CC 11-21-2023
#2
Mitigation Fee Act
Supplemental Report
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 21, 2023
Agenda Item #2
Subject
Mitigation Fee Act – the Annual & Five-Year Report for Fiscal Year (FY) 2022-2023.
Recommended Action
Adopt Resolution No. 23 -____ entitled “A Resolution of the City of Cupertino City Council approving the Annual & Five -Year Mitigation Fee Report for Fiscal Year ending June 30, 2023, and making required findings” to:
1) Make the required findings; and
2) Approve the Annual & Five -Year Mitigation Fee Report for the Fiscal Year ending June 30, 2023, as required by Government Code Section 66000 et seq.
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: CMC 14.05 references a Park Maintenance Fee which would be deposited in the Park and Recreational Facilities Acquisition and Maintenance Fund. I think this would qualify as a Development Impact Fee and the CMC indicates that a nexus study was done, however I am unable to locate this fund in the report and need assistance. (Reference: CMC 14.05.040) This fund would be separate from fund 280. Is that correct? (Moore)
Staff response:
The Park and Recreational Facilities Acquisition and Maintenance Fund referenced in CMC
14.05 relates to Fund 280 – Park Dedication.
Q2: CMC 14.02 Transportation Impact Fee Program has a matching TIF Account which I believe is fund 271 Traffic Impact, is this correct and may the fund names be something like Transportation Impact Fee? (Moore)
Staff response:
Fund 270 – Traffic Impact collects revenue from traffic impact fees and expends these funds as projects are approved and is named to capture the fund’s general purpose.
Q3: CHAPTER 19.148: REQUIRED ARTWORK IN PUBLIC AND PRIVATE DEVELOPMENTS has an in lieu of payment for developments which appears to qualify as an AB 1600 Development Impact Fee. The City did collect funds from Westport for this fund. Because the fund has a codified, intended purpose it should probably have a separate fund in the budget and appear in the AB 1600 report? I noticed that Union City has an art fund in their AB 1600 report, for example. (Reference: CMC 19.148.090) (Moore)
Staff response:
As identified in the staff report, art in-lieu fees are considered to be imposed under the City’s police power to regulate development and are not considered impact fees for purposes of the Mitigation Fee Act. However, the City has included reporting on the art in-lieu fees to provide consistency and clarity.
Q4: CMC 19.172 Below Market Rate Housing Program, I believe is fund 265 BMR Housing, does not have the fees listed by Ordinance which some other cities do, or the name of the account the fees would go into, it does however reference the Residential Housing Mitigation Program rules and regulations. Would it be better to have the fee and fund name codified? (Reference: 2018 Storm Drain Master Plan) (Moore)
Staff response:
Generally, development fees may be established by ordinance or resolution. Chapter 19.172 is somewhat unusual in that it references General Plan requirements as the basis for the imposition of fees under the Residential Housing Mitigation Program, but the unusual structure does impact the ability to enforce or collect the fee. If the City Council revisits the Residential Housing Mitigation Program in future legislation, it may wish to consider imposing impact fee requirements in the Municipal Code or in a resolution that is separate from the General Plan. Staff would likely recommend maintaining the flexibility to adopt Residential Housing Mitigation Program rules and regulation by resolution.
Q5: Fund 215 Storm Drain AB 1600 is another fund which is not codified however, was adopted by Resolutions 633 and 4422 from 1962 and 1977 per Attachment A for this agenda item. The fee costs appear to still be based off of 1977 values without update? While the city does have two storm drain fees in the CMC, it would seem that the Development Impact fee needed to be reviewed if the fees truly haven’t been updated since 1977. (Moore)
Staff response:
As identified in Attachment A, the master storm drain fees are adjusted by the Construction Cost Index annually with the approval of the fee schedule.
Q6: Attachment A (11/07/23 Agenda item) which is the City’s AB 1600 report, has multiple, unique, Public Works Projects funded by Conditions of Approval of various past projects. Some of the projects have changed since last year’s report, such as TM- 2012-04 which used to state it was for Rodriguez and Pacifica but now states Stevens Creek Blvd. Class IV bikeway. Additionally, I could not locate any of these unique funds in the city financial reports to verify there is no commingling? (Moore) Staff response:
Some in-lieu funds have been reallocated to fund different projects. These projects are consistent with the original purpose for which the fees were collected\ and tracked with the City’s ERP software to ensure uses are still applicable
Q7: The June 30, 2022 and June 30, 2023 Fund Balances are included as attachments.
These balances are off in all instances from the amounts shown in the AB 1600 report.
Where is the City getting the balance numbers from and in what bank account is the interest being derived from? Are we to assume these funds are in the Chandler account or elsewhere? (Moore)
Staff response:
The provided fund balances assume all activity (revenues and expenses) are collected or disbursed within the fiscal year, regardless of accounting timing differences, and will not be located in any other City report. The City’s ACFR accounts for non-cash transactions such as investment mark-to-market and treasury reports are a snapshot in time showing actual cash in hand and do not account for timing differences.
Q8: CMC 13.08 Park Land Dedication Fee has a matching “Park dedication in-lieu fee fund” which I believe is fund 280 “Park Dedication,” is this correct and may the fund name be made to match the CMC wording? The Lawrence Mitty purchase of about $3M does not appear to be reflected in the report, please help me locate it. (Moore) Staff response:
Lawerence Mitty was purchased in FY 2020-21 for a total of $2,690,000 plus $7,964 in title and escrow fees.
Attachments Provided with Original Staff Report:
A. Annual & Five-Year Report for FY 2023
B. Draft Resolution
Attachments Provided with Supplemental 1:
None
CC 11-21-2023
#10
Master Agreements with
CSG Consultants, Inc and
4Leaf, Inc
Supplemental Report
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 21, 2023
Agenda Item #10
Subject
Approve master agreements with CSG Consultants, Inc. and 4Leaf, Inc., to provide construction management services on various Capital Improvement Program (CIP) projects.
Recommended Action
1. Authorize the City Manager to execute a master agreement with CSG Consultants, Inc. (CSG) in the amount not to exceed $500,000 for a contract period of two years.
2. Authorize the City Manager to execute a master agreement with 4Leaf, Inc. (4Leaf) in the amount not to exceed $500,000 for a contract period of two years.
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: Councilmember question: What is a Master Agreement? (Moore) Staff Response: “A master service agreement, sometimes known as a framework agreement, is a contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements.” (Source: Wikipedia)
“A master service agreement (MSA) is a fundamental contract outlining the scope of the relationship between two parties, including terms and conditions for current and future activities and responsibilities. There is great value in using these arrangements, especially for entities with multiple agreements pertaining to the same client. MSAs are contracts that establish basic terms between vendors and clients at the beginning of a business relationship.
This initial agreement helps to speed up the negotiation process for future contracts and facilitates the project management process, resulting in a more efficient and streamlined process. By establishing these basic terms upfront, subsequent contracts can be more easily negotiated and agreed upon, saving time and money for everyone involved. Due to their ability
to simplify the contract negotiation process, MSAs are a popular choice for businesses of all types.” (from Thomson Reuters Legal)
Q2: Councilmember question: Why use a Master Agreement? (Moore) Staff Response: These types of agreements allow the City of Cupertino to avoid repetitive negotiating for the same or similar services or projects.
Q3: Councilmember question: How does the City generate a Master Agreement? (Moore)
Staff Response: Once the need for a particular type of consultant or type of service is identified, the City will publicly post a Request for Qualifications (RFQ). An RFQ will typically include a request for a list of services, qualifying experience, firm resumes, and labor rates. Staff reviews the RFQ submittals and generates a list of qualified consultants for use on future projects or services.
The City can negotiate a master agreement with a consultant firm using this list. The consultant submits a proposal, including services and fees, for consideration. Staff and the City Attorney’s Office (CAO) generate the draft agreement.
The City’s master agreements define the scope of services, duration of the agreement, maximum compensation, and other terms and conditions of the contractual relationship. No monies are encumbered at this point since no work is contracted with the execution of the
agreement. Using the terms and conditions predefined in the master agreement, services are contracted using a Service Order (SO), on an as‐needed basis. Service orders, generated by Staff, are a binding agreement between the City and the consultant firm. All requirements of the PCC and the Cupertino Municipal Code apply to the execution of a SO. The City’s SO template is attached to this memo. The SO defines the scope[s] of work and fees that are committed for the specific task and/or project.
