CC 09-06-2023 Searchable Packet.pdf — Cupertino City Council, September 6, 2023 (part 2 of 3)

Managing Partner
Jeffrey Wright
CTO
Bill Mitchell
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Date Date
APPROVED AS TO FORM:

CHRISTOPHER D. JENSEN
Cupertino City Attorney
ATTEST:

KIRSTEN SQUARCIA
City Clerk
Date
0365 Solution for CIP

Page 9 ends

Dec 21, 2021
Christopher D. Jensen
Dec 21, 2021
Dec 21, 2021
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This response includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluat e this proposal. If, however, a contract is awarded to this offeror as a result, or in connection with, the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government’ s right to use information contained in this response if it is obtainable from another source without restriction. The data subject to this restriction are contained on all sheets of this response.

Microsoft Office 365 Capital Improvement Program
CIP) / Submittal Solution
for the City of Cupertino
Proposal
Submitted: October 18, 2021
Offer Valid for 90 Days from Proposal Submission Date
Prepared for:

The City of Cupertino
Prepared by:

Nexinite, LLC
Jeffrey Wright, Managing Partner
[email protected]
415-915-2929
This document includes data that shall not be disclosed outside the Client and shall not be duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate this proposal. If, however, a contract is awarded to Nexinite as a result, or in connection with the submission of this data, the Client shall have the right to duplicate, use, or disclose the data to the extent necessary in the resulting contract. This restriction does not limit the Client’ s right to use information contained in this response if it is obtainable from another source without restriction. The data subject to this restriction is contained on all sheets of this document.

EXHIBITS A, B, & C
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 i
Contents
1 Introduction ............................................................................................................................ 1 2 Solution Overview ................................................................................................................... 1 3 Scope of Work (SOW) Tasks .................................................................................................... 1

3.1 CIP Project Management Application .............................................................................. 1

3.2 New World Financial Data Integration ............................................................................. 3

3.3 Submittal Application ....................................................................................................... 5

3.4 Reporting .......................................................................................................................... 7 4 Project Plan and Price ........................................................................................................... 10

4.1 Terms & Conditions ........................................................................................................ 11 131
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 1
1 Introduction
Nexinite, a Silver Microsoft Partner, specializes in using Microsoft tools to provide innovative business solutions. We deliver a customized scalable infrastructure that provides collaborative and insightful workflows. We use standard platforms like Microsoft Teams, SharePoint, and Power BI to provide insightful management and reporting capabilities to help your productivity in the most efficient, smartest way possible. Our passion is finding the right solutions and implementing a strategy that will last for the long haul.

Nexinite, LLC is pleased to submit its proposal to the City of Cupertino, California, for the Microsoft Office 365 CIP/ Submittal Solution project. Nexinite will establish a secure Microsoft cloud-based environment to host a custom program management solution in the City of Cupertino’s Office 365 tenant.

This proposal outlines the tasks and associated costs to successfully accomplish these objectives. 2 Solution Overview
The solution will consist of the following 4 components:

CIP Project Management Application
o Capture Project information and combine this information with the project financial information in New World
New World Financial Data Integration
o Augment Cupertino’ s Dataverse- based central data repository with project financial information.

Submittal Application
o Internal/ external submittal application which will enable external 3rd-parties to initiate submittal requests which can be reviewed internally by City of Cupertino Reporting
o Project, Submittal, and Invoicing Reporting.

Task details are provided in the following section.
3 Scope of Work (SOW) Tasks
This section provides details and activities Nexinite will perform to accomplish each SOW task.

3.1 CIP Project Management Application
The CIP Project Management Application will be accessible via a SharePoint site with the following links:

Projects
Reports
City Map and Drawing Database -Laserfiche
GIS – Property Info

EXHIBIT A
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 2
GIS – CIP Public Dashboard
GIS – CIP Internal Dashboard
Public Improvement Standards
Council Meeting Minutes/ Staff Reports/ Council Actions Via the Projects link, a user will access the CIP Project Management Application which will present the user with a window containing the following 6 panes, and fields within each pane:

1. Project Details
Project Name
Project Type
Park
Sidewalk
Facility
General Transportation
Trail
Bike
Location
Project Phase
City Project Manager
City Project Number
GL Number
Finance Project Number
Project Number
Fiscal Year Initiated
Project Description

2. Financials Pane
Estimates
Actuals
Funding Sources
Federal Funding Requirements
Grant Fund
Council Fund

3. Recent Documents
List of recently viewed documents with a link to all available project documents The types of CIP documents will be as follows
Building/ Planning Department – Communications
Staff Reports
Memos
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 3
Applications (e.g. Caltrans)
SOW – Project Charter
Schedule
Record Documents

4. Contracts Pane
Enable user to view all contracts and access a Contract Detail Pane which will contain the following information:

Invoice Details
Change Orders
Amendments
Purchase Orders
Service Orders
Notice of Completion (Internally Created)
Insurance Updates Original Contract (Additional Attachment)

5. Council Actions Pane
Minutes Attached
History of Public Actions Against Funds
Staff Reports
Approval Date
Amendment Date
Indicate if Item was Part of Council Work Program

6. Submittal Pane
Summary of Submittals
The duration of this activity will be 5 weeks and the resourcing and effort will be as follows:

CIP PROJECT MANAGEMENT APP.

Activity
Resources & Hours
Modern Workplace
Lead 2
Modern Workplace
Lead 1
Design 10 10
Build Out 0 100

3.2 New World Financial Data Integration
It is assumed that all required Financial for the Project Record Application and for Reporting will be provided via the New World ERP system. The following financial information will be available from the New World system:

Budgets
Actual Expenditures
Contracts & Purchase Orders
Funding Sources
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 4
Nexinite will utilize Microsoft’s PowerApps platform to extract the required financial information from New World and load this information in a structured manner in City of Cupertino’ s current data repository in Microsoft’s Dataverse.

Below are the assumptions with regards to the financial information:

Budgets
All budget information wil be available in New World
The following budget information will be available:
o Budget Amount
o Balance Amount
o Budget Year
o Encumbrance Amount
o Expense Amount
Budget Information Hierarchy is as follows:
o Program
o Project
o Vendor
Budgets are assigned on a Fiscal Year basis
There are no Budget Categories
Contingency Budgets are assigned at a project level
Expenditures
Estimated expenditures are initial estimates used by council to approve funds.

This is not used once the project has been approved.

Projected expenditures ( i.e. cashflow) information is not available and will not be used for reporting purposes
Expenditures are assigned to specific Project Codes and thse codes can be tied back to each project and CIP cost category
Administrative overhead is currently not tracked and assigned to specific projects in New World
Contracts & Purchase Orders
Both Contractual and Purchase Order amounts are available in New World Contractual amounts are the amounts contained in the initial legal agreement Purchase Order amounts are committed amounts which will go against the budget
Expenditures go against Purchase Orders
Funding Sources
Funding information in New World appears as a transaction that was made to the project account in New World
Projects can be funded by multiple Funds
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 5
The Funding amount allocated to a project is based on the off the estimated budget approved by the council
The duration of this activity will be 5 weeks and the resourcing and effort will be as follows:

NW FINANCIAL DATA INTEGRATION
Activity
Resources & Hours
Modern Workplace
Lead 2
Modern Workplace
Lead 1
Design 20 20
Build Out 0 80

3.3 Submittal Application
After reviewing the request for City of Cupertino’ s CIP Management Platform we recommend PowerApps Portals for the Contractor Submittal & Invoice Application. Administration of the Portal will provide simplified onboarding for external requirements/ participants and create a consistent repeatable process for deployment as new projects come online, we feel this is the appropriate approach with Microsoft’ s Portals technology and will be beneficial to the City of Cupertino.

While Portals will used for access and as the interaction interface and location for external participants this solution will also take advantage of SharePoint. As described in the RFP, documents will be a large part of the information exchange. With the internal CIP Project Management Application being built on SharePoint’ s core infrastructure we would extend SharePoint’s document features and functionality to PowerApps Portals and utilize Power Automate to route document properly into the Project Records folder hierarchy. SharePoint is a cost-effective approach to file storage and document management features.

Another requirement for the City of Cupertino is to create a submittal applicatio n to manage content submissions from external contractors/ consultants as a record. By using a record approach, business logic will be implemented for notifications to PMs related to specific submittals. In addition, submittal types related to specific projects will allow us to use Power Automate to route content types to specific folders. The submittal application will also offer an approval feature for submittals with the ability to reject and notify.

The Submittal Application will consist of a single screen will following 3 panes:

Submittal Details Pane:

Name
Type
o Invoice
o Submittal
Material Submittals – construction
Specifications
RFIs - Assigning to consultant – action required
Change orders

EXHIBIT B
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 6
Fields reports
Inspection reports
Schedule change
Photos
Cost estimates
Punch List
Meeting notes
Design directives
Prevailing wage
Permit documents and Applications
Feasibility
Potential Reports (e.g. CEQA, Geotech, Topo)
Deliverable's page - drawings
Bulletins – drawing changes
Specs - written description
IFC – Issue for construction – original drawings
Design Progress Sets
Status
Submitter
Date Received
Date Modified
Files Pane
List of files included with the submittal
Return Comments
Comments by either submitting or receiving party throughout the life of the submittal
City of Cupertino Submittal Users will also have access to a SharePoint list which will display the summary information and status of all submittals.

With regards to invoices, the following process will be assumed:

An Invoice will come in through the submittal application A Project Manager (PM) will be notified to approve or deny the invoice If denied, the PM will enter comments to be sent back to the submitter Once approved, a notification will be sent for the adminstrator to input the invoice in New World
A notification will also go to the submitter letting them know the invoice was approved by PM
Show invoice copy in this Submittal system
Auto ping PM, on set interval, if they have not approved or denied invoice 137
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 7
The following assumptions apply to the Submittal Application:

Notifications will be initiated for the following cases:

PM notification when a Submittal is created and initiated Submitter notification when PM changes Submittal status A Project Contact Directory will be created for each project Will describe who are the players, both internal and external The duration of this activity will be 6 weeks and the resourcing and effort will be as follows:

NW FINANCIAL DATA INTEGRATION
Activity
Resources & Hours
Modern Workplace
Lead 2
Modern Workplace
Lead 1
Internal Submittal Application 4 30
External Submittal Application 16 90

3.4 Reporting
Nexinite will create the following 2 reports:

1. CIP Project Report
Report will contain the following 7 pages:

CIP Project Overview
o Filtered by Project Type
o KPIs
Total Number of Projects
Active Projects
Completed Projects
o Project Costs
Estimated versus Actuals
o Project Status
o Project Details
Project Type
Project Name
Project Status
Project Manager
Total Actual Costs
Total Budget
CIP Fund Analysis
o Filtered by Program, Project Name and Fiscal Year
o Funding by Project Type
o Funding by Project Stage
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 8
o Shows total Invoiced Amount versus Total Funding
o Funding over all Fiscal Years
Project Contracts Overview
o Filtered by Project Type, Project Name and Date
o KPIs
Total Number of Projects
Total Number of Contracts
Active Number Contracts
Current Contracts
Percent Increase Contract
Change Order
Invoice Amount
o Contract Amount by Vendor Role
o Historical Cumulative Amounts
o Project Contracts information
Project Invoice
o Filtered by Project Type, Project Name and Date
o KPIs
Number of Projects
Current Contract Amount
Invoice Amount
Number of Invoices
Remaining Budget
Budget Amount
o Current Contract versus Invoiced Amount by Project
o Historical Invoices Received by Project Type
Contractor Performance Overview
o Filtered by Vendor and Project Type
o KPIs
Number of Projects
Number of Contracts
Contractual Amounts
Average Change Order Percentage
o Historical Invoices Received
o Current Contract versus Invoiced Amount by Project
Project Schedule Overview
o Filtered by Project Type, Project Name, Project Manager and Date o Number of Projects
o Project Plan
o Task Status
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 9
o Task Status Distribution
Project Manager' s Overview– Pull in MS Project
o Filtered by Project Type, Project Name, Project Manager and Date o KPIs
Fund Amount
Estimated Costs
Current Contract Amount
Remaining Estimated Budget
o Estimated versus Actual Costs
o Project Duration (Actual versus Total Remaining)
o Cumulative Invoice Totals Over Time
o Project Contracts Details
o Project Progress

2. Submittal Reporting
Filtered by Submittal status (active/ closed) and date
KPIs
Total Number of Submittals
Total Number of Accepted Submittals
Number of Submittals Awaiting Vendor Action
Number of Submittals Awaiting City of Cupertino Action
Average Days to Close
Number of Submittals by Status
Late/ On-Time Distribution
Number of Submittals Due This and Next Week
Number of Submittals by Days Open
Detailed Submittal Information

3. Invoice Submittal Reporting
Filtered by Vendor, Project, and Date
KPIs
Number of Invoices
Total Invoice Amount
Average Invoice Amount
Invoice Distribution by Submittal Status
Number of Invoices by Month
Invoice Details
It is assumed that project plan information will be acquired from City of Cupertino’ s Microsoft Project Web App (PWA) environment and loaded into the central data repository in Dataverse.

