CC 1-17-2024
#1
Fiscal Year 2024-25
Potential Service-Level
Reductions
Presentation
January 17, 2024
Fiscal Year 2024 -25
Potential Service- Level Reductions
CC 01-17-2024 Item No. 4
CDTFA Audit
Budget Forecast
Potential Service-Level Reductions for FY 2024-25
Recommendation and Next Steps
Agenda
2 CDTFA Audit
California Department of Tax and Fee
Administration (CDTFA) Audit
Letter received advising the
City of the audit
Dec. 2021
Letter received updating the
City on the years the audit is
covering
May 2022
CDTFA advised the City of
their decision verbally with
dollar impacts to follow in 4-6
months
Mar. 2023
Letter received with audit
decision
Oct. 2023
Council Actions
Council adopts budget
including $15 million in
reductions
Jun. 2023
Council establishes
Committed Sales Tax
Repayment Reserve with $56.5
million
Oct. 2023
Council approves some
reductions for FY 2024-25
Nov. 2023
Council receives presentation
on potential revenue tax
measures. Council asks staff to
engage business community
Dec. 2023
FY 2023-24 Adopted Budget – $15 million in
Reductions
• Eliminating 14 vacant positions $2.6 million
• Decreasing materials, contract services, special
projects, capital outlays, and contingency
expenditures
$5.9 million
• Decreasing transfers from the General Fund to
other funds
$5.5 million
• Using the City's Section 115 Trust to fund OPEB
(Other Post-Employment Benefits/Retiree Health)
costs
$1.4 million
Budget Forecast
Forecast Assumptions
Adopted Budget (June 2023)
• Facility debt paid off in FY 2029-
30 • No additional development
projects included
• Recession (no growth) in FY
2024-25 and FY 2028-29 for all
revenues
• Minimal funding ($500k) for
Special Projects and CWP
Projects
• No transfers to Capital Reserve
New Assumptions (Jan 2024)
• Budget Strategy shift from
vacancies to Service-Level
Reductions (SLR)
• Revised sales tax forecast ($2M
reduction from $11.4M to $9.4M)
• Committed fund balance for
Sales Tax Repayment Reserve
($56.5M) for April 2021-June 2023
• $1M funding for Special Projects
and CWP Projects
• $2M transfers for Capital Reserve
-$10.1M
-$12.3M
-$10.6M
-$11.3M
-$10.4M
-$13.2M
-$14.5M
-$13.6M -$14.0M
-$14.9M
General Fund Annual Operating Surplus/(Deficit)
• Ongoing budget reductions are needed
• Need to identify ongoing expenditure
reductions and revenue generation
estimated at ~$15 million
• Revenue-generating opportunities
• Service-level reductions
• Fee increases
Balancing the Budget
Potential Service- Level Reductions
for FY 2024-25
Potential Service-Level Reductions
Grouping Reductions
Operations and Maintenance
Reduce sidewalk, curb, and gutter. Move some Public Works contract services in- house, extending maintenance timelines. Reduce Public Works PT staffing. Shift credit card fees to customers. Remove library extra hours from the base due to available State funding to cover these costs. Various other reductions.
3,080,725
Infrastructure
Reduce funding to CIP of $2M annually for the first 5 years of the forecast. Will utilize the existing fund balance to cover these costs. Shift sidewalk and street tree maintenance to property owners and shift school district grounds maintenance to the school district. 4,372,402
Fiscal Accountability
Align law enforcement costs with prior year actual hours. Reduce applications used in the City, extend tech refresh cycles, and remove the new Enterprise Resource Planning (ERP) software from the budget. 2,555,421
Community Benefit
Reduce 4th of July Event, partnerships, City events/outreach, paid events, concerts and movies, select City Work Program projects.
463,690
Total $10,472,238
Operations and Maintenance
Department Service-Level Reductions Fiscal Impact Full-Time Staffing Impact (FTE)
Public Works Reduce Public Works Materials and Contract Services and Part-Time Positions
1,768,539 None
Various Shift Credit Card Fees to Customers 432,668 None City Manager's Office/CDD Reduce Part-Time Staffing, Reclassify Positions and Reduce Recruitment Advertising
286,348 None
Parks & Recreation Reduce Funding for Library Extra Hours 160,000 None Public Works Reduce Impec Janitorial Contract 100,000 None City Manager's Office Reduce Scene from 10 months to quarterly 92,400 None Administrative Services Reduce Budget for Internal Audit 70,000 None Public Works Reduce Crossing Guard Services 50,000 None Parks & Recreation Reduce Parks & Recreation Expenses 33,619 None Parks & Recreation Reduce Park Ranger Services 31,155 None City Manager's Office Eliminate Minimum Wage Mailers 23,202 None Parks & Recreation Reduce Senior Center Part-Time Staffing and Supplies 21,748 None Administrative Services/ CDD Reduce Conferences and Training 11,046 None Total Operations and Maintenance $3,080,725 None
Infrastructure
Department Service-Level Reductions Fiscal
Impact
Full-Time
Staffing
Impact (FTE)
Capital Improvement
Program
Reduce General Fund Transfers to the Capital
Improvement Fund
2,000,000 2
Public Works Shift Sidewalk Maintenance to Property Owners 1 1,000,000 1.4
Public Works Shift School District Grounds Maintenance to School District
1 737,394 4.2
Public Works Shift Street Tree Maintenance to Property Owners 1 455,008 3
Public Works Defer Vehicle and Equipment Replacement 180,000 None Total Infrastructure $4,372,402 10.6
Fiscal Accountability
Department Service-Level Reductions Fiscal
Impact
Full-Time
Staffing
Impact (FTE)
Law Enforcement Align Law Enforcement Budget with Actuals 1,000,000 None
Innovation & Technology Reduce Budget for IT 779,187 None Public Works Utility True-up 398,407 None
City Attorney's Office Align City Attorney's Office Contract Services and Materials with Actuals
226,561 None
Parks & Recreation Consolidate Learn to Swim Program 87,118 None Administrative Services Reduce Unemployment Insurance 64,148 None Total Fiscal Accountability $2,555,421 None
Community Benefit
Department Service-Level Reductions Fiscal
Impact
Full-Time
Staffing
Impact (FTE)
Parks & Recreation/Public
Works
Reduce 4th of July Funding
138,000 None
Council Reduce Funding for Partnerships 69,307 None
City Manager's Office Reduce City Events/Outreach 63,166 None Parks & Recreation Reduce Budget for Paid Events 38,675 None Parks & Recreation Shift Sheriff Fees for Festivals to Festival Organizers 34,992 None Parks & Recreation Reduce Budget for Concerts and Movies 25,424 None Public Works Eliminate Earth Day Festival 19,126 None
City Manager's Office Eliminate Select City Work Program Projects 75,000 None Total Community Benefit $463,690 None
Balancing the Budget
Service-Level
Reductions
$10.5M
Structural
Deficit
$15.0M
Gap
$4.5M
Revenue Generation?
Fee Increases?
Recommendation and Next Steps
Roadmap to FY 2024-25 Budget Adoption and Balancing
Council Goal Setting/
Work Program
Budget Update
1st Quarter Report
Budget Update
-Mid-Year Report
-CIP
Fee Study and
Revenue Tax
Measures
Budget Update
-SLR Review #2
-Community Meeting
Updates
-Festivals & Fee Waivers
FY 2024-25 Proposed
Budget
Community Funding
FY 2024-25 Adopted
Budget
Budget Update
Service Level Reduction
(SLR) Preview
October 2023 November 2023 January 2024
April 2024 June 2024
February 2024
Community Budget
Meeting #1
Council Goal Setting/
Work Program
Commission/
Committee Feedback
Labor Contracts
March 2024
Budget Update
3rd Quarter Report
May 2024
City Hall &
Blackberry Farm
Update
Community Budget
Meeting #2
Budget Update
-Audit Update
-Committed Reserve
Revenue Tax
Measures
December 2023
Provide input to staff on potential service-level
reductions for the FY 2024-25 Proposed and Final
Budgets
Recommendation
Questions?
CC 1-17-2024
#10
Weed Abatement
Program
Presentation
Cupertino City Council
January 17, 2024
Weed Abatement Program
CC 01-17-2024 Item No. 10
Weed Abatement Program
● In place to prevent fire hazards posed by
vegetative growth and combustible materials
● Managed by the Santa Clara County
Department of Agriculture
● City Code 9.08 requires property owners to
remove or destroy weeds
● Compliance is required annually by April 30
and throughout the year
Weed Abatement Program
● Noncompliant properties are added to the
program
● Properties remain on the list for three years
● They are removed, if found to be hazard free
during that time
● November 7, Council adopted Resolution No.
23-117 accepting the County report of
noncompliant properties
Owner Responsibilities
Minimum Safety Standards
● Vegetation height must not exceed 6 inches
● Includes roadways and driveways
● Clear vegetation from 30’ from structures
● Clear combustible debris
● Clear under the eaves of houses
● Clear roof and gutters
● Trim tree branches 10’ from chimney
Compliance
Before After
Compliance
Before After
Abatement Options
● Option 1: homeowner completes the required
work
● Option 2: authorized contractor completes
the work, charges appearing on next property
tax bill
Inspections
● The County begins conducting property
inspections after April 30
● Every property in the program receives an initial
inspection
● All properties are charged a $96 inspection fee
● Fee covers County cost of servicing the property
Service Level Reduction (SLR)
● On November 21, 2023, Council approved SLRs
defunding a subsidy of $8,600 annually
● In previous years, County administrative fee was
waived for properties that abated before the April
30 deadline
● The City will no longer cover these costs
Noticing to Property Owners
● November 29, County notice of public
hearing and abatement requirement
● December 21, City reminder letter to abate
by April 30 and maintain year-round
● City letter included notification of
administrative fee changes
Recommended Action:
● Conduct hearing for impacted property
owners to contest the matter of proposed
abatement
● Adopt Resolution No. 24-010 ordering
abatement of public nuisance from weeds
or other fire hazards pursuant to provisions
of Cupertino Municipal Code Chapter 9.08
and Resolution No. 23-117.
CC 1-17-2024
#11
Leon Townhouse
Development
10046 Bianchi Way
Presentation
January 17, 2024
Leon Townhouse Development
10046 Bianchi Way
City Council
CC 01-17-2024 Item No. 11
Project Location Project Location
● Mix of Uses
● Heart of the City
Specific Plan
Special Area
● Crossroads
Subarea
● Mix of Uses
● Heart of the City
Specific Plan
Special Area
● Crossroads
Subarea
Site Plan
BMR Unit
Bldg B Bldg A
Existing Site ConditionsExisting Site Conditions
Density Bonus
The applicant has requested 6 waivers as follows;
1. Front Setback
2. Rear Setback
3. Side Setbacks
4. Building Design Forms
5. Common Open Space
6. Service Access
Density Bonus Waiver
Front & Rear Setback of Structures
Density Bonus Waiver
Front & Rear Setback of Structures
Front Setback: Minimum 20’ Rear Setback: Minimum 45’
Density Bonus Waiver
Side Setback and Building Design Form
Density Bonus Waiver
Side Setback and Building Design Form
Side Setback: Minimum 15’ Building Design Forms:
2nd story: 28.5’|3rd Story: 45’
Density Bonus Waiver
● Common Open Space Waiver
● 150 s.f. per unit or 1,050 s.f. total req’d
● Not provided
● Service Access Waiver
● Service Access to be provided from
rear parking areas
● Not provided
Waivers must be granted since otherwise
project cannot be constructed as designed
Parking ReductionParking Reduction
State Law allows density bonus projects to apply alternate parking standards for all residential units:
State Law allows density bonus projects to apply alternate parking standards for all residential units:
Provided
Spaces
Required
Spaces
Parking Standards per
Density Bonus Law
14 11Two- and three-bedroom
units = 1.5 spaces/unit
Parking standards per
Density Bonus Law
202.8 spaces/unit (2 Covered
+ 0.8 Uncovered)
Parking standards per
Municipal Code
Tree Removal and Density Bonus Incentive
for Tree #9
Tree Removal and Density Bonus Incentive
for Tree #9
Tree
#9
Tree ReplacementTree Replacement
Proposed
Replacement
Trees
Architectural DesignArchitectural Design
Environmental Review
● Project exempt in accordance to CEQA
Guidelines section 15332 (Infill Development
Projects)
Recommended Actions
1. Find the project exempt from the California
Environmental Quality Act (CEQA) Guideline Sections
15332 (Infill Development Projects) and
2. Approve the following permits:
1. Adopt Resolution No. 24-011 approving the
Development Permit (DP-2023-001) (Attachment A);
2. Adopt Resolution No. 24-012 approving the
Architectural & Site Approval Permit (ASA-2023-002)
(Attachment B);
3. Adopt Resolution No. 24-013 approving the Tentative
Final Map (TM-2023-001) (Attachment C); and
4. Adopt Resolution No. 24-014 approving the Tree
Removal Permit (TR-2023-008) (Attachment D).
CC 1-17-2024
#12
Municipal Code
Amendments Two-Story
Permits and Accessory
Dwelling Units
Presentation
City Council
January 17, 2024
PROPOSED AMENDMENTS TO MUNICIPAL CODE CHAPTER 19.12,
CHAPTER 19.28 AND CHAPTER 19.112 REGARDING TWO-STORY
PERMIT AND ACCESSORY DWELLING UNIT (ADU) LAWS.
CC 01-17-21024 Item No. 12
Background
Two Story Permit
● Required when a two-story addition or new two-story home is proposed in an R1 zoning district.
● 768 Planning permit applications received since November of 2021, 98 are Two-Story Permit applications.
● Potential to streamline permitting process.
● Remain subject to the approval of a building permit.
● Planning staff review compliance with codified
development standards.
● Minor Residential Permits, as well as Residential Design Review Permits, are proposed to remain.
Background
Accessory Dwelling Unit (ADU)
● Chapter 19.112, Accessory Dwelling Units has been modified several times since 2016 to keep current with State of California’s various Assembly and Senate Bills affecting ADU production. ● Based on recent changes in state law, City’s ADU ordinance is out of date and unenforceable.
Planning Commission
Recommendation
November 14, 2023, Planning Commission recommended (5-
0) that City Council adopt the proposed amendments to the Municipal Code with modifications.
Analysis – Two Story Permit
● Municipal Code Chapters 19.12 Administration, 19.28 Single-Family Residential (R-1) Zones
● Remove all reference to Two Story Permit
● Prescriptive Standards Remain
● Certain discretionary design standards proposed to be non-discretionary:
● Eliminating three-car wide curb cuts.
● No more than fifty percent of the front elevation of a house shall consist of garage area, unless the lot is not wide enough to accommodate standard.
● Usable Living area shall be closer to the street, while garages should be set back more.
● Porches shall appear proportionately greater in width than in height. ● Mechanical, heating or cooling equipment or associated piping installed on the roof shall be screened from the public right of way. ● Staff recommended exception would apply to homes in the Eichler (R1-e) zoned neighborhood (Fairgrove).
Analysis – Accessory Dwelling
Units
Municipal Code Chapter 19.112 Accessory Dwelling Units
Non-Streamlined ADUsStreamlined ADUs
• Allowance for heights of 18 feet for
a detached ADU and 25 feet if it’s
attached to a principal dwelling
unit.
• Allowance for second story on
attached or detached ADU.
• Three ADUs per single-family :
• One attached ADU (under 800 square
feet)
• One conversion of existing space ADU
(whether in principal dwelling unit or
existing accessory structure)
• One detached ADU (under 800 square
feet), or
• One Junior ADU
• Allowance for heights of 18 feet for a detached
ADU, and 25 feet if it’s attached to a principal
dwelling unit.
• Allowance for a second story on attached or
detached ADUs.
• Allow three Non-Streamlined ADUs per lot (subject to FAR, Lot Coverage, and setbacks.
• Remove major transit stop and transit corridor thresholds for height and second story allowances.
State Bills – 1/1/2024
● AB 1033 (ADUs sold separately as condos)
● Optional – Not included in
amendment
● AB 976 (owner-occupancy requirements
prohibited beyond 2025)
● Municipal Code currently conforms
● AB 1332 (streamlined 30-day approval for
preapproved ADU plans)
● Municipal Code currently conforms
Errata - Table 19.12.030 - Approval
Authority
Chapter/
Findings
Expiration
Date
Posted
Site
Notice
Noticing/
Noticing
Radius
Public
Hearing/
Public
Meeting/
Comment
Period
City
Council
Planning
Commission
Arts and
Culture
Commission
Administrative
ReviewType of Permit or
Decision
R-1 Ordinance Permits
19.28.1 40
1y e a rYes19.12.110/
Adjacent
VariesA1 L/ A2F/AFTwo-story Design
Review
Recommended Action
That the City Council conduct the public hearing and conduct the first reading of Ordinance No. 23-_____ (Attachments A &B) to amend the following:
a. Chapter 19.12, Administration, and
b. Chapter 19.28 Single-Family Residential (R-1) Zones. c. Chapter 19.112, Accessory Dwelling Units (ADU)
Next Steps
If Council approves the introduction of the ordinance,
a second reading would be scheduled for the next
regular meeting of the City Council.