SIGNED:
________
Liang Chao, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
142
Resolution No. __________
EXHIBIT A
Appropriation
Amendment by Fund
Revenue Appropriations Fund Balance
(Use of)
420 Stevens Creek Blvd
Bridge Repair Project
$688,000 $688,000 $0
TOTAL $688,000 $688,000 $0
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DESIGN PROFESSIONAL SERVICES AGREEMENT (SINGLE)
WITH BIGGS CARDOSA ASSOCIATES, INC.
1. PARTIES
This Agreement is made by and between the City of Cupertino, a municipal corporation (“City”), and Biggs Cardosa Associates, Inc. (“Consultant”), a Coporation for Engineering and Environmental Services for the Stevens Creek Bridge Repair Project (“Project”), and is effective on the last date signed below (“Effective Date”).
2. SERVICES
2.1 Basic Services. Consultant agrees to provide the Basic Services for the Project, which are set forth in detail in the Scope of Services, attached here and incorporated as Exhibit A, and as further specified in Consultant’s written Proposal as approved by City, except for any provision in the Proposal which conflicts or is inconsistent with this Agreement and the Exhibits hereto, or as otherwise expressly rejected by City. Consultant further agrees to carry out its work in compliance with any applicable local, State, or Federal order regarding COVID-19.
2.2 Additional Services. City may request at any time during the Contract Time that Consultant provide additional services for the Project, which are not already encompassed, expressly or implicitly, in the Agreement, the Scope of Services, or the Proposal (“Additional Services”). Additional Services must be authorized in writing by City and Consultant will not be paid for unauthorized Additional Services rendered. Additional Services are subject to all the provisions applicable to Basic Services, except and only to the extent otherwise specified by City in writing.
All references to “Services” in the Agreement include Basic Services and Additional Services, unless otherwise stated in writing. The Services may be divided into separate sequential tasks, as further specified in this Agreement, the Scope of Services, and Consultant’s Proposal.
Consultant is solely responsible for its errors and omissions and those of its subconsultants, and must promptly correct them at its sole expense. Consultant must take appropriate measures to avoid or mitigate any delay, liability, and costs resulting from its errors or omissions.
2.3 Consultant’s duties and services under this agreement shall not include preparing or assisting the City with any portion of the City’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the City.
The City shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. Consultant’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Consultant shall cooperate with the City to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by consultant pursuant to this agreement.
Attachment C
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3. TIME OF PERFORMANCE
3.1 Term. This Agreement begins on the Effective Date and ends on June 30, 2030, unless terminated earlier as provided herein (“Contract Time”). The City’s appropriate department head or City Manager may extend the Contract Time through a written amendment to this Agreement, provided such extension does not include additional contract funds. Extensions requiring additional contract funds are subject to the City’s purchasing policy.
3.2 Schedule of Performance. All Services must be provided within the times specified in Exhibit B, Schedule of Performance, attached and incorporated here. Consultant must promptly notify City of any actual or potential delay in providing the Services as scheduled to afford the Parties adequate opportunity to address or mitigate delays. If the Services are divided by tasks, Consultant must begin work on each separate task upon receiving City’s Notice to Proceed (“NTP”), and must complete each task within the time specified in Exhibit B.
3.3 Time is of the essence for the performance of all the Services. Consultant must have sufficient time, resources, and qualified staff to deliver the Services on time.
4. COMPENSATION
4.1 Maximum Compensation. City will pay Consultant for satisfactory performance of the Basic Services and Additional Services, if approved, a cumulative total amount that will be capped so as not to exceed $625,000 (“Contract Price”), as specified in Exhibit C, Compensation, attached and incorporated here. The Contract Price includes all expenses and reimbursements and will remain in place even if Consultant’s actual costs exceed the capped amount. No extra work or payment is permitted in excess of the Contract Price.
4.2 Basic Services. City will pay Consultant $625,000 (“Price”) for the complete and satisfactory performance of the Basic Services in accordance with Exhibit C. The Price is inclusive of all time and expenses, including, but not limited to, sub-Consultants’ costs, materials, supplies, equipment, travel, taxes, overhead, and profit. Consultant will be compensated for actual costs only of normal business expenses and overhead, with no markup or surcharge (“Reimbursable Expenses”). Consultant will not be entitled to reimbursement for copying, printing, faxes, telephone charges, employee overtime, or travel to City offices or to the Project site.
4.3 Additional Services. City has the discretion, but not the obligation, to authorize Additional Services up to an amount not to exceed $N/A. Additional Services provided to City’s reasonable satisfaction will be compensated on a lump sum basis or based on time and expenses, in accordance with the Hourly Rates and Reimbursable Expenses Schedules included in Exhibit C. If paid on an hourly basis, Consultant will be compensated for Reimbursable Expenses only. Consultant will not be entitled to reimbursement for copying, printing, faxes, telephone charges, employee overtime, or travel to City offices or to the Project site.
4.4 Invoices and Payments. Monthly invoices must describe the Services completed and the Amount due for the preceding month. City will pay Consultant within thirty (30) days following receipt of a properly submitted and approved invoice for Services. The invoice must separately itemize and provide subtotals for Basic Services and Additional Services, and must state the percentage of completion for each task, as specified in Exhibit C. City will notify Consultant in writing of any 145
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disagreements with the invoice or the stated percentage of completion of tasks. If the disagreement is unresolved, City will pay Consultant only for the undisputed portion of the Services. Disputed amounts shall be subject to the Dispute Resolution provision of this Agreement. a. Time and Expenses. For Additional Services provided on an hourly basis, each invoice must also include, for each day of Services provided: (i) name and title of each person providing Services; (ii) a succinct summary of the Services performed by each person; (iii) the time spent per person, in thirty (30) minute increments; (iv) the hourly billing rate or Sub- Consultant charge and payment due; and (v) an itemized list with amounts and explanation for all permitted reimbursable expenses.
b. Rates and Receipts. All hourly rates and reimbursable expenses must conform to the City- approved rates set forth in Exhibit C, which will be in effect for the entire Contract Time. Each invoice must attach legible, dated receipts for Reimbursable Expenses.
5. INDEPENDENT CONTRACTOR
5.1 Status. Consultant is an independent Consultant and not an employee, partner, or joint venture of the City. Consultant is solely responsible for the means and methods of performing the Services and shall exercise full control over the employment, direction, compensation and discharge of all persons assisting Consultant in performing the Services. Consultant is not entitled to health benefits, worker’s compensation, retirement, or any City benefit.
5.2 Qualifications and Standard of Care. Consultant represents on behalf of itself and its sub - Consultants that they have the qualifications and skills to perform the Services in a competent and professional manner, as exercised by design professionals performing similar services in the San Francisco Bay Area. Services may only be performed by qualified and experienced personnel or subconsultants who are not employed by City and do not have any contractual relationship with City excepting this Agreement. All Services must be performed as specified to City’s reasonable satisfaction.
5.3 Permits and Licenses. Consultant warrants on behalf of itself and any sub-Consultants that they are properly licensed, registered, and/or certified to perform the Services, as required by law, and that they have procured a valid City Business License, if required by the Cupertino Municipal Code.
5.4 Sub-Consultants. Unless prior written approval from City is obtained, only Consultant’s employees and sub-Consultants whose names are included in this Agreement and incorporated Exhibits may provide Services under this Agreement. Consultant must require all sub-Consultants to furnish proof of insurance for workers’ compensation, commercial liability, auto, and professional liability in reasonable conformity to the insurance required of Consultant. The terms and conditions of this Agreement shall be binding on all sub-Consultants relative to the portion of their work.
5.5 Tools, Materials, and Equipment. Consultant will supply and shall be responsible for all tools, materials, and equipment required to perform the Services under this Agreement.
5.6 Payment of Benefits and Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. Contractor and any of its employees, agents, and subcontractors shall not have any claim under this Agreement or otherwise against City for seniority, vacation time, vacation pay, sick leave, personal time off, 146
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overtime, health insurance, medical care, hospital care, insurance benefits, social security, disability, unemployment, workers compensation or employee benefits of any kind. Contractor shall be solely liable for and obligated to pay directly all applicable taxes, fees, contributions, or charges applicable to Contractor’s business including, but not limited to, federal and state income taxes. City shall have no obligation whatsoever to pay or withhold any taxes or benefits on behalf of Contractor. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement is determined by a court of competent jurisdiction, arbitrator, or administrative authority, including but not limited to the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City, and actual attorney’s fees incurred by City in connection with the above.
5.7 Errors and Omissions. Consultant is solely responsible for its errors and omissions and those of its sub-Consultants, and must take prompt measures to avoid, mitigate, and correct them at its sole expense.
6. PROPRIETARY/CONFIDENTIAL INFORMATION
During the Contract Time, Consultant may have access to private or confidential information owned or controlled by the City, which may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City. Consultant shall hold in confidence all City information and use it only to perform this Agreement. Consultant shall exercise the same standard of care to protect City information as a reasonably prudent Consultant would use to protect its own proprietary data.
7. OWNERSHIP OF MATERIALS
7.1 Property Rights. Subject to City meeting its payment obligations for the Services, any interest (including copyright interests) of Consultant in any product, memoranda, study, report, map, plan, drawing, specification, data, record, document, or other information or work, in any medium, prepared by Consultant under this Agreement (“Work Product”), will be the exclusive property of the City upon completion of the work to be performed hereunder or upon termination of this Agreement, to the extent requested by City. In any case, no Work Product shall be shown to a third-party without prior written approval by City.
7.2 Copyright. To the extent permitted by Title 17 of the U.S. Code, all copyrights to the Work Product prepared/created by Consultant and its sub-Consultants and all copyrights in such Work Product shall constitute City property. If it is determined under federal law that the Work Product is not “works for hire,” Consultant hereby assigns to City all copyrights to the Work Product when and as created, and shall require sub-Consultants to do the same. Consultant may retain copyrights to its standard details, but hereby grants City a perpetual, non-exclusive license to use such details.
7.3 Patents and Licenses. Consultant must pay royalties or license fees required for authorized use of any third party intellectual property, including but not limited to patented, trademarked, or copyrighted intellectual property if incorporated into the Services or Work Product of this Agreement.
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7.4 Re-Use of Work Product. Unless prohibited by law and without waiving any rights, City may use or modify the Work Product of Consultant and its sub-Consultants to execute or implement any of the following, but Consultant shall not be responsible or liable for City’s re-use of Work Product:
(a) For work related to the original Services for which Consultant was hired; (b) To complete the original Services with City personnel, agents or other Consultants; (c) To make subsequent additions to the original Services; and/or (d) For other City projects.
7.5 Deliverables and Format. Electronic and hard copies of the Work Product constitute part of the Deliverables required under this Agreement, which shall be provided to City on recycled paper and copied on both sides, except for one single-sided original. Large-scale architectural plans and similar items must be in CAD and PDF formats, and unless otherwise specified, other documents must be in Microsoft Office applications and PDF formats.
8. RECORDS
8.1 Consultant must maintain complete, accurate, and detailed accounting records relating to the Services and Compensation, in accordance with generally accepted accounting principles and procedures. The records must include detailed information about Consultant’s performance, benchmarks, and deliverables. The records and supporting documents must be kept separate from other files and maintained for a period of four (4) years from the date of City’s final payment.
8.2 Consultant will provide City full access to Consultant’s books and records for review and audit, to make transcripts or copies, and to conduct a preliminary examination of all the work, data, documents, proceedings, and activities related to this Agreement. If a supplemental examination or audit of Consultant’s records discloses non-compliance with appropriate internal financial controls, a contract breach, or a failure to act in good faith, City will be entitled to recover from Consultant the costs of the supplemental examination. If this is a lump sum fee Agreement, City will be provided access to records of reimbursable expenses and the instruments of service/deliverables for review and audit. This Section 8 survives the expiration/termination of this Agreement.
8.3 Consultant acknowledges that certain documents generated or received by Consultant in connection with the performance of this Agreement, including but not limited to correspondence between Consultant and any third party, are public records under the California Public Records Act, California Government Code section 6250 et seq. Consultant shall comply with all laws regarding the retention of public records and shall make such records available to the City upon request by the City, or in such manner as the City reasonably directs that such records be provided.
9. ASSIGNMENT
Consultant shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of City. Any attempt to do so will be null and void. Any changes related to the financial control or business nature of Consultant as a legal entity will be considered an Assignment subject to City approval, which shall not be unreasonably withheld. For purposes of this provision, control means fifty percent (50%) or more of the voting power of the business entity. This Agreement binds Consultant, its heirs, successors and assignees.
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10. PUBLICITY / SIGNS
Any publicity generated by Consultant for the project under this Agreement, during the term of this Agreement and for one (1) year thereafter, will reference the City’s contributions in making the project possible. The words “City of Cupertino” will be displayed in all pieces of publicity, including flyers, press releases, posters, brochures, public service announcements, interviews, and newspaper articles. No signs may be posted, exhibited, or displayed on or about City property, except signage required by law or this Agreement, without prior written approval from the City.
11. INDEMNIFICATION
11.1 To the fullest extent allowed by law and except for losses caused by the sole or active negligence or willful misconduct of City personnel, Consultant agrees to indemnify, defend, and hold harmless the City as follows:
a. Indemnity for Design Professional Liability: With respect to the performance of design professional services by a design professional as defined in California Civil Code Section 2782.8, to the fullest extent permitted by law, Consultant shall indemnify and hold harmless City, its officers, officials, agents, employees, and volunteers (collectively and/or individually “City”) from and against any and all liabilities, claims, damages, losses, costs, or expenses (including, without limitation, costs, attorneys’ fees, and expert fees of litigation and alternative dispute resolution) of every nature to the extent arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of Consultant or any of its officers, employees, servants, agents, or subcontractors (collectively and/or individually “Consultant”), in the performance of this Agreement or failure to comply with any obligations of the Agreement. If it is finally determined (through a non-appealable judgment or an agreement between City and Consultant) that liability is caused by the comparative negligence or willful misconduct of City, then Consultant’s indemnification and hold harmless obligation shall not exceed Consultant’s finally determined percentage of liability based upon the comparative fault of Consultant.
Irrespective of any language to the contrary in this Agreement, the Consultant has no duty to provide or to immediately pay for an up-front defense of City against unproven claims or allegations, but shall reimburse those litigation costs and expenses (including, without limitation, attorneys’ fees, and expert fees) incurred by the City to the extent caused by the negligence, recklessness, or willful misconduct of Consultant. In no event shall the cost to defend charged to Consultant exceed Consultant’s proportional percentage of fault, except as described in Section 2782.8(a) and (e) of the California Civil Code.
b. Claims Involving Intellectual Property. Consultant shall indemnify, defend, and hold harmless Indemnitees from and against any claim involving intellectual property, infringement, or violation of a United States patent right or copyright, trade secret, trademark, or service mark or other proprietary or intellectual property rights, which arises out of, pertains to, or relates to Consultant’s negligence, recklessness, or willful misconduct. Such costs and expenses will include reasonable attorney fees for legal counsel of City’s choice, expert fees, and all other costs and fees of litigation.
c. Claims for Other Liability. Except as provided in subsections 11.1(a) and (b), to the fullest extent permitted by law, Consultant shall hold harmless, defend (with counsel agreed to by City), and indemnify City and its officers, officials, agents, employees, and volunteers 149
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(collectively and/or individually “City”) from and against any and all liability, claim, loss, damage, expense, costs (including, without limitation, costs, attorneys’ fees, and expert fees of litigation) of every nature arising out of, related to, or in connection with the performance of work hereunder by Consultant or any of its officers, employees, servants, agents, or subcontractors, or the failure of the same to comply with any of the obligations contained in this Agreement, except such loss or damage which was caused by the sole negligence or sole willful misconduct of the City.
Consultant’s duty to defend applies immediately, whether or not liability is established. An allegation or determination that persons other than Contractor are responsible for the claim does not relieve Contractor from its separate and distinct obligation to defend as stated herein.
11.2 Consultant will assist City, at no additional cost, in the defense of any claim, dispute, or lawsuit arising out of this Agreement. Consultant’s duties herein are not limited to or subject to the Contract Price, to Workers’ Compensation claims, or to the Insurance or Bond limits and provisions.
Nothing in this Agreement shall be construed to give rise to an implied right of indemnity in favor of Consultant against any Indemnitee.
11.3 Consultant agrees to pay the reasonable costs City may incur in enforcing this provision related to Consultant’s indemnification duties, including reasonable attorney fees, fees for legal counsel acceptable to City, expert fees, and all other costs and expenses related to a claim or counterclaim, a purchase order, another transaction, litigation, or dispute resolution. Without waiving any rights, City may deduct money from Consultant’s payments to cover moneys due to City.
11.4 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 11 from each and every subcontractor, or any other person or entity involved by, for, with, or on behalf of Consultant in the performance of this Agreement. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder.
11.5 This Section 11 shall survive expiration or termination of this Agreement.
12. INSURANCE
On or before the Contract Time commences, Consultant shall furnish City with proof of compliance with City Insurance Requirements, attached and incorporated here as Exhibit D. City will not execute the Agreement until Consultant has submitted and City has reasonably approved receipt of satisfactory certificates of insurance and endorsements evidencing the type, amount, class of operations covered, and the effective and expiration dates of coverage. Alternatively, City may terminate this Agreement or in its sole discretion purchase insurance at Consultant’s expense and deduct costs from payments to Consultant.
13. COMPLIANCE WITH LAWS
13.1 General Laws. Consultant shall comply with all laws and regulations applicable to this Agreement. Consultant will promptly notify City of changes in the law or other conditions that may affect the Project or Consultant’s ability to perform. Consultant is responsible for verifying the employment authorization of employees performing the Services, as required by the Immigration Reform and Control Act, or other federal or state law, rule or regulation.
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13.2 Labor Laws. Consultant shall comply with all labor laws applicable to this Agreement. If the Services include a “public works” component, Consultant must comply with prevailing wage laws under Labor Code Section 1720 and other labor laws. To the extent applicable, Consultant must comply with City’s Labor Compliance Program and with state labor laws pertaining to working days, overtime, payroll records and DIR Registration and Oversight. If the Contract Price is $30,000 or more, Consultant must comply with the apprenticeship requirement in Labor Code Section 1777.5.
13.3 Discrimination Laws. Consultant shall not discriminate on the basis of race, religious creed, color, ancestry, national origin, ethnicity, handicap, disability, marital status, pregnancy, age, sex, gender, sexual orientation, gender identity, Acquired-Immune Deficiency Syndrome (AIDS), or any other protected classification. Consultant shall comply with all anti-discrimination laws, including Government Code Section 12900 and 11135, and Labor Code Section. 1735, 1777, and 3077.5.
Consistent with City policy prohibiting it, Consultant understands that harassment and discrimination by Consultant or any of its sub-Consultants toward a job applicant, an employee, a City employee, or any other person is strictly prohibited. Consultant agrees to provide records and documentation to the City on request necessary to monitor compliance with this provision.
13.4 Conflicts of Interest. Consultant shall comply with all conflict of interest laws and regulations applicable to this Agreement and must avoid any conflict of interest. Consultant warrants that no public official, employee, or member of a City board or commission who might have been involved in the making of this Agreement, has or will receive a direct or indirect financial interest in this Agreement in violation of California Government Code Section 1090 et seq. Consultant may be required to file a conflict of interest form if Consultant makes certain governmental decisions or serves in a staff capacity, as provided in Section 18700 of Title 2 of the California Code of Regulations and other laws. Services may only be performed by persons who are not employed by City and who do not have any contractual relationship with City, with the exception of this Agreement. Consultant is familiar with and agrees to abide by the City’s rules governing gifts to public officials and employees.
13.5 Remedies. A violation of this Section 13 constitutes a material breach and may result in City suspending payments, requiring reimbursement, or terminating this Agreement. City reserves all its rights and remedies under law and this Agreement, including the right to seek indemnification under Section 11. Consultant agrees to indemnify, defend, and hold City harmless from and against any loss, liability, and expenses arising from noncompliance with this Section.
14. PROJECT COORDINATION
14.1 City Project Manager. The City’s Project Manager for all purposes under this Agreement will be Jason Wong, who shall have the authority to manage this Agreement and oversee the progress and performance of the Services. City in its sole discretion may substitute another Project Manager at any time and will advise Consultant of the new representative.
14.2 Consultant Project Manager. Subject to City’s reasonable approval, Consultant’s Project Manager for all purposes under this Agreement will be John Alciati, who shall be the single representative for Consultant with the authority to manage compliance with this Agreement and oversee the progress and performance of the Services. This includes responsibility for coordinating and scheduling the Services in accordance with City instructions, service orders, and the Schedule of Performance, and providing regular updates to the City’s Project Manager on the Project status, progress, and any delays. City written approval is required prior to Consultant substituting a new Project Manager, which shall result in no additional costs to City or Project delays. 151
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15. ABANDONMENT OF PROJECT
City may abandon or postpone the Project with thirty (30) calendar days written notice to Consultant.
Consultant will be compensated for satisfactory Services performed through the date of abandonment and will be given reasonable time to assemble the work and close out the Services. No close out work shall be conducted without City reasonable approval of closure costs, which may not exceed ten percent (10%) of the total time expended to the date of abandonment. All charges including job closure costs will be paid in accordance with the provisions of this Agreement and within thirty (30) days of Consultant’s final invoice reasonably approved by the City.
16. TERMINATION
City may terminate this Agreement for cause or without cause at any time, following reasonable written notice to Consultant at least thirty (30) calendar days prior to the termination date. Consultant will be paid for satisfactory Services rendered through the date of termination, but final payment will not be made until Consultant closes out the Services and delivers all Work Product to City. All charges approved by City including job closure costs will be paid within thirty (30) days of Consultant’s final invoice.
17. GOVERNING LAW, VENUE, AND DISPUTE RESOLUTION
This Agreement is governed by the laws of the State of California, excepting any choice of law rules which may direct the application of laws of another jurisdiction. Any lawsuits filed related to this Agreement must be filed with the Superior Court for the County of Santa Clara, State of California.
Consultant must comply with the claims filing requirements under the Government Code prior to filing a civil action in court against City. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities). If a dispute arises, Consultant must continue to provide the Services pending resolution of the dispute. If the Parties elect arbitration, the arbitrator’s award must be supported by law and substantial evidence and include detailed written findings of law and fact.
18. ATTORNEY FEES
If City initiates legal action, files a complaint or cross-complaint, or pursues arbitration, appeal or other proceedings to enforce its rights or a judgment in connection with this Agreement, the prevailing party will be entitled to reasonable attorney fees and costs. This Section 18 survives the expiration/termination of this Agreement.
19. THIRD PARTY BENEFICIARIES
There are no intended third party beneficiaries of this Agreement.
20. WAIVER
Neither acceptance of the Services nor payment thereof shall constitute a waiver of any contract provision. City’s waiver of any breach shall not be deemed to constitute waiver of another term, provision, covenant, or condition or a subsequent breach, whether of the same or a different character.
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21. ENTIRE AGREEMENT
This Agreement represents the full and complete understanding of the Parties, of every kind or nature, and supersedes any and all other agreements and understandings, either oral or written, between them. Any modification of this Agreement will be effective only if in writing and signed by each Party’s authorized representative. No verbal agreement or implied covenant will be valid to amend or abridge this Agreement. If there is any inconsistency between any term, clause, or provision of this main Agreement and any term, clause, or provision of the attachments or exhibits thereto, the terms of the main Agreement shall prevail and be controlling.
22. INSERTED PROVISIONS
Each contractual provision or clause that may be required by law is deemed to be included and will be inferred in this Agreement. Either party may request an amendment to cure any mistaken insertion or omission of a required provision.
23. HEADINGS
The headings in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit, or amplify the terms or provisions of this Agreement.
24. SEVERABILITY/PARTIAL INVALIDITY
If any term or provision of this Agreement, or their application to a particular situation, is found by the court to be void, invalid, illegal or unenforceable, such term or provision shall remain in force and effect to the extent allowed by such ruling. All other terms and provisions of this Agreement or their application to specific situations shall remain in full force and effect.
25. SURVIVAL
All provisions which by their nature must continue after the Agreement ends, including without limitation those referenced in specific Sections herein, survive this Agreement and shall remain in full force and effect.
26. NOTICES
All notices, requests, and approvals must be sent to the persons below in writing to the persons below, and will be considered effective on the date of personal delivery, the delivery date confirmed by a reputable overnight delivery service, on the fifth calendar day after deposit in the United States Mail, postage prepaid, registered or certified, or the next business day following electronic submission:
To City of Cupertino:
Department of Public Works
10300 Torre Ave., Cupertino CA 95014
Attention: Jason Wong
Email: [email protected]
To Consultant:
Biggs Cardosa Associates, Inc.
865 The Alameda
San Jose, CA 95126
Attention: John Alciati
Email: [email protected]
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27. FEDERALLY FUNDED PROJECT
This Project is funded in whole or in part by federal funds and subject to the federal requirements set forth in Exhibit E.
28. EXECUTION
The person executing this Agreement on behalf of Consultant represents and warrants that Consultant has the right, power, and authority to enter into this Agreement and carry out all actions herein, and that he or she is authorized to execute this Agreement, which constitutes a legally binding obligation of Consultant. This Agreement may be executed in counterparts, each one of which is deemed an original and all of which, taken together, constitute a single binding instrument.
IN WITNESS WHEREOF, the parties have caused the Agreement to be executed on the Effective Date stated earlier in this Agreement.
CITY OF CUPERTINO BIGGS CARDOSA ASSOCIATES, INC.
A Municipal Corporation
By
Name
Title
Date
By
Name
Title
Date
APPROVED AS TO FORM:
CHRISTOPHER D. JENSEN
Cupertino City Attorney
ATTEST:
KIRSTEN SQUARCIA
City Clerk
Date
154
City of Cupertino EXHIBITS
2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc.
EXHIBIT A
SCOPE OF SERVICES
Biggs Cardosa (“CONSULTANT” or “Biggs Cardosa”) shall perform professional services which include but are not limited to tasks detailed in Section 2 related to the 2024-02 Stevens Creek Boulevard Bridge Repair Project (“PROJECT”) located on Stevens Creek Boulevard.
For each phase of the PROJECT, CONSULTANT will submit a written proposal that includes a specific Scope of Services, Schedule of Performance, and Compensation for the CITY’s review, CONSULTANT shall not proceed with any phase until it receives written authorization from the Director of Public Works or his Designee via a Service Order using the Service Order Form in Attachment 1. Each Service Order will specify the scope of services, deliverables, schedule of performance, compensation, and any other applicable terms. CONSULTANT will not be compensated for Services performed without a duly executed Service Order.
SECTION 1. GENERAL
A. General Performance Requirements:
1. The performance of all services by CONSULTANT shall be to the satisfaction of the CITY, in accordance with the express terms hereof, including but not limited to the terms set out in detail in this scope of services, Service Order and the standard of care provisions contained in this AGREEMENT.
2. The CITY’s Department of Public Works shall manage the PROJECT and this AGREEMENT. CONSULTANT shall receive final direction from the CITY’s Director of Public Works or his/her authorized designee (hereinafter collectively “CITY”) only.
3. CONSULTANT shall coordinate this scope of services with the CITY as well as with other CITY consultants and contractors, as needed or as directed by the CITY. CONSULTANT shall schedule meeting and prepare meeting agendas and minutes for all PROJECT meetings during the design phase under the scope of work. All minutes of meetings are due to the CITY within five (5) working days after the meeting. CONSULTANT shall provide copies of such documentation to the CITY, and as directed by the CITY, to other appropriate agencies and entities.
CONSULTANT shall coordinate all responses to comments through the CITY.
4. CONSULTANT shall designate and provide to the CITY the names of their team members for the PROJECT. The team members shall be satisfactory to the CITY.
CONSULTANT shall not substitute any team members without the prior approval of the CITY.
5. CONSULTANT’s services shall be performed as expeditiously as is consistent with professional skill and care as set forth in the agreement and the orderly 155
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. process of the work. The schedule for the performance included in EXHIBIT B, may be adjusted by mutual agreement.
6. CONSULTANT shall manage its SUBCONSULTANTS, and administer the PROJECT. CONSULTANT shall consult with the CITY, research applicable design criteria, and communicate with members of the PROJECT team.
SECTION 2. TASKS
**CONSULTANT MUST RECEIVE AN EXECUTED SERVICE ORDER FROM THE CITY PRIOR TO BEGINNING ANY TASK**
Phase 1: PRELIMINARY ENGINEERING AND TECHNICAL STUDIES
TASK 1: PROJECT MANAGEMENT
Project management will include, but not be limited to, the supervision and scheduling of project staff, review of work prepared by staff and subconsultants, project coordination, project organization, quality assurance and control, acting as the client liaison, monitoring the project schedule and budget, preparation of project reports and attendance at meetings with the City and other agencies to receive input and discuss and review the project during its critical design periods. More specific responsibilities may include but not be limited to:
Task 1.0 – Coordination/Meetings/Administration
Task 1.1: Project Development Meetings
Biggs Cardosa will schedule monthly project development virtual meetings to discuss the status of the PROJECT, upcoming efforts, issues, and other relevant information. An agenda and invitation will be sent two (2) days prior to the meeting, including minutes from the previous meeting. Minutes of each meeting will be distributed to attendees within five (5) workdays of the meeting. At the meeting, we will distribute an Outstanding Issues list.
Items on the list are discussed at the meeting, new issues are added and assigned, and tasks completed are noted as “closed”.
Task 1.2: Miscellaneous Coordination Meetings (Agency)
Biggs Cardosa will conduct additional coordination meetings, as needed, with agencies having jurisdiction within the PROJECT limits. This task will include preparing memos, letters, e-mails, and phone calls necessary to manage the PROJECT. This scope assumes a total of two (2) meetings with various agencies.
Task 1.3 – Progress Reports and Invoices
On a monthly basis, Biggs Cardosa will issue invoices and progress reports to the City detailing major items worked on during the billing period and anticipated work for the following month. Biggs Cardosa will establish and apply internal accounting methods and procedures acceptable to the City for documenting and monitoring contract costs. 156
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Phase 1 Task 1 Deliverables:
• Meeting agendas and minutes
• Outstanding Issues List (and updates)
• Invoices with progress reports
TASK 2: PLANNING AND PROJECT DEVELOPMENT
Task 2.1 – Kick-Off Meeting
Biggs Cardosa will schedule a PROJECT kick-off meeting and invite key personnel from the City, as well as other parties that, in concurrence with the City, are important stakeholders in the success of the PROJECT. The goal of the kick-off meeting is to introduce staff, discuss project background and scope, establish communication and procedure guidelines, and discuss the PROJECT schedule. Biggs Cardosa will also start preparation of a detailed PROJECT description, including PROJECT components, environmental study limits (ESL), and timing of construction.
Task 2.2 – Research and Data Gathering
The Biggs Cardosa design team will review available data, including previous studies, provided by the City. Key information to review will be photos, record drawings and inspection reports, and maintenance history.
Biggs Cardosa will collect utility information using USA database. Utility record data will be drafted on a utility base map.
Task 3: PRELIMINARY/CONCEPT PLANS
Task 3.1 – Preliminary Geotechnical Investigations & Foundation Report
Task 3.1.1 – Research and Data Collection
The design team will review available geologic and soil literature in the vicinity of the site, including a review of as-built drawings and existing boring data in the PROJECT vicinity.
Task 3.1.2 – Sample Collection
Biggs Cardosa willcollect three bulk samples from the creek bed with hand tools. One sample will be collected at the bridge location, with two additional samples to be collected approximately 50 to 100 feet upstream and downstream from the bridge, respectively, depending on access. The purpose of these samples is to provide gradation data for scour analyses. Actual sampling locations will depend upon available access, with consieration of the water level in the creek.
Task 3.1.3 – Laboratory Testing
Particle size analyses will be performed on the three collected samples.
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Task 3.1.4 – Preliminary Geotechnical Evaluation Memorandum Biggs Cardosa will prepare amemorandum covering the overall geotechnical/geologic condition on a broad basis, including, but not limited to, geology, subsurface conditions, groundwater, as-built data, etc. The laboratory data from Task 3.1.3 will be included as part of the memorandum.
Task 3.1.5 – Geotechnical Explorations
Task 3.1.5.1 Permit and Utility Clearance
Explorations will be performed within the City’s right-of-way (ROW), and an encroachment permit will not be required. Traffic control will be provided, as necessary, during field explorations. Traffic control plans will be prepared by an outside vendor, part of Biggs Cardosa subconsultant’s team..
Biggs Cardosa will apply for drilling permits from Valley Water as the boring is greater than 45 feet.
A field engineer will mark the boring location and contact the Underground Service Alert (USA) for utility clearance. A private utility locator and removing the USA marking are not included in the scope.
Task 3.1.5.2 Field Exploration
A total of two soil borings, each up to 80 feet deep, are planned with one at each abutment.
A truck rig would be used for the field explorations. Lane closures are expected during the field explorations. Traffic control is included in the cost and will be performed by an outside vendor.
A field engineer will classify and log the subsurface soil and rock conditions encountered in the test boring at the time of drilling. Samples will be collected for laboratory testing.
The borings will be grouted 2 sack slurry. Then the AC hot patch be squared off (2’x2’x3” minimum patch). Actual locations of the explorations will be determined based on the site condition due to access or utility conflicts.
Task 3.1.5.3 Laboratory Testing
Laboratory tests will be performed on representative soil samples, including but not limited to, moisture contents, densities, particle size analyses, plasticity index (basic soil characteristics), corrosion tests (pH, sulfate, chloride, and resistivity), consolidation tests, and strength tests as deemed necessary.
Task 3.1.5.4 Preparation of Boring Log
The boring log will be edited based on the field logs and the laboratory test results and will be prepared based on Caltrans standards. It is assumed that the boring data will be provided in boring record format, i.e., letter-sized gINT log.
Task 3.1.5.5 Soils Analysis/Evaluation
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Associated engineering analyses may be required to provide additional input to the foundation design. Based on our experience, the following may be expected:
• Seismic design criteria, i.e., ARS curve per Caltrans ARS Online website. (site- specific ARS curve is not included.)
• Seismic hazards (liquefaction potential),
• Foundation evaluation (axial/lateral capacity for deep foundations or bearing capacity/settlement for shallow foundations),
• Development of geotechnical parameters for LPILE analyses (LPILE to be performed by the structural engineer),
• Slope stability evaluation at the abutments,
• Lateral earth pressures for the abutment walls per Caltrans SDC 2.0 • Corrosion potential
Task 3.1.5.6 Report Preparation
The preliminary memorandum will be updated to present the results of the boring data and the engineering analyses.
Task 3.2 Hydrology & Hydraulics
Task 3.2.1: Obtain, Review and Summarize Existing Information
Task 3.2.1.1– Obtain, Review Summarize Bridge Maintenance Reports The design team will obtain, review and summarize the available bridge maintenance reports from BIRIS including routine maintenance reports, underwater inspections and special hydraulic analysis.
Task 3.2.1.2– Obtain and Review FEMA information
Biggs Cardosa will update the available information from FEMA by submitting a request to the FEMA library through the City of Cupertino, review the effective and preliminary Flood Information Study and hydrology information available from FEMA.
Task 3.2.1.3–Field Investigation
Biggs Cardosa will meet with the City of Cupertino and field review the bridge reach with the project team.
Assumptions for Phase 1 Task 3.2 include:
1. No hydraulic analysis is assumed for this phase of the scope of work.
2. No potential scour countermeasure or scour monitoring will be provided for this scope of work.
Task 3.2.2 Hydraulic Analysis Memorandum (HAM)
Task 3.2.2.1 – Draft HAM
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Biggs Cardosa will complete a draft HAM documenting the existing conditions and potential scour countermeasure alternatives.
Task 3.2.2.2 – Final HAM
Biggs Cardosa will incorporate comments in a Final HAM documenting the information gathering and potential scour countermeasure alternatives.
Assumptions for Phase 1 Task 3.2 include:
1. The Draft and Final HAM will be provided in electronic format assuming one round of comments on the Draft HAM.
Task 3.3 – Feasibility Study
The Biggs Cardosa design team will develop a feasibility study for Stevens Creek Bridge to determine the recommended scour countermeasure for Stevens Creek Bridge prior to proceeding with the plan design. This phase of work focuses on identifying PROJECT challenges, developing and screening improvement alternatives, and defining the PROJECT.
Task 3.3.1 – Scour Countermeasure Evaluation
Biggs Cardosa will evaluate up to three (3) structure concepts including scour countermeasure, bridge rehabilitation, and bridge replacement. Biggs Cardosa will discuss the advantages and disadvantages of each alternative in the feasibility study report.
Bridge Preliminary General Plans: Biggs Cardosa will prepare one preliminary General Plan sheet for the recommended structure concept that includes a plan, elevation, and typical section.
Bridge General Plan Estimates: Biggs Cardosa will prepare preliminary Engineer’s Estimates for each of the structure concepts which will include the appropriate contingencies (typically 25%) in accordance with Caltrans guidelines. The most accurate cost estimate possible will be provided to Biggs Cardosa for planning and budgeting purposes at this early stage of design.
Task 3.3.2 – Feasibility Study Report
The Feasibility Study Report will be prepared during the preliminary design phase to document the basis of design and reasoning made to arrive at the selected scour countermeasure. Design considerations will include bridge structure evaluation, environmental impacts, hydraulic constraints, geotechnical constraints, constructability, construction staging and access, structure cost, and civil costs.
Biggs Cardosa will review the existing conditions and assess the most cost-effective structure concepts. Biggs Cardosa will evaluate alternative scour countermeasures and bridge configurations to meet the requirements of the PROJECT constraints. Biggs Cardosa will work closely with the City to evaluate the impacts to cost, schedule, constructability, and environmental considerations created by each of the feasible structure concepts.
The Feasibility Study Report will include the following primary elements:
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. • Discussion of the three structure concepts including discussion on construction and maintenance costs, permitting constraints, environmental impacts, right-of-way impacts, and initial geotechnical and hydraulic results to highlight how the preferred alternative was determined.
• Estimated construction costs.
Phase 1 Task 3 Deliverables:
• Preliminary Geotechnical Evaluation Memorandum
• Final Hydraulic Analysis Memorandum (HAM)
• Three (3) Cost Estimates (PDF)
• Draft and Final Feasibility Study Report (PDF)
TASK 4: ENVIRONMENTAL APPROVAL
**CONSULTANT MUST RECEIVE AN EXECUTED SERVICE ORDER FROM THE CITY PRIOR TO BEGINNING ANY TASK**
The design team will prepare the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) review documents and supporting technical studies for the PROJECT.
TASK 4.0 – PUBLIC OUTREACH
Biggs Cardosa will facilitate an in-person Public Meeting for the PROJECT. Biggs Cardosa will prepare an agenda, review PROJECT materials and presentations created, review meeting notices and web content, and assist with meeting notification through stakeholder contacts. The Biggs Cardosa public outreach team will participate in two preparation virtual meetings, attend one virtual meeting at start of meeting cycle, travel to and facilitate the in-person meeting, create brief meeting summaries and attend a virtual debrief meeting.
Task 4.1 – NEPA Environmental Clearance
The PROJECT will receive federal funding from the Federal Highway Administration (FHWA) and, therefore, compliance with NEPA and related federal statutes will be required.
Biggs Cardosa will undertake the required studies following the Caltrans Office of Local Assistance procedures and utilize the formats published on the Caltrans Standard Environmental Reference (SER) website.
Task 4.1.1 - Preliminary Environmental Study (PES)
Biggs Cardosa will work with the PROJECT team to develop a PROJECT description for submittal to Caltrans. Biggs Cardosa will prepare the Caltrans’ Preliminary Environmental Study (PES) form and attend one formal Caltrans Field Review for the proposed PROJECT. The PES form will include a visual impact questionnaire, United States Fish and Wildlife Service (USFWS) list of federally listed species, National Marine Fisheries Service (NMFS) list of 161
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. federally listed species, Federal Emergency Management Agency (FEMA) floodplain maps, and hazardous materials database mapping.
Task 4.1.2-NEPA Technical Memorandums
Upon completion of the PES process, Caltrans will issue a letter to the City identifying the NEPA environmental document (i.e., Categorical Exclusion) and technical memos and studies to be completed to support the NEPA document. Based on recent experience working on similar Caltrans Local Assistance Projects in the greater Bay Area, Caltrans should determine the PROJECT qualifies for a Categorical Exclusion and require preparation of the following technical memos for the PROJECT:
• Natural Environment Study (NES) and Biological Assessment (BA) • Water Quality Memo (Construction BMPs)
• Location Hydraulic Study and Summary Floodplain Encroachment Report (LHS and SFER)
• Traffic Control Plan (traffic control during construction, construction hours) • Equipment Staging Memo (staging location details)
• Construction Noise Memo (adherence to local ordinance) • Air Quality PM2.5 Exemption Email from MTC
Biggs Cardosa will be responsible for preparing all the above memos/reports. The coordination with MTC for the Air Quality PM2.5 Exemption email will be provided by the City, and the Biggs Cardosa design team will assist the City with this coordination. The traffic control, water quality, construction noise, and equipment staging memos will be based on information provided by the Biggs Cardosa’s Team. The memos and reports will be prepared based on the Caltrans’ SER and submitted to the City for review. Biggs Cardosa will revise the memos and reports once and submit them back to the City for submission to Caltrans. After the memos are deemed complete by Caltrans, Caltrans will issue the NEPA Categorical Exclusion for use by the City in obtaining federal funding.
Task 4.2 – CEQA Environmental Clearance
The PROJECT should qualify for a Class 1 Categorical Exemption (CE) under CEQA. Per CEQA Guidelines Section 15301, Class 1 activities consist of the “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.” The above-described technical memos and reports to be prepared under NEPA will serve as the technical reports to be used to support the CEQA CE. No additional technical memos or reports will be completed to support the CEQA CE. Biggs Cardosa will prepare the Notice of Exemption (NOE) and a CE justification memo explaining why none of the exceptions to applying a CE and listed under Section 15300.2 Exceptions of the CEQA Guidelines are applicable to the PROJECT. The memo and NOE will be submitted to the City for review and approval. This scope of work assumes the City will file the NOE with the Santa Clara County Clerk and State Clearinghouse. 162
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Task 4.3 – Biological Resources Report
The design team will prepare a Natural Environment Study (NES) and Biological Assessment (BA) for the proposed PROJECT per the latest Caltrans guidance. The NES and BA will describe existing biological conditions and any sensitive biological resources, such as potentially regulated habitats (e.g., wetlands) and special-status species, which may occur on the PROJECT site. The PROJECT site and immediately surrounding areas are expected to support jurisdictional waters, as well as the Central California Coast steelhead (Oncorhynchus mykiss), northwestern pond turtle (Actinemys marmorata), roosting bats, and nesting common and special-status birds. The NES and BA will describe potential impacts of the PROJECT on these biological resources as well as conceptual mitigation measures necessary to mitigate the PROJECT’s environmental impacts.
Biggs Cardosa will prepare a draft Biological Assessment (BA) per the latest Caltrans guidance for the purpose of facilitating Section 7 consultation with the National Marine Fisheries Service in accordance with the Federal Endangered Species Act. The BA will include a description of the PROJECT; background information regarding the Central California Coast steelhead and its potential occurrence within the work area, including agency-provided information; an analysis of PROJECT impacts on this species; and avoidance, minimization, and compensatory mitigation measures to protect this species. The report will also include a species table addressing the potential for occurrence of all federally listed, proposed, and candidate species known to occur or potentially occurring in the general vicinity of the PROJECT boundary. This task also includes coordination with the National Marine Fisheries Service (NMFS) following submittal of the BA, including a site visit with NMFS staff and US Fish and Wildlife, if necessary.
Phase 1 Task 4 Deliverables:
Natural Environment Study
Biological Assessment
Technical Memos
CEQA CE
NEPA CE
Brief public meeting summary
PHASE 2: ENGINEERING DESIGN (PLANS, SPECIFICATIONS, AND ESTIMATES (PS&E), BID SUPPORT, AND CONSTRUCTION SUPPORT
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. **CONSULTANT MUST RECEIVE AN EXECUTED SERVICE ORDER FROM THE CITY PRIOR TO BEGINNING ANY TASK**
TASK 0: PROJECT MANAGEMENT
Project management will include the supervision and scheduling of project staff, review of work prepared by staff and subconsultants, project coordination, project organization, quality assurance and control, acting as the client liaison, monitoring the project schedule and budget, preparation of project reports and attendance at meetings with the City and other agencies to receive input and discuss and review the project during its critical design periods. More specific responsibilities include but are not limited to:
Task 0.1: Project Development Meetings:
Biggs Cardosa will schedule monthly project development virtual meetings to discuss the status of the PROJECT , upcoming efforts, issues, and other relevant information. An agenda and invitation will be sent out two (2) days prior to the meeting, including minutes from the previous meeting. Minutes of each meeting will be distributed to attendees within five (5) workdays of the meeting. At the meeting, we will distribute an Outstanding Issues list. Items on the list are discussed at the meeting, new issues are added and assigned, and tasks completed are noted as “closed”.
Task 0.2: Miscellaneous Coordination Meetings (Agency): Biggs Cardosa will conduct additional coordination meetings, as needed, with agencies having jurisdiction within the project limits. This task will include preparing memos, letters, e- mails, and phone calls necessary to manage the project. This scope assumes a total of two (2) meetings with various agencies.
TASK 0.3 – PROJECT SCHEDULE
Biggs Cardosa will prepare a PROJECT Master Schedule in Microsoft Project format. The schedule will be updated regularly and discussed at the monthly PDT meetings. The schedule will have all relationships defined and the critical path and activity floats shown.
The Preliminary Project Schedule is included at the end of this section and is based on the anticipated contract execution date that includes all the major design tasks and defined relationships.
TASK 0.4 – PROGRESS REPORTS AND INVOICES
On a monthly basis, Biggs Cardosa will issue invoices and progress reports to the City detailing major items worked on during the billing period and anticipated work for the following month.
We will establish and apply internal accounting methods and procedures acceptable to the City for documenting and monitoring contract costs.
Phase 2 Task 0 Deliverables:
Meeting agendas and minutes
Outstanding Issues List (and updates)
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. Project Master Schedule (and updates)
Invoices with progress reports
TASK 1: FINAL DESIGN – REPORTS AND STUDIES
TASK 1.1 – FINAL DESIGN REPORTS AND STUDIES
The focus of the design team is to finalize the reports and supplemental PROJECT information which form the basis of design for the PROJECT. All project sheets, which will be represented in the bid documents, will be identified and developed in varying degrees of detail during this phase.
TASK 1.1.1 – FINAL GEOTECHNICAL REPORT
It is assumed that no foundation or structural work will be required for the scour countermeasure.
No work is planned for Phase 2 Task 1.1.1 at this time.
TASK 1.1.2 – HYDRAULIC MODELING AND POTENTIAL SCOUR COUNTERMEASURE
SCOPING
Task 1.1.2.1 – Set up an existing conditions HEC -RAS model based on Point Precipitation Hydrology:
Biggs Cardosa will set up an existing conditions HEC -RAS hydraulic model based on a hydrograph developed from a Point Precipitation Model.
Task 1.1.2.2 – Set up a proposed conditions HEC-RAS model Biggs Cardosa will update existing conditions HEC -RAS model based on plans provided by the PROJECT team.
Task 1.1.2.3 – Estimate Local Scour at the existing bridge Biggs Cardosa will estimate local pier, contraction, abutment, and pressure flow scour for the existing bridge using the methods described in the Federal Highway Administration (FHWA) Publication HEC-18, Evaluating Scour at Bridges.
Task 1.1.2.4 – Estimate Short Term Degradation:
Biggs Cardosa will provide a survey request for a thalweg profile survey and estimate future short-term degradation based upon the results of the thalweg profile survey information.
Task 1.1.2.5 – Estimate Scour
Biggs Cardosa will estimate the scour for up to 3 proposed alternative scour countermeasure strategies.
Task 1.1.2.6: Provide Potential Scour Countermeasure Options Biggs Cardosa will provide potential scour countermeasure options for City consideration.
Task 1.1.2.7 – Preliminary Hydraulic Report
Biggs Cardosa will complete a draft Preliminary Hydraulic Report (PHR) documenting the hydrology/hydraulics and the scour analysis.
Biggs Cardosa will incorporate one round of comments in a Final PHR. 165
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TASK 1.2 – SURVEYING AND MAPPING
TASK 1.2.1 – PROJECT SURVEY CONTROL
Biggs Cardosa will establish survey control for use throughout design and construction.
PROJECT control will reference City and SCVWD Benchmarks as available.
TASK 1.2.2 – TOPOGRAPHIC SURVEY
Biggs Cardosa will perform field topographic survey for use in design and modeling.
Biggs Cardosa will collect creek cross-sections, extending 10’ beyond top of bank on each side of the creek. Creek cross sections will collect visible grade breaks perpendicular to the primary direction of flow. Cross sections will be collected at approximately the following locations:
• 200’ upstream of Stevens Creek Blvd
• 150’ upstream of Stevens Creek Blvd
• 100’ upstream of Stevens Creek Blvd
• 50’ upstream of Stevens Creek Blvd
• At Stevens Creek Blvd
• 50’ downstream of Stevens Creek Blvd
• 100’ downstream of Stevens Creek Blvd
• 150’ downstream of Stevens Creek Blvd
• 200’ downstream of Stevens Creek Blvd
Creek cross sections at Stevens Creek Blvd will include structure abutments, visible foundations, soffit, superstructure and wingwalls.
Perform field topographic surveys to obtain existing pavement elevations, roadway & creek features, surface visible utilities, trees and other obstructions within the work area. We will obtain location and invert at accessible storm drain manholes, inlets and sanitary sewer manholes.
Biggs Cardosa will draft Base Map features in AutoCAD for use in PROJECT backgrounds.
TASK 1.2.3 – RIGHT OF WAY RECORD BOUNDARY
Biggs Cardosa will prepare a base map of the right of way record data including site boundary, easements and other encumbrances of record based upon available record data from City/County. Property boundaries will be drafted in AutoCAD for use in PROJECT documents.
Phase 2 Task 1 Deliverables:
Right of Way Record Map
Topographic Base Map
TASK 2: PLANS, SPECIFICATIONS, AND ESTIMATES (PS&E)
TASK 2.1 – 65% PS&E PREPARATION
Upon receiving CEQA and NEPA environmental clearance, the Biggs Cardosa design team will advance the PROJECT to the 65% level. This submittal will include the 65% plans, technical specifications, and detailed construction cost estimate. All PROJECT sheets, which will be 166
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. represented in the bid documents, will be identified and developed in varying degrees of detail during this phase.
TASK 2.1.1 – SCOUR COUNTERMEASURE DESIGN
Layout sheets, elevations, and details will be provided for the bridge scour countermeasure.
Caltrans Standard Plans may be referenced from the bridge plans.
The 65% plan set is anticipated to include the following drawings:
Title Sheet 1 Sheet
Existing Conditions 1 Sheet
Layout 1 Sheet
Cross Sections 1 Sheet
Construction Details 3 Sheet
Subtotal Plans 7 Sheets
TASK 2.1.2 – ENGINEER’S ESTIMATE OF PROBABLE CONSTRUCTION COST Detailed PROJECT quantity estimates, and cost estimates will be provided for review and approval. The cost estimate will identify construction work items, quantities, and unit costs, and summarize the estimated total PROJECT cost, including allowances for supplemental work, owner-furnished materials, expenses, mobilization, and contingencies. The unit costs shall be determined by reviewing similar recent PROJECT bid summaries, the City’s cost data, the most current Caltrans Contract Cost Data book, the California highway Construction Cost Index information, and the Caltrans Engineering Service Center site.
TASK 2.1.3 – TECHNICAL SPECIFICATIONS
Draft technical specifications (Special Provisions) will be completed based on current Caltrans Standard Special Provisions and Standard Specifications, and City construction contract standards.
Phase 2 Task 2.1 Deliverables:
65% Plans (11x17 PDFs)
65% Technical Special Provisions
65% Engineer’s Construction Cost Estimate
65% Quantity Calculations
TASKS 2.2 – 90% PS&E PREPARATION
This task includes the preparation of the 90% construction documents and will include addressing the 65% Submittal Review Comments, preparing the 90% PS&E, and submitting 90% PS&E.
The Biggs Cardosa design team will respond to the City review comments on the 65% submittal and incorporate the necessary changes in the 90% PS&E submittal. 167
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Biggs Cardosa will prepare the technical special provisions. The City will prepare the “boilerplate” and combine the City’s “boilerplate” with the technical special provisions to create the final specification document.
Biggs Cardosa will prepare the final plans, technical specifications, and construction cost estimate. All design activities will be completed. The PS&E package will be prepared for a final City review.
Phase 2 Task 2.2 Deliverables:
90% Plans (11x17 PDFs)
90% Technical Specifications
90% Engineer’s Construction Cost Estimate
Quantity Calculations
Comment Response Matrix
TASK 2.3 – 100% PS&E
This task includes the preparation of the 100% construction documents and will include addressing the 90% Submittal Review Comments, preparing the 100% PS&E, and submitting 100% PS&E.
The Biggs Cardosa design team will respond to the City review comments on the 90% submittal and incorporate the necessary changes in the 100% PS&E submittal.
Phase 2 Task 2.3 Deliverables:
100% Plans (11x17 PDFs)
100% Technical Specifications
100% Engineer’s Construction Cost Estimate
100% Quantity Calculations
Updated Comment Response Matrix
TASK 3: ENVIRONMENTAL PERMITTING
The design team will prepare permit applications for PROJECT impacts to sensitive/regulated habitats along Stevens Creek including a USACE Section 404 Nationwide Permit Application Package, a Section 401 Regional Water Quality Control Board Water Quality Certification Application Package, and a California Department of Fish and Wildlife Lake and Streambed Alteration Agreement Notification Package.
Task 3.1 – US Army Corps of Engineers -Section 404 Nationwide Permit Task 3.1.1 - Delineation of Regulated Habitats
If vegetated wetlands subject to USACE jurisdiction are present in PROJECT impact areas, a formal delineation of these habitats will be completed, as such a delineation would be necessary 168
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. for USACE permitting. A technical report summarizing the methods and results of the field survey for jurisdictional wetlands and other waters, including waters of the U.S. regulated by the USACE under Section 404 of the Clean Water Act, waters of the state regulated by the San Francisco Bay Regional Water Quality Control Board (RWQCB) under Section 401 of the Clean Water Act and the Porter-Cologne Water Quality Control Act, and waters regulated by the CDFW. The report will be prepared to specifications developed by the San Francisco District of the USACE and will be of sufficient detail for agency review and a jurisdictional determination.
Task 3.1.2 - USACE Section 404 Nationwide Permit Application Package Biggs Cardosa will assemble a Nationwide Permit application package that includes Eng. Form 4345, a PROJECT description, a summary of previous environmental studies, an assessment of impacts to 404-jurisdictional habitats, and discussion of suitable mitigation measures. The USACE permit package will be provided to the PROJECT team for review and comment. After incorporation of any changes, the package will be submitted to USACE. We will maintain regular contact with USACE to monitor the processing of the permit application. This task includes one site visit with a USACE representative, if necessary. We will respond to comments received on the draft application and generate a final report to process this permit application.
Task 3.2 – California Fish and Wildlife – Section 1602 Streambed Alteration Agreement Biggs Cardosa will prepare permit materials in support of a 1602 Lake and Streambed Alteration Agreement for submittal to the CDFW Electronic Permit Information Management System (EPIMS) to authorize impacts to waters of the state and riparian habitats regulated by CDFW under Section 1602 of the California Fish and Game Code. Application materials include Form FG 2023, Lake and Streambed Alteration Program Project Questionnaire, all copies of environmental documentation, all correspondence with USACE, RWQCB, and other agency staff, an impact assessment, and PROJECT drawings.
The CDFW permit package will be provided to the PROJECT team for review and comment.
After incorporation of any changes, the package will be submitted to CDFW through its Environmental Permit Information Management System. We will maintain regular contact with CDFW to monitor the processing of the permit application. This task includes one site visit with a CDFW representative, if necessary. Biggs Cardosa will respond to comments received on the draft application and generate a final application and process the permit application.
Task 3.3 - Regional Water Quality Control Board – Section 401 Water Quality Certification or Waiver
The RWQCB will take jurisdiction over the same aquatic features that are regulated by USACE, and may also claim areas up to the top of bank of Stevens Creek, as well as any riparian trees or 169
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. shrubs rooted below top of bank, as waters of the state. Therefore, Biggs Cardosa will prepare a Clean Water Act Section 401 water quality certification application to submit to RWQCB. The complete permit package includes much of the same information that is submitted to the USACE but also includes Form R2C502-E and several additional materials. The submittal will include copies of the project’s NES and BA, all correspondence with USACE and RWQCB staff, an impact assessment, and project drawings.
The RWQCB will require alternative analyses for projects, with the level of effort of analysis to be determined by the impact levels of the project. Because the project is likely to encroach on RWQCB jurisdiction, we expect some level of effort will be required to document and explain the project’s preferred alternative against other potential projects. The report will discuss alternatives that were considered and rejected, along with details regarding why any alternatives having less impact to waters of the state than the proposed project are impracticable. The report will include information on why the project cannot practicably reduce impacts on waters of the State, to document that the proposed project is the Least Environmentally Damaging Practicable Alternative (LEDPA).
As required for 401 certifications under the Clean Water Act, we will organize and attend a pre- application meeting with RWQCB staff and project team members to discuss the project.
Following the pre-application meeting, we will make any necessary edits to the application materials to reflect RWQCB input on the project and will then submit an administrative draft RWQCB permit package to the project team for review and comment. After incorporation of any changes, the package will be submitted to RWQCB. We will maintain regular contact with RWQCB to monitor the processing of the permit application. This task includes one site visit with an RWQCB representative, if necessary. We will respond to comments received on the draft application and generate a final application and process the permit application.
Task 3.4 - Regulated Habitats Mitigation and Monitoring Plan Biggs Cardosa will prepare a mitigation and monitoring plan (MMP) describing any compensatory mitigation that may be required by regulatory agencies, or as a CEQA mitigation measure, for impacts on stream, wetland, and/or riparian habitats and habitat for steelhead. The Draft MMP will be prepared in accordance with USACE’s Final 2015 Regional Compensatory Mitigation and Monitoring Guidelines (USACE MMP Guidelines). The MMP is the central technical document required by the resource agencies to complete the project’s permit applications. The MMP will describe the project’s impacts on regulated wetland habitats and species, present the conceptual habitat mitigation plan, and include an ecological monitoring plan and a long-term management plan.
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Prior to preparation of the MMP, we will coordinate one site visit with the USACE, RWQCB, CDFW, and/or NMFS to discuss the City’s proposed mitigation for project impacts on regulated habitats and steelhead habitats. The purpose of this site visit will be to describe the rationale for the proposed mitigation, address questions and concerns from the resource agencies, and determine what each agency will require to meet their regulatory rules. This task includes communication with the City prior to the agency meeting to strategize on the content of the meeting, coordinating meeting times, and developing meeting materials.
Task 3.5 – US Fish & Wildlife Coordination
This task includes coordination with the USACE regarding potential mitigation requirements, if the NMFS requires compensatory mitigation for impacts on listed species.
TASK 4: BID AND CONSTRUCTION SUPPORT
**CONSULTANT MUST RECEIVE AN EXECUTED SERVICE ORDER FROM THE CITY PRIOR TO BEGINNING ANY TASK**
TASK 4.1 – BID SUPPORT
The Biggs Cardosa design team will provide support to the City during construction bidding.
The City will administer and coordinate the bidding procedures for the project. The City will advertise the project for bidding and distribute the plans to prospective bidders. The City's project manager will be the designated person to receive contractor inquiries. Biggs Cardosa will assist the City as requested during the bidding process. The work may include responding to contractor bid inquiries and providing consultation and interpretation of the construction documents during the advertisement period. We have budgeted the bidding support effort to respond to 4 inquiries.
TASK 4.2 CONSTRUCTION SUPPORT
Biggs Cardosa will assist the City during construction by providing construction support, as requested. It is assumed that the City will hire/provide a Resident Engineer/Construction Manager to provide construction inspection services, and to act as a liaison to the City regarding construction related matters. A brief discussion of the anticipated scope of work is included below.
Task 4.2.1 Preconstruction Meeting
Biggs Cardosa will attend the preconstruction meeting and one construction progress meeting, as required. We will answer clarification questions pertaining to the plans and special provisions, if needed.
Task 4.2.2 Respond to RFI’s
Biggs Cardosa will review contractor RFI’s (Request for Information) and provide written responses. Cost will be on a time and expense basis.
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Task 4.2.3 Review Submittals
Biggs Cardosa will review contractor submittals and provide written responses. Cost will be on a time and expense basis.
Task 4.2.4 Record Drawings
Biggs Cardosa will prepare record drawings once the construction is complete. Record drawings will reflect change orders, accommodations, and adjustments to all improvements constructed. The basis of the revisions shown on the record plans will be a red mark construction set of plans provided by the project Resident Engineer.
Phase 2 Task 4 Deliverables:
RFI responses
Submittal review
Record Drawings
OPTIONAL DESIGN SERVICES
THE FOLLOWING TASKS ARE NOT INCLUDED IN THE BASE SCOPE OF SERVICES BUT CAN BE ADDED AT THE CITY’S REQUEST AS PROJECT NEEDS ARISE.
Task 1 – Bridge Scour Monitoring Plan
Task 1.1 – Assist with developing a bridge scour monitoring plan Biggs Cardosa will assist with putting a monitoring plan together including adding monitoring devices at the bridge site. These include but are not limited to monitoring movement of the bridge itself (with very sensitive tilt-meters) or monitoring channel elevations with active devices attached to the bridge.
Task 1.2 – Assist with installation of a bridge scour monitoring plan Biggs Cardosa will assist with installing a monitoring plan together including adding monitoring devices at the bridge site.
Task 2 – Section 106 Report
Biggs Cardosa will complete the following tasks and studies to support the project: National Historic Preservation Act Section 106 review process by Caltrans:
Record Search. Biggs Cardosa will perform a record search for previous studies and recorded cultural resources by submitting requests to the Northwest Information Center (CHRIS), Sonoma State University, Rohnert Park, to include the project area and a ½-mile radius around it. Biggs Cardosa will also request a Sacred Lands File search and tribal contact list for Santa Clara County from the California Native American Heritage Commission in Sacramento.
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Prepare Area of Potential Effect Map. In consultation with the City and project engineers, Biggs Cardosa will prepare an Area of Potential Effects (APE) map for review by Caltrans.
The map will use the most recent format guidance from the Office of Historic Preservation and Caltrans.
Archaeological Survey Report. Bi ggs Cardosa will retain a qualified archaeologist to complete a pedestrian field survey, background research, and geoarchaeological assessment of the project corridor. This data will be used to complete an Archaeological Survey Report that conforms to the guidance in the Caltrans Standard Environmental Reference (SER) Volume 2.
Historic Properties Survey Report. Bi ggs Cardosa will prepare a Historic Properties Survey Report, a summary report that includes the final draft of the APE map, discusses documentation efforts, presents the findings of the ASR, and summarizes the National Register eligibility conclusions for cultural resources. The document will provide evidence of coordination with Native American groups, local government, and other interested persons and organizations, and requests the concurrence of the State Office of Historic Preservation (if necessary).
MISCELLEANOUS
1) All drafting will be done in AutoCAD. Electronic submittals will be in PDF format. 2) All reports will be submitted as draft and final. There will be one round of reviews of each draft reports.
3) The Feasibility Study Report will be reviewed and approved by the City and Caltrans.
There will be one round of agency review.
4) The City and any other commenting entity will provide full comments at each submittal. 5) Technical specifications will be developed per the latest Caltrans standards at the start of the 65% PS&E phase. The scope excludes any updates to the technical specifications to meet new standards released by Caltrans during the life of the project. 6) The City will pay the cost of any permit fees.
7) Virtual project meetings will be hold for up to 12 months during Task 1-3. 8) Staged construction will not be required for the project. 9) Attendance at the pre-bid meeting and analysis of bids is not included in this scope of services.
10) Construction access will be performed through public right-of-way.
Hydrology / Hydraulics
11) The Draft and Final HAM will be provided in electronic format with one round of comments on the Draft HAM.
12) A Fluvial Geomorphology Study is not required for this project. 13) Publicly available GIS data can be used and is sufficient for 1000’ upstream / downstream modelling requirements.
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2024-02 Stevens Creek Boulevard Bridge Repair – Biggs Cardosa Associates, Inc. 14) The PROJECT will be exempt from Provision C.3 of the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) requiring treatment for projects with over 5,000 square feet of new and reworked impervious surface.
15) A Stormwater Pollution Prevention Plan (SWPPP) will be prepared by the contractor.
Geotechnical
16) No encroachment permit will be required.
Environmental
17) The City will be responsible for providing all fees associated with regulatory permits and other regulatory agency obligatory compensatory mitigation. 18) Biggs Cardosa’s Team will attend one Caltrans Field Review. 19) Cultural resources analysis is not included in this scope. 20) The City will file the Notice of Exemption with Santa Clara County and State Clearinghouse.
Right of Way
21) No right of way acquisition or temporary construction easements will be required for design and construction.
22) Title Reports will not be required for the project.
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City of Cupertino
Master Agreement Page 1 of 1 Service Order No.
Attachment 1
CITY OF CUPERTINO
DESIGN PROFESSIONAL SERVICES AGREEMENT
SERVICE ORDER NO.
Agreement Contract #: Agreement Date:
Agreement Maximum Compensation:
Agreement End Date:
Consultant: Firm Name:
Address:
Contact: Phone:
Project Description
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
Agreement Maximum Compensation:
Total Previously Encumbered to Date:
Encumbrance this Service Order:
Agreement Unencumbered Balance:
Amount
$0.00
$0.00
$0.00
$0.00
Account No.:
Project Manager: Date:
APPROVALS
Consultant: Date:
Project Manager: Date:
X
X
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall complete all work no later than June 30, 2030, unless extended by a contract amendment.
This Schedule of Performance establishes the milestones for commencement and completion of the Tasks as specified in Exhibit A, Scope of Services and will be specified in each Service Order.
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EXHIBIT C
COMPENSATION
Capitalized terms which are defined in the Agreement have the same meaning in this Exhibit C.
This Exhibit C on Compensation supplements the provisions of Section 4 of the Agreement on Compensation, as further specified in Section 4.
1. BASIC SERVICES BUDGET SCHEDULE
A. Maximum Compensation.
The CITY agrees to compensate CONSULTANT for satisfactory professional services performed in accordance with the terms and conditions of this AGREEMENT. The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT, including both payment for professional services, and reimbursable expenses, shall not exceed SIX-HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($625,000.00). This not-to-exceed amount is an estimate for the services stated in Exhibit A. Actual compensation will be negotiated through service orders for specific scope of work and cost for each phase of the project.
B. Method of Payment
The method of payment for this AGREEMENT will be based on actual cost plus a fixed fee.
CITY will reimburse CONSULTANT for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs) incurred by CONSULTANT in performance of the work. CONSULTANT will not be reimbursed for actual costs that exceed the estimated wage rates, employee benefits, travel, equipment rental, overhead, and other estimated costs set forth in the approved CONSULTANT’S Cost Proposal, unless additional reimbursement is provided for by AGREEMENT amendment. In no event will CONSULTANT be reimbursed for overhead costs at a rate that exceeds CITY’s approved overhead rate set forth in the Cost Proposal. The maximum total cost as specified in Paragraph “A” above shall not be exceeded, unless authorized by AGREEMENT amendment. The indirect cost rate established for this AGREEMENT is extended through the duration of this specific AGREEMENT.
In addition to the allowable incurred costs, CITY will pay CONSULTANT a fixed fee of 10%, as shown in the attached cost proposals for all Total Direct Labor Costs and Total Indirect Costs.
The fixed fee is nonadjustable for the term of the AGREEMENT, except in the event of a significant change in the scope of work and such adjustment is made by AGREEMENT amendment.
C. Subconsultant Services.
CONSULTANT is directly responsible for any payment for SUBCONSULTANT work on this PROJECT. SUBCONSULTANT work on this PROJECT is included in the Maximum Compensation shown above and shall be billed to the CITY by CONSULTANT as part of the Basic Services. CONSULTANT shall only use SUBCONSULTANTS upon the prior written approval of CITY.
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D. Budget Schedule
The Budget Schedule for this AGREEMENT shall be as follows in the following Attachment 2, Cost Proposal from the CONSULTANT AND SUBCONSULTANTS.
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CITY OF CUPERTINO
Agenda Item
24-13553 Agenda Date: 2/19/2025
Agenda #: 9.
Subject: Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN:
359 13 019; Location: 20865 McClellan Road)
That the City Council introduce and conduct the first reading of Ordinance No. 25-2268 titled “An Ordinance of the City Council of the City of Cupertino Correcting the Zoning of a Priority Housing Element Site Located at 20865 McClellan Road From R-3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” by title only.
CITY OF CUPERTINO Printed on 2/12/2025Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: February 19, 2024
Subject
Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z -2024-001, EA -2024-001; Applicant:
City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action
Introduce and conduct the first reading of Ordinance No. 25 -XXXX titled “ An Ordinance of the City Council o f the City o f Cupertino Correcting t he Zoning o f a Priority Housing Element Site Located at 20865 McClellan Road From R-3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” Reasons for Recommendation
Background
The City Council adopted the 6th Cycle Housing Element 1, which covers the planning period of 2023 to 2031, on May 14, 2024. The Housing Element is a required element of Cupertino’s General Plan and identifies policies and programs and prospective housing sites to meet the housing needs of the City’s current and future residents at all income levels , through 2031 . The 6 th Cycle Housing Element anticipates that Cupertino will accommodate its Regional Housing Needs Allocation (RHNA) , as further described in the Housing Element, on 58 parcels referred to as Priority Housing Sites. The complete list of Priority Housing Sites is included in Appendix B- 4 of the General Plan2.
While the majority of the Priority Housing Sites are located on arterial roadways (e.g.
Stevens Creek Boulevard, De Anza Boulevard and Homestead Road), in order to
1 The Housing Element is available online at: www.cupertino.org/gp. 2 Priority Housing Sites Inventory available online at:
https://www.cupertino.gov/files/assets/city/v/1/departments/documents/community- development/planning/major-projects/housing-element-update/adopted-site-inventory-list-5-14-
24.pdf
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EA-2024-001 Priority Housing Site No. 24 February 19, 2025
satisfy the requirements of State law and comply with direction given by the Planning Commission and City Council to staff, during a series of meetings held in 2022, to have sites spread across the City, a few sites are located away from major corridors. 3 Given their location, these neighborhood Priority Housing Sites have lower densities than those adopted for the majority of sites located along arterials, which in most cases have a minimum allowed density of 50 dwelling units per acre (du/ac) or more.
In addition to the identification of the Priority Housing S ites, as part of the Housing Element update the City also made changes to the sites’ General Plan land use and zoning designations in order to be considered substantially compliant with State law housing law. The City completed the rezoning of the properties identified as Priority Housing Sites in July 2024 and received a letter indicating substantial compliance (and certification) of the Housing Element from the State Housing and Community Development Department (HCD) on September 4, 2024. However, after certification, staff identified an error in the zoning of one of the 58 Priority Housing Sites (Site No. 24 , located at 20865 McClellan Road ) and, accordingly, now recommends that the error be corrected to what was intended as part of the Housing Element update rezoning that occurred in July 2024.
Planning Commission Review:
The Planning Commission reviewed the subject zoning correction at its meeting on December 10, 2024 and adopted Resolution No. 2024 -15 with a 3- 2 (Madhdhipatla and Scharf: No) vote
4 recommending that the City Council adopt an ordinance to correct this typographical and Zoning Map error. Several community members spoke against correcting the rezoning error, citing a variety of reasons ranging from the perceived incompatibility of a townhome or multi-family development being built on the site in the future, increased traffic and traffic safety concerns, and concerns about the adequate availability of utilities. This action to correct the zoning error is exempt from the California Environmental Quality Act (CEQA) and CEQA Guidelines, as part of the City’s Housing Element compliance, as further discussed in the staff report, later; however, any future proposed developme nt project on the site would be reviewed independently on its own merits, in compliance with State law.
Discussion
Based on recent development patterns and discussions with residential developers, Priority Housing Sites with a density closer to 20 du/ac identified in the Housing Element
3 20865 McClellan (Jollyman-Faria neighborhood), Evulich Ct properties (10857-10887 Linda Vista Dr) (Monta Vista North), 20666 Cleo Ave and 0 Cleo Ave (Monta Vista South neighborhood), and 10231 Adriana Ave (Creston-Pharlap neighborhood).
4 Available online here:
https://records.cupertino.org/WebLink/DocView.aspx?id=1148605&dbid=0&repo=CityofCupertino 181
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EA-2024-001 Priority Housing Site No. 24 February 19, 2025
are likely to develop as townhomes. There are relatively few (17 of 58) Priority Housing Sites where development at (or around) 20 du/ac is possible. Historically, the City’s Planned Development (P) zoning district has act ed as a combining zoning designation , which allowed flexibility in zoning standards and a variety of housing types, including townhomes. However, in response to changes in state law limiting the ability of local jurisdictions to adopt and enforce planned development standards on an ad hoc basis , the City developed the Townhome (TH) combining district in conjunction with the Housing Element update. A combining district is a widely used land use tool where a district is created, in this case the TH district that may only be used in conjunction with a base zoning district to allow development flexibility. For Cupertino, the TH combining District may only be used in conjunction with either the R -3 or R -4 Residential base zoning district designations.
5 The Housing Element contemplated the rezoning of all the Priority Housing Sites with R-3 (multi-family) zoning to also have a combining TH (townhome) zoning designation to allow this flexibility in development. There are 13 other Priority Housing sites rezoned to R -3/TH; only 20865 McClellan (Priority Housing Site No. 24) was erroneously designated R-3 without the TH combining zoning (see Attachment 2).
The text in the adopted Housing Element describing Priority Housing Site No. 24 states:
“Site 24 is a 0.99- acre parcel located in the Jollyman Neighborhood, which is predominantly defined by single-family residential homes and located immediately south of the De Anza College campus and east of the Highway 85 corridor. Site 24 currently includes a single-family home built close to the McClellan Road right-of-way with a large rear yard. Neighboring uses include single- family housing. A developer has made contact with the City regarding the development of townhomes on this property since 2021, with continued interest for development in 2023.
The site has good access to amenities within 0.25 -0.5 miles of the site and has fair access to bus service at De Anza College. The improvement-land value ratio for this site is 0.02 so development is considered feasible.” (underline and emphasis added) (see Attachment 3) An inadvertent typographical error in Appendix B- 4 of the Housing Element identified this site to be rezoned as “R -3” only, instead of “R -3/TH”, causing an internal inconsistency between the General Plan and Municipal Code (see Attachment 2). The R- 3 zoning designation alone enables the development of multi- family housing, such as apartments, but could preclude future townhome development on the site, as originally
5 The TH combining district requires the same front setbacks as the underlying R -3 or R -4 zoning it is combined with, for purposes of urban streetscape consistency. In addition, rear and side yard setbacks are established to ensure adequate safety requirements are met. Basic design standards are also included as part of the zoning, such as requiring front stoops and entry features facing streets. Private open spaces are required in accordance with the underlying R -3 or R-4 zoning for all properties within the TH Combined District.
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intended, consistent with the property owner’s request that the property be included in the Housing Element as a Priority Housing site allowing townhome development.
Since adoption of the Housing Element, t he developer has continued to be interested in the development of this property, specifically with townhomes, and has submitted a formal development application to the City, which is currently under review . This recommended rezoning action will correct the unintended zoning error, is necessary to maintain internal consistency within the text of the Housing Element and the zoning of the property, as required by Government Code section 65860, and allow s the type of development anticipated on the property since 2021 to proceed as intended.
Sustainability Impact
None.
Fiscal Impact
None.
City Work Program (CWP) Item
Housing Element Update.
CWP Item Description
Update Housing Element and complete rezoning. General Plan updates and EIR by December 2023.
Council Goal
Housing
California Environmental Quality Act (CEQA)
On February 3, 2023, the California Housing Defense Fund and Yes in My Backyard (YIMBY) filed a lawsuit due to the City missing the January 31, 2023, deadline for adoption of the 6 th Cycle Housing Element. In January 2024, the City entered into a stipulated judgment to settle the lawsuit. As a result, pursuant to Government Code Section 65759 et seq., any actions that the City takes to adopt a compliant housing element, including rezoning actions to implement the Housing Element, are exempt from the California Environmental Quality Act (CEQA).
In lieu of CEQA compliance, Government Code section 65759 requires that an environmental assessment (EA) in the form of a Draft Environmental Impact Report (EIR) be prepared and adopted as part of the General Plan. Accordingly, an EA was prepared and adopted by the City Council as Appendix G of the General Plan on May 14, 2024. It should also be noted that since there is no increase to the permitted density on the site with this rezoning action, there are no environmental impacts anticipated pursuant to Government Code section 15061(b)(3).
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EA-2024-001 Priority Housing Site No. 24 February 19, 2025
Prepared by: Piu Ghosh, Planning Manager
Luke Connolly, Assistant Director of Community Development Reviewed by: Benjamin Fu, Director of Community Development Approved for Submission: Pamela Wu, City Manager
Attachments:
A – Ordinance No. 25-XXXX
B – Table B4-7 of Housing Element
C – Excerpt from Table B4-8 of Housing Element related to Priority Site No. 24 184
ORDINANCE NO. 25 –
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF
A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865
MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE
CONSISTENCY WITH THE GENERAL PLAN AND
HOUSING ELEMENT
SECTION I: PROJECT DESCRIPTION
Application No: Z-2024-001
Applicant: City of Cupertino
Location: 359 13 019 (20865 McClellan Rd)
SECTION II: RECITALS
WHEREAS, state law requires the City to prepare and adopt an updated Housing Element every eight years to accommodate its fair share of housing and identify housing needs, resources and opportunities;
WHEREAS, pursuant to State Housing Law, the City prepared and presented a draft 6 th
Cycle Housing Element to the California Department of Housing and Community Development (HCD) on March 28, 2024,
WHEREAS, HCD informed the City in a letter dated April 10, 2024 that the proposed Draft Housing Element is conditionally certified, pending rezoning of the Priority Housing Sites, and any associated rezoning required, to accommodate the City’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, pursuant to State Housing Law, the City Council adopted the City’s 6 th Cycle
Housing Element on May 14, 2024 with Resolution 24-039; and WHEREAS, the Zoning map and Municipal Code were both amended on July 2, 2024, with a second reading on July 16, 2024 to rezone the Priority Housing Element sites to be consistent with the City's General Plan land use map; and WHEREAS, the City has received a letter dated September 4, 2024 that the adopted Housing Element is certified by the Department of Housing and Community Development;
WHEREAS, the site located at 20865 McClellan Road was part of the rezoning completed to achieve Housing Element compliance and while contemplated to be developed with 185
townhomes in the text of the Housing Element, the re zoning indicated in the Housing Element inadvertently limited development on the site to multi-family housing (R-3); WHEREAS, the City wants to correct this error to ensure internal inconsistency between the General Plan and zoning and allow the development of townhomes as contemplated in the Housing Element and desired by the property owner; WHEREAS, all necessary public notices have been given as required by the Municipal Code of the City of Cupertino and the Government Code for meetings with the Planning Commission and the City Council; and
WHEREAS, the Planning Commission at its duly noticed regular meeting on December 10, 2024 recommended approval of the proposed correction to the Zoning Map with a 3- 2 vote (Madhdhipatla and Scharf: No); and
WHEREAS, the City Council of the City of Cupertino held a duly noticed public hearing on February 4, 2025, and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof; and
WHEREAS, the City Council of the City of Cupertino is the decision -making body for this Ordinance;
WHEREAS, the City entered into a Stipulated Judgement dated January 8, 2024 pursuant to a lawsuit related to adoption of the Housing Element which included requirements for coming into compliance with state housing element law and exempted the City from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759; and
WHEREAS, pursuant to Government Code 65759, the General Plan Amendment to adopt the Housing Element and associated amendments to the General Plan and zoning is fully described and analyzed in the Environmental Assessment, which is incorporated into the General Plan as Appendix G;
WHEREAS, the City Council finds the following:
1. That the proposed zoning is in accord with the Municipal Code and the City's Comprehensive General Plan.
The proposed zoning is in conformance with the General Plan since the City Council adopted amendments to the General Plan, including changes to land use designations, in May 2024 with adoption of the Housing Element. The text in the Housing Element clearly indicates that townhome development is anticipated and desired by the interested developer for this site since 2021. This change is a mere conforming change to the zoning designation to make the City’s zoning map conform to the text in the Housing Element of the General Plan. 186
2. The proposed zoning is in compliance with the provisions of the California Environmental Quality Act (CEQA).
Pursuant to Govt. Code Section 65759, the zoning actions related to bringing the City’s Housing Element , including any associated rezoning, into compliance with state law are exempt from CEQA. An Environmental Assessment was prepared, also in compliance with state law. This Environmental Assessment identified all feasible mitigation measures and was adopted as Appendix G – General Plan 2040 and Zoning Code Amendments Environmental Assessment of the General Plan as required by state law.
3. The site is physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the proposed zoning designation and anticipated land use development.
The site being rezoned has access to utilities and is compatible with adjoining land uses as previously anticipated with adoption of the Housing Element of the General Plan.
4. The proposed zoning will promote orderly development of the City.
The proposed zoning aligns zoning with the City’s Housing Element and General Plan land use goals and policies related to locating higher density development close to transit corridors and employment centers (De Anza College, Apple etc.) . The sites being rezoned will promote orderly development in the City by allowing similar land uses to be located compatibly as contemplated in the Housing Element text. The proposed changes also allow the City to comply with the requirements of state law related to housing.
5. That the proposed zoning is not detrimental to the health, safety, peace, morals and general welfare of persons residing or working in the neighborhood of subject parcels.
The proposed zoning is not detrimental to the health, safety, peace, morals and general welfare since these are conforming changes. Additionally, where health or safety impacts have been identified mitigation measures have been identified which would be ap plicable to any development on these sites, including those implemented through the City’s existing Municipal Code requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS:
Section 1. Rezoning.
That the property described herein has a zoning designation as that shown in the following, and is incorporated into the Master Zoning Map (Exhibit Z-1) of the City of Cupertino:
APN Acres Existing Zoning Designation New Zoning
359 13 019 0.99 R3 R3/TH
187
Section 2. Severability and Continuity.
The City Council declares that each section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance. If any section, sub -section, par agraph, sub -paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions.
Section 3. California Environmental Quality Act.
Adoption of these zoning amendments to allow implementation of the Housing Element is exempted from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759.
Section 4: Effective Date.
This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937.
SECTION 5: Publication.
The City Clerk shall give notice of adoption of this Ordinance as required by law.
Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance.
INTRODUCED at a special meeting of the Cupertino City Council on February 19, 2025 and ENACTED at a regular meeting of the Cupertino City Council on March 4, 2025 by the following vote:
Members of the City Council
188
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
__________________
Liang Chao, Mayor
City of Cupertino
________________________
Date
ATTEST:
___________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
___________________
City Attorney
________________________
Date
189
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CITY OF CUPERTINO
Agenda Item
25-13717 Agenda Date: 2/19/2025
Agenda #: 10.
Subject: Tyler New World Enterprise Resource Planning (ERP) replacement (Continued from February 4, 2025 City Council meeting)
Adopt Resolution No. 25-007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32- 308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement CITY OF CUPERTINO Printed on 2/12/2025Page 1 of 1
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192
CITY COUNCIL STAFF REPORT
Meeting: February 19, 2025
Subject
Tyler New World Enterprise Resource Planning (ERP) replacement
Recommended Action
Adopt Resolution No. 2025‐XXX approving Budget Modification No. 2425‐380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100‐32‐308 750‐237) for the Tyler New World Enterprise Resource Planning (ERP) replacement.
Reasons for Recommendation
The City currently uses Tyler New World as its Financial and Payroll ERP system, which no longer meets the operational needs of staff. Maintaining an aging ERP results in inefficiencies, higher operational costs, and a lack of integration with modern technology. The system requires excessive manual workarounds, frequent repairs, and third‐party add‐ons, which not only slow down workflows but also increase maintenance expenses. Additionally, limited API support restricts integration with newer applications, preventing automation and seamless data exchange. These inefficiencies hinder productivity and create data silos, inaccuracies, and decision‐making delays, impacting the City’s ability to manage financial and payroll processes effectively.
Beyond operational inefficiencies, the outdated ERP system lacks scalability and futureproofing, making it difficult to support growth, cloud‐based access, and emerging technologies such as AI and automation. Without mobile access, intuitive dashboards, or real‐time synchronization, employees struggle with low system adoption and frustration, reducing overall productivity. Furthermore, municipalities that continue using legacy ERP systems risk falling behind industry standards, while modern ERPs provide greater agility, enhanced security, and improved decision‐making capabilities. Upgrading to a new ERP system is a strategic investment that will reduce security risks, improve 193
2 efficiency, support evolving business needs, and position the City for long‐term success.
Cupertino conducted a Request for Proposal (RFP) for consulting services for the needs assessment, RFP development and selection assistance, as well as project management services during the project implementation of an Enterprise Resource Planning software in January 2022. The city had invited proposals from qualified consulting firms that provide ERP System Consulting Services. This RFP covered the following three (3) phases:
Phase I: ERP Needs Assessment of the City
Phase II: Request for Proposal (RFP) Development and Selection Assistance Phase III: Implementation Project Management Services
The City of Cupertino engaged Plante & Moran LLP in February 2023 to conduct Phase 1 of the needs analysis, which was successfully completed. However, the project was unexpectedly paused due to the Cityʹs budget crisis. Despite this, sufficient savings are available to resume Phase II & phase III, provided the
Council approves staff’s recommendation to move forward with the ERP replacement project.
Plante Moranʹs initial needs assessment evaluated Cupertinoʹs requirements and determined that the appropriate ERP solution falls within the Tier 1 or Tier 2 range. We are proceeding with the high‐end Tier 2 scenario to ensure sufficient funding to cover potential costs.
Sustainability Impact
Enterprise digital systems like New World reduce the volume of paper used for financial transactions by providing digital recorded transcripts, conserving natural resources, and reducing greenhouse gases generated during the production and disposal of paper. Implementation of paperless office strategies like this one are prioritized in Cupertino’s Climate Action Plan (M‐SW‐1).
City Work Program (CWP) Item: No
CWP Item Description: NA
Council Goal: NA
194
3 Fiscal Impact
The proposed budget adjustment will provide funding to move forward with the ERP replacement. If Budget Modification Number 2425‐380 is approved, increased one‐time appropriations of $3,744,526, plus $667,058 in ongoing costs allocated in 100‐32‐308 600‐606.
California Environmental Quality Act
Not Applicable
Prepared by: Teri Gerhardt, CGCIO, Chief Technology Officer Reviewed by: Kristina Alfaro, Administrative Services Director Tina Kapoor, Deputy City Manager
Chris Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Draft Resolution 2025‐xxx
B ‐ Supplemental Report 1
C ‐ Supplemental Report 2
D ‐ Supplemental Report 3
195
RESOLUTION NO. 2025‐XXX
A RESOLUTION OF THE CUPERTINO CITY COUNCIL AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024‐25 BY APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES FOR SPECIFIED
FUNDS
WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and
WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and
WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amended appropriations, and therefore recommends the fund reallocations described herein.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A.
PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 19th day of February 2025, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
196
Resolution No. 2025‐XXX
SIGNED:
________________________
Liang Chao, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
197
Appropriation Amendment
by Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
General Fund (100) 3,744,526 - 3,744,526
Total Appropriation Amendment
All Funds
$3,744,526 $- $3,744,526
Exhibit A
198
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL
Meeting: February 4, 2025
Agenda Item #5
Subject
Tyler New World Enterprise Resource Planning (ERP) replacement Recommended Action
A Adopt Resolution No. 2025 -XXX approving Budget Modification No. 2425 -380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32- 308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement.
Background:
Q1: The staff report states "initial needs assessment .... determines that the appropriate ERP solution falls wthin the Tier 1 or Tier 2 range. We are proceeding with the high-end Tier 2 scenario...". Does this mean we are choosing "Tier 2"? There is no such thing as a "hier-end Tier 2", right? (Chao)
The ERP assessment identified that Cupertino's needs align with a Tier 1 or Tier 2 system. We are budgeting for a high-end Tier 2 scenario to ensure sufficient funding for the appropriate solution.
Q2: What's the cost difference between Tier 1, and Tier 2? (Chao) Tier 1 $5,955,866 One-Time Costs and $1,161707 ongoing
Tier 2 $3,744.526 One-Time Costs and $667,058 ongoing
Q3: What's the functionality difference between Tier 1, and Tier 2? (Chao) Tier 1 ERP vendors were originally designed for the private sector but have been adapted for public sector use over time. These solutions offer robust functionality, greater scalability, and extensive customization options but often come with higher costs, complex implementation requirements, and a need for more dedicated staff resources. Common Tier 1 vendors include Oracle, SAP, Workday, and Microsoft Dynamics.
Tier 2 ERP vendors, on the other hand, are purpose-built for public sector needs such as fund accounting, budgeting, and grants management. They are typically more cost-effective, easier to
ATTACHMENT B
199
2 implement, and require fewer IT and functional staff but offer less customization and scalability compared to Tier 1. Common Tier 2 vendors include Tyler Technologies, OpenGov, and Harris.
Q4: What is the total cost of the entire system? Is that a one-time cost? Or is that the cost to expand multiple years? (Chao)
The exact cost of the ERP will not be determined until the RFP process is completed and a vendor is selected. Currently, we are using cost estimates from the Plante Moran needs assessment, specifically the Tier 2 High Scenario, which estimates the one-time costs to be $3,744,526. This includes:
• Vendor implementation costs
• Implementation project management costs
• Project contingency
• Salaries for two full-time employees for 18 months
After the system goes live, the ongoing annual costs are estimated at $667,058.
Q5: What other ERP systems have been evaluated? What's their cost for comparison? (Chao)
The cost estimates are not derived from a single ERP system but are based on a sample of multiple ERP solutions within the Tier 1 and Tier 2 categories available in the market. These estimates also account for key factors involved in implementing a new ERP solution, including:
• Vendor implementation costs
• Implementation project management costs
• Project contingency
• Salaries for temporary staff needed to implement a new ERP • Ongoing Subscription costs
Q6: Where can I find the cost break down of the total cost. (Chao) See answer #4
Q7: (Question from Peggy) What were the ERP needs that were found to be needed? (Chao)
The City's current Tyler New World ERP no longer meets operational needs, leading to inefficiencies, high maintenance costs, and limited integration with modern technology. The system relies on manual workarounds, frequent repairs, and third-party add-ons, which slow workflows and increase expenses. Additionally, its lack of API support restricts automation and seamless data exchange, creating data silos, inaccuracies, and delays in financial and payroll management.
200
3 Beyond inefficiencies, the outdated ERP lacks scalability, cloud access, and emerging technology support, making it difficult to adopt AI, automation, and mobile-friendly tools. Low system adoption and frustration further impact productivity. Municipalities that continue using legacy systems risk falling behind industry standards, while a modern ERP would enhance security, efficiency, and long-term adaptability to evolving business needs. Upgrading is a strategic investment to improve operations and futureproof City services.
Q8: (Question from Peggy) By “sufficient savings” is the Staff referring to using a portion of the $64.5M in 1-time funds that have not been allocated yet? (Chao) Sufficient savings in this case references to the contract with Plante Moran for consulting services for the needs assessment, RFP development and selection assistance, as well as project management services during the project implementation of an Enterprise Resource Planning software in January 2022. This contract and corresponding allocated funds were put on hold, but the contract and encumbrance remained in place and were carried over as part of the year-end process.
Q9: (Question from Peggy) If not, where are the “sufficient savings” coming from? (Chao)
The funds are coming from a carryover encumbrance associated with this contract.
Attachments Provided with Original Staff Report:
A – Draft Resolution 2025-xxx
201
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 2
Meeting: February 4, 2025
Agenda Item #5
Subject
Tyler New World Enterprise Resource Planning (ERP) replacement Recommended A ction
A Adopt Resolution No. 2025 -XXX approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32- 308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement.
Background:
Q1
: The answer to Q3 states:
"The exact cost of the ERP will not be determined until the RFP process is completed and a vendor is selected. Currently, we are using cost estimates from the Plante Moran needs assessment, specifically the Tier 2 High Scenario, which estimates the one-time costs to be $3,744,526. This includes:
• V
endor implementation costs
• Imp
lementation project management costs
• P
roject contingency
• S
alaries for two full-time employees for 18 months After the system goes live, the o
ngoing annual costs are estimated at $667,058."
The current budget request only covers the initial one-time cost of $3,75M.
The cost of $3.75M seems to be very high for a software system. Could you please further break down the cost? What components are included in the Tier 2 ERP system to justify the cost of $3.75M for one-time cost? (Chao)
S
ee page 26 of the Needs Assessment - ERP Gap Analysis and Action Plan Report
ATTACHMENT C
202
2 Q2: Follow-up-Q2: From the answers, It seems "Tier 2" and "high-end Tier 2" are two different things then. So, the staff recommendation is to adopt a high-end Tier 2 system, which would be more costly than the Tire 2 system (which costs $3,744.526 One-Time Costs and $667,058 ongoing). In that case, how much is the estimated cost for the "high- end Tier 2" system? (Chao)
See page 33 of the Needs Assessment - ERP Gap Analysis and Action Plan Report Q3: Follow-up-Q3: Please provide the "needs assessment" report. (Chao) See Attached
Q4: Follow-up-Q4: I looked up the pricing cost for commercial ERP. From this article (https://softwareconnect.com/learn/erp-pricing/) states "As seen here, the average monthly cost of ERP software for a small business ($1-$5 million in annual revenue) is $1,740. For an enterprise-level company making over $100 million annually, the monthly cost increases to $9,330. In total, annual ERP costs range from $20,880 to $111,960. "
It seems the cost of $667,058 is 6 times more than the Tier 3 ERP system for a business earning over $100 million. What's included in the ERP system Cupertino is purchasing to justify the additional cost? (Chao)
See page 33 of the Needs Assessment - ERP Gap Analysis and Action Plan Report Q5: From the article: "Midsize businesses earning $50-$100 million per year can expect to pay between $4,620 and $5,160 per month for an ERP system. ... Midsize ERP vendors are classified as Tier 2..." "For an enterprise-level company making over $100 million annually and with at least 1,000 employees, the monthly cost for an ERP averages $9,330...." (Chao)
Sunnyvale’s ERP Contract Staff Report -
https://sunnyvaleca.legistar.com/LegislationDetail.aspx?ID=3626454&GUID=FAB41F 6B-C7B9-45A1-BC7B-1CB4F92AE4AB&FullText=1
Cupertino’s cost estimates are based on expert advice from our consultants and benchmarking against neighboring cities. The RFP responses will outline both capabilities and costs, allowing for a thorough evaluation.
City Staff will recommend the ERP solution that best meets Cupertino’s required capabilities at a justifiable cost, ensuring a balance between functionality and fiscal responsibility
Q6: Follow-up-Q5: What's the ongoing cost of the current Tyler New World ERP system? Attachments Provided with Original Staff Report: (Chao)
The Tyler New Work Annual Maintenance is approximately $110,000 per year. 203
3 Attachments Provided with Original Staff Report:
A – Draft Resolution 2025-xxx
Additional Attachments Provided with Supplemental 2:
B - RFP Needs Assessment
204
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 1
Make the mark.
CITY OF CUPERTINO, CA
ERP Gap Analysis and Action Plan Report
OCTOBER 2023
205
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 2 Contents
1 Executive summary ..................................................................................................................................................... 3
1.1 Project overview .................................................................................................................................................................. 3
1.2 SWOT analysis ...................................................................................................................................................................... 5
1.3 Key current state observations ......................................................................................................................................... 8
1.4 Action plan considerations ................................................................................................................................................. 9 2 Gap analysis: Observations and opportunities .................................................................................................. 11
2.1 Overview ............................................................................................................................................................................. 11
2.2 Detailed observations and opportunities log ............................................................................................................... 11 3 ERP marketplace assessment ................................................................................................................................ 26
3.1 Vendor consolidation ........................................................................................................................................................ 26
3.2 Summary comparison: Tier 1 versus tier 2 ERP ........................................................................................................... 26
3.3 Vendor marketplace overview ........................................................................................................................................ 28
3.4 ERP marketplace trends.................................................................................................................................................... 29 4 Cost estimate ............................................................................................................................................................ 31
4.1 Cost estimate ...................................................................................................................................................................... 31
4.2 Cost assumptions ............................................................................................................................................................... 31
4.3 Total cost summary ........................................................................................................................................................... 32 5 Action plan ................................................................................................................................................................. 34
5.1 Plante Moran recommendation ...................................................................................................................................... 34
5.2 Plan of action considerations........................................................................................................................................... 34
5.3 Project risks ......................................................................................................................................................................... 38
5.4 Implementation best practices ........................................................................................................................................ 39
5.5 Proposed timeline .............................................................................................................................................................. 40 Appendix A: Application migration plan ..................................................................................................................... 41 Overview ......................................................................................................................................................................................... 41 Application migration plan ........................................................................................................................................................... 41 Appendix B: Application interfaces ............................................................................................................................. 43 Appendix C: Action Items .............................................................................................................................................. 44
206
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 3 1 Executive summary
1.1 Project overview
1.1.1 Project background
The City of Cupertino (City) relies on Tyler Technologies’ New World ERP system, originally purchased in 2014, to support its 212 users across six departments. Now, the City looks to explore new software solution options that will meet its current and future needs. To support these efforts, the City engaged Plante Moran to conduct an ERP needs assessment that identifies opportunities for improvement and guides the City through a competitive bidding process for new ERP software. Plante Moran collected questionnaires and conducted interviews with process owners and department end users at the City. The Plante Moran team developed an understanding of the organization to better understand the City’s unique requirements. This discovery effort will set the City up for success as it moves into the selection process for a software provider. Upon receiving vendor responses to the RFP, Plante Moran will support the City in evaluating its options and ultimately selecting a new system to support its current and future needs. This report provides observations identified in the questionnaires and interviews as well as provides guidance for expectations of the ERP landscape that will be evaluated next.
1.1.2 Project scope
The City engaged Plante Moran to conduct a comprehensive assessment of its ERP environment and related business processes. The scope of this project includes the following functional areas:
Finance Human resources Other
Accounts payable Benefits management General and technical Accounts receivable and
miscellaneous billing
Employee self-service Reporting
Bank reconciliation Learning management Conversions
Budgeting Performance management Interfaces
Contract management Personnel actions and employee
profile
Fixed assets Position control/budgeting,
classification, and compensation
General ledger Recruitment
Grant and project accounting Risk management
Lease management Payroll
Project management Time and attendance
Purchasing
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1.1.3 Project objectives
Plante Moran and the City identified the following key objectives for the project:
Document an ERP needs assessment including the existing observations and opportunities for improvement, an application migration table showing the plan of ERP-related technology, a marketplace overview, a cost estimate, and implementation recommendations. Develop technical and functional requirements to capture the City’s needs for a new ERP system. o Release a request for proposal (RFP) documenting the City’s needs for a new ERP system. o Procure, through a competitive process, a system that can support the City’s current and future needs.
1.1.4 Project approach
The project team took the phased approach outlined below to assess the City’s business processes:
• Initiate project
• Define project
organizational
schedule
• Develop project
charter and plan
• Schedule interviews
• Request information
• Conduct educational
demonstrations
• Review information
• Conduct stakeholder
and departmental
interviews
• Conduct executive
interviews
• Develop functional
and technical ERP
requirements
• Finalize requirements
following the City’s
review
• Review draft
assessment report
• Finalize and present
assessment report
The approach described above was highly participative and included significant input from stakeholders across the entire organization to ensure an accurate understanding of current state conditions.
The process for implementing new technology not only focuses on the technology itself but also aims to enhance existing business processes across the City. The key current state observations discovered during our interviews with City staff are discussed below.
Project initiation
(December 2022)
Conduct interviews
(January 2023 –
March 2023)
Draft requirements
(March 2023 –
May 2023)
Finalize needs
assessment (June –
July 2023)
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1.2 SWOT analysis
The following SWOT analysis including strengths, weaknesses, opportunities, and threats based on provided documents and executive, department, and process owner interviews with City staff. The City has many strengths as outlined below and can improve many of their weaknesses with a new ERP system. Both opportunities and threats should be considered during the next phase of the project with the ERP selection.
1.2.1 Strengths
Departments have a Citywide perspective and have a positive working relationship with others. During departmental and process discussions, staff often mentioned what information other departments and staff needed to complete daily functions. Not only do staff understand their own roles and responsibilities for various business processes, but they are aware of who in the organization needs to conduct the remainder of the process. This shared understanding will help support implementation discussions in configuring workflows for business processes and considering the reports that people need.
Resourceful staff developed creative solutions to fill gaps created by software limitations. Where legacy software does not provide functionality or reports, staff lean on their impressive technical skills to build tools to solve problems. For example, the current ERP does not provide the ability to run reports on performance evaluation dates resulting in most of the process occurring outside of the system. The department built a Microsoft Access (Access) database that staff use to generate a report each week for who is up for an evaluation in the next 30 or 45 days, depending on the nature of the evaluation. Additionally, staff in payroll built Microsoft Excel (Excel) tools for calculating overtime based on a variety of inputs as a check against pay in the legacy system before running payroll. Staff are resourceful in developing methods to complete their work despite system limitations.
Strengths
•Departments have a Citywide perspective and
have a positive working relationship with others
•Resourceful staff developed creative solutions
to fill gaps created by software limitations
•Staff are receptive to best practices
•Dedicated IT team creates useful tools for the
City
Weaknesses
•Software does not provide modern functionality
or integrations required by City staff to
complete their jobs
•Staff are burdened by manual tasks that could
be performed by a modern system
•Limited reporting capabilities requires staff
intervention to obtain information
Opportunities
•Integration could reduce redundant data entry
•Leverage ERP workflow capabilities to increase
staff time spent on value add activities
•Adopt best practices for achieving outcomes
•Develop cross-functional staff
Threats
•Dated security in New World
•Configuring a system to mirror current
processes reduces return on investment
•Limited City resources to support
implementation staffing
•Comfort with customized solutions
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 6 Staff are receptive to best practices. Forward-thinking staff throughout the organization provided direct feedback about their current processes that aligned with industry best practices. This will make it easier for the organization to transition to a new system, considering the functionality and reports that could be possible in a new system. For example, staff in finance requested the ability to create versions of a budget and house them in the system. Budget versioning is common in modern systems and provides organizations the ability to see different scenarios that could impact the budget in the future. Staff across all functional areas expressed interest in the modern capabilities mentioned.
Dedicated IT team creates useful tools for the City. The IT department is supportive of the organization and dedicated to making improvements. During multiple interviews, staff mentioned that IT built custom applications for internal use that effectively solve problems. For example, IT leveraged Microsoft Power Apps (Power Apps) to build a Training Management Application. The learning management system allows users to register and receive reminders for upcoming trainings. Additionally, IT built a custom new hire transaction form through Power Apps that allows employees to sign off electronically. The creative and helpful IT department’s central role in the implementation will benefit the City’s users.
1.2.2 Weaknesses
Software does not provide modern functionality or integrations required by City staff to complete their jobs.
Though the legacy software may have met the needs of the City in 2014, the needs have outpaced the abilities the system can provide, creating functional gaps. Modern systems will meet more of the City’s requirements, such as adaptive reports, flexibility in calculations, and audit trails for approval steps—all of which were mentioned as limitations in the current system. Additionally, modern integrations do not exist with the City’s legacy systems. Though the City implemented integrations where possible, software limitations push staff to record data in duplicate systems and create manual workarounds, increasing additional efforts and the risk of data entry errors or data loss. The City should implement an ERP system that can meet the needs of the entire organization.
Manual tasks burden staff and constrain resources. Staff spend valuable time responding to emails, performing manual calculations, and duplicating data entry in various systems or shadow systems (such as Excel). This culminates in pain points across the organization: supervisors may not have time to complete evaluations in a timely manner, HR staff reenter benefit information already provided somewhere else by employees, and staff may not have adequate time to train others in their department because they are so focused on their manual tasks. With modern software, the skills of the staff can be used in ways that provide more strategic value to the City.
Limited reporting capabilities requires staff intervention to obtain information. Since the current ERP system does not have user-friendly reporting capabilities, staff manually intervene to obtain the information they need. This requires running multiple reports to extract data in a usable format, which can be a time- consuming process. This is seen in instances such as multi-year reporting for budget, reconciling the bank with the general ledger, benefit deductions, and vacancies. While administrative services staff members are willing to help develop reports and dashboards, their assistance may not be fully utilized by all departments, resulting in reporting challenges.
1.2.3 Opportunities
Integration could reduce redundant data entry. Today, many systems operate independently rather than as a part of a larger framework of software. The City should choose to use this software selection as the opportunity 210
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 7 to purposefully choose integration points. By allowing systems to share data with one another, the need for redundant data entry is reduced, which in turn reduces the reconciliation necessary later. By building integrations where data needs to be captured across applications (e.g., connecting the timekeeping systems to the payroll module of the ERP), reports can be quickly generated in formats supportive to unique use cases.
Leverage ERP workflow capabilities to increase staff time spent on value-add activities. Much of the time currently spent on various processes is on tasks outside of the system where manual intervention is required due to system limitations. Some examples include doing calculations outside of the system, doing approvals outside of the system, and other workarounds. By moving all these activities into a single system, the workflow to move to the next step can also be done in the system, which would reduce the amount of time spent outside of the system. This would give staff more capacity to dedicate their time to value-add activities.
Adopt best practices for achieving outcomes. Throughout the selection process, staff may discover that although the outcomes that they desire may be consistent with current outcomes, the process of achieving those outcomes may change. As the City invites software vendors to demonstrate their applications, Plante Moran will help build purposeful demonstration scripts that encourage the vendors to show the attendees the way their processes will look in the future. The City should review these to ensure that they key pain points are covered so that vendors can show detailed benefits. For example, request that vendors walk finance staff through the benefits of a daily bank reconciliation and how it flows to other processes. By approaching the selection with an open mind, staff will recognize and act on potential efficiency gains.
Develop cross-functional staff. As staff lean on the new system to coordinate workflows and reduce manual efforts, train them in new areas to support personal and organizational development. Though staff may not currently have the time to pick up new skills, the City should be purposeful in having staff overlap in future skill sets. Not only will this support succession planning, but staff can support each other and pick up responsibilities when coworkers are out of office. Consider cross-training staff so that multiple people develop an understanding of how to complete various processes. This shared knowledge will reduce reliance on a single individual for a single process, create reliable backups so that staff can take time off, and ensure that processes are completed on time. This also supports succession planning for the future.
1.2.4 Threats
Dated security in New World. Staff reported that security concerns exist in the system due to system limitations/configuration. As legacy software becomes more dated, cybersecurity enhancements are more limited in nature. Eventually, the vendor stops applying security patches altogether, requiring the need for modern software.
Configuring a system to mirror current processes reduces return on investment. Redefining processes with new systems does not happen overnight, and it is often easier said than done. It can be natural to revert to existing processes in the legacy system because they are more comfortable for staff. Though challenging, make sure staff approach the transition with an open mind. As the City releases and receives vendor responses to the RFP, recognize the value in asking vendors about best practices and recommendations they offer to improve City processes. Ensure vendors consider and communicate future practices in their discussions with the City.
Discussions about any necessary policy changes prior to the implementation will streamline change management opportunities down the line.
Limited City resources to support implementation staffing. Implementations vary in duration, and vendors could propose timelines between nine months and two years. Choosing an implementation approach based on 211
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 8 this number alone may not capture all the needs of the City. Consider the staffing requirements necessary to achieve a timeline, the support a vendor will provide throughout the implementation, and expectations for testing, building integrations, training, and other key areas. The City may opt for additional vendor support, a dedicated project manager, or some backfill for staff. The City must meet to define these plans early in order for implementation to be successful.
Comfort with customized solutions. IT provides a high level of support to staff right now, including custom- written solutions such as the learning management system. These may be difficult for the ERP marketplace to replicate. The City should be willing to consider different ways to do things in order to fully leverage an ERP.
1.3 Key current state observations
There were a number of consistent observations identified throughout many of the reviewed process areas.
Plante Moran recognized the following themes as opportunities to improve the overall effectiveness of the use of ERP within the City.
Finding Description
1. Impressive tools
created internally
In-house staff create and utilize advanced tools created to bridge the gap left by legacy software. The City keep tools updated with data and find the information they need quickly, even if it is not all in one place. Staff are trained and understand their day-to-day tools well beyond what many organizations use them for. In fact, the City found that staff could utilize an easier option than implementing bank reconciliation in the legacy system.
2. Limited system
functionality for
major processes
The City is not able to fully leverage their current ERP system for major processes, such as budget preparation, benefits enrollment, and personnel actions, due to the lack of functionality that the current ERP system can provide. This results in shadow systems and other workarounds completed outside of the system.
3. Manual processes Since there is limited system functionality for some major process areas, affected business processes require the use of various spreadsheets and paper forms that are passed between departments. This does not allow the City to take advantage of electronic approval workflows, controls, or efficiencies in these processes.
4. Unused system
capabilities
Some system capabilities, such as contracts and bank reconciliation, are not currently being used because of limited system functionality at the time of implementation. The City created workarounds for these processes in the meantime but will be using the ERP selection as an opportunity to revisit the marketplace for these modules.
5. Reporting
challenges
Some areas within the City reported difficulties with report development and obtaining key information. This necessitates running multiple reports and performing manual manipulation to extract data in a usable format. Consequently, staff hours are spent performing these tasks or performing duties with limited data. 212
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 9 Finding Description
6. Decentralized, non-
standardized
processes
Processes are decentralized across departments, and the timing and system/application used to complete the processes can vary based on the department’s preference. This makes it difficult to track the status of these processes and leads to confusion around staff expectations. Change management will include the idea that departments are consistent in processes so that the system can track activity.
7. Fragmented
business processes
The City uses many supporting applications to manage many business processes.
Most of these systems are disconnected, so staff must manually enter data in multiple systems or spreadsheets. For example, the City uses New World as the financial system of record but CobbleStone for contracts. This leads to extra time spent entering data in multiple places, creates the opportunity for errors, and limits opportunities for automation and electronic routing of workflows in the current system environment.
8. Adequate process
flows
Given the current system limitations, several of the City’s overall processes follow a well-designed process flow but may not be possible in the system, requiring manual intervention, spreadsheet calculations, and other workarounds. The staff are completing these processes well given the limited capabilities of the system.
Automation will make these processes significantly easier in the future, and staff seem excited about how their business activities can leverage modern software.
9. Reliance on
institutional
knowledge
City staff-built tools support the ability for them to do their own jobs efficiently, and others in the organization lean on them for that knowledge. However, because of how much time and effort tasks take to complete, staff have become specialized at their role. As they leverage modern technology to streamline their business activities, the City should put an emphasis on developing cross-functional staff who can backfill responsibilities as necessary.
1.4 Action plan considerations
Plante Moran recommends that the City replaces New World because it does not meet the City’s business needs.
While the City has already decided to replace their current ERP solution, Plante Moran recommends the deployment approach of a vendor-hosted or cloud/software as a service (SaaS) ERP solution. The associated benefits are outlined in the action plan. However, the City should review and consider the plan of action considerations outlined below and detailed in the action plan, including the application migration strategy in Appendix A: Application migration plan.
• Adopt best practices for resource management to ensure a staffing plan is in place and a governance structure is established to support the process. ERP system implementations are complex, and these initiatives can only be successful at organizations with strong project governance, per section 5.2.1. • Plan for change management early on to ensure that upcoming changes are communicated to those involved in a timely manner. Project success often comes from having a clear idea of how leadership envisions the City being run and then using new systems to facilitate turning this vision into a reality. • Establish a communication planning process since this project will affect most, if not all staff at the City.
213
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 10 • Increase process standardization to leverage the use of a shared system and process for common functions across the City, which will make it easier to manage these processes from a single system. • Build an interface between applications that are identified in this report to allow the data to flow more seamlessly between City applications and external applications to reduce manual data entry and shadow systems. Plan for City resources and costs for interface development for the City’s other applications, in addition to ERP-related costs. The City should also plan for staff time to help with data extraction, conversion, and cleansing, in preparation for the ERP implementation. • Streamline business processes based on the best practices and future state process maps to promote efficiency, save the City significant time, and reduce potential errors associated with manual processes.
• Improve reporting with robust reporting capabilities in a system that can be easily accessed by users. • Establish training and documentation for new systems and business processes to ensure that staff are given the amount of support needed during and after the implementation, such as ongoing training. • Enhance internal controls within business processes that will be supported by the ERP to ensure the appropriate people are doing the appropriate tasks in order to eliminate duplicate or manual entries.
1.4.1 Timeline overview
System selection
June 2023 –
November 2023
Contract
negotiations
November 2023 –
December 2023
ERP
implementation:
Financials
January 2024 –
January 2025
ERP
implementation:
HCM
September 2024 –
September 2025
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 11 2 Gap analysis: Observations and opportunities
2.1 Overview
Through a series of interview sessions with City staff, Plante Moran identified key observations and opportunities related to existing business processes and systems. While the following listing is in-depth and covers many areas, these observations and opportunities should not be viewed as a comprehensive list of all observations defined during the assessment phase of the project, as the current environment has a range of observations related to functionality, integration, and process challenges. The observations and opportunities discussed below are those that were of a significant nature based on our conversations and experience.
For reference, Plante Moran has grouped each issue and opportunity by their process areas. Potential policy considerations or items that should be discussed prior to implementation have been marked with an * in the opportunities below. The City should consider these and have discussion to address any decisions that need to be made prior to implementation. These are all listed in Appendix C: Action items for further consideration.
2.2 Detailed observations and opportunities log
2.2.1 Issue and opportunities: Finance
Accounts receivable and miscellaneous billing
Observations:
• There is limited department accessibility in the accounts receivable module. Departments do not have access to enter or view customer invoices, so a paper form is used to send requests to finance to generate customer invoices. This process increases the chance of delay in the issuance, and the status of an invoice to be generated is not available for departments to see. • Customer set up is limited in New World. There is no opportunity to set up customers by department or set up one customer with alternate views. Late notices and dunning letters are prepared manually and sent via U.S. mail. • The City uses multiple systems for activity and payment management but the integration to New World is limited, if at all. ActiveNet, the payment system, does not support the fund/accounts, requiring manual and retroactive efforts to align payments to the correct path. • Developer deposits are recorded through the miscellaneous billing module. Finance staff receive money and record it as unapplied credit. When an expense and invoice are paid, an invoice is created in miscellaneous billing to record the revenue to offset the expense.
215
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 12 Opportunities:
• The City can leverage workflow capabilities of future systems to create customer invoices. Ideally, the place where departments submit the invoice, including the amount and detail, is housed with the customer history so that staff in finance do not have to look at different systems.
With workflow, appropriate staff would be able to see the status of the process. • During interviews, staff mentioned the desire for recurring invoices at a certain interval. New systems can allow staff to generate these invoices with the ability to make edits such as date and description. • Modern systems offer secure integrations that would allow ActiveNet to perform its payment functions and send data to the ERP without manual efforts by staff. The City can map the way payments hit funds/accounts during and after implementation. • Future systems can record deposits correctly, making the ability to report on accounts easier.
Accounts payable
Observations
• The City utilizes “temporary” vendors who do not register in the legacy system because they receive a one-time payment. Searching for these one-time vendors is difficult and requires background knowledge from staff to look for a specific payment or timeframe to find the vendor. • U.S. Bank doesn’t provide the ability for users to download a report in desired formats, making it difficult for finance to easily break down the purchases by expenditure codes.
Opportunities
• Utilize a vendor portal to submit documentation so that vendors do not have to come to City Hall. Additionally, the City can configure the portal so that vendors can run their own aging reports.*
• Map an integration with the bank to create a payment transaction with purchase cards. Based on bank codes, it can map the ERP system codes for the general ledger and generate reports in a usable format. • Modern systems can accommodate using two- or three-way matching of purchase orders, invoices, and the receipt of goods to provide for auto processing of invoices that meet the specificized requirements.
Bank reconciliation
Observations
216
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 13 • The bank reconciliation process is manual. There is a module in New World, but it is not used as staff reports that it is complicated, and the manual process is easier.
• As noted in the accounts receivable section above, the lack of integration between New World and ActiveNet creates manual processing of transactions and timing differences between the deposits to the bank and the recording in New World.
Opportunities
• The City currently utilizes a monthly bank reconciliation process. Consider utilizing vendor demonstrations to see how more frequent bank reconciliation runs can be drilled down to the transaction level and are easier to process. It should also be shown how payments coming in can be rolled up to their associated bank run. This will be helpful in pursuing change management policies across the organization to align a business process with best practices.*
Budget
Observations
• OpenGov is the starting point for budget preparation, but adjustments to the proposed budget are performed outside of the system in Excel spreadsheets. When departments make changes, they highlight their changes in a different color on the spreadsheet. This process is time consuming for finance to look for the highlights, and it relies on departments to remember to make the highlight before exiting. If a modification doesn’t receive the highlight or finance doesn’t catch it, the change is not updated in OpenGov. • Departments struggle to input a budget request due to current system limitations in OpenGov. Although OpenGov’s format is familiar and has a simple interface, the system limits staff trying to create a form to input their budget into. • The City utilizes OpenGov for budget preparation and New World for budget control. However, the two systems do not have the same level of detail, causing staff to keep multiple windows open so that they can see discrepancies between the two, which is frustrating and a time burden. • Carryovers are not currently tracked in a system. Instead, carryovers are performed annually in Excel. The finance team then processes the journals for New World. Ideally, this is performed on an ongoing basis, where effective dates allow adjustments to take action as configured. • There is inconsistency between the grants budgeted for and the grants received by departments. A consistent policy across the organization should be considered for when to input a grant into the system.* Opportunities
217
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 14 • The base budget process should include open and documented communication between departments and the central finance office. Instead of managing budget requests on Excel with colors, modern ERPs allow departments to submit a change to their budgets with fields for documentation/descriptions that trigger approval.
• Best practice for budget preparation includes versioning at multiple levels. Modern systems can track entire versions of the budget and mark different statuses along the way. Additionally, these systems can also track different types of transactions for adjustments, such as increases for additional funding.*
• Financial consultants hired by the City created different Excel models of sales tax, CPI, and vacancy factors so the City could leverage for budget planning. When a scenario changes, finance manually updates each model. Consider utilizing the ERP to create different scenarios that flow to each version of the budget (e.g., high, low) in place of the existing spreadsheet.* • Consider implementing different approval processes for different types of budget adjustments. For example, a budget transfer between departments will have a different approval process than the workflow necessary for new grants in the budget.* • Finance keeps accurate records for purposes of encumbrance carry-overs and should seek to proactively build that process within the new ERP.
Right now, finance maintains a calendar to know when to ask departments if they are carrying an encumbrance forward. The City should leverage the carryover ability of modern systems for open purchase orders at year end to reduce Excel use in this area.* • The City uses OpenGov for position budgeting, which allows salaries and benefits to be uploaded to the budget. However, because the system is separate from the ERP, staff are not able to track actual spend versus what was budgeted for a certain position. This also makes it more difficult for staff to calculate vacant positions in the budget. In the future state, information will flow from payroll to the budget to quickly show a forecasted number for a vacant position based on the actual salary and benefits for that position. • Modern systems can set alerts at different levels of the budget. While some restrictions would be set to the program level, others could be at the project level to prevent overages. The City could decide which level(s) of the budget alerts should be at. • Multiyear reports are difficult to run due to an antiquated system. Modern systems allow users to run reports for desired date ranges, including over multiple years.
Contract management
Observations
• Some contracts require Council approval. To comply, City staff export the draft to the Legistar, receive updates, and reincorporate them back into CobbleStone. This process can be time consuming and cause delays in contract approvals. 218
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 15 • Contracts in CobbleStone do not show changes over time. Often, attorneys make edits on the contracts before they are finalized, but CobbleStone does not maintain a history of those edits.
• It can be difficult for staff to understand where contracts stand in the process with updates to terms and conditions. • While the vendor portal in CobbleStone has the capability to upload documentation, it is not fully utilized, and vendors will send their own statement of work that is different from the City’s template. • Manual effort is required to pull a purchase order from New World into CobbleStone and LaserFiche.
Opportunities
• The future ERP includes the ability to house all contracts in a central location that can tie to purchase orders. Staff should be able to see the amount spent against the contract and the balance of each in the same place where contract history is kept. • Implementing a new system can present an opportunity to reconsider data retention policies. The City can choose to build an integration from the ERP to LaserFiche for data retention or utilize the ERP for that capability.* • A fully leveraged vendor portal can allow City staff to maintain a history of communication with vendors across the organization. Additionally, staff can build standard forms into the system such as an agreement or statement or work that guides vendors to submit them consistently.
Fixed assets
Observations
• There is no option within the purchase order module to talk to the fixed assets module currently, even if there is a button there for users. If there is a purchase in New World, it will not flow to the fixed assets module. Without the link, it can be difficult to record the purchase on the associated financial statements. Users are not able to identify a fixed asset during the procurement stage. • Depreciation is currently manually calculated through Excel. Best practice includes utilizing prebuilt depreciation rules and schedules in the ERP to provide real-time reports on depreciation with less manual intervention.
Opportunities
• Utilize the ERP to establish a link between purchasing and fixed assets. Purchases made should flow through the fixed assets module for actions such as capitalization and depreciation.
General ledger
Observations
219
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 16 • The current general ledger system is extremely easy to navigate for staff, and that ease to maneuver should be essential for a new system. • Reports are extremely limited in the current system. The standard reports from the software do not include all the data fields desired, and the system is cumbersome in its ability to generate custom reports.
Opportunities
• Due to the more comprehensive nature of modern ERP systems, out-of-the-box reports provide a much more granular level of detail. Users can configure their own reports beyond those that come standard and customize their own dashboards with reports valuable specific to them. • Utilize notification for vendors nearing the $600 threshold to require a 1099. The new system should be able to automatically generate 1099 forms for the appropriate vendors.
• Auditors currently ask for documentation down to the transaction detail. Modern ERPs allow these reports to be easily accessible, and the City can allow for third-party access to the system, if desired, to review the appropriate documentation. Determine if the City would like to allow for third party access to the future ERP system.*
Grant and project management
Observations
• Grants are tracked by departments outside of New World, in Excel spreadsheets include details around the amount applied for, the status, money received, and money spent against the contract. Because this is outside of the system, there is manual effort required to check all the fields from the spreadsheet with the actual details.
• Departments handle and processes their own invoices and send them to finance. Finance will invoice them against the expenditures. This process is manual, does not provide visibility into approval steps, and results in a decentralized process where departments have an inconsistent process with the City’s finance office.
Opportunities
• Modern ERPs include both grant and project modules. These elements can be tied together because a project can be funded by one or more grants, and one grant can fund multiple projects. Define what the grants and projects process should look like in a future ERP system.* • Utilize the user-defined fields in a new system to track transactions at different levels of the organization. Although money is set aside now for programs and not for projects, the future state capabilities can allow the City to see the money planned for and spent by a project. Users with the appropriate clearance will have the ability to drill down from the program level to the project and transaction levels, providing more reporting 220
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 17 flexibility. The City, which utilizes this capability in limited areas now, should prioritize training and vendor demonstrations to ultimately achieve the full potential of the user-defined fields.
Lease management
Observations
• Lease agreements are currently tracked using spreadsheets. Generating invoices to customers is manual, which requires duplicative efforts to ensure that information is correctly tracked in the financial system. • DebtBook is used to check payments and record journal entries given when the City acts as the lessor, but the invoicing is done in New World, which requires a manual reconciliation process at the end of the year.
Opportunities
• Utilize the system to automatically create invoices based on information input into the preconfigured fields (with workflow approval). Invoices in modern systems will feed into the general ledger automatically. • Leverage the ERP to accommodate reimbursement and disbursement contracts. Utilizing the ERP will allow for easier audit history on changes to contracts, including the ability to see prior versions and who made changes. • Ensure that requirements feature the ability to set up and track both sides of a lease: the City as the lessor and the lessee in accordance with GASB87. Lease invoices would reconcile in live time with journal entries.
Purchasing
Observations
• A contract or quote is stored in CobbleStone, with copies made for Google Drive and New World. This requires duplicate effort and time to ensure that documents are properly stored and can be found later on. • There are no notifications for approvals in New World, and any outstanding tasks are not individual to certain staff members; instead, all tasks for finance are shown together at the top of the screen. • Purchase cards are reconciled monthly with bank statements compared to what departments enter in for transactions, with use tax paid quarterly. Sales tax is calculated manually on a spreadsheet.
Opportunities
221
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 18 • With a modern system, staff will have the option to upload documentation for purchases. Future process discussions should include referring to the ERP as the source of record without documents stored elsewhere. • City staff expressed the desire to catch a payment that should not be paid due to various reasons, such as incorrect year, dates beyond a fiscal year, etc. utilizing some sort of flags or notifications in the system. Systems may have the ability to provide warnings and hard-stops for payments when dates are beyond a fiscal year to prevent paying an invoice against a purchase order in the wrong year. • The ERP should provide the ability to apply sales tax to the merchandise and the shipping and handling when applicable. In the future, this calculation should be done in the system rather than in separate spreadsheets. • The City should discuss the means of storing records in the future. Municipalities utilize both a modern ERP or LaserFiche for this capability, usually deciding between one of the two. Modern systems build the integration to LaserFiche often.
2.2.2 Observations and opportunities: Human capital management Classification and compensation
Observations
• New World allows predetermined classifications and steps to be tracked in memorandums of understanding, with a corresponding grade for each class and five steps. However, all grades show as active, and the process for cleaning up grades and reflecting only those active is cumbersome to keep updated.
• Tracking budget by position number is no longer as clear as in the past for multiple reasons. Transferring of divisions is difficult to include in the number, part-time reporting is done differently, and some departments have not kept up with cleaning up their numbers. This can be confusing for staff to know which position numbers are the most up to date. • Every job currently has its own position number. When someone leaves a position, a new position must be created, then HR staff zero out the budget for the old position. This process is manual and results in more job numbers than necessary. • Departments are not currently aware of their budgets for recruiting because positions are not consistently tracked or understood when they become vacant. Standardization is required in terms of how to handle, convert, and fill positions. Part-time hires require a manual justification for approval to communicate that there is a vacancy.
Opportunities
222
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 19 • City staff mentioned that they are open to developing a new set of position codes. Consider establishing new position codes to everyone in a new ERP system following a consistent numbering schema. Confirm that setting up new position numbering would be agreeable, ensure that the approach is communicated clearly to departments in the organization, and that end users receive training on the standard.* • Utilize vendor demonstrations to see how cost of living adjustments can be processed and tracked in a modern system using mass pay change capabilities. Include demonstration script items to pull both historical COLA amounts and forecast what they may look like in the future. • Modern systems allow users with the appropriate security access to run reports on staff impacted by a potential mass update. These changes would be visible from the personnel file view or the history of the mass update. • Reporting on positions and vacancies will no longer need to be in a spreadsheet. With the new ERP software, HR staff can see recruitment patterns across the organization, including metrics such as turnover, recruitment, and trends in changes. Real-time knowledge allows organizations to make proactive decisions about how to address job openings and utilize available budget. The system should be able to track the relationship between positions over time without manually creating new job numbers each time a position is filled.
Employee benefits
Observations
• The CalPERS portal for pension and health benefits requires duplicative entry. Any changes in enrollments are entered in multiple places which can be time consuming, especially during the open enrollment time frame when there are many changes. • California passed the California Family Rights Act (CFRA) to supplement the federal Family and Medical Leave Act (FMLA), but the system does not currently differentiate between the two. FMLA hours are currently tracked in Excel spreadsheets rather than a centralized system causing pay codes to not be up to date in this area.
Opportunities
• A simplified enrollment screen for staff can be configured so that all plans that they are eligible for pop up. Staff should be able to enroll in benefits from the ERP and have their benefit elections flow to each benefit provider for enrollment. • Include requirements for self-service capabilities that allow for staff to view and manage benefits, dependents, and contributions. The organization can use these fields as triggers for other actions. For example, by keeping track of dependents in the system, staff with the appropriate security can run a report to see how many dependents will turn 26 within a certain date range, allowing the organization to be more proactive in changing the benefit enrollment and the payroll deduction associated with it. • By requesting an interface with CalPERS (or ensuring an easy upload is possible), staff would no longer need to enter pension and health data in duplicative places. Additionally, reconciliations between the ERP and CalPERS would be handled by the interface . 223
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 20 • The City will benefit from the modern capabilities of ERP systems to generate standard ACA and IRS reports. Staff mentioned the current manual process to record correctly with the dates listed, and the future solution should clear up any interpretation on codes from the IRS.
Learning management
Observations
• The City has transitioned from using Excel to the custom-built internal Power Apps Training Management Application (TMA) for learning management functions. The application allows employees to register and receive notification for upcoming trainings. IT built an impressive application that has the opportunity to grow with the organization. City staff may have comfort with this tool created just for their use which may result in limited interest in moving to a new learning management system. • Certification completions are currently tracked on an Excel spreadsheet, and continuing education is the responsibility of the employee or the department. This can be a risk if required certifications or licensures are not renewed in a timely manner.
Opportunities
• The City should consider utilizing a learning management system as part of the ERP to reduce the manual efforts necessary to maintain the TMA. Modern systems can automatically generate certificates of completion, tie them to employee profiles, and record completion statistics.
Consider which trainings from the TMA should be brought into the new system.* • The City can leverage the ERP to build centralized processes for continuing education. With the ability to report on certifications and education, supervisors and department heads can be more proactive in assigning internal and external training opportunities. Keeping skills and language proficiency attached to an employee record can cut down on the effort necessary to currently build a personnel file.
Performance management
Observations
• Every week, HR staff run a report in Access to generate a list of employees due for an evaluation. The process is consistent across the organization so that reminders for annual evaluations are given 30 days in advance while evaluations that drive step increases are 45 days in advance. This Access database interacts with Microsoft Word and Excel to generate necessary information and the form for the supervisor.
However, staff often must remind supervisors to complete the evaluations. • Evaluations tied to step increases require evaluators and HR to communicate ahead of the time the step increase may come into effect. If the evaluator does not inform HR of the step increase decision in time, staff may receive pay inconsistent with their performance evaluation decision and eventually require retroactive payments which requires manual efforts from payroll. 224
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 21 • The City does not currently dedicate as much time as they would like to succession planning because other manual processes and components of the performance management process consume staff time.
• New World defaults one hire date per employee. The system should recognize one date as the date for evaluations between original date of hire, promotion date, or re-hire date.
Opportunities
• Consider using the implementation to move toward narrative-based performance reviews. This would look more like a coaching model than a five-point scale and would support evaluators in providing objective feedback, supporting the organization’s ongoing development. If the City opts for new forms to support narrative-based reviews, ensure that staff receive training on the new approach and understand its benefits.* • While the new system can provide periodic reminders to supervisors to get their evaluations in on time, the City may benefit from additional accountability for supervisors. Examine if the process for delayed feedback should include an alert to department heads or if supervisors should be evaluated based on their ability to evaluate others.* • Leveraging a system to support various HR processes will allow staff the time to do succession planning. Consider discussing promotions and succession planning in performance discussions.*
Personnel actions
Observations
• The City has different forms for different types of personnel actions. PDF forms exist for promotions, new class moves, and transfers, while new hire forms work through Power Apps. While these forms may work to solve current work activities, they can cause some confusion of what to use in which instance.
• Retroactive payments happen often due to the timing and duration of processing personnel actions. This often includes email communication that may not be visible to others in the organization who would like to see an audit trail for personnel actions.
Opportunities
• Future actions and communications should be housed in the ERP to provide one source of truth with consistent processes and transparency throughout the organization. Workflows for approvals on actions including forms within the system will eliminate the use of more manual forms outside of it.
225
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 22 • Effective dating can be configured in the system to apply current rates to an employee until a certain date. For example, if an employee is promoted as of a date in the future, their pay would remain on the current rate until the desired date when the new pay rate is effective. This lessens the burden on HR staff to get the change done right on time and on payroll staff who should not have to complete as many retros.
Recruitment
Observations
• The City currently uses NeoGov for recruitment, a software common in the public sector to complete recruitment activities, and has chosen to continue using it in the future. NeoGov is not fully utilized currently, nor connected with the current ERP system, resulting in duplicate entry. • While the City explored integrations, New World limited the opportunities. NeoGov has APIs available to build a modern integration, but New World’s integration approach is more dated, so City staff waited for the procurement of a new ERP to build the integration. Maintaining a dated integration may have cost more time and effort than not having one at all.
Opportunities
• Building an integration between NeoGov and the future ERP will allow information to flow through the organization to cut down on the manual reentry. For example, if a candidate completes an application through NeoGov, the ERP can utilize workflow to internally provide visibility in the application process through the onboarding process. Additionally, the employee profile can prepopulate with the information already submitted on the job application portal.
Risk management
Observations
• The City utilizes a third party for risk management, which meets the needs of the City moving forward. There is no need for this functionality to be included in an ERP at this time since the City will continue using the third party.
Opportunities
• Explore ways to work closer with the third-party risk administrator, JPA, to get information and reports the organization will need moving forward. Try to use this process to mitigate duplicative record keeping between the access HR has in a portal versus the spreadsheet for internal claims.*
• The City often requests information about types of injured workers, number of injuries by department, and most frequent types of injuries, which can be time consuming. Consider building an integration to receive these reports in live time as the data is collected by the third party.
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Self service
Observations
• Employees do not currently update their own information. User self-service is currently limited to the ability for employees to view their own W-2s and paystubs. To make changes, staff must submit forms to HR, who make the updates to the system. • Current software allows negative accruals and time off, which is difficult to keep consistent across department and job role.
Opportunities
• Common self-service capabilities include ways for employees to pull their own benefits and calculate their own pay as they make their benefits.
Additionally, employees should be able to initiate changes to their personnel record and request time off. For each request, employees should be able to see where the process stands in the workflow.
• The system should have rules to prevent negative accruals and time off. The City can configure whether a warning is given (that still allows the employee to submit a request that would result in a negative accrual) or a hard-stop on the request and should consider this change.*
2.2.3 Observations and opportunities: Payroll and time tracking Payroll
Observations
• Staff often enter their time correctly, and the payroll process is quick when there are no errors. However, problems may arise when part-time or seasonal employees are getting used to the system. If an error is only caught at the file upload stage, payroll staff must reach out to HR to update the timesheets. The delay in rule application between the timesheet and payroll requires staff to be more attuned to potential errors. • Staff members may select the wrong code when they enter their time. Because of the system limitations, payroll staff alert employees by email to modify the change and show them where the correct codes are kept. • Payroll often tracks data in Excel spreadsheets, which require significant upkeep. Verifying FLSA, timesheets, and accruals takes time and effort to reconcile with the current software. For example, employees working fewer than 40 hours a week should not get an accrual, but the system still accrues it for them. The spreadsheets allow payroll staff to catch the errors. • HR consults payroll staff for personnel activities that require pay calculations. For terminations, the City cuts a check to pay vacation time out which requires HR to consult with payroll; payroll pulls up the spreadsheet for the calculations necessary before validating numbers. This process requires manual effort which could result in inaccurate payments since calculations are done manually for validation purposes. 227
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Opportunities
• In a future system, considerations should be given as to the payroll code visibility. Ideally, the position is tied to job title so that employees do not have the option to select the wrong code. This ERP selection and implementation provides the opportunity to clean up pay codes and only bring in those necessary. For example, seasonal staff should only have access to record time against pay codes within their job title.* • Consider utilizing this selection as an opportunity for staff to leverage direct deposit or a pay card situation for those who would like their pay more easily accessible, with the goal of avoiding cutting paper checks.* • In a new system, the City can configure workflow for certain personnel actions in the same place all the calculations are stored. For example, HR can initiate a termination workflow that includes steps for paying out remaining benefits and converting remaining vacation time into pay. Any necessary approvals would be built into the workflow and provide an audit trial in accordance with City requirements. • Employees can leverage self-service portals in the future system to see pay stubs and W-2s as they can now with the added functionality of making changes to their deductions, changing banks, etc. from their portal, with the appropriate approvals. • Utilize a requirement for the new system to generate a report as a .csv file in accordance with CalPERS requirements.
Timekeeping
Observations
• While scheduling is decentralized, all employees record time in the same way (through the HR portal). Payroll staff utilize reports from the HR portal; to make sure that all time is approved, they download a .csv file that gets uploaded to New World for payroll processing. This process requires a few systems and steps to ensure that scheduling is aligned with the recorded time and ultimately uploaded to New World. • The system is not currently able to accommodate blended rates for bilingual pay. The City relies on manual workarounds for calculating time- and-a-half for the base rate of pay as well as the modifier so that all pay is considered for bilingual pay.
Opportunities
• Modern ERPs provide payroll staff greater flexibility for approving time. Consider utilizing the functionality of a soft close to run payroll before it is posted (finalized).* This allows departments to have time to check for errors and does not require payroll staff to reach out to department supervisors to remove approvals and send back to employees. Best practice for approving time is that the employee reviews their own time before sending to a supervisor. If there are errors, the supervisor should either send back to the employee to make adjustments or provide notification to the employee that their time has been changed before sending it to payroll for final approval.* 228
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 25 • Consider coding holidays in the new system for when a blended rate of pay is triggered for all employees. For example, if employees in Parks and Recreation work on July 4, the system should recognize that day as a holiday and automatically factor in the blended rate of pay calculation.* • Ensure that different job classifications can be paid at different frequencies in the new systems. The system should be able to accommodate bimonthly and monthly pay for people who are paid based on attendance (e.g., council members). • Consider integrating with CityWorks so that work order time can be reconciled with payroll time. This may improve reporting considerations across the organization to calculate spending against a project that includes details such as time, asset spend, and payments to vendors.* 229
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 26 3 ERP marketplace assessment
Generally, ERP solutions evolved out of a desire to provide the functionality of two or more systems, such as financials and HR, in an integrated software solution. ERP software solutions experienced their first major growth in private sector businesses in their manufacturing and supply chain operations. Over the years, these solutions were enhanced, configured, and tested in public sector organizations. With these enhancements, those solutions originally developed for private sector organizations could now be deployed in a public sector setting.
This section provides an overview of the ERP marketplace, organized as follows:
• Vendor consolidation
• Tier 1 versus tier 2 ERP
• On-premise versus cloud-based ERP
• Vendor marketplace overview
• ERP marketplace trends
3.1 Vendor consolidation
Consolidation among public sector software vendors has left a fewer number of vendors providing services to the public sector than in prior years. Organizations such as Harris, Oracle, CentralSquare, Infor, Accela, and Tyler Technologies have acquired competing software products over time and, to varying extents, marketed, licensed, implemented, and supported each of them. As such, the remaining vendors have a larger installed base per vendor. It is anticipated that, over time, these vendors will reduce, not increase, the number of ERP solutions that they will maintain and support for the public sector. This consolidation of solution offerings is typical in the software industry as a result of their desire to create a sustainable business model. Thus, it is important during the due diligence and contract negotiation process to consider any future product plans available from software providers, with the purpose of maximizing solution longevity and avoiding expensive capital outlays for upgrades and replacements.
3.2 Summary comparison: Tier 1 versus tier 2 ERP
Tier 1 vendors offer broad solutions designed specifically for the private sector. In recent years, these solutions were enhanced, configured, and tested in public sector organizations. With enhancements, these solutions originally developed for private sector organizations are now being deployed in a public sector setting.
Tier 2 ERP software providers originated and offer specific vertical solutions designed for the public sector, including fund accounting, encumbrance accounting, sophisticated budgeting, grants management, etc., and capabilities that are pervasive in this segment. These solutions are frequently deployed in medium-sized public organizations.
The table below identifies some of the key differences between tier 1 and tier 2 software providers on issues such as support requirements, cost of implementation services, cost for major version upgrades, software support channels, and other factors.
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 27 Tier 1 Tier 2
Sample
representative
vendors
• Infor (CloudSuite)
• Microsoft Dynamics
• Oracle (Fusion Cloud and Netsuite)
• SAP
• Workday
• Cayenta
• Harris
• OpenGov
• Tyler Technologies
Design
considerations
• Developed product for private sector and
later adapted for public sector
• Many modules specific to public sector
• Larger organizations with greater R&D
budgets, offer more robust technology
• Robust development tools
• Scalable to leverage most robust
development and database environments
• Primarily designed for public sector
• More prescriptive functionality and less
conducive to customization without altering
source code
• Often leverage common municipal
technology standards (e.g., Microsoft SQL
database); some support Oracle
• Environments leverage third-party tools
(database, report writer, etc.)
Ongoing
technology
support
resource
requirements
• Cloud solutions do not require significant
technology FTEs
• Also impacted by level of integration with
other organizational systems
• Cloud solutions require similar technology
resources as tier 2
• Also impacted by level of integration with
other organizational systems
Software
functionality
• Core modules have robust functionality
• Typically have significant configuration
options enabling a wide range of options to
accomplish business processes
• May lack public sector-specific features;
however, functionality is increasing over
time
• License costs per user are typically more
expensive than tier 2
• Incrementally less robust functionality for
core components
• HR/payroll solutions are frequently less
robust as compared to tier 1 offerings
• Many vendors offer additional public sector
modules, such as fleet management, request
for service, etc.
• License costs per user are typically less
expensive than tier 1
Implementation
services for new
installation
• May require multiple FTEs to implement
• Requires significantly greater
implementation vendor resources than tier 2
to implement, including key staff who are
full-time to the project
• Software implementers are typically
integrators/channel partners
• Vendor “homework” approach has the
organization responsible for many
implementation tasks
• Frequently implemented with organization
resources not dedicated to the project
• Rarely requires full-time vendor staff to
implement
• Software vendors also implement their own
solutions
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Staff required
for
implementation
• Requires more functional staff to maintain
and update configurations in order to
manage the application
• Requires less functional staff to maintain
and update configurations in order to
manage the application
Ongoing
support staff
required
• Support required includes administering new system accounts and access controls, configuration changes to support continuous improvement of business processes, and preparation and testing of new updates
Cost model for
major version
upgrades
• SaaS solutions include all upgrades and updates
Software
support channel
• Mixed; some direct, some through
implementer or value-added reseller
channel
• Primarily direct vendor support
Hosting options • Most offer multi-tenant cloud deployments • Combination of multi-tenant cloud and single-tenant hosted deployments
3.3 Vendor marketplace overview
Today’s ERP marketplace is ever-evolving, with frequent changes in offerings, consolidations, pricing, and deployment approaches. To help the City understand the current marketplace, the following table is provided.
This table is based on recent proposals analyzed by Plante Moran and other marketplace activities and, thus, is subject to changing offerings. The listing is not intended to be all inclusive, but rather to provide a better understanding of some of the major vendors active in the marketplace. This list focuses on ERP systems that contain core financials and HR functionality and expanded functionality when applicable. There are additional best of breed systems in the market that focus on individual areas including time and attendance. Following this table is a legend describing each component.
Vendor
Financial
HCM
Cayenta
CentralSquare
Ceridian
Edmunds
GovSense
Infor
Kronos UKG
Microsoft
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 29 Netsuite
Oracle Cloud
OpenGov
Tyler Technologies
SAP
SAP ByDesign
Workday
Legend:
Financials: Financial functionality, with modules potentially including general ledger, procurement, budget, miscellaneous billing, and accounts receivable, contract management, bank reconciliation, and fixed assets.
HCM: Human capital management functionality, with modules potentially including employee record, payroll, personnel actions, benefits management, employee self-service, performance management, learning management, position control, recruitment and application tracking, and onboarding.
3.4 ERP marketplace trends
The ERP marketplace is rapidly changing, with the available vendors, solutions, functionality, deployment methodologies, and more changing every day. Included below are key trends in the marketplace to help summarize what changes Plante Moran has observed and expects to see moving forward.
Government staffing levels. In response to the immediate and severe financial impact of COVID-19, government staffing resources have ebbed. Consequently, municipalities are relying on additional functionality and automation to allow fewer or the same number of staff to accomplish more Movement to the cloud. A decade ago, most vendor solutions proposed were on-premise solutions, but in recent years this has shifted to almost all vendors proposing solutions in the cloud. While cloud solutions were previously thought of as a security concern and privacy issue, it is now seen as an approach that allows organizations to utilize best-in-class technical infrastructure and cybersecurity without internally developing these tools and resources.
Best-of-breed solutions. Today’s ERP solutions have significant functionality within the areas of core financial and human resources functionality. However, for more specialized areas, there has been a movement toward utilizing best-of-breed solutions to satisfy one specific area of functionality. Some functional areas where this is happening include timekeeping, learning management, recruiting, debt, and investment management.
Transparency. With the increased ease of sharing information online, there has been an increased desire by both the public and public sector employees to provide more transparency around public sector operations.
This includes open dashboards of financial data, making details of ongoing and planned projects available, sharing details on staff salaries, and more. Today’s solutions are helping to facilitate the publishing and access of this information.
Analytics focus. As the volume of data managed within ERP solutions has increased, the need and desire for analytics around this data has increased as well. Many of today’s solutions have increased functionality to 233
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 30 report on data, perform complex analytics and modeling, and export this data to other systems to perform even further analysis.
Use of advanced tools. Technology advances have operationalized many technologies that were not previously feasible for use in the public sector. Robotic process automation is being utilized for routine tasks such as invoice entry and document creation, where human input is limited or not necessary. In other areas, technologies such as artificial intelligence are being used to pull insights from data automatically or proactively perform customer outreach.
Increased attention to security. As the number of cyberattacks rises alongside the amount of personal information stored within ERP solutions, there has been an increased focus on cybersecurity both from vendors and public sector organizations alike. This focus has resulted in increased cybersecurity staffing, additional discussions of cybersecurity differentiators, and planning for data recovery in the case that an organization’s data is compromised.
Implementers utilizing agile development. Within larger software providers, there has been a movement in recent years toward adopting agile development versus the typical waterfall methodology. This approach focuses on a more iterative process rather than the more sequential approach of the waterfall methodology.
The goal of this change is to move toward a more collaborative approach to implementing ERP solutions, which involves a much higher level of interaction and review throughout a given project, rather than waiting for significant tasks to be completed.
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 31 4 Cost estimate
4.1 Cost estimate
The following document includes an updated cost estimate for the City of Cupertino over a 10-year horizon, including both external costs (software, implementation and training services, project management, integration and conversion services, etc.) along with internal costs (project management, staffing required, etc.) based on FTE cost provided by the City. This cost estimated includes the following information:
1. Cost assumptions
2. Total cost summary
a. 10-year cost estimate, including external costs only (graph) b. 10-year cost estimate, including external and internal costs (graph) c. Total cost of ownership, including all external and internal costs (table)
4.2 Cost assumptions
The cost assumptions below outline any assumptions made to determine the cost estimates that follow.
1. The cost assumptions below outline any assumptions made to determine the cost estimates that follow.
2. Plante Moran gathered the data required for this cost estimate from vendors, and Plante Moran’s internal database of proposed and negotiated costs, which provides insight on hardware, applications, licensing, implementation and other related services costs for over 50 similar governmental entities.
3. The cost ranges represented above are intended to represent the typical range of vendors that we would expect the City to select from, other vendors may bid outside of these ranges.
4. This estimate assumes that the City will utilize a vendor-hosted or cloud deployment model.
5. Implementation costs are assumed to include all one-time fees paid to the vendor.
6. Hardware costs are not included in this cost estimate as this is for a vendor-hosted solution.
7. Project contingency is estimated to be 20% of the one-time vendor fees.
8. Internal implementation costs are estimated based on the FTE cost provided by the City, which is on average $70/hour. This was multiplied by 160 hours (assuming each month has 4 weeks at a 40-hour work week) resulting in a monthly FTE cost of $11,200 or an annual FTE cost of $134,400.
9. Implementation is estimated to take 18 months on the low end and 24 months on the high end based on benchmarking data and Plante Moran’s prior implementation experience but could vary by vendor.
10. The project period costs below include one-time and ongoing costs for the first two years of the project, which is the estimated time period for fully implementing a replacement ERP solution.
11. Implementation project management costs are based on a .5 FTE for the low-cost estimate while the high-cost estimate is based on 1 FTE. This cost is calculated using a standard implementation hourly rate but may differ depending on inflation, duration, and selected vendor for project management.
12. 100% of the one-time costs as assumed to be incurred in year 1 of implementation.
13. Inflation is assumed to be 5 percent annually in the total 10-year cost summary.
14. Implementation costs include vendor costs for the duration of the implementation including: initial configuration, data migration, integration, training, project management fees, etc. 235
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4.3 Total cost summary
This section summarizes the potential total cost of ownership (TCO) analysis for the City’s ERP environment.
These costs include various system costs, such as ongoing maintenance, software subscription fees, and implementation services, for each option. The following graph illustrates the 10-year comparison of cumulative costs for each option. The first graph only includes external costs, while the second graph also includes internal costs. Following the graphs is a table representing the detailed costs for both external and internal.
These costs do not represent the functional benefits or time efficiencies gained with each option.
4.3.1 10-Year cost estimate, including external costs only
4.3.2 10-Year cost estimate, including external and internal costs
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4.3.3 Total cost of ownership
City of Cupertino TCO Summary - Updated January 2025
Cost category Cost type Tier 1 Tier 1 Tier 2 Tier 2
Low scenario High scenario Low scenario High scenario One-Time Costs
Hard Costs
Vendor implementation costs Vendor $1,412,371 $3,133,388 $489,747 $1,738,605 Implementation project management Consultant $280,500 $583,000 $280,500 $583,000 Project contingency Contingency $282,474 $626,678 $97,949 $347,721 Total One-Time Hard Costs $1,975,346 $4,343,066 $868,197 $2,669,326 Soft Costs
FTE Internal 3 6 2 4
Duration (Months) Internal 18 24 18 24
Total One-Time Soft Costs $604,800 $1,612,800 $403,200 $1,075,200 Grand Total One-Time Costs $2,580,146 $5,955,866 $1,271,397 $3,744,526 Ongoing Costs
Hard Costs
Subscription fees Vendor $198,309 $892,907 $138,504 $532,658 Total Ongoing Hard Costs $198,309 $892,907 $138,504 $532,658 Soft Costs
Internal support FTE Internal 0.5 2 0.5 1
Total Ongoing Soft costs $67,200.00 $268,800.00 $67,200.00 $134,400.00 Grand Total Ongoing Costs $265,509 $1,161,707 $205,704 $667,058
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ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 34 5 Action plan
5.1 Plante Moran recommendation
Plante Moran recommends that the City replace the current ERP solution that does not fully meet the City’s business needs. Plante Moran recommends the deployment approach of a vendor-hosted or cloud/SaaS ERP solution. This offers the following key benefits:
• Best-in-class cybersecurity and disaster recovery expertise is included • An upgrade pathway is more defined, reducing the risk of falling behind • Customizations are avoided as a rule
• A cost-effective infrastructure and technical staffing solution • Scales with City growth, without the need to purchase additional infrastructure or hire staff • A cloud-first approach matches the mix of options in the vendor marketplace With this option, the City should review and consider the plan of action considerations below, including the application migration strategy outlined in Appendix A: Application migration plan.
5.2 Plan of action considerations
5.2.1 Project staffing and governance structure considerations Since an ERP replacement will impact most staff at the City, it is critical to establish a plan. This process of executing the recommendations and implementing a new system will require a well-coordinated and organized governance structure in which to operate and manage the project. ERP system implementations are complex and these initiatives can only be successful at organizations with strong project governance.
As the City moves forward with the replacement project, process and technology changes will be significant and will impact all departments. Policy changes will also need to be considered and implemented to realize the full benefits of implementing a new solution. Potential policy considerations have been marked with an * in the opportunities above and are ones that the City should consider prior to implementation.
Strong project management is also critical for deployment and becomes increasingly important with the investment in a new ERP system. Therefore, it will be essential to continue to rely on the existing project governance structure that:
• Considers the needs of a variety of stakeholders
• Enables the City to make decisions efficiently and effectively • Ensures that project communication is flowing to the right individuals at the right time, including those who are part of the project team and those external to the project team • Empowers the project team to enforce policies
The following recommended strategies will help the City prepare for the implementation phase of a system selection project. The strategies below are listed in the order that they should occur. 238
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 35
1. Confirm a formal governance structure to coordinate the selection of the new system using the current teams identified in the project charter as a basis, with the intent that structure can be leveraged and specific roles can be redefined for design, implementation, and maintenance phases of the system.
2. As part of the RFP process, request information from vendors as to the optimal City staffing structure and time commitment required for a successful system implementation, including ongoing support and maintenance of the system. This will allow the City to plan for implementation efforts with a greater understanding of vendor-specific resource needs.
3. Prior to launching the implementation phases of the project, establish expectations with the City staff as to the time commitment that will be required for a successful implementation.
4. With the assistance and advice from the selected vendor(s), institute an implementation governance structure that is well staffed and supported by executive management within the City. The governance structure from the selection phase may be used as a starting point.
5. Establish policies to sunset or retire legacy solutions, supplemental applications, and side systems in conjunction with the new system implementation so that they do not perpetuate an environment of dual information tracking. Utilize the application migration plan as a starting point.
6. Establish data retention requirements to guide and manage the scope of required data conversion.
Ensure data retention requirements are properly considered and applied before, during, and following the system implementation and data conversion process.
7. Establish an appropriate backfill strategy and plan to free up staff resources who will play a significant role in the implementation (as identified in item three above). It is important to recognize that staffing circumstances during implementation can significantly affect the rollout of the implementation so start to plan for backfill now to ensure the key resources are available for implementation.
8. Review the change management support provided by the vendor. Based on this plan, establish a change management plan designed to reflect the needs of the stakeholders. It is beneficial to establish a change management process early on to evaluate/measure organizational impacts as part of the decision-making process, document decisions, and communicate the net benefits to the organization.
9. Develop a process to discuss proposed business process changes from the provided future state process maps and from the vendor, gather the necessary approval for these changes, and communicate these changes throughout the City.
10. Review and consider the level of efforts outlined in the staffing table below to plan accordingly. The City should consider these estimates when planning for the various phase of implementation and revisit this throughout the implementation to ensure people are involved to the appropriate levels.
239
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 36 The table below represents estimated City staffing for each implementation phase based on our experience with software implementations and our knowledge of the City. However, this may vary for the City based on the vendor selected, staff preferences, and the project plan provided by the vendor.
Time commitment by role and implementation stage
Role/phase Project
initiation
Discovery and
configuration
Testing and
training Go-live Post go-live
Duration One month Approximately
five months
Approximately
five months One month Three months
Project sponsor 15% 15% 5%–10% 15% 10%–15%
Project manager 100% 50% 50%–75% 100% 50%
Subject matter experts
(SMEs) 25% 50% 75%–100% 75% 50%
Training lead 0% 25% 50% 25% 10%
Technical team 10% 25% 40%–60% 50%–75% 25%
This is an estimate to assist the City with planning. Assumptions informing these numbers are listed below. • Effort estimates for subject matter experts are for each subject matter expert. Each phase will have multiple SMEs based on how the City is organized. These SMEs must be knowledgeable about the City’s needs.
• The table above is a sample for tier 2 system implementation. A tier 1 system implementation may require more significant resource commitments for each role. • If there are separate testing staff, the workload for the subject matter experts could be lessened. • If there is no training lead and end-user training is not purchased from the vendor, training tasks will need to be completed by SMEs. This will vary based on the vendor timing of their training approach.
Some vendors perform an initial training, then discovery, then full-on training following. Others perform all training after discovery.
• This estimate assumes the City will utilize a vendor-hosted or cloud model, as recommended. • This estimate assumes City IT staff will manage security, conversions, and interfaces. • This staffing estimate is based on vendor data and Plante Moran's prior implementation experience. • This staffing estimate is based on Plante Moran's assumption of a reasonable finalist selected vendor based on Plante Moran’s experience working with the City and understanding requirements, staffing environment, etc. Based on the finalist selected vendor, the monthly hours estimated could increase or decrease by approximately 25%, as each vendor will have a staffing plan that may vary. • The implementation duration above is based on the benchmarking data from potential vendors that would propose paired with Plante Moran's implementation experience. This duration could change by approximately three to six months based on the selected vendor and services purchased. 240
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 37 • Plante Moran recommends planning for the staffing in the estimate above, as well as some level of contingency (e.g., 10%) in order to mitigate project risks.
In consideration of these factors, Plante Moran provided an example listing of resources needed below based upon the likelihood of the City selecting a SaaS vendor solution. The areas listed below are a sample of functions that will need to be provided at times during the implementation. For example, the payroll expert will be needed during the phase for payroll and project hours will vary during the phase.
During implementation, the following City staff may be required:
• SMEs, in their functional area, to assist with the following functions:
o Participate in analysis and design sessions
o Provide expertise on current City processes
o Create future state processes
o Test system configurations
o Verify data conversions related to their functional area o Participate in user acceptance testing
o Participate in training (possibly as the trainer for other staff if using a train-the-trainer model) • Technical staff to assist with the following tasks:
o Custom report development
o Security administration
o Data conversion
o Interface development
o Forms design
o Testing coordinator
o Database/system administration
• Project management office, including the following roles:
o Project sponsor
o Project manager
o Technical lead
o Project administrator
For ongoing activities, the following City support staff may be required:
• SMEs’ functions:
o Update dashboards and reports as needed
o Participate in continuous improvement efforts including updating configurations o Provide functional knowledge and assist with training new staff/users • Technical staff functions:
o Custom report development
o Security administration
o Database/system administration
o Patches and updates
o Help desk: Application support
241
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 38
5.2.2 Change management
Implementation projects like this one will have significant change management aspects associated with the large amount of process redesign that will likely occur on the project. It is critical to consider these potential changes and impacts early on as project success comes from having a clear idea of how leadership envisions the City being run and then using new systems to facilitate turning this vision into a reality. When software implementations do not meet expectations, it is often due to people issues, not necessarily the technology.
Research indicates a correlation between the success of a change initiative and how well the people’s concerns are recognized and understood. That is why applying a change management methodology is critical to the success of such an initiative. The purchase and implementation of new systems and related technology is done to assist in meeting organizational objectives and improving performance. Organizational performance is also impacted by the people of an organization and the processes used to complete work. Throughout the project, the goal is to balance the needs of the people, process, and technology.
5.2.3 Communication planning
As one of the first steps of change management planning, the City should develop a communications plan to guide the project from inception through post-implementation. By its nature, replacement projects will affect many staff across the City. For this reason, a communication and change management team is recommended, comprising key “change agents” within each City department, to nurture buy-in and get department staff committed to taking relevant actions. Such team members will be involved in educating staff about the impacts and benefits of the project and will also be “inspiration agents” by helping staff find ways to discover their potential, overcome barriers, and celebrate successes. These staff should monitor what is working, what isn’t working, and what needs to be changed—and provide regular feedback on progress to department staff.
Acknowledging the diverse City audiences that will be involved and impacted by this project, a communication plan should be developed to create awareness and make the project relevant by effectively communicating the impacts to both internal and external stakeholders. Sample objectives for a communication plan may include:
1. Distributing information to employees in a timely manner about project benchmarks and progress
2. Using various media to provide information concerning the project in places that can be accessible
3. Ensuring all information available to project resources is updated and accurate
4. Reducing confusion among employees by providing a sole directive/source for all project information
5. Providing clear channels of communication within which City project staff can operate, which can expedite solutions to issues that arise during selection and implementation and after its completion
6. Encouraging ongoing feedback from employees across the City
5.3 Project risks
Staff constraints. A successful implementation is highly dependent upon staff being engaged and available throughout the process. The availability of staff may be limited given current staff resources that already have a significant level of responsibilities, and the ERP implementation will only add to this workload. Furthermore, the staff required for an implementation are typically those with the most knowledge about business rules and needs, which tend to be staff who are in high demand regardless. Backfilling these positions or temporary staff augmentation has been successfully used by other organizations to provide capacity to sustain operations while 242
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 39 key staff subject matter experts participate in the selection and implementation phases. However, the potential lack of an appropriate staffing plan would result in a risk to project success.
Managing staff expectations. The selection and implementation of a new ERP system will result in significant functional improvements across all areas of the City. However, it is critical that all departments are kept in mind during the decision of which solution is best for the City and the implementation of the selected solution.
This may require some compromise across the organization to ensure it meets everyone’s needs. This needs to be communicated to staff so they can expect that they may need to compromise on some functionality. Their expectations also need to be managed in terms of what will be asked of them in future state processes.
Implementing process improvements. Regardless of the level of planning done prior to implementation, the ERP project will be a significant effort for the City. Throughout the project, it will be easy for staff to fall back on forcing the existing manual processes into a new system, resulting in unnecessary customizations or an inability to gain the efficiencies that a new system will bring. Continuing to strive for process improvements will need to be a key area of focus throughout the project. Requesting best practice options from the selected vendor will promote process discussions and improvements.
Replacing shadow systems, including customized solutions. Spreadsheets are a popular tool across the City, and some may think that utilizing such shadow systems is a more comfortable approach than moving business processes and data storage into a new, unfamiliar system. However, doing so will leave the City with significant process inefficiencies, risk of data loss, opportunity for data entry error, and lack of data sharing. As staff evaluate the new functionality and processes within a new solution, it is critical for everyone to be open- minded to leveraging the system for more. Additionally, there are a few custom-written solutions utilized by the City currently, such as the learning management system, which should be considered with the new ERP.
Executive sponsorship. One of the biggest challenges during implementations is the lack of executive-level staff that are consistently and visibly committed to the project. Ensuring that leadership at the City is available to support the project, clear roadblocks, and review and approve major changes is vital to the project’s success.
5.4 Implementation best practices
As the City prepares for implementation, it is important to ensure that several factors are considered during this period so that the future state ERP environment is as efficient as possible. Although there are many detailed tasks outlined within Section 3 of this report, some high-level strategies are outlined below as well.
Increase process standardization. Standardize the use of a shared system and process for common functions across the City. By gathering needs across City stakeholders, a new solution should be able to support most City business processes and reduce the use of shadow systems. By standardizing the system in which the processes are performed, it will be easier for the City to manage these processes from a single, accessible system.
Interface applications. Leverage the listing of all required and desired interfaces for the future state based on the interface information outlined at the end of this report. Developing interfaces between City applications and with applications external to the City allows data to flow more seamlessly across systems, increasing data integrity, minimizing manual reconciliations, eliminating shadow systems, and reducing data entry time.
Streamline business processes. Redesign and streamline business processes based on established best practices and recommendations outlined in the future state process flows. Elimination of manual and paper- based processes and replacement with automated, electronic workflows and approvals will save the City significant time and reduce errors associated with manual processes. 243
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 40 Improve reporting. Enhance reporting capabilities, including user-friendly, user-driven, and flexible reporting tools with distributed, secure access to all users. Establish expectations around reporting and train all users to be able to obtain reports in a new system. Having more robust reporting capabilities would reduce the need to manually create reports on various spreadsheets to track information needed.
Training and documentation. Train staff on new systems and business processes early on. This can start with a one-time outreach to determine what the current training needs are so that staff are given the current support needed. However, this will not provide ongoing support for the City. An ongoing training plan needs to be developed to ensure that new staff are trained, there is training available on infrequent tasks (e.g., budget development), and documentation continues to exist to assist staff with performing tasks.
Enhance internal controls. Improve internal controls within business processes that are supported by the ERP system, either currently or as part of a new system’s implementation, depending on the project timeline and urgency of the controls needed. Modern systems can handle many controls that can be configured during implementation to help protect against unintended transactions, duplicates, and similar concerns. These should be configured, then monitored on a regular basis to help support a reduction in the need to review transactions manually. There is a need for process and policy-related conversations to occur prior to this stage to ensure the correct people are doing the correct tasks.
5.5 Proposed timeline
System selection
June 2023 –
November 2023
Contract
negotiations
November 2023 –
December 2023
ERP
implementation:
Financials
January 2024 –
January 2025
ERP
implementation:
HCM
September 2024 –
September 2025
244
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 41 Appendix A: Application migration plan
Overview
A list of the City’s key existing applications identified through the assessment process has been assembled and presented below.
*Legend: (Preliminary system migration plan)
Replace (R): The City is intending on replacing this application.
Consider (C): The City is considering replacing this application with an integrated ERP solution, based on the strength of the finalist vendor offering and cost/benefit of the replacement module.
Maintain (M): The City is intending on retaining the application, not replacing it.
Interface (I): The City is intending on keeping the application and interfacing/integrating it with the selected ERP solution.
Application migration plan
Current ERP application Application notes/description Migration plan Accela Business license system with daily import to the current financial system I
Microsoft Access (Multiple) Schedules and reminders for employee evaluations, merit increases R
ActiveNet Accounts receivable, bank reconciliation, and Parks and Recreation revenue I
CalPERS State reporting for pension and health benefits I CityWorks Asset tracking for Public Works I
CobbleStone Stores contract and quote details with routing and approval C/I DebtBook GASB 87 details are stored here to support journal entries M E-Suite/HR Portal Portal for employees to enter time and see timesheets C Microsoft Excel (Multiple) Lease agreements, asset details, budgeting/forecasting, tuition reimbursement, recruitments, and outstanding
check determination
R
GovDeal Third-party company utilized for asset disposals C GovInvest Pension costing and OPEB cost/liabilities, labor costing through negotiations R
LaserFiche Document storage, FOIA requests I
NeoGov Job postings and recruitment I
245
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 42 Current ERP application Application notes/description Migration plan New World Systems – Tyler
Technologies
Financials, purchase orders, contracts, vendor information R NextNight Homegrown application for CIP management in DPW M OpenGov Budget preparation and budget approvals R
PayPal report Cash receipts reconciled against bank deposit I Power Apps - TMA (Training
Management Application)
Learning and training system built internally C
RFP Application In-house system created for RFPs, bids, contracts, etc. C Sedgwick Tracks information for risk management, including the claim and associated investigation C
Square Point of sale system for Parks and Recreation integrated with the financial system I
US Bank Manages purchasing cards, bank statements, and bank entries I
Wells Fargo Portal Houses bank accounts and generates a monthly bank statement I
246
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 43 Appendix B: Application interfaces
Application 1 Direction Application 2 Data flow description Accela ⟶ ERP Payment/revenue data
ActiveNet ⟶ ERP Revenue collected in Parks and Revenue
CalPERS ⟷ ERP Benefit elections
CityWorks ⟶ ERP Asset information and time spent on workorders ERP ⟶ GovDeal Asset disposal information sent to a third party NeoGov ⟷ ERP Job classifications, applicant information, and recruitment data
ERP ⟶ PayPal Cash receipts reconciliation with bank deposits Square ⟶ ERP Revenue collected in Parks and Recreation
US Bank ⟷ ERP Purchasing cards, bank statements, and bank entries Wells Fargo ⟷ ERP Bank statements and bank entries
247
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 44 Appendix C: Action Items
All items including an * in this report are potential policy considerations or items that should be discussed prior to implementation. The City should consider the following items and have any required discussions to address potential decisions that need to be made prior to implementation. They are categorized by three different types of potential changes that may be required:
1. Policy – Changes that may require reviewing or updating the policy currently in place.
2. Process – Changes that may require revisiting and revamping the process in a new ERP.
3. System of Record – Changes that may require considerations about which system to use.
Beyond reviewing the action items listed below and in the supplementary spreadsheet, it is suggested to assign a responsible owner and due date for each item below to ensure that any required actions are completed.
Process area Action item Category
Accounts
payable
Utilize a vendor portal to submit documentation so that vendors do not have to come to City Hall. Additionally, the City can configure the portal so that vendors can run their own aging reports.* Policy
Bank
reconciliation
The City currently utilizes a monthly bank reconciliation process. Consider utilizing vendor demonstrations to see how more frequent bank reconciliation runs can be drilled down to the transaction level and are easier to process. It should also be shown how payments coming in can be rolled up to their associated bank run. This will be helpful in pursuing change management policies across the organization to align a business process with best practices.* Process
Budget
There is inconsistency between the grants budgeted for and the grants received by departments. A consistent policy across the organization should be considered for when to input a grant into the system.* Policy Budget
Best practice for budget preparation includes versioning at multiple levels.
Modern systems can track entire versions of the budget and mark different statuses along the way. Additionally, these systems can also track different types of transactions for adjustments, such as increases for additional funding.* Process
Budget
Financial consultants hired by the City created different Excel models of sales tax, CPI, and vacancy factors so the City could leverage for budget planning. When a scenario changes, finance manually updates each model.
Consider utilizing the ERP to create different scenarios that flow to each version of the budget (e.g., high, low) in place of the existing spreadsheet.* System of
Record
Budget
Finance keeps accurate records for purposes of encumbrance carry-overs and should seek to proactively build that process within the new ERP. Right now, finance maintains a calendar to know when to ask departments if they System of
Record
248
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 45 are carrying an encumbrance forward. Modern systems include a process to allow carryforward of open purchase orders at year end.* Contract
management
Implementing a new system can present an opportunity to reconsider data retention policies. The City can choose to build an integration from the ERP to LaserFiche for data retention or utilize the ERP for that capability.* System of
Record
General ledger
Auditors currently ask for documentation down to the transaction detail.
Modern ERPs allow these reports to be easily accessible, and the City can allow for third-party access to the system, if desired, to review the appropriate documentation. Determine if the City would like to allow for third party access to the future ERP system.* Policy
Grant and
project
management
Modern ERPs include both grant and project modules. These elements can be tied together because a project can be funded by one or more grants, and one grant can fund multiple projects. Define what the grants and projects process should look like in a future ERP system.* Process Classification
and
compensation
City staff mentioned that they are open to developing a new set of position codes. Consider establishing new position codes to everyone in a new ERP system following a consistent numbering schema. Confirm that setting up new position numbering would be agreeable, ensure that the approach is communicated clearly to departments in the organization, and that end users receive training on the standard.* Process
Learning
management
The City should consider utilizing a learning management system as part of the ERP to reduce the manual efforts necessary to maintain the TMA.
Modern systems can automatically generate certificates of completion, tie them to employee profiles, and record completion statistics. Consider which trainings from the TMA should be brought into the new system.* System of
Record
Performance
management
Consider using the implementation to move toward narrative-based performance reviews. This would look more like a coaching model than a five-point scale and would support evaluators in providing objective feedback, supporting the organization’s ongoing development. If the City opts for new forms to support narrative-based reviews, ensure that staff receive training on the new approach and understand its benefits.* Process Performance
management
While the new system can provide periodic reminders to supervisors to get their evaluations in on time, the City may benefit from additional accountability for supervisors. Examine if the process for delayed feedback should include an alert to department heads or if supervisors should be evaluated based on their ability to evaluate others.* Process Performance
management
Leveraging a system to support various HR processes will allow staff the time to do succession planning. Consider discussing promotions and succession planning in performance discussions.* Process 249
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 46 Recruitment
Revisit the capabilities used in NeoGov to review unused functionality, including onboarding capabilities, generation of an offer letter, and sending a confirmation within the application. Performing these functions in NeoGov would lessen the integration burden with the ERP. Since many organizations utilize NeoGov for their recruitment activities, it may be worth discussing with others on how they best utilize the system capabilities.*
Process
Risk
management
Explore ways to work closer with the third-party risk administrator, JPA, to get information and reports the organization will need moving forward.
Try to use this process to mitigate duplicative record keeping between the access HR has in a portal versus the spreadsheet for internal claims.* System of
Record
Self service
The system should have rules to prevent negative accruals and time off.
The City can configure whether a warning is given (that still allows the employee to submit a request that would result in a negative accrual) or a hard-stop on the request and should consider this change.* Policy Payroll
In a future system, considerations should be given as to the payroll code visibility. Ideally, the position is tied to job title so that employees do not have the option to select the wrong code. This ERP selection and implementation provides the opportunity to clean up pay codes and only bring in those necessary. For example, seasonal staff should only have access to record time against pay codes within their job title.* Process Payroll
Consider utilizing this selection as an opportunity for staff to leverage direct deposit or a pay card situation for those who would like their pay more easily accessible, with the goal of avoiding cutting paper checks.* Policy Timekeeping
Modern ERPs provide payroll staff greater flexibility for approving time.
Consider utilizing the functionality of a soft close to run payroll before it is posted (finalized).* Process
Timekeeping
Best practice for approving time is that the employee reviews their own time before sending to a supervisor. If there are errors, the supervisor should either send back to the employee to make adjustments or provide notification to the employee that their time has been changed before sending it to payroll for final approval.*
Process
Timekeeping
Consider coding holidays in the new system for when a blended rate of pay is triggered for all employees. For example, if employees in Parks and Recreation work on July 4, the system should recognize that day as a holiday and automatically factor in the blended rate of pay calculation.* Policy Timekeeping
Consider integrating with CityWorks so that work order time can be reconciled with payroll time. This may improve reporting considerations across the organization to calculate spending against a project that includes details such as time, asset spend, and payments to vendors.* System of
Record
250
ERP Gap Analysis and Action Plan Report – For Internal Discussion Only PLANTE MORAN | 47
Mike Riffel
Engagement Partner
312.602.3539
[email protected]
Brian Pesis
Project Director
303.846.1260
[email protected]
Nina Rajcevic
Project Manager
312.602.4748
[email protected]
251
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 3
Meeting: February 19, 2025
Agenda Item #1
Subject
Tyler New World Enterprise Resource Planning (ERP) replacement Recommended Action
Adopt Resolution No. 25-XXX approving Budget Modification No. 25-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement Background:
Q1: Can you give us more clarity on the ERP pricing included in the staff report? (Chao) The Importance of Starting with Suitable ERP Pricing for the Replacement Project Securing the right initial budget for the ERP replacement project is critical to ensuring that City staff can evaluate all relevant options and select the best vendor based on well -defined criteria. At this stage, the cost estimates are based on Cupertino’s Needs assessment, expert consultant analysis, but they will only be fully defined once a vendor is selected. The vendor selection process, along with consultant expertise and regional insights, will determine:
• Implementation Vendor Costs
• Implementation timeline
• Required resources and staffing levels
• Ongoing subscription costs and system maintenance needs ERP failures are common, with studies showing that approximately 50% of public sector ERP implementations fail to meet their objectives. The primary causes of failure include:
• Insufficient Planning: Poor planning can lead to unclear objectives, scope creep, and resource misallocation, weakening the implementation process.
• Budget Overruns: Underestimating costs can result in unanticipated expenses that exhaust available funds, causing projects to stall or be abandoned.
ATTACHMENT D
252
2 • Improper Staff ing: Without adequate staffing, employees may struggle with system adoption, leading to inefficiencies and errors.
• Vendor Management Issues: Poor vendor communication can cause misaligned expectations and system underperformance.
• Given these risks, it is our responsibility to ensure that the project is adequately funded from the outset. Proper budgeting will allow the City to:
o Select the best-fit ERP system based on Cupertino’s specific needs. o Ensure sufficient resources are available for successful implementation. o Avoid the pitfalls that lead to ERP failure in other municipalities. o Secure long-term sustainability by accounting for future staffing and subscription costs.
By investing in a well-structured, data-driven ERP implementation process, we can mitigate risks and ensure that Cupertino implements a modern ERP system that enhances efficiency, streamlines operations, and delivers long -term value to both staff and residents.
Regional Analysis for Comparison
One -Time Implementation
Costs - Including temp
staff, project management
services, and Contingency
Annual/Recurring
Licensing Cost
Additional staff
added after
Implementation
Year
Implemented
System
Selected
Sunnyvale ~10m 500,000.00 Unknown 2019 Oracle
Mountain
View ~1.5m 220,000.00
1 FT BSA
Dedicated to
ERP 2019
Central
Square
Palo Alto ~6m (Vendor Costs only) 900,000.00 Unknown 2020 Oracle Los Gatos
~1.3m (Vendor Costs
only) Unknown Unknown 2022 Tyler Munis
Santa Clara >10m 350,000.00
2.5 (1.5 I&T
Dedicated staff
& 1 FT HR) 2002 People Soft
Milpitas 3M 250,000.00
1 FT BSA
Dedicated to
ERP 2023 Tylor Munis
*Cupertino 3.7M 500,000.00
1 FT Internal
Support 2025 Unknown
*Note these are the estimated costs.
Q2: What's the difference in terms of functionality between high-end Tier 2 and low-end Tier 2? (Chao)
High-end Tier 2 ERP solutions provide greater functionality, automation, and scalability, making them better suited for complex municipal operations. In contrast, low -end Tier 2 solutions often offer limited capabilities that may be too similar to Cupertin o’s existing system, failing to address key project objectives namely:
253
3 Key Current-State Observations
1. Manual Workarounds – Many processes rely on spreadsheets and paper-based approvals due to ERP limitations.
2. Fragmented Business Processes – Different departments use disconnected systems, leading to data duplication.
3. Limited System Functionality – The ERP does not support major functions such as budgeting, personnel actions, and reporting.
4. Underutilized ERP Capabilities – Some ERP features, like contracts and bank reconciliation, remain unused.
5. Decentralized Processes – Variability in timing and systems makes it difficult to track workflows across departments.
Key Advantages of High -End Tier 2 Solutions:
• Enhanced process efficiencies by integrating more functions into a single system. • Reduced reliance on multiple disconnected systems, lowering integration costs and improving cross-departmental connectivity.
• Advanced automation features, minimizing manual workload and increasing operational speed. • Larger customer base, ensuring more real-world public sector experience, better vendor support, and a well-established user network for ongoing improvements and troubleshooting. •
By opting for a high-end Tier 2 solution, Cupertino can maximize efficiency, streamline operations, and future-proof its ERP investment, ensuring long -term sustainability and performance.
Q3: Why does Cupertino need high-end Tier 2 and not the low -end Tier 2? (Chao)
Selecting a high-end Tier 2 ERP allows Cupertino to fully modernize its operations, enhance efficiency, and future-proof its investment. A low -end Tier 2 solution is not likely to provide a significant improvement over the current system, potentially failing to meet the City’s operational goals and long - term needs.
Key Reasons for Choosing a High -End Tier 2 Solution:
1. Selecting a Solution That Meets Cupertino’s Needs & Ensures Long -Term Viability • Low-end Tier 2 solutions may lack essential features and could carry over many of the same limitations as Cupertino’s existing system.
• A more robust solution (such as a high-end tier 2 or low -end tier 1) with greater functionality , could reduce the number of systems required, which would minimize integrations. Conversely, selecting a low-end tier 2 solution that lacks some functionality may result in the procurement of a separate system(s) to fulfill those functions, leading to incr eased integrations/costs. • High-end Tier 2 solutions provide meaningful upgrades, ensuring long -term efficiency and avoiding the need for another costly replacement in the near future.
2. Seamless Integration & System Consolidation
• Better cross-departmental integration, reducing reliance on multiple disconnected systems. 254
4 • Enables data sharing and automation across financial, HR, and procurement functions, eliminating manual workarounds and improving efficiency.
3. Advanced Automation & Workflow Optimization
• High-end Tier 2 systems reduce manual processes, streamlining approvals, reporting, and financial management.
• Improves data accuracy and real -time reporting, helping decision -makers access critical information faster.
4. Supporting Complex Government Operations
• Cupertino requires robust financial, HR, payroll, procurement, and reporting capabilities, which high-end Tier 2 systems are better equipped to handle.
• More flexible and scalable, allowing the City to adapt as operations grow or change over time.
5. Stronger Vendor Expertise & Public Sector Focus
• High-end Tier 2 solutions have a proven track record with local governments, meaning vendors have a better understanding of municipal challenges and compliance requirements. • Vendors provide better customer support, regular updates, and future enhancements tailored to public sector needs.
Investing in a high-end Tier 2 ERP ensures Cupertino selects a scalable, future-ready solution that will increase efficiency, reduce costs, and support the City’s long -term operational needs. A low -end Tier 2 ERP may leave gaps in functionality, resulting in unmet goals, inefficiencies, and potential additional costs in the future.
Q4: What's the model they use to determine the price? (Usually, it's based on the number of users?) (Chao)
ERP pricing models vary by vendor, with some offering transparent pricing structures, while others tailor costs based on the organization's unique needs. Plante Moran, a leader in ERP implementations, has worked with hundreds of local municipalities, providing expertise in ERP assessments, software selection, and implementation advisory. Their experience has shaped the pricing factors used in our cost estimates, which were further validated by an independent regional analysis.
Based on the ERP Gap Analysis and Action Plan Report, Cupertino's new ERP system must address significant operational inefficiencies, security risks, and manual process burdens. These factors directly impact implementation complexity, system requirements, and overall costs.
Key Factors Influencing ERP Pricing
1. System Complexity & Modernization
o Cupertino’s current ERP requires manual workarounds due to lack of integration. o The new ERP must automate processes and standardize workflows, impacting costs. o Proper staffing and governance are needed to ensure smooth implementation.
2. User Count & Access
o Pricing is often based on the number of users (named or concurrent). o Tiered pricing may offer discounts as user numbers grow. 255
5 o User roles and permissions can affect costs.
3. Modules & Features
o Costs depend on which modules are included (e.g., Finance, HR, Payroll). o More integrations are needed to replace manual processes. o Vendors may charge per module or offer full -suite pricing.
4. Implementation & Customization
o More customization = higher costs due to added vendor support. o Standard ERP solutions cost less but may require process adjustments.
Two Primary Cost Categories in ERP Pricing:
1. License & Subscription Costs
o Cloud-based ERPs typically use subscription-based pricing, which is tied to the number of users and selected modules.
o On-premise ERP systems often have one -time licensing fees with annual maintenance costs.
2. Implementation & Service Costs
o Implementation costs include temporary staffing to cover daily operations, allowing key internal staff to focus on the ERP transition.
o Setup, system configuration, training, and ongoing support also factor into implementation expenses.
o Rigorous User Acceptance Testing (UAT) is required to ensure the system meets operational and business process needs before full deployment.
While user count is a significant pricing factor, ERP costs are also influenced by organizational complexity, the scope of modules, and implementation effort. Cupertino’s final costs will be determined through the RFP process, where vendors will outline sp ecific pricing models, licensing structures, and service fees based on the City’s operational needs.
By securing the right funding upfront, Cupertino can ensure seamless implementation, automation of key processes, enhanced security, and improved reporting capabilities, aligning with the strategic goals outlined in the ERP Gap Analysis Report. It will also ensure Cupertino's ERP implementation does not fail due to lack of proper funding.
Q5: What metrics are we purchasing the software in? Is this based on the number of users or the number of residents? (Wang)
We have not yet initiated the RFP and are awaiting Council approval to proceed. The RFP process will provide detailed capabilities, costs, and vendor-specific pricing models for evaluation. Once we have completed vendor selection and negotiation, we will return to the Council for approval to move forward with the contract.
• Since we have not yet selected a vendor, the specific pricing model has not been determined. • The pricing model will depend on the vendor selected . For example, some solutions are transparent, and price is based on number of users or organization FTE count, while others are 256
6 less transparent but appear to based on budget or population. • Pricing structures (e.g., per user, site-wide, or module -based) will be reviewed during the RFP evaluation.
Q6: Are we buying by module or suite? What’s included today and in the future? (Wang) • We have not finalized whether the purchase will be a full suite or modular approach —this will depend on the RFP responses.
• The cost estimates include core ERP functions such as financials, HR, payroll, procurement, and other essential modules.
• