱ asȱ developmentȱ projects,ȱ particularlyȱ Appleȱ Park,ȱ areȱ completed.ȱȱGivenȱ theȱ levelȱ ofȱ
volatilityȱ surroundingȱ COVIDȬ19ȱandȱ theȱ uncertaintyȱofȱ recoveryȱ time,ȱ itȱ isȱ difficultȱ toȱ estimateȱ
theȱtimingȱofȱsignificantȱprojectsȱthatȱcouldȱhaveȱaȱpositiveȱimpactȱonȱtheȱCity’sȱgeneralȱrevenueȱ
bases.ȱ
ȱ
KeyȱBudgetȱAssumptionsȱ
RevenueȱAssumptionsȱ
BecauseȱofȱCOVIDȬ19,ȱtheȱFYȱ2021ȱProposedȱBudgetȱassumesȱsignificantȱdeclinesȱinȱtheȱsalesȱtaxȱ
andȱtransientȱoccupancyȱtaxȱcategories.ȱȱOtherȱcategoriesȱconsiderȱassumptionsȱrangingȱfromȱnoȱ
growthȱ toȱ conservativeȱ growth.ȱ Asȱ hasȱ beenȱ doneȱ inȱ theȱ past,ȱ revenueȱ projectionsȱ forȱ eachȱ
categoryȱ wereȱ basedȱ uponȱ aȱ carefulȱ examinationȱ ofȱ theȱ collectionȱ historyȱ andȱ patternsȱ asȱ theyȱ
relateȱtoȱsuchȱfactorsȱasȱseasonalityȱandȱperformanceȱinȱtheȱeconomicȱ environmentȱthatȱtheȱCityȱ
isȱ mostȱ likelyȱ toȱ encounterȱ inȱ theȱ comingȱ year.ȱȱWithȱ that,ȱ potentialȱ COVIDȬ19ȱ impactsȱ wereȱ
alsoȱ heavilyȱ weighedȱinȱdeterminingȱ theȱ mostȱ reasonableȱ estimatedȱ figures.ȱȱGivenȱ theȱ extremeȱ
volatilityȱ andȱ highȱ levelȱ ofȱ uncertainty,ȱ staffȱ areȱ preparedȱ toȱ bringȱ forwardȱ informationȱ andȱ
budgetȱ adjustmentsȱ toȱ theȱ Cityȱ Councilȱ throughoutȱ theȱ fiscalȱ yearȱ andȱ asȱ theȱ COVIDȬ19ȱ
situationȱ evolves.ȱ Revenueȱ assumptionsȱ areȱ discussedȱ inȱ detailȱ inȱ theȱ Fundȱ Summaryȱ sectionȱ
underȱFinancialȱPoliciesȱandȱSchedules.ȱȱ
ȱ
PersonnelȱAssumptionsȱ
Theȱ Cityȱ isȱ enteringȱ theȱ secondȱ yearȱ ofȱ itsȱ currentlyȱ effectiveȱ laborȱ agreementsȱ whichȱ assumeȱ
3.5%ȱ costȱ ofȱ livingȱ adjustmentȱ increases.ȱȱEquityȱ adjustments,ȱ andȱ increasesȱ forȱ retirementȱ andȱ
healthȱwereȱalsoȱincludedȱinȱtheȱincreaseȱforȱcompensationȱandȱbenefits.ȱȱ
ȱȱ
Inȱ addition,ȱ budgetedȱ personnelȱ expendituresȱ factorȱ inȱ salaryȱ stepȱ increasesȱ forȱ approximatelyȱ
54%ȱ ofȱ employeesȱ whoȱ haveȱ yetȱ toȱ reachȱ theȱ topȱ stepȱ inȱ theirȱ classification’sȱ salaryȱ range.ȱ
Typically,ȱ aȱ stepȱ increaseȱ isȱ equivalentȱ toȱ aȱ fiveȱ percentȱ increaseȱ inȱ salaryȱ withȱ aȱ rangeȱ ofȱ fiveȱ
salaryȱsteps.ȱȱ
ȱ
NonȬPersonnelȱAssumptionsȱ
NonȬPersonnelȱ budgetsȱ wereȱ developedȱ basedȱ onȱ actualȱ expendituresȱ inȱ priorȱ years,ȱ andȱ thenȱ
adjustedȱ forȱ FYȱ 2021ȱ fundingȱ needs.ȱ Inȱ addition,ȱ oneȬtimeȱ projectsȱ haveȱ beenȱ separatedȱ outȱ inȱ
FYȱ 2021ȱ toȱ ensureȱ thatȱ expenditureȱ trendsȱ reflectȱ ongoingȱ expenditureȱ needs.ȱ Contingencyȱ
budgetsȱ areȱ assumedȱ toȱ beȱ reducedȱ byȱ 50%ȱ overȱ theȱ priorȱ year,ȱ representingȱ anȱ approximateȱ
$850,000ȱ inȱ savings.ȱ Contingenciesȱ areȱ calculatedȱ atȱ 5%ȱ ofȱ theȱ totalȱ Generalȱ Fundȱ budgetȱ forȱ
contractualȱ servicesȱ andȱ suppliesȱ andȱ materialsȱ forȱ operatingȱ programs.ȱ Consistentȱ withȱ pastȱ
budgets,ȱ anȱ additionalȱ 5%ȱ isȱ allocatedȱ toȱ theȱ Cityȱ Manager’sȱ discretionaryȱ budgetȱ toȱ coverȱ
unanticipatedȱprogramȱexpenses.ȱȱ
ȱ
ȱ
36
OngoingȱChallengesȱ
RetirementȱBenefitsȱȱ
Cupertinoȱ providesȱ retirementȱ benefitsȱ forȱ itsȱ employeesȱ throughȱ theȱ Californiaȱ Publicȱ
Employee’sȱ Retirementȱ Systemȱ (CalPERS).ȱ Poorȱ investmentȱ returnsȱ duringȱ theȱ Greatȱ Recessionȱ
andȱ actuarialȱ assumptionȱ changesȱ haveȱ increasedȱ theȱ gapȱ betweenȱ theȱ pensionȱ system’sȱ assetsȱ
andȱ liabilities,ȱ resultingȱ inȱ theȱ overallȱ fundedȱ statusȱ ofȱ theȱ systemȱ fallingȱ significantly.ȱ Theȱ
fundedȱstatusȱasȱofȱJuneȱ30,ȱ2019ȱisȱestimatedȱatȱ69%,ȱdownȱfromȱ71%ȱoverȱtheȱpriorȱyearȱdueȱtoȱ
lowerȱthanȱexpectedȱinvestmentȱreturns.ȱ
Asȱ aȱ result,ȱ theȱ CalPERSȱ Boardȱ hasȱ adoptedȱ revisedȱ actuarialȱ policiesȱ toȱ improveȱ theȱ financialȱ
sustainabilityȱ ofȱ theȱ system.ȱ Inȱ Februaryȱ 2018,ȱ theȱ CalPERSȱ boardȱ votedȱ toȱ decreaseȱ theȱ
amortizationȱ periodȱ forȱ newȱ pensionȱ liabilitiesȱ fromȱ 30ȱ yearsȱ toȱ 20ȱ years,ȱ effectiveȱ Julyȱ 1,ȱ 2019.ȱ
Inȱ addition,ȱ inȱ Decemberȱ 2016,ȱ theȱ CalPERSȱ Boardȱ votedȱ toȱ reduceȱ theȱ discountȱ rate,ȱ alsoȱ
knownȱ asȱ theȱ assumedȱ rateȱ ofȱ returnȱ forȱ investments,ȱ byȱ 0.5ȱ percentageȱ pointsȱ toȱ 7.0%.ȱ Theȱ
resultȱ ofȱ thisȱ changeȱ isȱ significantȱ andȱ willȱ resultȱ inȱ considerableȱ increasesȱ inȱ retirementȱ costsȱ
wellȱ aboveȱ whatȱ theȱ Cityȱ hadȱ previouslyȱ forecastedȱ forȱ retirementȱ expensesȱ asȱ notedȱ inȱ theȱ
tableȱ below.ȱȱAsȱ ofȱ Marchȱ 2020,ȱ CalPERSȱ yearȬtoȬdateȱ earningsȱ onȱ investmentsȱ wereȱ atȱȬ4%.ȱȱ
Assumingȱ CalPERSȱ endsȱ theȱ yearȱ inȱ aȱ similarȱ position,ȱ orȱ inȱ aȱ positionȱ belowȱ theȱ 7%ȱ desiredȱ
target,ȱ theȱ Cityȱ canȱ expectȱ toȱ seeȱ continuedȱ spikesȱ inȱ annualȱ requiredȱ contributions.ȱȱTheȱ
impactsȱ fromȱ CalPERSȱ investmentȱ earningsȱ wouldȱ notȱ beȱ includedȱ inȱ theȱ City’sȱ actuarialȱ
reportsȱ untilȱ FYȱ 22Ȭ23ȱ andȱ wouldȱ beȱ smoothedȱ overȱ aȱ fiveȬyearȱ period.ȱȱAsȱ partȱ ofȱ theȱ FYȱ 2019ȱ
Adoptedȱ Budget,ȱ Cityȱ Councilȱ approvedȱ theȱ creationȱ ofȱ aȱ Pensionȱ Rateȱ Stabilizationȱ Programȱ