The duration of this activity will be 6 weeks and the resourcing and effort will be as follows:
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 10

REPORTING
Activity
Resources & Hours
Modern Workplace
Lead 2
Modern Workplace
Lead 1
CIP Project Report 6 54
Submittal and Invoice Report 4 40
4 Project Plan and Price
The high-level project plan is as follows:

Nexinite will assign a Project Manager during the duration of the entire project for a total of 56 hours.

The following table outlines the costs associated with the SOW described in section 2 of this proposal.

CONTRACT LINE ITEM COST
CIP Project Management Application $ 25,050
New World Financial Data Integration $ 25,500
Submittal Application $ 29,600
Reporting $ 21,770
Project Management $ 7,000
TOTAL $ 108, 920

EXHIBIT C
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Proposal for the City of Cupertino
Microsoft Office 365 CIP/ Submittal Solution
Use or disclosure of data contained on this sheet is subject to the disclosure notice on the title page of this response.

October 12, 2020 11

4.1 Terms & Conditions
Support outside of and/or in addition to the scope described in SOW 3.1 – 3.4 will be separately scoped and priced and agreed upon in writing between the parties below.

Date: 10/ 18/ 2020
Jeffrey Wright, Managing Partner
Nexinite, LLC
Date:

Name_______________________ Title________________
The City of Cupertino
CTO
Dec 21, 2021
Bill Mitchell
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Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts 1 Form Updated Sept. 2019
Consultant shall procure prior to commencement of Services and maintain for the duration of the contract, at its own cost and expense, the following insurance policies and coverage with companies doing business in California and acceptable to City.

INSURANCE POLICIES AND MINIMUMS REQUIRED

1. Commercial General Liability (CGL) for bodily injury, property damage, personal injury liability for premises operations, products and completed operations, contractual liability, and personal and advertising injury with limits no less than $ 2,000,000 per occurrence ( ISO Form CG 00 01). If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO Form CG 25 03 or 25 04) or it shall be twice the required occurrence limit. a. It shall be a requirement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be made available to the Additional Insured and shall be (i) the minimum coverage/limits specified in this agreement; or (ii) the broader coverage and maximum limits of coverage of any insurance policy, whichever is greater. b. Additional Insured coverage under Consultant's policy shall be " primary and non-contributory," will not seek contribution from City’s insurance/self-insurance, and shall be at least as broad as ISO Form CG 20 10 (04/13).
c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess insurance, provided each policy complies with the requirements set forth in this Contract. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary basis for the benefit of City before the City’ s own insurance or selfinsurance shall be called upon to protect City as a named insured.

2. Automobile Liability: ISO CA 00 01 covering any auto (including owned, hired, and non-owned autos) with limits no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: As required by the State of California, with Statutory Limits and Employer’ s Liability Insurance of no less than $1,000,000 per occurrence for bodily injury ordisease.

Not required. Consultant has provided written verification of noemployees.

4. Professional Liability for professional acts, errors and omissions, as appropriate to Consultant’ s profession, with limits no less than $2,000,000 per occurrence or $2,000,000 aggregate. If written on a claims made form:
a. The Retroactive Date must be shown and must be before the Effective Date of the Contract. b. Insurance must be maintained for at least five (5) years after completion of theServices. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Contract Effective Date, the Consultant must purchase extended reporting” coverage for a minimum of five (5) years after completion of theServices.

EXHIBIT D
Insurance Requirements
Design Professionals & Consultants Contracts
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Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts 2 Form Updated Sept. 2019

OTHER INSURANCE PROVISIONS
The aforementioned insurance shall be endorsed and have all the following conditions and provisions:

Additional Insured Status
The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers Additional Insureds”) are to be covered as additional insureds on Consultant’ s CGL and automobile liability policies. General Liability coverage can be provided in the form of an endorsement to Consultant’ s insurance (at least as broad as ISO Form CG 20 10 (11/ 85) or both CG 20 10 and CG 20 37 forms, if later editions are used).

Primary Coverage
Coverage afforded to City/Additional Insureds shall be primary insurance. Any insurance or self-insurance maintained by City, its officers, officials, employees, or volunteers shall be excess of Consultant’ s insurance and shall not contribute to it.

Notice of Cancellation
Each insurance policy shall state that coverage shall not be canceled or allowed to expire, except with written notice to City 30 days in advance or 10 days in advance if due to non-payment of premiums.

Waiver of Subrogation
Consultant waives any right to subrogation against City/Additional Insureds for recovery of damages to the extent said losses are covered by the insurance policies required herein. Specifically, the Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Consultant, its employees, agents and subconsultants. This provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At City’ s option, either:
the insurer must reduce or eliminate the deductible or self-insured retentions as respects the City/Additional Insureds; or Consultant must show proof of ability to pay losses and costs related investigations, claim administration and defense expenses. The policy shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the insured or the City.

Acceptability of Insurers
Insurers must be licensed to do business in California with an A.M. Best Rating of A-VII, or better.

Verification of Coverage
Consultant must furnish acceptable insurance certificates and mandatory endorsements ( or copies of the policies effecting the coverage required by this Contract), and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements prior to commencement of the Contract. City retains the right to demand verification of compliance at any time during the Contract term.

Subconsultants
Consultant shall require and verify that all subconsultants maintain insurance that meet the requirements of this Contract, including naming the City as an additional insured on subconsultant’ s insurance policies.

Higher Insurance Limits
If Consultant maintains broader coverage and/or higher limits than the minimums shown above, City shall be entitled to coverage for the higher insurance limits maintained by Consultant.

Adequacy of Coverage
City reserves the right to modify these insurance requirements/coverage based on the nature of the risk, prior experience, insurer or other special circumstances, with not less than ninety (90) days prior written notice. 144
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER( S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

Per accident)
Ea accident)
N / A
SUBR
WVD
ADDL
INSR

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT
AUTOS

AUTOSAUTOS

NON- OWNEDHIRED AUTOS

SCHEDULEDALL OWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/ MEMBER EXCLUDED?
Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/ PARTNER/ EXECUTIVE
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTHTORY LIMITSWC STATUMM/ DD/ YYYY) LIMITS(

POLICY EXP

MM/ DD/ YYYY)

POLICY EFF

INSURANCELTR NUMBERTYPE OF POLICY
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES ( Attach ACORD 101, Additional Remarks Schedule, if more space is required)

EXCESS LIAB
UMBRELLA LIAB $ EACH OCCURRENCE

AGGREGATE
OCCUR

CLAIMS-MADE
DED RETENTION $

PRODUCTS - COMP/OP AGG

GENERAL AGGREGATE

PERSONAL & ADV INJURY
MED EXP (Any one person)

EACH OCCURRENCE
DAMAGE TO RENTED $
PREMISES ( Ea occurrence)

GENERAL LIABILITY

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY
PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2010/05)© 1988-2010 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
07/24/2018
Applegate- Beard Insurance Solutions
PO Box 2213
Yountville, CA. 94599
Michael Applegate
707.235.1059 707.637.8136
mike@binsurancesolutions. com
A
57 SBM BL6316 DX
10, 000
1,000, 000
2,000, 000
2,000, 000
B
Progressive Commercial
M Applegate
AC8PCGY 57 WEC
Hartford/ Trumbull Insurance
Hartford/ Sentinel Insurance
C
D Professional Liability EK13405299 CSL10. 31. 21 10. 31. 22 $ 2,000, 000 Scottsdale Insurance

2.21. 21 2.21. 22

2.21.21 2.21. 22
2,000, 000
2,000, 000
2,000, 000
2,000, 000
1,000, 000
1,000, 000
1,000, 000
2,000, 000
100, 000
2200481056- 2 3.1.21 3.1.

Nexinite LLC
PO Box 749
Napa, CA. 94559
Applegate- Beard Insurance Solutions
PO Box 4578
Sunriver, OR 97707

11. 29. 21
Additional Insured includes: The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
marilynm@cupertino. org
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Countersigned by
Authorized Representative
Form WC 04 03 06 ( 1) Printed in U.S.A.

Process Date: 01/12/21 Policy Expiration Date: 02/21/22

WAIVER OF OUR RIGHT TO RECOVER FROM

OTHERS ENDORSEMENT - CALIFORNIA
Policy Number: 57 WEC AC8PCG Endorsement Number:

Effective Date: 02/21/21 Effective hour is the same as stated on the Information Page of the policy.

Named Insured and Address: Nexinite Inc.
4225 SOLANO AVE # 523
NAPA CA 94558
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. ( This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be 5 % of the California workers' compensation premium otherwise due on such remuneration.

SCHEDULE
Person or Organization Job Description
The City of Cupertino 10300 Torre Ave Cupertino, CA
95014
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NexInite, LLC., for CIP Management Hub
Final Audit Report 2021- 12-21
Created: 2021- 12-21
By: Marilyn Monreal ( Marilynm@cupertino. org)
Status: Signed
Transaction ID: CBJCHBCAABAAZ3jlYDr895hTcFqTrG0ao- HdqzOO7yFy NexInite, LLC., for CIP Management Hub" History
Document created by Marilyn Monreal ([email protected]) 2021- 12- 21 - 8:25:21 PM GMT- IP address: 69.181. 110. 140 Document emailed to Araceli Alejandre ([email protected]) for approval 2021- 12- 21 - 8:30:35 PM GMT
Document approved by Araceli Alejandre ( aracelia@cupertino. org) Approval Date: 2021- 12-21 - 9:00:48 PM GMT - Time Source: server- IP address: 73.170. 27.253 Document emailed to Jeffrey Wright ([email protected]) for signature 2021- 12- 21 - 9:00:52 PM GMT
Email viewed by Jeffrey Wright ([email protected])
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Email viewed by Christopher D. Jensen ([email protected]) 2021- 12- 21 - 9:22:51 PM GMT- IP address: 104. 28.50.119 Document e-signed by Christopher D. Jensen ( christopherj@cupertino. org) Signature Date: 2021- 12-21 - 11:37:09 PM GMT - Time Source: server- IP address: 184. 167. 31.63 Document emailed to Bill Mitchell ([email protected]) for signature 2021- 12- 21 - 11:37:12 PM GMT
Email viewed by Bill Mitchell ([email protected])
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Document e-signed by Bill Mitchell ( billm@cupertino. org) Signature Date: 2021- 12-21 - 11:42:10 PM GMT - Time Source: server- IP address: 73.63.186. 99 Document emailed to Kirsten Squarcia ([email protected]) for signature 2021- 12- 21 - 11:42:14 PM GMT
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2021- 12- 21 - 11:43:54 PM GMT
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CITY OF CUPERTINO
Agenda Item
23-12502 Agenda Date: 9/6/2023
Agenda #: 6.

Subject: Enterprise Leadership Assessment Audit Final Report Receive the Enterprise Leadership Assessment Audit Final Report Presenter: Kristina Alfaro, Director of Administrative Services CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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CITY COUNCIL STAFF REPORT
Meeting: September 6, 2023
Subject
Enterprise Leadership Assessment Audit Final Report
Recommended Action
Receive the Enterprise Leadership Assessment Audit Final Report Reasons for Recommendation
Background
In Fiscal Year (FY) 2019-20, the City began an internal audit program. Moss Adams serves as the City’s designated Internal Auditor and conducts projects focusing on:
• Risks
• Internal controls
• Efficiency and effectiveness
• Best practices
• Compliance
An internal audit charter prescribing the purpose of the internal auditor was approved by the Audit Committee on February 11, 2020, and the City Council on July 7, 2020. The Audit Committee and City Council play a crucial role in the internal audit process. As described in the internal audit charter, the Internal Auditor is appointed by and reports to the Audit Committee and City Council. The Audit Committee and City Council approve the annual audit workplan, review audit report findings and recommendations, and monitor the implementation of recommendations.

Enterprise Risk Assessment
Moss Adams conducted an Enterprise Risk Assessment (ERA) in 2020 to analyze the City's risk areas. For each risk category assessed, the risk assessment included an overview of the risk condition in the City, including the current risk level, likelihood, impact, preparedness, and trajectory.
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The Enterprise Risk Assessment identified high, moderate-to-high, and moderate risk categories.

Moss Adams presented the Enterprise Risk Assessment to the Audit Committee on February 22, 2021 and May 24, 2021, and to the City Council on July 20, 2021.

FY 2022-23 Internal Audit Work Plan
Moss Adams developed the FY 2022-23 internal audit work plan, which included the following projects:
• Ongoing Support:
o Ongoing Internal Audit Services
o Policy Review Ongoing Support
• Budget Process Review
• Enterprise Leadership Effectiveness Study
• Library Construction Audit
The FY 2022-23 program was approved by the Audit Committee on June 27, 2022 and the City Council on September 6, 2022. The Enterprise Leadership Assessment was presented to Audit Committee on July 24, 2023 and recommended to be forwarded to City Council.

Project Background
Moss Adams developed this assessment to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, they evaluated governance topics including:
• The Council’s capacity to set the City’s strategic direction and monitor financial sustainability
• Council meeting procedures and resources
• Working relationship and collaboration between Council members, City management, and staff
• Training and onboarding
• Committee and commission roles, core function, and support Project Results
The Enterprise Leadership Assessment included a total of twelve observations and recommendations for City Council and City Staff consideration. Those observations and recommendations can be found in the attached report. Alignment between the Enterprise Leadership Assessment report and the Fact-Finding report are discussed as part of that report.

City Council – Management responses are listed for City Council are aligned with recommendations from both the fact-finding report and revisions to the City Council Procedures Manual staff reports that are also being presented this evening. City Council may consider taking further actions on these items later as part of the recommended Council workshops that would also cover recommendations from the Fact-Finding report and City Council Procedures Manual. 169
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1. Observation While the City has established many policies that are aligned with best practices, there are opportunities to increase the effectiveness of current policies.

Recommendations A. Continue current efforts to review, update, and expand the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.

Management Response Agree, Council may consider using the City Council procedures manual to address these recommendations and may provide direction for staff to return periodically for revisions. The City Attorney’s Office recommends the time frame be two to four years. The City’s Ethics Policy is scheduled for review in late summer/early fall 2023.

2. Observation With the adoption of the City Council Procedures Manual and other recent changes, the City has made positive progress toward increasing the effectiveness of City Council meetings. However, ongoing challenges remain to ensure that meetings are productive and timely.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

Management
Response
Agree. Council may consider using the City Council procedures manual to address these recommendations and may provide direction for staff to return periodically for revisions.

3. Observation There is a well-documented history of mistrust and poor communication between the Council and management.

Recommendations
A. Continue current efforts to implement recommendations from the 2023 Internal Review, with a focus on expanding the use of 1:1 pre-meetings with Council members
B. In alignment with Municipal Code guidelines, consider developing and implementing a set of practical criteria to determine when requests for information will require a significant allocation of staff time or otherwise exceed the code guidelines
C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.

Management
Response
Agree. The review of Councilmember compliance with the
recommendations in the May 2023 Fact Finding report finds that significant progress has been made in this area but there are still areas for improvement.

4. Observation The City Council onboarding and orientation process has recently been updated to increase its effectiveness. This process could be further strengthened by focusing additional attention on roles, responsibilities, and practical application of guidelines.

Recommendation Take steps to expand and strengthen the orientation process for new Council members.

Management
Response
Agree. City staff prepared a more in-depth onboarding process as part of the onboarding of Council members in 2023. Staff will continue to review this process and make changes as necessary.
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5. Observation The City has established many best practice elements of a comprehensive ethics program. However, there are gaps in the City’s compliance enforcement.

Recommendation Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures.

Management
Response
Agree. City staff will work toward strengthening the internal process for tracking and holding elected and appointed individuals accountable.

6. Observation A core function of any governing body is to set and monitor the strategic direction of the organization. While the City Council has adopted a twoyear Work Program to prioritize annual initiatives, it has not yet developed a long-range strategic plan.

Recommendations

A. Consider developing a long-range strategic plan to increase the City’s ability to strategically plan and advance initiatives.

B. Continue current efforts to utilize and refine the annual Work Program prioritization practice.

C. Consider expanding the City’s reporting processes to more effectively track progress toward strategic goals over time.

Management
Response
Agree. The City will explore creating a long-range strategic plan and continue current efforts on the work plan.

7. Observation While the City has established some strong community engagement practices, interviewees noted that Council members may have an overreliance on anecdotal evidence and/or public comment that may not be representative of the wider community perspective.

Recommendation A. Consider setting clearer expectations for the intended scope of community engagement at the start of City initiatives.

B. Continue current efforts to implement a statistically significant, representative community survey.

C. Consider providing media and crisis communication training to all Council members.

Management
Response
Agree. As recommended in the report on compliance with the recommendations in the May 2023 Fact Finding Report, Council may consider additional procedural measures to attempt to focus Councilmembers on their policy and decision-making responsibilities, as well as considering procedural provisions or improvements to public engagement processes to ensure community engagement is more representative. In addition, staff will be conducting a community survey in late fall/early winter timeframe.

Commissions and Committees – The report listed three observations and recommendations for Commissions and Committees, management responses are included in the table below.

8. Observation The City utilizes multiple commissions and committees to support Council decision-making. There are opportunities to increase the effectiveness of some of these groups.
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Recommendations A. Establish charters, including clear roles and responsibilities, for each commission and committee that outline the group’s purpose and member roles and responsibilities.

B. Review additional opportunities to streamline governance groups.

C. Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee.

Management
Response
Agree. City staff will bring recommendations regarding commissions and committees to increase their effectiveness.

9. Observation The City has documented processes to select and appoint community members to governance groups. This process could be strengthened by adding relevant qualification criteria.

Recommendation Review and establish the qualification criteria for each commission and committee member to determine if the City would benefit from adjustments.

Management
Response
Agree. City staff will bring recommended criteria for each commission and committee.

10. Observation Commission and committee operations—including onboarding, meeting procedures, work plans, and reporting—are not always consistent or effective.

Recommendations A. Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees.

B. Clarify the process and expectation for cancelling unnecessary meetings.

C. Consider adopting the practice of requiring annual work plans for each commission and committee.

Management
Response
Management agrees with the observation and recommendations A and B and will continue efforts were recommended and work toward clarifying meeting cancellation procedures. City staff does not agree that adopting annual work plan for the committees and commissions would be effective.

As previously the City did have this process and it led to confusion and misalignment with the Council workplan.

City Staff – The report listed two observation and recommendations for City staff, management responses are included in the table below.

11. Observation The staff time used to support governance groups represents a significant investment of City resources.

Recommendations A. Review the practice of requesting department directors attend commission and committee meetings.

B. Provide training for staff liaisons annually and when a new individual takes on the liaison role.

Management
Response
Disagree. Department directors play a critical role in the function of their department and necessarily need to understand the recommendations of Commissions and Committees on department functions.

12. Observation City staff continue to experience a high degree of organizational change and uncertainty. Within this context, it is critical for the City’s management team to provide active communication and change management to increase support of staff.
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Recommendation Identify and implement expanded communication and change management practices to improve workplace culture.

Management
Response
Agree. Management will begin discussions on strategies for active communication and change management as part of the Department Head retreat on August 30, 2023.

Next Steps
Staff is currently working on implementing the report’s recommendations as listed in the tables above. Internal audit status reports are available on the City’s website at cupertino.org/internalaudit.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact. The City’s Internal Audit contract is included in the contracts category of the accounting program in the FY 2022-23 Adopted Budget.
_____________________________________
Prepared by: Thomas Leung, Budget Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – City of Cupertino Enterprise Leadership Assessment Audit Final Report 173
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This report is intended for the internal use of the City of Cupertino, and may not be provided to, used, or relied upon by any third parties.

FINAL REPORT
City of Cupertino

ENTERPRISE LEADERSHIP ASSESSMENT
July 14, 2023
Moss Adams LLP
999 3rd Ave, Suite 2800
Seattle, WA 98104
(206) 302-6500
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Enterprise Leadership Assessment

FOR INTERNAL USE OF THE CITY OF CUPERTINO ONLY
Table of Contents
Executive Summary 1
A. Background, Scope, and Methodology 1
B. Summary of Observations and Recommendations 1
Background, Scope, and Methodology 5
A. Background 5
B. Scope and Methodology 5
Observations and Recommendations 7
A. City Council 7
B. Commissions and Committees 22
C. City Staff 29
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EXECUTIVE SUMMARY
The City of Cupertino (the City) is governed by a five-member City Council and managed by the City’s executive leadership team. As part of Moss Adams LLP’s (Moss Adams, we) role as the City’s outsourced internal auditor, we developed this assessment to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, we evaluated governance topics including:
• The Council’s capacity to set the City’s strategic direction and monitor financial sustainability • Council meeting procedures and resources
• Working relationship and collaboration between Council members, City management, and staff • Training and onboarding
• Committee and commission roles, core function, and support This assessment was conducted between March 2023 and June 2023. Analysis was informed by interviews with the City’s leadership and staff, and a review of data and documents provided by the City.

The goal of this report is to detail current conditions and provide constructive and forward-looking recommendations for how the City’s leadership team can adjust operations to align with public sector best practices.

Observations and recommendations were grouped into three areas: City Council, Commissions and Committees, and City Staff. Observations and recommendations for both areas are summarized below and provided in Section III.

OBSERVATIONS AND RECOMMENDATIONS
City Council

1. Observation
While the City has established many policies that are aligned with best practices, there are opportunities to increase the effectiveness of current policies.

Recommendations
A. Continue current efforts to review, update, and expand the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.
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OBSERVATIONS AND RECOMMENDATIONS

2. Observation
With the adoption of the City Council Procedures Manual and other recent changes, the City has made positive progress toward increasing the effectiveness of City Council meetings. However, ongoing challenges remain to ensure that meetings are productive and timely.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

3. Observation There is a well-documented history of mistrust and poor communication between the Council and management.

C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.

4. Observation
The City Council onboarding and orientation process has recently been updated to increase its effectiveness. This process could be further strengthened by focusing additional attention on roles, responsibilities, and practical application of guidelines.

Recommendation Take steps to expand and strengthen the orientation process for new Council members.

5. Observation The City has established many best practice elements of a comprehensive ethics program. However, there are gaps in the City’s compliance enforcement.

Recommendation Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures.

6. Observation
A core function of any governing body is to set and monitor the strategic direction of the organization. While the City Council has adopted a two-year Work Program to prioritize annual initiatives, it has not yet developed a longrange strategic plan.

Recommendations
A. Consider developing a long-range strategic plan to increase the City’s ability to strategically plan and advance initiatives.

B. Continue current efforts to utilize and refine the annual Work Program prioritization practice.

C. Consider expanding the City’s reporting processes to more effectively track progress toward strategic goals over time.
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OBSERVATIONS AND RECOMMENDATIONS

7. Observation
While the City has established some strong community engagement practices, interviewees noted that Council members may have an overreliance on anecdotal evidence and/or public comment that may not be representative of the wider community perspective.

Recommendations
A. Consider setting clearer expectations for the intended scope of community engagement at the start of City initiatives.

B. Continue current efforts to implement a statistically significant, representative community survey.

C. Consider providing media and crisis communication training to all Council members.

Commissions and Committees

8. Observation
The City utilizes multiple commissions and committees to support Council decision-making. There are opportunities to increase the effectiveness of some of these groups.

Recommendations
A. Establish charters, including clear roles and responsibilities, for each commission and committee that outline the group’s purpose and member roles and responsibilities.

B. Review additional opportunities to streamline governance groups.

C. Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee.

9. Observation
The City has documented processes to select and appoint community members to governance groups. This process could be strengthened by adding relevant qualification criteria.

Recommendation Review and establish the qualification criteria for each commission and committee member to determine if the City would benefit from adjustments.

10. Observation Commission and committee operations—including onboarding, meeting procedures, work plans, and reporting—are not always consistent or effective.

Recommendations
A. Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees.

B. Clarify the process and expectation for cancelling unnecessary meetings.

C. Consider adopting the practice of requiring annual work plans for each commission and committee.

City Staff

11. Observation The staff time used to support governance groups represents a significant investment of City resources.

Recommendations
A. Review the practice of requesting department directors attend commission and committee meetings.

B. Provide training for staff liaisons annually and when a new individual takes on the liaison role.
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OBSERVATIONS AND RECOMMENDATIONS

Recommendation Identify and implement expanded communication and change management practices to improve workplace culture.
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BACKGROUND, SCOPE, AND METHODOLOGY
In recent years, the City has experienced significant organizational change and uncertainty. In particular, there has been both a high turnover rate in key leadership positions within the City and ongoing turmoil in relation to the Council/staff relationship. Two highly publicized reports have documented related issues:
• The 2022 Santa Clara County Civil Grand Jury report A House Divided: Cupertino City Council and City Staff (referred to throughout this document as the 2022 Grand Jury report) • The 2023 Review of Outstanding Issues and Concerns Raised by the Findings and Recommendations of the 2022 Santa Clara Civil Grand Jury Report (referred to in this document as the 2023 Internal Review)
Within this context, City leadership expressed interest in an assessment that could both detail current conditions and provide constructive and forward-looking recommendations for how the City’s leadership team can adjust operations to align with public sector best practices.

Moss Adams serves as the outsourced internal auditor for the City, and reports to the City Council’s Audit Committee. As part of the 2022–23 internal audit work plan, the Audit Committee approved this Enterprise Leadership Assessment.

The purpose of this assessment is to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, we evaluated governance topics, including:
• Council’s capacity to set the City’s strategic direction and monitor financial sustainability • Council meeting procedures and resources
• Working relationship and collaboration between Council members, City management, and staff • Training and onboarding
• Committee and commission roles, core function, and support Moss Adams conducted this engagement between March 2023 and June 2023. The project consisted of four major phases.

PHASE DESCRIPTION
1 Start-Up and
Management
 Project initiation consisted of collaborative project planning with the City and project management, including developing our scope of work and final work plan.
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PHASE DESCRIPTION
2 Fact-Finding and
Data Collection
 The second phase included interviews, document review, and best practice research. We worked with City staff to obtain the most current information and insights.
• Interviews: We conducted interviews with 23 members of City staff and City Council members.
• Document review: We received documents including policies, procedures, planning documents, reports, and others.
• Best practice research: Based on the opportunities for improvement identified, we conducted research to ascertain best practices within the public sector.
3 Analysis  Based on the information gained during our fieldwork phase, we assessed the current conditions and identified opportunities for improvement.

Leveraging best practice information and our own experience from working with similar entities, we developed practical recommendations. 4 Reporting Results  We communicated the results of our analysis with observations and recommendations presented first in a draft report that was reviewed with management to confirm the practicality and relevance of recommendations before finalizing the report.

We would like to thank City leadership and staff for their willingness to assist in this assessment. 181
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OBSERVATIONS AND RECOMMENDATIONS
Based on the input gathered from interviews, document review, focus groups, and comparisons to best practices, we prepared a comprehensive set of observations and recommendations.

1. Observation While the City has established many policies that are aligned with best practices, there are opportunities to increase the effectiveness of current policies.

Recommendation A. Continue current efforts to review, update, and expand the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.

Best Practice
In addition to regulations and codes, many city councils have adopted formal rules of procedure to govern the conduct of their meetings and/or provide guidelines for collaboration. The motivation in adopting rules is usually to increase the efficiency and effectiveness of meetings, improve communication, and manage conflict. The basic premise in adopting rules is to ensure that governance group interactions will run smoothly and follow a generally accepted format.

These types of city council policies often cover the following categories:
• Code of conduct, ethics, or group norms
• Council meeting processes and agenda development
• Council communications with staff
• Council communication with members of the public
• Use of technology
• Conflict of interest
• Committees and commissions-specific topics
○ Purpose and relationship to City Council
○ Selection and appointment
○ Meeting processes and agenda development
○ Planning and reporting
Current Conditions
The City has adopted several governance-related policies, including the primary documents detailed below.
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City Council Procedures Manual
In February 2023, the City Council adopted Resolution 23-021 to establish the Cupertino City Council Procedures Manual. In alignment with best practice, the manual include guidelines for many processes, including communication, meeting management, decorum, and decision-making. The manual also incorporates references to the applicable sections of the Municipal Code to provide administrative guidelines to comply with relevant provisions. Interviewed staff generally noted that the Procedure Manual is a welcome improvement. However, the usefulness of this document is highly dependent on whether City Council adheres to the practices described within.

Ethics Policy
The City’s current Ethics Policy applies to City Council, appointed officials, and City staff with the purpose of promoting public confidence in the integrity, effectiveness, and fairness of City operations.

However, as noted in the 2022 Grand Jury report “the current Ethics Policy is less comprehensive [than previous versions] and ignores the subject of councilmanic interference found in the rescinded version. Thus, there are significantly fewer ethical requirements and standards for councilmembers.” The new City Council Procedures Manual strives to address this issue by stating that “City Council may enforce repeated or serious violations of the rules set forth in the Manual through a censure action placed on a Council agenda." At this time, the City Council is planning to consider revising the Ethics Policy in the first quarter of fiscal year 2024.

While the Ethics Policy references conflicts of interest, the City has not established a separate conflicts of interest policy.

Technology Use
The City adopted a Technology Use Policy in November 2018. The policy applies to City employees, elected officials, commissioners, contractors, consultants, temporary workers, interns, volunteers, and vendors using City technology resources. In alignment with best practice, the policy covers a range of topics, including cybersecurity, the California Public Records Act, confidentiality, prohibited use of technology, and violations. However, the policy has not been updated since 2018 and contains some outdated information (like a reference to pending litigation).

Commission Handbook
The City established a Commission Handbook in 2021 to provide guidance to the City’s various commissions and committees. In alignment with best practice, the handbook builds off of the tenets laid out in the municipal code and covers a range of topics, including commissions’ purpose and relationship to City Council, management, and staff, as well as commission membership, meeting processes and agenda development, and communications. However, this handbook has not been reviewed for alignment with the new City Council Procedures Manual and it is unclear whether it applies to committees.

At this time, the City Council is planning to consider revising the Commission Handbook in the first quarter of fiscal year 2024.
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Policies and Guidelines on Sister Cities, Friendship Cities, and International Cupertino Delegations for the City Of Cupertino
The City has established a policy to help guide activities around Sister Cities, Friendship Cities, and international delegations. The document outlines travel and expense guidelines for Council members who are supporting these programs. However, the City has not yet developed a general travel and expense policy for Council members.

Recommendations
• Continue current efforts to update governance policies, including:
○ Reviewing the Ethics Policy to ensure it aligns with best practice. ○ Reviewing the Commission Handbook to ensure it is aligned with other City policies, including the City Council Procedures Manual and the Ethics Policy. As part of this work, it will be important to clarify whether this handbook is relevant to City committees. ○ Considering developing a standalone conflict of interest policy that applies to Council members.
○ Considering developing a general travel and expense policy that applies to Council members. • Adopt a process to review and update governance-related policies at least once every five years. • Continue efforts to implement the City Council Procedures Manual and hold participants accountable to the policies and procedures. See the Meeting Cadence and Processes section for more details.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

Best Practice
City council meetings play a crucial role in local governance, where elected officials convene to make decisions, address community concerns, and shape the future of their cities. Establishing best practices for meeting cadence and processes is essential to ensure efficiency, transparency, and effective decision-making. By following best practices, city councils can foster an environment that allows for informed discussions and ultimately leads to better outcomes for their communities:1,2 In general, best practices for effective public meetings include:
1 Planning and Leading Effective Meetings, NLM
2 Guide to Good Meetings, ICMA
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• Established Procedures: The city should set clear procedures for meeting structure, agenda, decision-making, conflict resolution, and use of a consent agenda. • Reasonable Cadence and Length: Meetings should be held as frequently as needed to accomplish critical work. Research indicates that shorter meetings are generally better meetings, as it becomes more difficult to maintain focus over time. • Effective Meeting Facilitation: Meetings should be led by skilled facilitator, such as the mayor or chair, to manage discussions, maintain decorum, and ensure efficient use of time. Encourage respectful and constructive dialogue among council members and establish clear rules and protocols for productive meetings.
• Preparation and Pre-Meeting Communication: Meeting participants (e.g. council, commission, or committee members) should be provided with sufficient time to review meeting materials in advance. Distribute agendas, reports, and supporting documents to allow for thorough preparation, informed discussions, and informed decision-making. Within the public sector space, 1:1 preparation meetings with management are frequently used to provide elected officials with time to ask questions and understand issues before a public meeting is held. • Engaged Participants: Meeting participants should be able to actively engage with the meeting content and respond to feedback. They should employ professionalism and follow any codes of conduct or group norms.
• Technology and Accessibility: Technology should be leveraged to enhance meeting accessibility and public engagement. Explore options for live streaming, video conferencing, or online comment submission to enable broader community engagement, especially for those unable to attend in person.

Current Conditions
In alignment with best practice for establishing procedures, the City recently adopted the City Council Procedures Manual. The manual documents processes for key items like decision-making, agenda development, decorum, communication with staff, and use of a consent calendar.

Despite the implementation of the manual, interviewed staff reported that meeting efficiency and effectiveness remains a high area of concern. Staff note that time limits are not always enforced, there is little group consensus about discussion priorities (so items with relatively minimal impact may take up significant discussion time), and items are routinely removed from the consent agenda for additional discussion.

Within this context, staff noted that agenda items were frequently bumped to the next meeting. As a result, staff reported the common experience of sitting through hours of a meeting and not being able to present their agenda item—which is both a waste of staff resources and a challenge to employee morale. To help combat this issue, the new City Council Procedures Manual has established time limits for discussion items and questions. Interviewed staff noted that this was a step in the right direction, but ongoing challenges remain.

In terms of the frequency and length of meetings, the number of City Council meetings has been high in recent years, with 63 meetings held in 2021 and 64 in 2022. Council meetings have also historically extended into late hours. Between 2020 and 2022, the average length of Council meetings was over five hours (5.1 hours in 2020, 5.7 hours in 2021, and 5.2 hours in 2022). Given that meetings start at 6:45 pm, this means that participants were routinely in meetings that ran past midnight. Long meeting lengths impact the productivity, wellness, and safety of the Council members, staff, and community participants.
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The City Attorney and the Mayor play significant roles in ensuring that the meeting agenda is adhered to and that Council conversation does not stray off topic or relitigate decisions that have already been made. Interviewees noted appreciation for the City Attorney’s and Mayor’s efforts in this area.

In alignment with best practice and regulations, the City provides agenda materials at least six days before standard Council meetings. Council members have the opportunity to ask questions through email between the time the agenda is posted and when the meeting is held. Staff responds to these questions by way of an addendum or desk item to the staff report. In addition, the City management team has expanded the practice of offering 1:1 preparation meetings to City Council members. While individual City Council members must voluntarily opt into these meetings (and Council members do not always choose to do so), staff and some members of Council report that these meetings are effective in terms of increasing communication and collaboration.

In alignment with best practice, the City provides live broadcast and on demand coverage of city meetings. In addition, members of the public may provide comments in-person, online, or via telephone.

Recommendations
• Continue current efforts to implement the City Council Procedures Manual and hold participants accountable to the policies and procedures. This will require ongoing and concerted effort on the part of the Mayor, members of City Council, City Attorney’s Office, City Clerk, and City Manager’s Office. In particular, City staff should continue to provide the Mayor with active support to ensure the Mayor is well positioned to keep meetings on track. • Continue current efforts to provide 1:1 pre-meetings between individual Council members and management for upcoming council agenda items. See the Collaboration and Relationships section for more details.

3. Observation There is a well-documented history of mistrust and poor communication between the Council and management.

Recommendation A. Continue current efforts to implement recommendations from the 2023 Internal Review, with a focus on expanding the use of 1:1 premeetings with Council members B. In alignment with Municipal Code guidelines, consider developing and implementing a set of practical criteria to determine when requests for information will require a significant allocation of staff time or otherwise exceed the code guidelines.