It is not typical for Council to approve SOs. If a contract for a scope of work requires compensation greater than $200,000, which is the threshold for requiring Council’s approval, it is generally best practice to use a stand‐alone agreement rather than the service order/master agreement. A stand‐alone agreement provides more specific scope of work definitions and terms of the relationship. Additionally, a Master Agreement is typically used for smaller, repeating types of work.
Q4: Councilmember question: Why do we use Construction Management (CM) services? (Moore)
Staff Response: Construction management is a professional service that provides a project’s owner(s) with effective management of the projectʹs schedule, cost, quality, safety, scope, and function. Construction management is compatible with all project delivery methods. No matter the setting, a Construction Manager’s (CMs) responsibility is to the owner and to a successful project. (from Construction Management Association of America)
The City hires CM’s for a majority of the CIP projects. The CIP project managers will manage the project from start to finish, but CM services will be used for the construction phase of a project. There is some helpful overlap in managing the schedule, costs, and quality of a project, in addition to the technical expertise that a CM generally brings to a project. For example, most projects require technical or special inspections that a CM can provide and for which the City does not have the required certifications or expertise. Additionally, CalTrans and Federally funded projects require a CM on site for all construction activities. The City does not have the staff resources to provide this level of service.
Attachments Provided with Original Staff Report:
A. Draft Master Agreement CSG Consultants Inc.
B. Draft Master Agreement 4Leaf Inc.
Attachments Provided with Supplemental 1:
C. Service Order Example
EXHIBIT B
SERVICE ORDER PROCESS
The CONSULT ANT shall provide services under this Master Agreement on an "as needed" basis and only (1) upon written request from the CITY's Director of Public Works or authorized Agent as defined in Section 14, Project Coordination, and (2) as defined in a fully executed Service Order .
SECTION 1- SERVICE ORDER INITIATION
A. The City Public Works Director or his/her designee shall provide written request for Consultant services as defined in this agreement. The Consultant and City shall meet to discuss the services after which the consultant shall provide a written proposal including specific scope of services, performance schedule, and compensation to the City.
B. The City and Consultant shall discuss the proposal in detail and agree upon the terms of the Service Order.
C. The City shall prepare a Project Service Order consistent with the City's standard form, Service Order, and Attachment A. The Service Order shall, at a minimum, include (1) specific scope of services, deliverables, schedule of performance, and compensation .
SECTION 2- SERVICE ORDER EXECUTION
D. Both parties shall execute the Service Order as evidenced by the signatures of the authorized representatives defined in Section 14 of the Master Agreement, Project Coordination, and the date signed.
E. The Consultant shall begin work on the scope of services only after receipt of a fully executed authorized Service Order defining those services. Consultant understands and agrees that work performed before the date of the authorized Service Order or outside the scope of services once a Service Order is signed and authorized shall be at no cost to the City.
F. The maximum compensation authorized by a single Service Order and/or the aggregate of Service Orders shall not exceed the maximum compensation set forth in Article 4 of the Master Agreement.
CSG Consultants, Inc. Exhibit B-Service Order Process
Constr uction Management Services
CITY OF CUPERTINO
MASTER AGREEMENT CONSULT ANT SERVICES
SERVICE ORDER NO.
MASTER AGREEMENT #: MA Date:
Maximum Compensation: MA End Date:
Consultant: Firm Name:
Address:
Contact: Ph:
Email Address:
Project Name:
□Description: (simple project description if appropriate) Attachment A: Includes Description of Project, Scope of Service, Schedule of Performance and Compensation
City Project Management
Managing Department: Public Works Project Manager:
Fiscal/Budget :
Master Agreement Maximum Compensation:
----------
Tot al Previously Encumbered to Date:
----------
Enc umbra n c e this Service Order:
----------
Master Agreement Unencumbered Balance:
----------
SO Acc't#: PO#:
Project#: Date:
Approvals:
Consultant: Date:
Manager: Date:
Appropriation Certification: I hereby certify that an unexpended appropriation is available in the above fund for the above contract as estimated and that fund are available as of this date of signature City Finance: Date:
---------------Man age men t Analyst
City of Cupertino Master Agreement Service Order
CC 11-21-2023
#11
First Quarter Financial
Report
FY 2023-24
Supplemental Report
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 21, 2023
Agenda Item #11
Subject
Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2023‐24
Recommended Action
1. Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2023‐24
2. Adopt Resolution No. 23‐XXX approving Budget Modification No. 2324‐314, increasing appropriations by $540,141 $464,384 and revenues by $464,384$540,141
3. Adopt Resolution No. 23‐XXX amending the Cupertino City Employees’ Association /IFPTE Local 21 Classification Plan and Salary Schedule
4. Adopt Resolution No. 23‐XXX amending the Unrepresented Employees’ Compensation Program
5. Approve new Senior Housing Coordinator and Communications and Marketing Coordinator classifications
6. Receive FY 2023‐24 First Quarter City Work Program Dashboard Update
7. Provide direction on potential service level reductions for FY 2024‐25 a. Defunding the 4th of July Event in FY 2024‐25
b. Defunding Community Grant Funding Program in FY 2024‐25 c. Defunding Weed Abatement subsidy of $8,600 annually
Background:
The staff report and Recommended Action contained an error that is corrected with this supplemental report. The amounts in bullet 2 of the Recommended Action were flipped and should say “increasing appropriations by $540,141 and revenues by $464,384”. See the strikethrough above.
