CC 11-19-2024
#12
Lifetime Activities Contract
Supplemental Report
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 19, 2024
Subject
Award a contract to Lifetime Activities Inc. for Sports Center Instruction, Court Maintenance, and Retail Services at the Cupertino Sports Center for a total not‐to‐exceed amount of $24,000,000.
Recommended Action
1. Award a 10‐Year contract to Lifetime Activities Inc. to provide Sports Center Instruction, Court Maintenance, and Retail Services at the Cupertino Sports Center for a total not‐to‐exceed amount of $24,000,000 with the estimated revenue amount of $3,450,000; and
2. Authorize the City Manager to execute the contract with Lifetime Activities Inc. consistent with City Council direction.
Supplemental Report
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: Since there is proposed facility changes for Cupertino Sports Center, has this item gone to the Parks and Rec Commission for advise? (Chao)
Answer: Contracts and amendments are not reviewed by the Parks and Recreation Commission.
Q2: Some residents are not happy with the Lifetime. Has any satisfaction survey been conducted for their services?(Chao)
Answer: Surveys are provided to participants of Lifetime on a quarterly basis. On average, Overall Enjoyment & Quality of Instruction, 80% extremely satisfied, 20% Somewhat satisfied.
Q3: When was the last time we sought other vendors for this contract? (Chao)
Answer: As stated in the staff report on page 2, a request for proposals was issued September 6, 2024.
Q4: Whatʹs the timeline for this contract renewal? Can we do a an RFP? (Chao)
Answer: The current contract expires in December 2024. The draft agreement attached to the staff report is the result of an RFP that was issued September 6, 2024 (See page 2 of the staff report).
Q5: What has led to the decision to convert courts 9, 10 from tennis to pickleball? Have other courts been considered? Will the conversion be permanent or would the courts be double use? (Chao)
Answer: The Sports Center has received many inquiries regarding pickleball options at the Sports Center.
As stated in the staff report, “[…] move the current pickleball courts away from the near by condominiums.” The Cupertino Sports Center has had three tennis Courts (16, 17, 18) that are painted for pickleball since 2016. The current proposal is to return courts 16, 17, and 18, which back up to the Commons Condominiums, back to tennis only and paint two tennis courts, 9 and 10, for pickleball. Tennis Courts 9 and 10 are on the DeAnza Blvd side of the Sports Center. The conversion would be to pickleball only. Based on the proposal, there will be two tennis courts painted for pickleball, instead of three.
Q6: Howʹs the current tennis court usage (Chao)?
Answer: Currently reservations for tennis courts average 570 per week with a total of 925 available reservations.
Q7: Whatʹs the percentage of Sports Center users that are Cupertino residents (Chao)?
Answer: Cupertino residents
Q8: Whatʹs the reservation policies for either the tennis courts or any newly added pickleball courts (Chao)?
Answer: While this information is not germane to the Council’s decision in approving the contract, staff is including the following statistics for reference. To reserve a tennis or pickleball court you must be a member of the Cupertino Sports Center. Reservations can be made online, 7 days in advance, on a first come, first served basis.
Q9: Any consideration for the noise level of pickleball courts? (Chao)
Answer: There are currently three tennis courts at the sports center painted for pickleball. These
courts are near other tennis courts and The Commons Condominiums. Tennis is already playing next to pickleball at the Sports Center. What the proposal does is convert the three tennis courts painted for pickleball near The Commons back into tennis courts and only replace two of the
pickleball painted tennis courts on the street (DeAnza Blvd) side of the Sports Center. Tennis would gain back one court from what is there now.
Q10: Any information on pickleball courts in other cities in a centralized sports facility? (Chao)
Answer: Sunnyvale tennis center has 13 dedicated tennis courts, 2 shared use tennis/pickleball courts, and 4 permanent pickleball courts. Staff does not have further information on other cities at this time.
_____________________________________
Prepared by: Jennifer Koverman, Recreation Manager
Rachelle Sander, Director of Parks and Recreation
Reviewed by: Tina Kapoor, Interim Assistant City Manager Chris Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager
CC 11-19-2024
#14
First Quarter Financial Report FY
2024-25
Supplemental Report
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 19, 2024
Agenda Item #14
Subject
City Manager’s First Quarter Financial Report for Fiscal Year (FY) 2024-25
Recommended Action
A. Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2024-25; and B. Adopt Resolution No. 24 -XXX approving Budget Modification No. 2425 -367, increasing appropriations by $331,128 fund by unassigned fund balance
Background:
The below table corrects the First Quarter Budget Adjustments table in the staff report to correct the spelling of chief.