C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.
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Best Practice
City council collaboration, productive group dynamics, and trust in management are vital aspects of effective local governance. The following are characteristics that are commonly found in high-function governance teams: 3,4
• Defined Roles and Responsibilities: Clearly defined roles help council members and staff avoid confusion, ensure accountability, and enables efficient collaboration. For cities like Cupertino that have chosen to operate under the Council-Manager form of government, operational responsibilities are delegated to the City Manager from City Council, while City Council is responsible to guide the strategic direction of the organization by setting policy, providing oversight, and supporting City staff.5
• Mutual Respect: Mutual respect and professionalism are baseline requirements for healthy working relationships. This behavior is characterized by open communication, active listening, adherence to codes of conduct or group norms, respect for roles, appreciation for diverse viewpoints, active preparation, and commitment to working in collaboration to move the organization toward its goals.
• Clear Communication: Focused, concise, and direct communication can provide a strong foundation for building trusting and productive relationships. • Collaboration with Staff: Productive relationships between council and staff often begin with respecting roles, recognizing individual expertise, and showing support for city employees.

Current Conditions
As reported by staff and Council members, and documented in both the 2022 Grand Jury report and the City’s subsequent 2023 Internal Review, there are varying opinions within City Council about the ultimate role that Council members are meant to play. For example, it is apparent that some Council members perceive the oversight role to encompass highly operational work, like conducting independent research or analysis. This type of behavior both causes tension with staff as it is a clear signal that their expertise and work is not trusted; it is also a poor use of time and ultimately a distraction from the more critical work of the Council. While oversight is a critical component of good governance, it must be predicated on a baseline trust that the City Manager has hired competent and qualified staff to perform operational functions.

In alignment with best practice, City management does provide training related to roles and responsibilities to help onboard new members of City Council. See the City Council Onboarding and Training section for more details.

In regard to mutual respect, there is a well-documented history of mistrust and conflict between Council and management. While interviewed staff report some positive progress in recent months, there are still regular challenges in terms of professionalism, respect, and positive intent. There is a strong need to rebuild trust within the Council and between the Council and management.

In terms of communication, one of the most frequently cited ongoing challenges is related to email requests from Council members. As documented in the 2023 Internal Review and reported by interviewed staff, several Council members have continued the practice of sending a high volume of 3 Building the Best Relationship with Your Council, ICMA 4 Strategies for creating a more collaborative, effective council, Western City. 5 Making it Work: The Essentials of Council-Manager Relations, ICMA 187
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emails, averaging 50-70 initial emails per week, not counting any follow-up emails. This practice is ineffective for communication purposes, creates significant workload for staff, and is widely perceived to be an obstruction tactic. Council members at times request responses to questions posed by the public as if they were the Council members’ own. This pass-through of information requests without vetting creates work efforts where it may not be effective or even considered in the decision-making process.

The City’s Municipal Code provision § 2.17.043 clarifies that the City Manager may determine when individual council member requests are overly onerous (and thus should be directed to staff through a collective instruction from the entire City Council). The code states that the following guidelines should be considered when making this judgement:

A. Is the request specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments? B. Is the request a "one time" work requirement, as opposed to an on-going work requirement? C. Does the response to a request require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the request in excess of two hours)?
However, staff report that it has been challenging to exercise these guidelines in a practical, consistent, and productive way.

Several interviewed staff noted that it has been extremely challenging to accomplish operational work given the number of staff hours required to respond to these requests, in addition to preparing staff reports and materials for regular Council meetings. As noted in the Meeting Cadence and Processes section, the City management team has expanded the practice of offering 1:1 preparation meetings to City Council members as an option for more efficient and direct communication.

In alignment with best practice, the City has implemented City Council retreats as an opportunity for ongoing relationship building and professional development.

Recommendations
• Moss Adams concurs with the recommendations to improve collaboration made within the 2023 Internal Review. In particular, the City and individual councilmembers should continue efforts to utilize the 1:1 meetings as a more efficient means of sharing information. • In alignment with the City’s Municipal Code provision § 2.17.043, the City Manager should consider developing a set of practical criteria to determine when individual Council member requests for information exceeds standard guidelines as outlined in the code. Ideally, this type of criteria could provide a consistent, objective, and efficient means to evaluate incoming requests. • Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings, retreats, and strategic planning work sessions.
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Recommendation Take steps to expand and strengthen the orientation process for new Council members.

Best Practice
Onboarding, orientation, and training for new city council members are critical to their successful integration into their roles and the effective functioning of the council as a whole. By implementing a robust onboarding and training program, cities can equip new council members with the knowledge, skills, and resources needed to navigate their roles effectively. This contributes to a cohesive council, enhances decision-making, and strengthens the council's ability to serve the community.6 Comprehensive onboarding support typically involved the following components:
• Orientation Program: The organizations should develop a comprehensive orientation program to familiarize new council members with their roles, responsibilities, and the governance structure.

The program should address:
○ Overview of the council's purpose, functions, codes, and legal obligations ○ Insights into the local community's history, demographics, priorities, and challenges ○ Definition of roles and responsibilities of council members, including their specific duties, expectations, areas of focus, and understanding of how their role contributes to the overall work of the group
• Ethics, Policies, and Procedures Training: The organization should offer training on key policies and procedures that govern council operations. Guidance should be provided on meeting protocols, code of conduct, ethical standards, and conflict of interest guidelines. The organization should ensure that new council members understand their legal obligations, including compliance with relevant legislation and regulations.
• Financial and Budgetary Training: The organization should provide training on municipal budget processes, financial management, and fiscal responsibilities, and help council members understand the budgetary constraints, revenue sources, and expenditure allocation. The training should also familiarize them with financial reports, audits, and accountability mechanisms to ensure effective stewardship of public funds.
• Support from Staff or Liaisons: The onboarding process should be provided in collaboration with staff members or designated liaisons who can provide guidance and support to new council members. Ensure that staff are available to address questions, provide administrative assistance, and facilitate access to necessary resources or expertise. • Continuous Learning and Professional Development: Ongoing learning opportunities for council members should be provided to enhance their skills and knowledge in governance, leadership, 6 Making it Work: The Essentials of Council-Manager Relations, ICMA 189
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and effective decision-making. Encourage participation in workshops, conferences, and training programs that promote professional growth.

Current Conditions
In alignment with best practice, the City has established a two-day orientation program coordinated by the City Clerk’s Office. The program consists of several intensive sessions that cover topics including the Council’s core functions, roles and responsibilities, regulatory requirements (like Brown Act rules), meeting procedures, and a deep dive with department heads presenting on the purpose and mission of their respective departments. This work is collaboratively supported by the City Manager’s Office, City Attorney’s Office, City Clerk’s Office, and the department directors.

Interviewees noted several opportunities to continue to improve the onboarding process, including:
• Spacing out information so that new members are not fatigued by information overload over the course of a few days
• Providing refresher trainings throughout the year
• Providing peer-to-peer learning opportunities where new members can receive input and guidance from more veteran members
• Increasing practical examples and scenarios to help increase the practical applicability of the trainings
• Requesting full participation of all Council members (this year one member of council chose not to participate in the orientation)
In alignment with best practice, the City does offer opportunities for Council members to engage in ongoing professional development opportunities on an ad hoc basis.

Recommendations
• Continue to expand and strengthen the orientation process for new Council members. In particular, the City may benefit from extending the onboarding timeline, providing refresher trainings throughout the year, and adding scenario exercises to increase the practical applicability of trainings.

5. Observation The City has established many best practice elements of a comprehensive ethics program. However, there are gaps in the City’s compliance enforcement.

Recommendation Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures.

Best Practice
The role of elected officials—and government as a whole—is to serve the public interest. When government representatives act ethically and avoid engaging in behavior that promotes any private 190
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interests, they are acting for the common good. To foster an ethical operating environment, it is common for cities to establish the following components:
• A Fraud, Waste, and Abuse Program, including an ethics hotline where members of the public and the city government can report issues for investigation • Disclosure of potential conflicts of interest (primarily accomplished via Form 700 within the state of California)
• Trainings and expert advice on government ethics (including topics like the Brown Act) • Processes to track and report on compliance with standard disclosures and regulations • Commitment from leadership to hold all parties accountable, including Council, Committee, and Commission members
• An ethics policy that applies to all elected and appointed officials, as well as staff Current Conditions
In alignment with best practice, the City has implemented the following:
• A formal Fraud, Waste, and Abuse Program and related ethics hotline was implemented in 2022. • The City provides required ethics and anti-harassment training for Council, Committee, and Commission members as required by state law, and the City Attorney provides expert counsel as needed. In addition, Council members are given the opportunity to participate in ethics education at League of Cities conferences.
• The City Clerk’s Office and City Attorney’s Office provide guidance to elected and appointed officials in filling out the Form 700 Disclosures and complying with other regulations.

Several interviewed staff reported that at least one Commission member had not filed their Form 700 Disclosure. While the City Clerk’s office has been aware of this issue for over a year and made efforts to correct the issue, it has not yet been resolved. This indicates that there are gaps in the current process to hold participants accountable for compliance in this area.

Recommendations
• Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures and any other required documentation.

If governance group members have not completed this form in a timely manner, they should face disciplinary action up to and including removal from their position. • See the Policies and Procedures section for more details on the City’s Ethics Policy. 191
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Recommendation A. Consider developing a long-range strategic plan to increase the City’s ability to strategically plan and advance initiatives.

B. Continue current efforts to utilize and refine the annual Work Program prioritization practice.

C. Consider expanding the City’s reporting processes to more effectively track progress toward strategic goals over time.

Best Practice
A core function of any governing body is to set and monitor the strategic direction of the organization.

Within this context, it is best practice for City leadership to develop a multi-year strategic plan and then select key priorities via a collaborative process between Council and management on an annual basis.7,8 By grounding work in the long-term vision for the community and core mission of City government, the City Council can ensure that resources are strategically allocated to support longterm success. In addition, strategic plans can help provide consistency of vision and direction—even as members of the Council or the management team exit the organization.

Typically, strong strategic plans are characterized by:
• Long-Term Vision: The organization should have a clear vision statement that captures the longterm aspirations for the community. Strategic plans also typically incorporate mission and value statements.
• Policy-Level Guidance from Council: The governing body should be actively involved in shaping the plan by setting high-level policy guidance and broad goals. Within this setting, the management team should be responsible for determining and implementing the best means to achieve these objectives.
• Public Input: The City serves the community, so planning activities should take the community’s needs into consideration. Seeking community input during the planning process is critical. • Annual Prioritization: All organizations have resource constraints. As such, realistic plans should prioritize activities in a clear order to help guide resource allocation. An annual review of goals and a process to prioritize work for the upcoming fiscal year ensures that work is guided by longterm strategies and responsive to emergent needs. • Link to Financial Data: Planning should be linked a long-range financial plan that forecasts revenue, identifies unfunded liabilities, determines long-term debt capacity, analyzes external economic environment, and determines the long-term impacts of priorities and goals.9 7 GFAO Strategic Planning
8 Strategic Planning Revisited, ICMA.
9 GFAO Planning Resource Center
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• Equity Considerations: Equity should be incorporated into every step of the strategic planning process to ensure that all members of the community are represented and have a voice in the process.
• Outcome-Based Key Performance Indicators: Strong plans include key performance indicators (KPIs) and metrics to measure progress and success. Ideally, KPIs are primarily focused on the ultimate outcomes the organization is hoping to achieve, rather than output measures of activities. With this type of tool, leadership can regularly monitor and evaluate the city's performance to track the achievement of strategic goals.

Current Conditions
The City does not currently utilize an organization-wide, long-range strategic plan that lays out a vision for the City and guides priorities, projects, and resource allocation. This is in part due to high turnover in the City Manager’s Office, which has limited organizational capacity to perform long-term strategic work. However, the City has adopted many related planning elements:
• Strategic Goals: In February 2020, the City Council established a number of strategic goals to provide a framework for City priorities and guide annual development of the Work Program— including Public Engagement and Transparency, Transportation, Housing, Sustainability, and Quality of Life.
• Annual Work Program: The City has established an annual Work Program process that identifies and selects priority projects and initiatives that fall outside the City’s regular operations for execution within the following year.
○ The Work Program document includes information about the project title, objective, estimated budget, allocated budget, and related department, commission, goal category, and General Plan Guiding Principles.
○ In the past, the Work Program has expanded to include a high number of unprioritized items.

To combat this issue, City management established a new facilitated prioritization process in 2023. This step is a significant improvement in terms of alignment with best practice. • Other Guiding Plans: In addition to the Work Program, the City has many individual plans for work that line up with many of the best practice criteria above. Examples include the General Plan, Capital Improvement Program, and Climate Action Plan.
• Financial Forecast: In alignment with best practice, the City has developed a 10-year financial forecast to address various expenditure and revenue components and assumptions. • Progress Reporting: In alignment with best practice, the City has developed a dashboard to transparently communicate progress toward completing the City’s Work Program projects. This is commendable. In addition, the City reports on department-specific KPIs as part of the budget process.

Based on staff interviews, staff reports, and a review of documentation there are several interconnected challenges or areas of misalignment with best practice in relation to the City’s planning environment:
• Given the lack of a long-range strategic planning framework, some staff noted that Work Program items and Council priorities are not always clearly linked with the City’s big-picture goals. In addition, many interviewees were not aware of the City’s 2020 strategic goals. This may indicate that this framework is not providing sufficient specificity and/or is not being widely utilized to guide decision-making.
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• City Council has a tendency toward more tactical and operational initiatives, rather than staying at the policy level to align the City with its vision. Ideally, the Council should be setting high-level goals and objectives and the management team should be responsible for determining the best means to accomplish the end.
• The City’s Work Program has sometimes created new ongoing programs without sufficient or identified resources to support them. This results in staff taking on additional workload without appropriate support. This indicates that planning activities are not sufficiently tied to resource allocation decisions.
• The Work Program does not explicitly incorporate equity considerations. This indicates that there may be blind spots in relation to the City’s understanding and approach to solving issues. • While public input has historically been actively solicited as part of the Work Program process, this step was forgone this year in order to tackle the backlog of critical work and make progress.

This is reasonable given the circumstances, but the City should reintroduce public input in the future.
• While the City reports on progress toward Work Program activities and includes KPIs in its budget, the organization has not yet established outcome-based performance measures to track progress toward high-level goals. As a result, progress reporting is often reliant on measures of activities or outputs—rather than focusing on the long-term outcomes that the City is hoping to create.

Recommendations
• Consider developing a long-range strategic plan—that builds upon the City’s current goals and vision—to increase the City’s ability to plan and advance initiatives. • Continue to utilize and refine the annual prioritization practice, with a focus on determining what is achievable considering the City’s staffing and funding resources within a given fiscal year. • Implement the practice of reviewing progress toward strategic goals on a quarterly or semi-annual basis. As part of this work, the City should identify outcome-based performance measure to track and report on progress. In addition, the expanded use of performance dashboards, indicators, and other standardized reporting tools would strengthen the City Council’s ability to provide appropriate oversight and track progress over time.
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Recommendation A. Consider setting clearer expectations for the intended scope of community engagement at the start of City initiatives.

B. Continue current efforts to implement a statistically significant, representative community survey.

C. Consider providing media and crisis communication training to all Council members.

Best Practice
Community engagement is an essential component of a well-run local government. By utilizing community input, local governments can improve decision-making, ensure transparency, foster community participation, and build trust with community members.10,11 Successful community engagement programs are multi-pronged, and often include a combination of the following practices:
• Public meeting and hearings (often required by regulation) • Focus groups or work sessions
• Social media, web pages, or mobile applications
• Email, newsletters, text, or other digital communication • Advisory boards, committees, or commissions
• Volunteer programs
• Representative community surveys12,13
• Collaboration with representative community partners
For crisis situations, it is best practice to have a dedicated point of contact for communication with the public. In addition, many cities provide media training to council members to ensure they are wellprepared to engage as needed.

Current Conditions
In alignment with best practice, the City has invested in a centralized communication team that is responsible for managing various communication channels, including social media and media outlets.

The City has also established some creative programs to engage with residents, such as the Cupertino Block Leader Program which was developed as a collaborative way to work with residents 10 Community Engagement and Public Strategy, ICMA
11 Building an Effective Community Engagement Strategy, ICMA 12 ICMA, The Voice of the Public
13 Bloomberg Cities, Five Secrets of Successful Community Surveys 195
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to enhance community preparedness, communication, and resilience at the neighborhood level. The City also regularly solicits input from the community regarding specific projects. For example, for significant policy initiatives such as updating the building code, the City actively seeks public feedback through surveys, focus groups, and other methods.

However, the City has not established a standardized approach to what constitutes comprehensive or sufficient community input for a given initiative. As a result, staff report that at times City Council has repeatedly requested additional avenues for community feedback, which has heightened workloads.

In alignment with regulations, the City provides space for public comment at regular City Council meetings and other venues. Interviewed staff and some Council members report that comments made by community members at public meetings are sometimes interpreted to be representative of the views of all stakeholders and to be factual without substantive validation. Within this context, community members with the means, ability, access, and interest in participating in public comment may receive oversized responses to their issues.

In recent years, the City has not utilized a representative community survey to gather wholistic information about community perception of City services. However, a survey of this type is budgeted and planned for the 2024 fiscal year. By returning to this practice, the City can help provide context for individual public input and help ground decision-making in majority interests, rather than relying on individual feedback provided via the public comment process. Ideally, the City will continue to administer community surveys on an annual basis and ask similar questions each year. In this way, City leadership will both establish a baseline and receive comprehensive insight into trends.

In terms of crisis communication, City policy dictates that the Mayor is the designated spokesperson for the Council. However, Council members have not been provided with media training and some staff report that there have been instances of Council members sharing comments with the media without notifying City staff.

Recommendations
• Consider implementing processes to set clearer expectations for the scope of community engagement at the start of major City initiatives. This may take the form of staff establishing baseline definitions for appropriate levels of community engagement for different types of projects or proactively documenting the intended outreach plan associated with major projects. • Continue current efforts to implement a statistically significant, representative community survey to gather baseline information about resident’s needs, interests, and perception of City services. • Consider providing media and crisis communication training to all Council members. As part of this training, it would be beneficial to clarify individual roles and responsibilities, including those of the Mayor and Vice Mayor.
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8. Observation The City utilizes multiple commissions and committees to support Council decision-making. There are opportunities to increase the effectiveness of some of these groups.

Recommendation A. Establish charters, including clear roles and responsibilities, for each commission and committee that outline the group’s purpose and member roles and responsibilities.

B. Review additional opportunities to streamline governance groups.

C. Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee.

Best Practice
Commissions and committees play an important role in local government by acting in an advisory capacity, providing in-depth analyses, and making recommendations to inform city council decisionmaking.14 These types of governance groups are an effective way of involving citizens in the engagement process of local government.

In terms of committee and commission structure, the following are best practices for effective use of these types of groups:
• Each group should have a clearly defined purpose, scope of authority (including whether groups are meant to be advisory, regulatory, or operational), responsibilities, and legal obligations. This information is typically defined within municipal code and/or via charters or other formal documents.
• Leadership should regularly evaluate the existing governance group structure and ability to adjust it based on the organization or community’s changing governance needs. • While there is no established standard for the ideal number of governance groups, leadership groups should consider the following factors when deciding to add, eliminate, or combine groups:
○ Is this group fulfilling a high-priority need for our community? ○ Is this group fulfilling a distinct purpose for our community or could additional scope and/or responsibilities be added to a current group?
○ Do we have sufficient staff to effectively support this group? Governance groups are sometimes called boards, commissions, committees, or councils depending on their function. Frequently, the term “commission” is used to indicate a group that has powers and duties established by ordinance and have either regulatory or functional responsibilities. The term “committee” is frequently used to denote a group that is advisory in nature. However, the terminology used is often a matter of local preference.15
14 Local Government Citizen Advisory Boards, MRSC
15 Maryland Municipal League: Citizen Boards, Commissions and Committees 197
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Current Conditions
The City has established various committees and commissions to address specific areas of focus.

There are ten commissions tasked with advising the City Council in the formation of policy. With the exception of the Planning Commission, all other commissions function in a strictly advisory role to the City Council, as is appropriate and consistent with best practices. Commissions include:
• Arts and Culture Commission
• Bicycle Pedestrian Commission
• Housing Commission
• Library Commission
• Parks and Recreation Commission
• Planning Commission
• Public Safety Commission
• Sustainability Commission
• Technology, Information, and Communications Commission • Teen Commission
The City also has three committees and a council. Generally, one or two Council members are assigned as members, and the committees may include members from the public or staff. With the exception of the Administrative Hearing Committee (which conducts administrative hearings), the purpose of the committees is to review specific topics affecting the City and make recommendations to the City Council.
• Administrative Hearing Committee
• Audit Committee
• Disaster Council
• Sister City Committee
The City Council also occasionally creates topic-specific, time-delimited subcommittees (which are usually led by two Council members) to address a particular concern.

In alignment with best practice, the City reviewed the purpose and number of governance groups in early 2023. Based on staff recommendations, the City Council consolidated or eliminated several groups to reduce the overall number of governance groups from 17 to 13 (per City Council Ordinance No. 23-2247). A recent staff report determined that cities in Santa Clara County on average support 12 commissions and committees, not including any active council subcommittees. As such, the City is now significantly closer to the local average.

In terms of the core function of the City’s governance groups, almost all groups (regardless of whether they are named “commission” or “committee”) are advisory bodies. With the exception of the Administrative Hearing Committee, the foundational duties of all other governance groups are codified in the City’s Municipal Code. However, the City has not yet established the process of developing individual charters to outline the group’s purpose and member roles and responsibilities. 198
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Staff report that there have been ongoing challenges ensuring that all governance group members understand the scope of their authority. It was frequently reported that certain group members believe they have the authority to direct staff on administrative matters or assign work tasks. This is a breach of the group’s actual authority, and can create tension when staff members are put in a position to deny or redirect the work requests.

In addition, interviewees noted that several groups often do not have significant volumes of work, which can create challenges to keeping members productively engaged. The following groups were noted:
• Public Safety Commission
• Sustainability Commission
• Teen Commission
Recommendations
• Establish charters for each commission and committee that outline the group’s purpose and member roles and responsibilities in more detail than is currently provided in the Municipal Code.

In particular, it will be critical to outline what the advisory function fully entails and clarify that commissions and committees cannot direct staff work or assign tasks. • Review additional opportunities to streamline governance groups. In particular, the City should evaluate the following:
○ Housing Commission: It is common for Housing Commissions to be combined with Planning Commissions, given the highly interrelated areas of work.16 ○ Library Commission: The local library system is administered by the Santa Clara Library District, rather than the City. Within this structure, it is questionable whether a Library Commission supports a core function of the City. To provide input on time-specific topics like the location of a new library within the City, it may be more effective to utilize an ad hoc committee or work group.
○ Public Safety Commission: Consider reviewing the core function of the Public Safety Commission. While fire and police services are provided by the County (and therefore not directly managed by the City), this commission also advises on issues related to traffic and general public safety.
○ Teen and Sustainability Commissions: Consider reviewing the Teen Commission and Sustainability Commission to determine if this work may be better carried out through alternative structures and/or whether fewer annual meetings may be appropriate. • Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee. Given that the majority of the groups are advisory in nature, it may be beneficial to rename the commissions to “committees.” The Planning Commission would be the primary exception to this, as the group’s core function is not solely advisory. 16 Housing Data: Housing Committees
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9. Observation The City has documented processes to select and appoint community members to governance groups. This process could be strengthened by adding relevant qualification criteria.

Recommendation Review and establish the qualification criteria for each commission and committee member to determine if the City would benefit from adjustments.

Best Practice
When appointing community members to governance groups, it is best practice to document guidelines for position recruitment, evaluation, and selection.17,18 Documents typically address the following:
• Appointment Process: The organization should establish a transparent and fair appointment process for committee or commission members. Define the roles of the governing body (such as the mayor, city council, or relevant authority) in appointing or approving members. Most processes utilize both a written submission and some type of interview process to assess qualifications and fit.
• Terms and Staggering: The organization should document the terms of committee or commission members. There are advantages to limiting the length and number of terms for which members can serve. Limiting terms can help avoid overrepresentation of interest groups. However, term limits may also result in the exit of members who have the most experience. By staggering terms, the organization can maintain institutional memory while allowing for new members to join regularly. In addition, another common best practice is to require governance group members to wait a period of time (usually one or two term lengths) before applying for new governance roles.