Staff’s responses to questions received from councilmember are shown in italics.
2 Q1: What is the full costs of 4th of July, could those costs be broken out? (Vice Mayor Mohan)
Staff response: 4th of July
Event Includes Total Funding
Morning Pancake Breakfast, Concert,
Flag Raising, Parade, parks
and recreation overtime
staffing, rentals
$7,000
Evening Fireworks, 3 viewing sites,
sheriffs, parks and Recreation
and public works overtime
staffing, rentals
$140,000
Morning & Evening (Full‐
Event)
Pancake Breakfast, Concert,
Flag Raising, Parade,
Fireworks, 3 viewing sites,
sheriffs, parks and Recreation
and public works overtime
staffing, rentals
$145,000
Q2: How much have we funded in community funding in the past? (Vice Mayor Mohan) Staff response: Community Funding (CF)
Fiscal Year (FY) Total Funding*
FY 17‐18 $52,400
FY 18‐19 $52,400
FY 19‐20 $109,800
FY 20‐21 $110,000
FY 21‐22 $115,900
FY 22‐23 $69,461
FY 23‐24 $32,500
*CF policy allows for funding up to $90,000
Q3: Why is 4th of July being brought now for a decision and why not other reductions? (Councilmember Moore)
Staff response: All three FY 2024‐25 Budget reductions in the First Quarter Financial Report are being brought to City Council due to timing issues. 4th of July event takes place at the beginning of the fiscal year. Planning for that event begins months in advance and the City enters into contracts in January for the fireworks. Staff need to know now if we should proceed with the event.
Community funding also begins in January with a notice of funding and staff needs to know if we will proceed and if so what level of funding will be available before January. Similarly, the Weed Abatement program begins in January and lasts into next fiscal year. 3 Q4: Please provide the number of unfilled positions which we had in January 2023 and how many remain today? (Councilmember Moore)
Staff response:
Department Position As of 1/2023 As of 11/2023
Admin Services Finance Manager Vacant Filled
Admin Services Purchasing Manager Vacant Filled
Admin Services Senior Mgmt Analyst Vacant Underfilled at Management Analyst level
City Managerʹs Office Administrative Assistant Vacant Filled City Managerʹs Office Assistant City Manager Vacant Eliminated City Managerʹs Office Communications Analyst
(Three‐Year Limited‐
Term)
Vacant Eliminated
City Managerʹs Office Legislative Aides
(Management Analyst)
Vacant Overfilled as Sr.
Management Analyst
City Managerʹs Office Deputy City Manager Vacant Filled City Managerʹs Office Public Information Officer Filled Vacant City Managerʹs Office Senior Office Assistant Vacant Vacant City Managerʹs Office
to Public Works
Management Analyst
Sustainability
Vacant Filled, transferred to PW
Environmental Programs
City Managerʹs Office
to Public Works
Sustainability Manager Filled Filled, transferred to PW Environmental Programs
and underfilled at PW
Supervisor level
Community
Development
Assist Director
CDD/Building Official
Vacant Filled
Community
Development
Assistant Planner Vacant Vacant
Community
Development
Assistant Planner Filled Vacant
Community
Development
Associate Planner Vacant Vacant
Community
Development
Code Enforcement Officer Vacant Vacant
Community
Development
Office Assistant Vacant Filled
Community
Development
Senior Planner Vacant Vacant
Community
Development
Senior Planner (Housing) Vacant Eliminated
Community
Development
Senior Planner (Planning) Vacant Vacant
4 Community
Development
Planning Manager
(Housing)
Filled Vacant
Parks and Recreation Assistant Director of
Parks and Recreation
Vacant Underfilled at Recreation
Manager
Parks and Recreation Community Outreach
Specialist
Vacant Eliminated
Innovation and
Technology
Network Specialist Filled Vacant
Public Works Maintenance Worker I/II Vacant Filled
Public Works Maintenance Worker I/II Vacant Filled
Public Works Maintenance Worker I/II Vacant Filled
Public Works Director of Public Works Vacant Filled
Public Works Maintenance Worker I/II Vacant Filled
Public Works Maintenance Worker Lead Vacant Filled
Public Works Project Manager Limited
Term
Vacant Eliminated
Public Works Management Analyst Vacant Filled
Parks and Recreation Senior Office Assistant Filled Vacant Public Works Environmental Program
Specialist
Filled Vacant
Public Works Sr. Public Works Project
Manager
Filled Vacant
Public Works Sr. Public Works Project
Manager
Filled Vacant
Note that position reductions are not on the agenda for the November 21 meeting but may be considered by Council as part of the FY 2024‐25 budget process, which is scheduled to begin in January 2024.
5 Q5: Please provide the free facility use/free staff time/Sheriff support which the City grants each year including Senior Center in the Parks and Recreation totals? (Councilmember Moore)
Staff response: All facility rentals, free or paid, come with staff setup and support of the room rented. These are fixed costs with operating the facilities. Staff is not in the room for the entire rental, but they are available for technical or furniture issues.
The fee waivers for the facilities are a part of the festival costs chart that is called out in the proposed budget meetings and a part of the budget book. The chart contains a column entitled Facilities/Parks/Road Permits under the waived fees section of the chart. Staff does not waive any facilities fees without a waiver by City Council. If a festival asks for more space after this chart has been approved, festivals are informed that they must pay for any extra space.
6 Note that facility fee waivers are not on the agenda for the November 21 meeting but may be considered by Council as part of the FY 2024‐25 budget process, which is scheduled to begin in January 2024.
Q6: Please provide an update on the Vehicle replacement budget: how much was
budgeted, what was purchased and what remains.? (Councilmember Moore) Staff response: Within the FY 23‐24 budget for Vehicle Fixed Assets Acquisition, the adopted budget total is $460,000. The budget was established to enable vehicles 455, 481, 46, 495, and 459 to be replaced.
The City has initiated procurement of replacements for vehicles #455 and #481.
The City will initiate procurement of two Ford F150 Lighting EVs to replace the existing gas‐ powered vehicles (#46 and #495). The procurement of these vehicles is anticipated in early 2024.
The City has shifted from purchasing the previously planned hybrid vehicle to purchasing EV vehicle in order to comply with State mandated EV purchasing requirements.
The procurement of vehicle #459 has yet to commence. Procurement is anticipated to be scheduled in Spring of 2024.
Note that the budget for Vehicle Fixed Assets Acquisition is not on the agenda for the November 21 meeting but may be considered by Council as part of the FY 2024‐25 budget process, which is scheduled to begin in January 2024.
7 Attachments Provided with Original Staff Report:
A. FY 2023‐24 First Quarter Financial Report
B. Draft Resolution
C. Description of Carryovers and Adjustments through September 30, 2023 D. Description of Budget Transfers through September 30, 2023 E. FY 2023‐24 First Quarter Recommended Budget Adjustments F. FY 2022‐23 Special Projects Update
G. FY 2023‐24 First Quarter Special Projects Update
H. Competitive and Non‐Competitive Citywide Grants
I. Capital Improvement Program Project Status
J. FY 2023‐24 City Work Program First Quarter Update
K. Senior Housing Coordinator Position Description
L. Communications and Marketing Coordinator Position Description M. DRAFT Resolution Amending the Cupertino Employees’ Association/IFPTE Local 21 Classification Plan and Salary Schedule
N. DRAFT Resolution Amending the Unrepresented Employees’ Compensation Program