Fund Department Revenue Expenditure
Change in
Fund
Balance
Proposal
GENERAL FUND
100 General Fund Admin Services - 5 0,000 (50,000) Chief Negotiator for successor agreements 100 General Fund Admin Services - 75,000 (75,000) General Liablity potential settlement costs 100 General Fund Admin Services - 10,000 (10,000) American Sign Language Translation Services 100 General Fund Innovation & Technology - 314,998 (314,998) Correctly allocate deleted IT Manager (see reduction in internal service funds)
100 General Fund Public Works - 3 6,822 (36,822) Purchase of a new bio holding tank 100 General Fund Public Works - 25,000 (25,000) Replace structural column and foundation at materials bunker 100 General Fund Public Works - 24,490 (24,490) Replace leaking fire hydrant at Creekside 100 General Fund Public Works - 41,246 (41,246) QCC Spot Coolers Purchase - 577,556 (577,556)
SPECIAL REVENUE FUNDS
260 Community Development
Block Grant
Community Development - 53,570 (53,570) D evelop the 2025-2030 Consolidated Plan - 53,570 ( 53,570)
INTERNAL SERVICE FUNDS
610 Innovation & Technology Innovation & Technology - ( 314,998) 314,998 Correcting position elimination 610 Innovation & Technology Innovation & Technology - 1 5,000 (15,000) Overtime - (299,998) 2 99,998
TOTAL ALL FUNDS -$ 331,128$ (331,128)$
TOTAL GENERAL FUND
TOTAL SPECIAL REVENUE FUNDS
TOTAL INTERNAL SERVICE FUNDS
2 Staff’s responses to questions received from councilmembers are shown in italics.
Q1: In the past, the Q1 report for work program items are also included. Please include that. (Council member Chao)
Staff Response: The City Work Program Q1 report was published separately as an informational memorandum on October 24, 2024. This can be found at the Informational memos web page and the City Work Program web page. All project updates are also reflected on the City Work Program Dashboard.
Q2: The staff report states "City staff recommends adjustments of $331,128 in new appropriations, funded by one-time unassigned fund balance." I looked for the total " $331,128" in the staff report and did not find where else it occurred. Please list the new appropriations, which totals " $331,128". (Council member Chao) Staff Response: The following table along with detailed descriptions of items requested are on page 23 of the staff report . This same chart can also be found in the First Quarter Financial Report (Attachment A)
Q3: Staff report states "Throughout FY 2015-16 through FY 2024-25, the City applied for 43 competitive grants totaling $54.5 million. To date, the City has been awarded $32.4 million.
Also, during FY 2021-22 through FY 2024-25 the City applied for 26 non-competitive grants totaling $4.6 million." I see a list of current grants in Attachment H. Please provide the list of the 43 grants applied in the ten years from FY 2015-16 through FY 2024-25 and which ones are granted for how much. Please include the matching fund required from the city for each grant. (Council member Chao)
Staff Response: Attachment H details the status and dollar amount for the 43 Competitive Grants.
The first grant tracking list originally captured all competitive grants applied for during two fiscal years (FY 2021 -22 and FY 2022 -23). Since then, staff has reported on grants applied for through the current fiscal year. Although the grants in the spreadsheet reflect 43 competitive grants, this list
3 may not include every grant applied for during FY 2015 -16 through FY 2020-21. Any matching fund requirements have been added to the tracking spreadsheet, which is provided as an attachment to this document.
Attachments Provided with Original Staff Report:
A – Fiscal Year 2024-25 First Quarter Financial Report
B – Draft Resolution
C – Description of Carryovers and Adjustments as of September 30, 2024 D – Description of Budget Transfers as of September 30, 2024 E – First Quarter Recommended Budget Adjustments
F – FY 2023-24 Special Projects Update
G – FY 2024-25 First Quarter Special Projects Update as of September 30, 2024 H – Competitive and Non-Competitive Citywide Grants Tracking I – FY 2024-25 First Quarter CIP Project Status
Attachments Provided with Supplemental 1:
J – Competitive Grants Revised
Department Name of Grant Description of Grant
Requested Grant
Amount
Date
Applied Date Due
Status (Grant
Awarded,
Pending Results,
Grant Denied)
Grant Amount
Awarded
City Matching Funds
Required? Yes/No; If
yes, please include
amount Date Awarded
Administration National Association of City and County Health Officials (NACCHO) Respond, Innovate, Sustain, and
Equip (RISE) Awards
To provide resources to the MRC network to
support COVID‐19 response efforts
$25,000 3/4/2022 3/4/2022 Grant Awarded $25,000 No 8/11/2022 Administration Local Governments: Connecting Neighbors to Neighbors
California Office of the Governor,
CalVolunteers program funding for the Block
Leader Program to hold events that expand
networks of neighbors within the community
$222,233 6/16/2023 6/16/2023 Grant Awarded $222,233 No 7/17/2023 Administration/Public Works Emergency Radio Replacement Project To purchase digital radio communication devices (handheld radios, headset and ear
plugs, antennas, vehicle radio units) to replace
the analog system
$80,000 6/14/2024 6/14/2024 Grant Denied N/A N/A N/A
Administration/ Information &
Technology
Cybersecurity Exercise Planning To hire a consultant to conduct Cybersecurity Exercise Planning
$90,000 6/14/2024 6/14/2024 Grant Denied N/A N/A N/A
Administration/ Information &
Technology
Intrusion Protection, Security, and Intelligence To improve the physical security and access controls at City of Cupertino facilities.
Currently, not all key exterior doors at City
facilities are controlled by an access control
system
$180,000 6/14/2024 6/14/2024 Grant Denied N/A N/A N/A Information & Technology California Automated Permit Processing (CalAPP) Program
Grant to enhance solar permitting applications $60,000 3/13/2023 7/1/2027 Grant Awarded $60,000 No 4/4/2023 Community Development
Department
2020 Local Early Action Planning (LEAP) Grants
Program
CA Dept of Housing & Community
Development (HCD) funding to accelerate
progress of Housing Element towards state
housing goals
$300,000 7/1/2020 7/1/2020 Grant Awarded $300,000 No 10/6/2020 P
ublic Works TIRCP (Transit and Intercity Rail Program) 5‐year expansion of Via shuttle, including partnership with City of Santa Clara
$8,465,000 3/3/2022 3/8/2022 Grant Awarded $8,465,000 No ʺrequiredʺ match, but City must fund the
non grant‐funded
balance of the program,
or $8,465,000. This is
shared with City of
Santa Clara.
7/11/2022
Information & Technology and
C
ommunity Development
Department
Dept. of Housing and Community Development Financial assistance for implementation of softwares that accelerate and streamline
Housing Production
$310,000 3/20/2020 12/31/2022 Grant Awarded $310,000 N/A 3/24/2020 Public Works California Electric Vehicle Infrastructure Project Purchase and installation of EV charging infrastructure at publicly‐owned sites ($4,500
per charging port)
$130,500 12/22/2020 12/22/2020 Funds Partially
Reserved
$130,500 City is responsible for
costs in excess of $4,500
per charging port)
N/A
Public Works HSIP (Highway Safety Improvement Program) Improving safety at signalized intersections $2,005,900 9/12/2022 9/12/2022 Grant Deni ed N/A N/A N/A Public Works HSIP (Highway Safety Improvement Program) Improving safety on roadway segments $3,561,800 9/12/2022 9/12/2022 Grant Awarded $3,205,620 $356,180 3/15/2023 Public Works HSIP (Highway Safety Improvement Program) Improving safety on roadway segments $4,450,200 9/12/2022 9/12/2022 Grant Denied N/A N/A N/A Public Works OBAG (One Bay Area Grant) Cycle 3D e Anza Blvd buffered bike lanes $500,000 7/27/2022 7/27/2022 Grant Denied N/A N/A N/A Public Works Safe Streets 4 All (SS4A) Bollinger Road road diet traffic analysis, outreach and engi
neering design
$532,000 7/10/2023 7/10/2023 Grant Awarded $425,600 $106,400 12/13/2023 Public Works Federal Community Project Funding Grant FY22 Funding for Jollyman All Inclusive Play Area $1,000,000 4/25/2022 6/10/2022 Grant Denied $1,000,000 N/A N/A Public Works Federal Community Project Funding Grant FY22 Funding for Cupertino Library Expansion project
$1,000,000 3/25/2021 6/10/2022 Grant Awarded $1,000,000 No 2/15/2024 Public Works
State Specified Grant
Funding for Jollyman All Inclusive Play Area $1,000,000 3/17/2022 7/1/2022 Grant Awarded $1,000,000 No N/A Public Works PG&E Community Grant Funding for J ollyman All Inclusive Play Area $25,000 8/8/2022 9/1/2022 Grant Awarded $25,000 No 10/3/2022 Public Works McClellan Road Bridge Reconstruction State Funding Grant $7,500,000 3/17/2022 7/1/2022 Grant Awarded $5,000,000 No N/A Public Works Santa Clara County AIPG Funding for Jollyman All Inclusive Play Area $1,440,000 10/10/2018 10/12/2018 Grant Awarded $1,440,000 $1,591,799 5/13/2019 Public Works McClellan Road Bridge Reconstruction Federal Funding Grant ‐ Ro Khanna $850,000 3/14/2023 3/17/2023 Pending Results N/A No N/A Competitive Citywide Grants Tracking - FY25 First Quarter Update CC 11-19-2024 Item No. 14. Attachment J
Department Name of Grant Description of Grant
Requested Grant
Amount
Date
Applied Date Due
Status (Grant
Awarded,
Pending Results,
Grant Denied)
Grant Amount
Awarded
City Matching Funds
Required? Yes/No; If
yes, please include
amount Date Awarded
Competitive Citywide Grants Tracking - FY25 First Quarter Update Public Works TDA3 Funding for Tamien Innu (I‐280 Trail)‐East $1,015,022 12/1/2021 12/1/2021 Grant Awarded $1,015,022 $830,000 (30% of total project cost ‐ includes
both Measure B Grants)
5/25/2022
Public Works 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐East $920,978 12/1/2021 12/1/2021 Grant Awarded $920,978 $830,000 (30% of total project cost ‐ includes
both Measure B Grants)
11/12/2021
Public Works Sustainable Transportation Planning Grant Bollinger Road road diet traffic analysis, outreach and engineering design
$318,707 3/14/2023 3/14/2023 Grant Denied N/A N/A N/A Public Works 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐Central $460,000 7/1/2020 7/1/2020 Grant Awarded $460,000 $1,795,000 (30% of project cost ‐ includes
both Measure B Grants)
7/14/2020
Public Works 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐Central $3,725,000 7/1/2020 7/1/2020 Grant Awarded $3,725,000 $1,795,000 (30% of project cost ‐ includes
both Measure B Grants)
7/14/2020
Public Works Office of Traffic Safety (OTS) Bicycle and Pedestrian Education $152,000 1/31/2024 1/31/2024 Grant Awarded $160,000 No 10/22/2024 Public Works 2016 Measure B Noise Abatement Program Funding for Tamien Innu (I‐280 Trail)‐Central $15,000 3/23/2023 3/31/2023 Grant Denied N/A N/A N/A Public Works State of California Proposition 68 Funding for Wilson Park Basketball Court $214,549 12/6/2021 N/A Grant Awarded $214,549 Completed. 1/21/2022 Public Works BPMP (Bridge Preventative Maintenance Program) Funding for recommended preventative maintenance on local roadway bridges
$1,144,472 9/30/2020 N/A Grant Awarded $1,144,472 $148,278 4/12/2023 Public Works HBP (Highway Bridge Program) Repairs to bridge 37C0011, SCB over Stevens Creek
$688,000 10/5/2018 N/A Grant Awarded $688,000 $172,000 10/12/2018 Public Works BAAQMD ‐ TFCA 40% Fund (Transportation Fund for Clean Air)
Funding for year three (FY25) of Silicon Valley
(SV) Hopper.
$500,000 3/14/2024 3/15/2024 Grant Awarded $500,000 No ʺrequiredʺ match, but City must fund the
non grant‐funded
balance of the program.
Cityʹs contribution is
$882,704.
N/A
Public Works EPA ‐ CPRG (Climate Pollution Reduction Grants Program)
Funding for years three and four of SV Hopper $4,939,988 3/27/2024 4/1/2024 Pending Results N/A N/A N/A Public Works Community Decarbonization Engagement Grant Competitive grant for community engagement around decarbonization topics from SVCE.
Grant Funds shall be disbursed to Recipient on
a reimbursement basis.
$100,000 4/1/2022 4/4/2022 Grant Awarded $111,500 No 2/2/2023 Parks and Recreation NRPA: Supporting Healthy Aging Through Parks and Recreation 3.0
With the support of the Centers for Disease
Control and Prevention (CDC), NRPA is
offering instructor training grants for five
arthritis‐appropriate, evidence‐based
interventions (AAEBIs). Essentially, these are
physical activity classes that are proven to help
people with arthritis symptoms but can actually
benefit anyone.
$0 10/20/2023 10/23/2023 Grant Awarded $0 ‐ Grant provides instructor training and
material/equipment for
the class
No 11/28/2023
Public Works ‐ Environmental
Programs Division
EPA Recycling Education and Outreach Improve the effectiveness of residential and community recycling and composting programs
through public education and outreach.
Increase collection rates and decrease
contamination across the nation
$1,400,000 2/15/2023 2/15/2023 Grant Denied N/A N/A N/A Public Works EPA ‐ CPRG (Climate Pollution Reduction Grants Program)
Coalition member application with San Jose and
SVCE as leads. Grant seeks to establish funding
pool for muni building electrification as part of
Measure #2 in County PCAP.
$1,951,321 4/1/2024 4/1/2024 Grant Denied N/A N/A N/A Department Name of Grant Description of Grant
Requested Grant
Amount
Date
Applied Date Due
Status (Grant
Awarded,
Pending Results,
Grant Denied)
Grant Amount
Awarded
City Matching Funds
Required? Yes/No; If
yes, please include
amount Date Awarded
Competitive Citywide Grants Tracking - FY25 First Quarter Update Public Works EPA ‐ CPRG (Climate Pollution Reduction Grants Program)
Coalition member with Sunnyvale as lead.
Grant seeks to establish regional reusable to‐go
foodware systems including niche for prepared
food recovery closed systems. (Sunnyvale, San
Jose, Mountain View, San Benito County,
Cupertino)
Cupertino will not
receive funds directly
but would be part of
a regional effort.
4/1/2024 4/1/2024 Grant Denied N/A N/A N/A
Public Works and
Administration
CalOES Hazard Mitigation Grant Program Project
Subapplication
Cupertino Civic Center Plaza Microgrid study
and construction
$979,402 6/17/2021 6/17/2021 Grant Awarded N/A N/A. Grant was returned.
2/1/2023
Public Works Extreme Heat and Community Resilience Program (EHCRP)
Integrated Climate Adaptation and Resilience
Program and administered by the Governor’s
Office of Planning and Research (OPR)
$900,000 5/7/2024 10/1/2024 Pending Results N/A No N/A Public Works One Bay Area Grant (OBAG) Cycle 2S t e v e n s Creek Blvd Protected Bike Lanes Phase 2 $807,000 7/28/2016 N/A Grant Awarded $807,000 Yes, $93,000 (11.47% of project cost)
1/24/2022
Public Works Charging and Fueling Infrastructure (CFI) Discretionary Grant Program
San Jose and SVCE as leads on this federal
bipartisan infrastructure grant for installing EV
Chargers near MFDs. $15M ($7.5M for San Jose,
$7.5M for SVCE territory) There is a 20% match
requirement that SVCE will contribute for
projects in SVCE territory.
$532,000 9/11/2024 N/A Pending Results N/A No N/A
54,491,072 32,355,474
$54,491,072
CC 11-19-2024
#16
FY 2024-25 One-time Funds
Allocation Plan
Supplemental Report
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: November 19, 2024
Agenda Item #16
Subject
Allocation plan for funds uncommitted from the Sales Tax Repayment reserve.
Recommended Action
Option A:
A. Adopt Option A
Option B:
A. Adopt Option B
B. Adopt Resolution No. 24‐XXX approving budget modification No. 2425‐366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24‐XXX amending the Unrepresented Employees’ Compensation Program
D. Approve new three‐year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications
Option C:
A. Adopt Option C
B. Adopt Resolution No. 24‐XXX approving budget modification No. 2425‐366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24‐XXX amending
the Unrepresented Employees’ Compensation
Program
D. Approve new three‐year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications
Background:
The below table corrects the CalPERS Projected Funding Status table in the staff report to
2 revise the legend description.
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: Why was paying off the City’s debt not considers? (Council member Chao) Staff Response: The 2020 Certificates of Participation (COPs) are non‐callable, meaning they cannot be prepaid before their scheduled
maturity. This restricts the Cityʹs ability to pay off this debt early, even if sufficient cash is available.
Q2: How does 115 Pension fund work with Additional Discretionary Payment? (Council member Moore)
Staff Response: The Section 115 Trust provides a strategic reserve to manage pension obligations, offering public agencies flexibility to set aside funds for future costs. If desired, these funds can be utilized to make an Additional Discretionary Payment (ADP), reducing the Unfunded Accrued Liability (UAL) and interest burden while stabilizing long‐term pension contributions. The City created the 115 Pension to retain investment authority over these funds, and to use as a smoothing tool should CalPERS returns fall short or actuarial assumption changes and result in higher payments.
Q3: In Option A, if inflation outpaces investment returns why would the City invest any of its money? (Council member Moore)
Staff Response: Legal and accounting standards require the City to maintain certain reserves to reduce the risk of insolvency. There may be prudential reasons for the City to maintain additional reserves above the required minimum levels. The investment of these funds is a critical strategy to combat the impacts of inflation, which historically has outpaced the returns available through
3 permissible investments under the California Government Code. By actively managing the City’s portfolio, we seek opportunities to enhance returns while maintaining compliance with safety, liquidity, and yield priorities.
Active investment management allows the City to strategically adjust the portfolio to respond to market conditions, mitigate risks, and protect purchasing power over time. This approach balances the need to retain adequate reserves for operational stability and service delivery while maximizing the value of public funds to support long‐term fiscal health.
Q4: Can you provide a summary of Service Level Reductions (SLRs) and other budget reductions (Council member Chao)
Staff Response: For fiscal year 2023‐24 budget reductions are listed on pages 48‐52 of the final budget document. In addition, 13 positions were also eliminated as shown on page 42, both are included for reference below:
For fiscal year 2024‐25 service level reductions are listed on pages 52‐54 of the final budget
document. In addition, five positions were also eliminated as shown on page 46, both are included for reference below:
4 Description
FY 2023‐24
Original
Budget
FY 2023‐24
Proposed
Budget Reduction Service Impact
COUNCIL AND COMMISSIONS
Materials $ 286,824 $ 161,259 $ 125,565 Reduced meeting expenses, general supplies, and food and
drink for Council meetings.
TOTAL COUNCIL AND
COMMISSIONS
$ 286,824 $ 161,259 $ 125,565
ADMINISTRATION
Materials $ 535,812 $ 400,223 $ 135,589 This reduction is primarily related to savings in supplies,
meeting expenses, and
conference and travel. This
should have minimal impact
on services throughout the
department.
Contract Services $ 1,362,790 $ 941,380 $ 421,410 This reduction is primarily related to contract negotiations
to reduce cost for services
throughout the department.
TOTAL ADMINISTRATION $ 1,898,602 $ 1,341,603 $ 556,999
INNOVATION & TECHNOLOGY
Materials $ 2,794,442 $ 1,812,505 $ 981,937 Reduced applications utilized by staff, residents, and
customers. Commissioners and
part time staff limited to E‐
mail; Prolonged tech refresh
cycles and significant reduction
in replacement parts and
supplies. Reduced Training
and Conferences for
department. Drone program
and training reduced, and
eliminate Wi‐Fi in parks.
Contract Services $ 791,240 $ 620,119 $ 171,121 Reduce expert technical training; less outside technical
support, and reduced
LaserFiche document scanning.
Reduced maintenance of
equipment
TOTAL INNOVATION &
TECHNOLOGY
$ 3,585,682 $ 2,432,624 $1,153,058
5 ADMINISTRATIVE SERVICES
Materials $ 186,223 $ 108,808 $ 77,415 Reduced conference attendance, office and general
supplies, recruitment
advertisements, printing,
citywide coffee and tea and
reduced citywide employee
events.
Contract Services $ 4,152,414 $ 4,020,746 $ 131,668 Reduced citywide trainings, reduced executive recruitments
and reduced consultant costs.