This helps to ensure broad representation on governance groups. • Composition and Diversity: The organization should document the size and composition of the committee or commission based on the requirements of the work to be done. It is best practice to strive for diversity in membership. Equity principles suggests that membership be representative of the community at large (in terms of sex, race, ethnicity, and geography) in order to promote inclusivity, robust decision-making, and community representation. • Expertise and Qualifications: Some municipalities require only that its governance group members reside in or own a business in the city and demonstrate an interest in the committee subject matter. However, some governance groups—like the Planning Commission—may benefit from specialized expertise or a minimum baseline knowledge within their membership. In particular, groups charged with oversight responsibilities or that deal in highly technical topics often require some degree of subject-matter familiarity from some or all members. This ensures that members can contribute effectively and make informed recommendations, in collaboration with the subject matter expertise that staff provide.
17 Maryland Municipal League: Citizen Boards, Commissions and Committees 18 Local Government Citizen Advisory Boards, MRSC
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Current Conditions
The processes to select and appoint members of commissions and committees is outlined via various City Council resolutions. For example, Resolution 16-137 establishes processes related to recruitment and appointments. In alignment with best practice, the City has also taken steps to expand diversity within the governance groups by adopting Resolution 03-203, which affirms the intention to embrace the City’s demographic diversity when making appointments.

The Municipal Code outlines some considerations for selection criteria for some, but not all, groups.

For example, the Housing Commission chapter notes criteria that the Council should prioritize when appointing members (like applicants who are familiar with the operation of affordable housing or who are renters). However, several groups do not have clear standards or criteria for minimum qualifications for positions within groups that would benefit from technical expertise. Notably, the Planning Commission does not have any documented criteria. Without minimum (or even desired) qualification requirements, it is difficult to ensure that applicants have subject matter familiarity related to the governing group on which they serve.

The City does not currently require governance group members to wait a period of time before applying for new governance roles. As such, governance group members can serve in multiple consecutive positions across various groups.

Recommendations
• Review the qualification criteria for each commission and committee to determine if the City would benefit from adjustments:
○ Consider establishing qualification criteria for select groups to help ensure that the City’s advisory groups contain members with baseline subject matter familiarity to productively engage in their advisory capacity.
○ Consider establishing a waiting period for current governance group members looking to apply for new positions. The goal of this shift would be to encourage broader participation and representation within governance groups.
○ Consider adopting standard commission and committee member interview questions that are germane to their roles and responsibilities.
• Appendix A contains a summary of the current selection criteria for each group as documented in the City’s Municipal Code.
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10. Observation Commission and committee operations—including onboarding, meeting procedures, work plans, and reporting—are not always consistent or effective.

Recommendation A. Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees.

B. Clarify the process and expectation for cancelling unnecessary meetings.

C. Consider adopting the practice of requiring annual work plans for each commission and committee.

Best Practice
Onboarding and Training
Onboarding and training for new commission or committee members are crucial for smooth integration into their roles and the effective functioning of the commission or committee. By implementing a robust onboarding and training program, commissions or committees can facilitate effective participation and engagement of new members. This leads to informed decision-making, collaboration, and overall success of the group’s work in serving the community.

In most aspects, governance group orientations often follow a similar (if abbreviated) format to that of Council orientations (see the City Council Onboarding and Training section). However, committee and commission orientations often focus on additional areas:
• Subject Matter Training: Governance group orientation typically includes some degree of subject matter training or resources to help new members familiarize themselves with the area of focus of the commission or committee. By providing background information, relevant research, and resources, new members can build their knowledge and expertise in their respective areas. • Roles and Responsibilities: Clarifying the roles and responsibilities of the governance group chair, members, and staff can be helpful to support smooth operations. In particular, the chair will play a large role in ensuring productive meetings by facilitating discussions and keeping the group focused.
• Staff Support: Governance group orientations should clearly outline what type of support the group will receive from their staff liaison, as well as introduce other important staff contacts (like the City Clerk’s Office).

Meeting Procedures
Commission and committee meeting procedures should be established in code and/or other formal documents. In terms of meeting cadence, there are no established standards for meeting frequency.

Rather the cadence should be based on the needs of the committee or commission’s function. If there is not active work to accomplish, the group should have a provision to cancel unnecessary meetings. 202
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Annual Work Plans
It is best practice for advisory groups to develop an annual work plan that outlines the group’s priorities, timelines, and any relevant deliverables.19 Regular review of progress and adjustment to the work plan may be required over the course of the year. This type of planning document can help ensure groups are focused on the highest priority work and reduce scope expansion. Given that advisory groups do not have assigned staff to complete operational work, it is important to note that the annual work plans can only refer to work that group members will produce themselves. In addition, work plans should be aligned with and support major City goals, priorities, and/or Work Program items.

Reporting
The reporting structure and expectations for how commissions or committees share information with City Council should be documented. Establishing clear lines of communication and reporting to the governing body ensures that recommendations are documented and considered in decision-making processes. Committees and commissions usually communicate with the governing body and the public by means of written reports, public hearings, and/or verbal communication. In addition, the new Council Procedures Manual requires that at least one commission member be present at Council meetings when the commission’s recommendations are being considered to help facilitate direct communication.

Current Conditions
Onboarding and Training
The City has developed a general onboarding presentation for commissions. The focus of the onboarding presentation is the material covered in the Commission Handbook, including structure of government; commission purpose; attendance; public meetings (Brown Act); conflicts of interest; parliamentary procedures; ethics; City Work Program; and communications.

However, there are opportunities to enhance the effectiveness of the onboarding process. • It is unclear whether this training is presented to committees. • As noted in the Commission and Committee Structure section, there have been ongoing challenges ensuring that all governance group members understand that their core function is advisory in nature and that they cannot direct staff on administrative matters or assign work tasks. • Interviewed staff noted that the current orientation is fairly short and does not go into depth on any issues. The training does not touch on specific responsibilities. For example, some staff noted that the role of the chair is often not specifically addressed, and note-taking processes vary by group.

Meeting Procedures
Meeting cadence varies widely by group, which is to be expected given their differing scopes. Staff report that groups which meet frequently (once or twice per month) have frequently resisted the idea of cancelling meetings when there are no active agenda items. This suggests that additional training 19 Local Government Citizen Advisory Boards, MRSC
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and guidance from staff on this issue may be beneficial to make better use of staff and governing group members’ time, and that meeting frequency could be evaluated.

Work Plans
The City does not require annual work plans for any of their governance groups. In the absence of defined priorities or clear direction from Council, some interviewees noted that governing groups will occasionally find new projects to take on that are outside the scope of the group’s intended role.

Reporting
The City hosts a monthly meeting where all commissions can report on progress and upcoming activities to the Mayor.

Recommendations
• Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees. In particular, it may be helpful to expand the current orientation process and establish consistent processes to provide subject matter training for relevant groups.

Providing opportunities for peer-to-peer learning across governance groups may also be helpful. • Provide additional support for groups that meet frequently (at least once per month) to clarify the process and expectation for cancelling unnecessary meetings. It may be beneficial to introduce a regular check-in between the chair and staff liaison when finalizing agendas to determine if there is a need for the subsequent meeting.
• Consider adopting the practice of requiring annual work plans for each commission and committee, that aligns with City’s goals, priorities, and/or Work Program. The development of annual work plans would need to be supported by staff to ensure they are targeted, meaningful, and reasonable in scope. In many cities, staff liaisons develop draft work plans that are then reviewed, edited, and approved by the group they support.

11. Observation The staff time used to support governance groups represents a significant investment of City resources.

Recommendation A. Review the practice of requesting department directors attend commission and committee meetings.

B. Provide training for staff liaisons annually and when a new individual takes on the liaison role.

Best Practice
Staff support is a crucial element to ensure governance groups can operate smoothly, leverage expertise, and make informed decisions. Staff from across the organization may support different elements of the governance groups, including:
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• Administrative support for meetings (including agenda development, meeting logistics, and taking meeting minutes)
• Compliance support
• Legal advice
• Subject matter expertise
• Training and onboarding
It is common practice to assign a specific staff liaison to provide the primary administrative support and subject matter expertise. Within this setting, it is critical to support liaisons with documentation and training on processes, responsibilities, and expectations.

The most critical best practice is to ensure that roles and responsibilities are clearly defined for all parties. Both staff and governance group members should understand their specific duties, expectations, areas of expertise, and limitations.

Current Conditions
In alignment with best practice, the City has established staff liaison roles to support each commission and committee. In the instances where staff liaison roles are not already filled by a department director, some department directors have recently been asked to participate in these meetings in addition to the staff liaison. While the intention behind this shift was to provide additional support to staff, some interviewees noted that this has created challenges to the staff liaison’s authority and sense of responsibility. When department directors are present, it can undermine the staff liaison’s position and can create confusion about roles.

Supporting governance groups requires significant investment of staff time and City resources. A 2023 review performed by the City estimated that required annual staff liaison time to provide this support totaled more than 4,600 hours.20 In addition to staff liaison hours, the report notes that the “City Clerk’s Office spends significant time (over 1,000 hours) per year on administrative duties for commissions such as orientation, training, and assisting with agendas. The City Attorney’s Office also supports certain commission and committee items and staffs the Planning Commission.” Some interviewed staff reported significant challenges to accomplishing the workload associated with supporting these groups. In particular, the City Clerk’s Office has been struggling with understaffing, which has had a negative impact of their ability to both support governance groups and accomplish other work priorities.

January 17 Staff Report – Staff Liaison Hour Summary21
Commission Annual Staff
Liaison Hours
Committee Annual Staff
Liaison Hours
Bicycle Pedestrian 240 Administrative Hearing
Committee
30 Arts and Culture 200 Audit Committee 230
20 City Council Staff Report January 17: Study Session to consider modifying Municipal Code Title 2 regarding compositions and responsibilities of existing Commissions and Committees 21 City Council Staff Report January 17: Study Session to consider modifying Municipal Code Title 2 regarding compositions and responsibilities of existing Commissions and Committees 205
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Commission Annual Staff
Liaison Hours
Committee Annual Staff
Liaison Hours
Housing 220 Disaster Council 30
Library 350 Economic Development 60
Parks and Recreation 750 Environmental Review 80
Planning 1100 Design Review 40
Public Safety 200 Legislative Review 400
Sustainability 220 Total 870
TICC 120
Teen 300
Total 3,740
In alignment with best practice, the City has documented the liaison duties and expectations.

However, the City does not provide annual trainings for new and returning staff liaisons.

Recommendations
• Review the practice of requesting department directors attend commission and committee meetings. If it is determined that this practice does make sense within the City’s operating environment, it will be critical to distinguish between the role of the staff liaison and the department director. If both department directors and staff liaisons are to attend the meeting, clear expectations for roles and responsibilities should be delineated and communicated.

Department directors should reinforce the expertise and role of the staff liaison, while supporting staff in managing the effective function of the commission. • Provide training for staff liaisons at least annually, and when a new individual takes on the liaison role. Ideally, this training would include key meeting protocols, roles and responsibilities, City policies, and tactics to help the groups stay focused on priorities, reinforce appropriate roles and responsibilities, and address conflicts.
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Recommendation Identify and implement expanded communication and change management practices to improve workplace culture.

Best Practice
Effective communication and change management with city staff are crucial for successful organizational operations and implementation of new initiatives:22, 23, 24 The following are common best practices to help staff navigate significant organizational change or upheaval:
• Transparent Communication: Foster a culture of transparent communication by providing regular updates, sharing information, and actively engaging with staff members. Be open about organizational goals, changes, and challenges, and encourage two-way communication where staff can ask questions, share feedback, and express concerns. • Clear and Timely Messaging: Ensure that messages about organizational changes, new initiatives, or important updates are clear, concise, and timely. Use multiple communication channels, such as staff meetings, emails, intranet, or newsletters, to reach staff members effectively. Tailor messages to different departments or levels of the organization, as needed. • Change Management Strategy: For any major organizational change, develop a change management strategy to guide the related communications. This strategy should include:
○ A clear vision/message that communicates why the change is taking place. Without a clear understanding of the need for change, it is difficult to gain buy-in. ○ A communication plan that outlines the specific communication milestones, methods, and responsible parties. The communication plan should clearly identify what is changing, how it is changing, who will be affected, how City customers will be affected, and when the change will occur.
○ Mechanisms for staff involvement and feedback. Wherever possible, employees should be engaged prior to announcing new changes to define the problem, provide input on potential concerns, and provide suggestions to improve implementation. ○ Training programs, if relevant, to build new staff knowledge and skills. • Staff Involvement and Empowerment: Involve staff members in the change process by soliciting their input, ideas, and concerns. Encourage their active participation in decision-making, problemsolving, and identifying areas for improvement. Empower staff by providing opportunities for training, skill development, and growth aligned with the changes being implemented. • Feedback and Recognition: Create mechanisms for staff to provide feedback on the change process and the impact it has on their work. Actively listen to their concerns, address issues 22 Council-Staff Communication Guidelines, ICMA
23 Preparing for a Culture of Change and Innovation, ICMA 24 Mistakes to Avoid When Communicating Change, ICMA
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promptly, and acknowledge their contributions and efforts. Recognize and reward staff members who adapt well to change and contribute positively to organizational goals.

Current Conditions
The City has undergone and continues to experience a high degree of organizational change and uncertainty. In particular, the high turnover in key leadership positions within the City and the ongoing turmoil in relation to Council/staff relationships has reportedly resulted in low employee morale and a strong (and understandable) resistance to additional change.

Some interviewed staff reported the need for strong levels of communication for leadership and a desire for more engagement and inclusion in decision-making processes—especially on topics that greatly impact staff such as flexible work arrangements. Within this environment, it becomes highly important that the City’s management team is engaged in active communication, change management, and support of staff to help the organization weather change and improve the workplace culture.

Recommendations
• The City’s management team should collaborate to identify and implement expanded communication and change management practices as a means of supporting staff and helping to improve workplace culture. Options may include:
○ Communication Alignment: The City’s leadership team may benefit from establishing specific processes to explicitly identify what information needs to be shared with staff and who is responsible for sharing it. This can be as simple as a checklist that is used at the end of each management team meeting to discuss:
− What information (if any) needs to be communicated out to staff? − Who is responsible for communicating it (individual vs. all department directors)? − How will the message be shared (email, verbal, etc.)? − When will the information go out?
○ Engagement Surveys: Regular (quarterly or semi-annual) employee engagement surveys can provide a means to track baseline and trends. By reviewing and acting upon feedback, the leadership team can continue to build trust with staff. ○ Change Management Training: The City’s management team may benefit from training on communication and change management best practices. By participating in such trainings as a team, City management can then develop a shared vocabulary and begin to identify opportunities to make positive changes to current communication practices.

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APPENDIX A: COMMISSION AND COMMITTEE

SELECTION CRITERIA
The following table contains a summary of the current selection criteria for each governance group as documented in the City’s Municipal Code.

Governance Group Title Selection Criteria
Administrative Hearing
Committee
• N/A
Arts and Culture Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Three members must be City residents
• Membership will be drawn to represent the arts, citizens and business community on an approximately equal basis
Audit Committee • A minimum of two and a maximum of three at large members cannot be officials or employees of the City
• A minimum of two and a maximum of three at large
members cannot cohabitate or be related to a member of
the Committee, the City Manager, or the staff persons
assigned to the Committee
• Members must be a City resident, apart from the at-large member
• In selecting an at-large member, the City Council shall give priority to individuals who have substantial
accounting, audit, or investment experience, preferably in connection with a governmental agency
Bicycle Pedestrian Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Disaster Council • N/A
Housing Commission • The commission will include four community members and one representative from a Cupertino business
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Governance Group Title Selection Criteria
• Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents, apart from the
representative of a business
• The business representative must represent a business that is located in the City
• In selection of community members, the City Council may give priority to:
○ Applicants who represent the Community
Development Block Grant (CDBG) target areas as
described in the City's Consolidated Plan;
○ Applicants who are familiar with the operation of
affordable housing;
○ Applicants who represent non-profit community
organizations; and
○ Applicants who are knowledgeable about the housing
needs of groups targeted for affordable housing
development which include, but are not limited to, the
following:
− Seniors
− Single parent families
− Homeless persons
− Families of low income
− Disabled persons
− Renters
− First time homebuyers
Library Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
Parks and Recreation
Commission
• Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Planning Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
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Governance Group Title Selection Criteria
• Members must be City residents
• Members must be qualified electors in the City
Public Safety Commission • Members cannot be an official or employee of the City • Members cannot be part of the Sheriff’s Department of the County, either regular or reserve, or members of the
Central Fire Protection District
• Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Sister City Committee • N/A
Sustainability Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• The Commission must include:
○ One representative from a Cupertino-based business,
○ One representative from a Cupertino-based primary,
secondary, or higher educational institution, and
○ Three community members.
• Members must be City residents, apart from the business and educational institution representatives
• Business and educational institution representatives must represent organizations that are located in the City
• In selection of community members, the City Council may give priority to:
○ Applicants who represent the target sectors and
partners as described in the Cupertino Climate Action
Plan (hereinafter referred to in this Chapter as "CAP") ○ Applicants who are familiar with climate change
mitigation and adaptation strategies, greenhouse gas
emissions inventories, resource and utility
conservation, sustainability, and behavior change
○ Applicants who represent non-profit community
organizations and environmental interest groups
Technology, Information, and
Communications Commission
• Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
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Governance Group Title Selection Criteria
• Members must be qualified electors in the City
Teen Commission • Members cannot be an official or employee of the City • Members cannot be related to any official or employee of the City
• Members must be City residents
• Members must include at least one person from each
public middle school and public high school in Cupertino, if possible
• Members may attend schools outside of the City limits, or be schooled at home
• Members must be in the 8th through 11th grade at time of appointment
• Members should reflect the broadest possible
representation of Cupertino youth
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CITY OF CUPERTINO
Agenda Item
23-12342 Agenda Date: 9/6/2023
Agenda #: 7.

Subject: Review of Councilmember compliance with Municipal Code Chapter 2.17, recommendations in May 2023 Fact Finding Report, and related governance issues Consider findings regarding Councilmember compliance with Municipal Code Chapter 2.17, recommendations in May 2023 Fact Finding Report, and related governance issues, and provide direction on further measures to improve governance practices, as recommended below Presenter: Christopher Jensen, City Attorney
CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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CITY ATTORNEY’S OFFICE

CITY HALL
10300 TORRE AVENUE• CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3195 • FAX: (408) 777- 3366
EMAIL: [email protected]
1 CITY COUNCIL STAFF REPORT
Meeting: September 6, 2023
Subject
Review of Councilmember compliance with Municipal Code Chapter 2.17, recommendations in May 2023 Fact Finding Report, and related governance issues.

Recommended Action
Consider findings regarding Councilmember compliance with Municipal Code Chapter 2.17, recommendations in May 2023 Fact Finding Report, and related governance issues, and provide direction on further measures to improve governance practices, as recommended below.

Reasons for Recommendation
Background

1. December 2022 Grand Jury Report
On December 19, 2022, the Santa Clara County Civil Grand Jury issued a report entitled, "A House Divided: Cupertino City Council and City Staff” (Attachment A). The Grand Jury report arose from multiple complaints concerning the conduct of the City Councilmembers toward City management and staff. According to the Grand Jury report, the Civil Grand Jury reviewed allegations that (1) Councilmembers interfered in the day-to-day operations of the City; (2) Councilmembers routinely berated and belittled presentations made by the City staff during the City Council meetings; and (3) certain Councilmembers gave direct work assignments to City employees, contrary to the requirements of the Council-Manager form of government as set forth under the Cupertino Municipal Code.

Following its deliberations, the Grand Jury released a report that included four findings, three of which are relevant to the item pending before Council.

Finding 1: The City has a culture of distrust between the Councilmembers and City staff that is creating dysfunction.
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2 Finding 2: The dysfunction prevalent between the City Council and City staff has negatively impacted City operations, including the continuing loss of skilled and experienced personnel.

The City has a reputation of having a difficult work environment, making recruiting of highly qualified applicants difficult.

Finding 4: A comprehensive Code of Ethics not only provides guidance and baseline standards for ethical behavior, if includes sanctions and consequences for deviations from the stand. The City's Ethics Policy is generic and lacks enforcement provisions and therefore fails to provide a framework to address ramifications for policy violations.

2. May 2023 Fact Finding Report
On February 21, 2023, the City Council considered the Grand Jury report and approved the City’s response to the report pursuant to Penal Code section 933 (Attachment B). As part of the City’s response, the City Council directed the City Attorney’s Office to investigate and report back on violations of the Municipal Code with respect to Council-staff and commissioner-staff relations. The City Attorney’s Office retained Linda Daube, Esq. to conduct an independent investigation of potential violations of the Municipal Code and related violations of City policies.

The City Council was initially provided a confidential, attorney-client privileged Report regarding the investigation. On May 2, 2023, the City Council voted to waive privilege, release the report to the public, and to continue discussion of the Report to provide the public an opportunity to review it.

On May 9, 2023, following its release to the public, the City Council considered the Report (Attachment C) and entertained extensive public comment on Ms. Daube’s findings. After deliberating on the Report, the City Council adopted Ms. Daube’s recommendations for facilitating more effective Council-staff relations and enhancing the City Council’s ability to accomplish its goals. Those recommendations include the following, as summarized below:

1. Councilmembers should avoid “governance by email” and should rely on their 1:1 meetings with the City Manager to avoid adverse impacts to City operations and to facilitate communication and trust between the Councilmembers and the City Manager and City staff.

2. Councilmembers should attempt to improve the contentious relationship that certain members have had with City staff and should communicate any concerns about staff to the City Manager, who is accountable to the City Council for her staff’s performance.

3. Councilmembers should rely on the advice of and give weight to the recommendations of executive management staff and other professionals in considering items that come before the City Council.
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3 4. The City Council should continue to use the City Work Program as a way to implement Council's goals, and the City should rely on the Work Program to focus resources and determine staffing needs.

5. The 2018 Ethics Code should be used as a basis for developing revisions to a new Ethics Policy.

6. The City Attorney and City Clerk should consider providing Councilmember training on Rosenberg’s Rules of Order.

7. The City Manager should explore ways to resolve Councilmember needs for information, given limited staff resources (e.g., 1:1 meetings).

Council also provided additional direction to the City Attorney and City Manager, including:

1. That Councilmembers receive training from the City Clerk’s office on the use of the City’s digital archive system.

2. That certain documents considered in preparing the Report be disclosed and posted in a publicly accessible location on the City’s website.

3. That the City Attorney’s Office continue to monitor compliance of Councilmembers with the Municipal Code with respect to the Council-staff relationship and to report back to the Council in four to five months with a progress report.

4. That staff return to Council with a censure resolution if insufficient progress is made toward compliance with the Municipal Code.

5. That Councilmembers Moore and Chao be removed immediately from their respective committee assignments, subject to reassignment to these committees.

6. That the City Attorney make a limited scope referral to the District Attorney' s office with respect to the FactFinding Report’s evidence of any current or former councilmember's interference in the hiring and firing decisions that are the province of the City Manager.

3. July 2023 Enterprise Leadership Assessment Report
After the City Council received the Fact Finding Report, the City’s internal auditor, Moss Adams LLP, prepared pursuant to its Council-approved workplan a separate Enterprise Leadership Assessment (“Assessment”) addressing governance issues (Attachment D). The governance issues addressed in the assessment were initially identified in a December 2020 Enterprise Risk Assessment prepare by Moss Adams (Attachment E), which expressed concerns regarding the length of City Council meetings; “potential role confusion related to [Councilmembers] directing operational matters”; and Council’s focus on operational matters at the expense of long-term strategic goals.

The Assessment was developed to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, the auditor evaluated governance topics including:
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4  Council’s capacity to set the City’s strategic direction and monitor financial sustainability.
 Council meeting procedures and resources.
 The working relationship and collaboration between Council members, City management, and staff.
 Training and onboarding.
 Committee and commission roles, core function, and support.

The Assessment was conducted between March 2023 and June 2023 and was informed by interviews with the City’s leadership and staff, and a review of data and documents provided by the organization.

Many of the Assessment’s observations and recommendations regarding the City Council’s compliance with best practices for governance echo the findings of the Grand Jury and Fact Finding Reports and are summarized in the table below.

ENTERPRISE LEADERSHIP ASSESEMENT

OBSERVATIONS AND RECOMMENDATIONS
City Council

1. Observation While the City has established many policies that are aligned with best practice, there are opportunities to increase the effectiveness of current policies.

Recommendations
A. Continue current efforts to review and update the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.

2. Observation
With the adoption of the City Council Procedures Manual and other recent changes, the City has made positive progress toward increasing the effectiveness of City Council meetings. However, ongoing challenges remain to ensure that meetings are productive and timely.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

3. Observation There is a well-documented history of mistrust and poor communication between Council and management.

Recommendations
A. Continue current efforts to implement recommendations from the 2023 Internal Review, with a focus on expanding the use of 1:1 pre-meetings with Council members
B. Consider developing additional criteria to determine when requests for information will require a significant allocation of staff time.

C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.
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