(PRSP),ȱ aȱ Sectionȱ 115ȱ Trustȱ thatȱ willȱ actȱ toȱ stabilizeȱ pensionȱ rateȱ volatilityȱ andȱ minimizeȱ theȱ
impactȱ onȱ theȱ Generalȱ Fund’sȱ operatingȱ budgetȱ fromȱ yearȱ toȱ year.ȱȱDuringȱ FYȱ 2019,ȱ theȱ Cityȱ
contributedȱ anȱ initialȱ investmentȱ ofȱ $8.0ȱ millionȱ toȱ theȱ trust.ȱ Theȱ FYȱ 2021ȱ Proposedȱ Budgetȱ
includesȱ thisȱ $8.0ȱ millionȱ asȱ wellȱ asȱ anȱ additionalȱ $4Mȱ contributedȱ duringȱ FYȱ 2020ȱ asȱ restrictedȱ
fundȱbalanceȱtoȱprovideȱstabilizationȱthroughȱtheȱfollowingȱrampȬupȱperiodȱasȱnecessary:ȱ
ȱ
ȱ
ȱ
RevenueȱVolatilityȱ
TheȱCity’sȱrevenueȱmixȱisȱheavilyȱreliantȱonȱvolatileȱbusinessȬtoȬbusinessȱsalesȱtax,ȱwhichȱmakesȱ
upȱ aȱ largeȱ portionȱ ofȱ theȱ City’sȱ annualȱ Generalȱ Fundȱ revenues.ȱ BusinessȬtoȬbusinessȱ salesȱ taxesȱ
areȱ veryȱ sensitiveȱ toȱ economicȱ fluctuationsȱ asȱ evidencedȱ byȱ Cupertino’sȱ experienceȱ duringȱ theȱ
dotcomȱ bustȱ fromȱ 2000Ȭ2004.ȱ Ourȱ heavyȱ relianceȱ onȱ theȱ volatileȱ highȱ techȱ industryȱ alsoȱ makesȱ
usȱ vulnerable.ȱ Theȱ lossȱ ofȱ oneȱ ofȱ ourȱ topȱ threeȱ salesȱ taxȱ producersȱ inȱ FYȱ 2013Ȭ14ȱ onlyȱ madeȱ theȱ
Cityȱ moreȱreliantȱonȱaȱ singleȱ taxȱproducer,ȱ makingȱusȱmoreȱ vulnerableȱ toȱ itsȱbusinessȱvolatility.ȱ
COVIDȬ19ȱ inȱ expectedȱ toȱ significantlyȱ increaseȱ theȱ volatilityȱ ofȱ theȱ City’sȱ revenuesȱ inȱ FYȱ 2020Ȭ
21;ȱ particularlyȱ itsȱ salesȱ andȱ transientȱ occupancyȱ taxes.ȱȱWhileȱ theȱ overallȱ reductionsȱ inȱ theseȱ
FY20Ȭ21 FY21Ȭ22 FY22Ȭ23 FY23Ȭ24 FY24Ȭ25 FY25Ȭ26
ProjectedȱPayroll 19,490,834$ȱȱȱ 20,026,831$ȱ 20,577,569$ȱ 21,143,452$ȱ 21,724,897$ȱ 22,322,332$ȱ
NormalȱCostȱ(%) 11.3% 11.3% 11.3% 11.3% 11.3% 11.3%
NormalȱCost 2,203,634$ȱȱȱȱȱ 2,264,234$ȱȱȱ 2,326,500$ȱȱȱ 2,390,479$ȱȱȱ 2,456,217$ȱȱȱ 2,523,763$ȱȱȱ
UALȱPayment 3,607,122$ȱȱȱȱȱ 4,056,000$ȱȱȱ 4,448,000$ȱȱȱ 4,724,000$ȱȱȱ 5,001,000$ȱȱȱ 4,775,000$ȱȱȱ
TotalȱContribution 5,810,756$ȱȱȱȱȱ 6,320,234$ȱȱȱ 6,774,500$ȱȱȱ 7,114,479$ȱȱȱ 7,457,217$ȱȱȱ 7,298,763$ȱȱȱ
TotalȱContributionȱ(%) 29.8% 31.6% 32.9% 33.6% 34.3% 32.7%
ProjectedȱEmployerȱContributions
37
twoȱ categoriesȱ ($6.9ȱ million)ȱ isȱ sureȱ toȱ haveȱ aȱ profoundȱ impact,ȱ theȱ Generalȱ Fundȱ isȱ wellȬ
positionedȱ toȱ absorbȱ theȱ temporaryȱ declineȱ andȱ withstandȱ theȱ economicȱ recoveryȱ periodȱ intoȱ
theȱfuture.ȱ
ȱ
HealthȱBenefitsȱ
ThereȱisȱuncertaintyȱaroundȱpotentialȱrepealȱandȱreplacementȱofȱtheȱAffordableȱCareȱActȱ(ACA)ȱ
andȱ howȱ itȱ wouldȱ affectȱ healthȱ careȱ costs.ȱ Rateȱ increasesȱ haveȱ stabilizedȱ withȱ theȱ
implementationȱofȱtheȱACA.ȱȱ
38