TOTAL ADMINISTRATIVE
SERVICES
$ 4,338,637 $ 4,129,554 $ 209,083
PARKS AND RECREATION
Part‐Time Staffing ‐ Department
Wide
$1,606,998 $1,381,602 $225,396 Reduced PT Staff budgets to minimum levels necessary to
operate currently open
Recreational facilities and
ongoing programs.
Materials $779,829 $457,723 $322,106 Simplification or streamlining of current programs and events
and fewer marketing efforts
and printed materials thereof.
Removed budgets for
nonessential trainings and
conferences in the Department
and additional savings from
reduced expenditures for
meetings and events for staff.
Contract Services $4,532,489 $3,953,917 $578,572 Reduced expansion of current or new offerings for contracted
programs, camps, and classes.
Reduction of free events
offered and removed budget to
cover fees for festivals
TOTAL PARKS AND
RECREATION
$6,919,316 $5,793,242 $1,126,074
COMMUNITY DEVELOPMENT
Materials $1,186,321 $1,121,866 $64,455 Reduced conference attendance, professional
development opportunities,
and materials and supplies.
Contract Services $655,080 $565,580 $89,500 Termination of on‐call contracts and negotiation of
new contracts will reduce
service level and response time.
TOTAL COMMUNITY
DEVELOPMENT
$1,841,401 $1,687,446 $153,955
6 PUBLIC WORKS
Materials $5,439,339 $4,852,483 $586,857 Reduced or eliminated office and general supplies; meetings,
conference and trainings;
memberships; safety
equipment not covered under
the MOU; small tools and
equipment; and printing and
advertising.
Contract Services $5,460,208 $4,859,824 $600,384 Delayed services and response to work requests; deferred
maintenance at City parks,
facilities, streets and trees.
Special Projects $5,290,259 $4,496,264 $793,995 Delayed or deferred sidewalk repairs and pavement
maintenance.
Capital Outlays $1,100,280 $880,224 $220,056 Delayed or deferred pavement maintenance, which will lower
the Cityʹs Pavement Condition
Index (PCI) rating.
TOTAL PUBLIC WORKS $17,290,086 $15,088,795 $2,201,292
TOTAL $ 36,160,548 $ 30,634,523 $5,526,026
Staffing Changes
7 Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Parks and Recreation Community Benefit Reduce 4th of July Funding $ (123,344) Elimination of 4th of July
evening fireworks.
TOTAL COMMUNITY BENEFIT $ (123,344)
Administration Fiscal
Accountability
Contract Services and
Materials $ (226,561)
Potential need for
additional appropriations
if unanticipated legal
costs arise
Administration Fiscal
Accountability
Material operations
that are no longer
needed
$ (8,892) Reduction aligns budget
with actuals
Administration Fiscal
Accountability
Econ Dev Strategy
Outreach $ (20,000)
Reduction will result in
minimal impact as
existing staff is already
implementing these
duties.
Administrative
Services
Fiscal
Accountability
Reduce
Unemployment
Insurance
$ (64,148) New costs are reflective
of post‐COVID estimates
Innovation and
Technology
Fiscal
Accountability
Reduced Budget for
I&T $ (2,850)
Reduced outside expert
technical support. This
reduction would reduce
efficiencies from some
technology uses where
the city has historically
been comparatively
advanced.
Innovation and
Technology
Fiscal
Accountability
Reduced Budget for
I&T $ (743,175)
Reduced applications
utilized by City staff;
Cancelled ERP
Implementation;
Reduced outside expert
technical support. This
reduction would reduce
efficiencies from some
technology uses where
the city has historically
been comparatively
advanced.
Innovation and
Technology
Fiscal
Accountability
Reduced Budget for
I&T $ (33,522)
Prolonged tech refresh
cycles; Significantly
reduced replacement
parts and
supplies, Reduced
outside expert technical
support.
Law Enforcement Fiscal
Accountability
Align law enforcement
budget with actuals $ (1,000,000) Reduction aligns budget with actuals.
Parks and Recreation Fiscal
Accountability
Consolidate Swim
Lessons Program $ (72,971)
Consolidate Swim
Lessons into BBF
Operations, reducing
overall part‐time costs
and program supplies.
Parks and Recreation Fiscal
Accountability
Consolidate Swim
Lessons Program $ (14,147)
Consolidate Swim
Lessons into BBF
Operations, reducing
overall part‐time costs
and program supplies.
8 Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Department Grouping Service‐Level
Reduction Fiscal Impact Department Grouping
Public Works Fiscal
Accountability Utility True‐up $ (564,278) Reduction aligns with budget actuals
TOTAL FISCAL ACCOUNTABILITY $ (2,750,544)
Non‐Departmental Infrastructure Transfers Out $ (2,000,000) City will initiate and
complete CIP projects
with the current Capital
Reserve fund. Th A
reduction in capital
renewal will lead to a
longterm aging of
infrastructure impacting
the attractiveness of this
infrastructure to the
public.
Public Works Infrastructure Contract Services $ (810,764) Tree maintenance moved
in‐house/Reduction in
tree maintenance
Public Works Infrastructure
Defer vehicle and
equipment
replacements,
increasing the
replacement cycle from
approximately 7 years
to 10 years on average.
$ (137,000)
May increase cost and
staff time to repair assets
that were deferred for
replacement.
TOTAL INFRASTRUCTURE $ (2,947,764)
Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Administration Operations and
Maintenance
‐ Management Analyst
reclassification to
Administrative
Assistant
‐ Removal of vacant
shared Senior Office
Assistant between
CMO and City Clerk
‐ Removal of PT Intern
$ (61,755)
Staffing for the
department has been
reorganized for efficiency
and to streamline
workload.
Administration Operations and
Maintenance
Reduced a limited term
Project Executive
position
$ (404,221)
Use of cost recoverable
contract services will be
used instead
Administration Operations and
Maintenance
Minimum Wage
Enforcement and
Mailers
$ (23,202)
Reduction will result in
minimal impact on staff
time to administer
enforcement of min wage
annual increases.
Removing printed
mailers will require
businesses to print it out
and post in their place of
business.
9 Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Administration Operations and
Maintenance
Regulate Diversified
Retail $ (5,000)
Reduction will result in
minimal impact as
existing staff is already
implementing these
duties.
Administration Operations and
Maintenance
This reduction will
remove funding for a
PT Intern and
Overtime
Compensation. This
reduction also includes
the reclassification of a
Public Information
Officer to a
Communications
Coordinator.
$ (78,249)
Staffing for the
department has been
reorganized for efficiency
and to streamline
workload.
Administration Operations and
Maintenance
Reduce cost of the
quarterly Scene
Newsletter by moving
to a digital‐only
publication.
$ (53,600)
Residents will no longer
receive the Scene in the
mail and will have to find
the Scene on a City
webpage instead.
Administrative
Services
Operations and
Maintenance
Reduce Budget for
Internal Audit $ (40,000)
Reduction in the number
of internal audit projects.
Audits would occur on a
less frequent basis.
Administrative
Services
Operations and
Maintenance
Shift credit card fees to
customers $ (39,000)
Customers would pay a
credit card transaction fee
for any payments made
using a credit card.
Currently, the City does
not charge credit card
fees to customers. Many
jurisdictions charge
customers a credit card
transaction fee for any
payments made using a
credit card.
City Council and
Commissions
Operations and
Maintenance
Reduce Commission
Expenses $ (468) Reduction aligns with
budget actuals.
City Council and
Commissions
Operations and
Maintenance
Reduce Commission
Expenses $ (1,855) Reduced budget for Teen
Commission.
Community
Development
Operations and
Maintenance
Shift Credit Card Fees
to Customer $ (57,500)
Decrease bank charge
contract services.
Customers would pay a
credit card transaction fee
for any payments made
using a credit card.
Currently, the City does
not charge credit card
fees to customers. Many
jurisdictions charge
customers a credit card
transaction fee for any
payments made using a
credit card.
10 Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Community
Development
Operations and
Maintenance
Reduce Conferences
and Training $ (10,691)
Reduced conference
attendance, trainings, and
meeting expenses. Thus,
resulting in reduced
service level and
response time. Reduction
could potentially lead to
higher staff turnover
rates. The department is
continuing to offer
training by exploring and
taking advantage of local
and virtual opportunities.
Parks and Recreation Operations and
Maintenance
Reduce Senior Center
Part‐Time Staffing and
Supplies
$ (16,124)
Estimated longer wait
times for the front desk,
reduce rental support
and amenities offered for
Senior programs and
events.
Parks and Recreation Operations and
Maintenance
Shift Credit Card Fees
to Customers $ (159,620)
Customers would pay
credit card transaction
fees.
Parks and Recreation Operations and
Maintenance
Reduce Parks and
Recreation Expenses $ (10,332) Removed budget for overtime.
Parks and Recreation Operations and
Maintenance
Reduce Funding for
Library Extra Hours $ (160,000)
No immediate impact on
current operational
hours. Santa Clara
County Library District
has historically received
funds from the state to
cover these costs.
Parks and Recreation Operations and
Maintenance
Reduce Park Ranger
Services $ (31,155)
Reduced ranger presence
at the Stevens Creek
Corridor, Environmental
Education Center, and
some nature‐based
programs and events.
Parks and Recreation Operations and
Maintenance
Reduce Parks and
Recreation Expenses $ (5,473)
Elimination of Helping
Hands program,
removed budget for
overtime, and realign
with budget actuals.
Parks and Recreation Operations and
Maintenance
Shift credit card fees to
customers. $ (17,049)
Customers would pay
credit card transaction
fees.
Parks and Recreation Operations and
Maintenance
Reduce Senior Center
Part‐Time Staffing and
Supplies
$ (5,311)
Estimated longer wait
times for the front desk,
reduced rental support
and amenities offered for
Senior programs and
events.
Parks and Recreation Operations and
Maintenance
Reduce Parks and
Recreation Expenses $ (12,391)
Consolidated Preschool
Program with a focus on
the 3‐year‐old program
and removed budgets for
overtime.
11 Department Grouping Service‐Level
Reduction Fiscal Impact Service‐Level Impact
Narrative
Public Works Operations and
Maintenance Materials $ (145,794)
Reduction in printing,
ergonomics,
memberships, office
supplies, conference and
meetings, etc.
Public Works Operations and
Maintenance Contract Services $ (659,534)
Reduction in contract
services for fence repairs,
graffiti mitigation, bee
removal, gas emission
inventory, paid
advertising, etc.
Public Works Operations and
Maintenance Salary and Benefits $ (386,406) Reduction in part‐time staff
Public Works Operations and
Maintenance Special Project $ (55,000) Reduction of replaced fluted street light poles
Public Works Operations and
Maintenance Staffing $ (463,716)
Eliminate two vacant
Public Works Project
Managers
TOTAL OPERATIONS AND MAINTENANCE $ (2,903,446)
Q5: Why did we choose to pay $10 million in the CalPERS Additional Discretionary Payment (ADP) and not $5 or 15 million? (Council member Chao) Staff Response: Staff recommends the $10 million ADP amount as a balanced approach to address multiple priorities. This amount was chosen because it effectively reduces future required Unfunded Accrued Liability (UAL) annual payments while also preserving funds for other critical needs.
Specifically, it allowed the City to allocate resources to the capital reserve fund, which has not received the typical $8–$10 million annual transfer in the past three years.
This recommendation reflects the City’s commitment to managing its long‐term liabilities responsibly while maintaining financial flexibility to address deferred capital needs.
Q6: What restrictions does the City have on its investments that limits our investment returns? (Janet/Toni). (Council member Moore)
Staff Response: Per the City’s Investment Policy, page 11, that was adopted on May 14, 2024, see information below.
12 16. Ineligible investments are those that are not described herein, including but not limited to, common stocks and long‐term (over five years in maturity) notes and bonds are prohibited from use in this portfolio. It is noted that special circumstances arise that necessitate the purchase of securities beyond the five‐year limitation. On such occasions, requests must be approved by City Council prior to purchase. Additionally:
State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest‐only strips is prohibited. Investment in any security that could result in a zero‐interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result zero‐ or negative‐interest accrual if held to maturity are permitted.
Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
The purchase of foreign currency denominated securities is prohibited.
Q7: Please provide a list of services cut last year for consideration for restoration. (Council member Chao)
Staff Response: The 4th of July Fireworks and Shakespeare in the Park events were defunded last year. However, Shakespeare in the Park continued in the current fiscal year through the use of the Mayorʹs discretionary fund.
Q8: Please provide a projection of interest earnings for $10M in 1‐year, 5‐year, 10‐year investment, since the public has suggested to save some as Rainy‐day fund or endowment fund. (Council member Chao)
Staff Response: Assuming a 10‐year average annual return of 1.4% from the Local Agency Investment Fund (LAIF), interest earnings on $10 million over 1 year, 5 years, and 10 years would be approximately $0.14 million, $0.7 million, and $1.4 million, respectively, assuming the earnings are not reinvested.
It is also important to note that the City currently maintains a “Rainy Day Fund,” officially called the Economic Uncertainty Fund, which has a balance of approximately $24 million.
Q9: Please provide a list of grants that the staff plans to pursue with the 3‐year limited term grant management position (Council member Chao)
Staff Response: In addition to identifying projects eligible for grant funding, the Grants Management Analyst will manage all aspects of grant application submittal, reporting, and ongoing compliance within City policy. No specific grants have been identified for the position to apply for, 13 but City staff identify grant opportunities as part of normal city operations.
Q10: Why do we have a Q1 budget amendment for the proposed agenda items. Why not include them with the normal FY 2025‐26 budget? (Council member Chao) Staff Response: The Q1 budget amendments are for FY 2024‐25, reflecting items that were not
originally anticipated or inadvertently excluded, therefore not included as part of the FY 2024‐25 Budget. These are requests that would have been made regardless of the CDTFA settlement agreement.
Q11: It was mentioned it is not worthwhile to put the fund in investment of the city fund.
Please clarify what limitations are there? (please quote any government code etc) What would be the anticipated returns for such Investment? (Council member Chao) Staff Response: To clarify, the statement was not that investing City funds is not worthwhile but that it is not a sustainable strategy to invest funds solely to generate yield, as discussed in Q2.
Instead, funds may often be more effectively utilized by investing in capital projects or making an Additional Discretionary Payment (ADP) to reduce long‐term liabilities.
The City’s investments must adhere to its adopted investment policy, which is guided by California Government Code Section 53600 et seq. The Government Code prioritizes safety, liquidity, and yield (in that order) and restricts the types of allowable investments, often resulting in conservative returns.
Attachments Provided with Original Staff Report:
A – One‐time Funds Allocation Plan Fiscal Year 2024‐25
B ‐ Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Options A and B (Redline)
C ‐ Option A Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Clean)
D – Option B Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Clean)
E – Detailed allocation plan for current use
F – Budget Resolution
G – Assistant Director of Administrative Services Position Description H – Grants Management Analyst Position Description
I – Code Enforcement Supervisor Position Description
J – Senior Business Systems Analyst Position Description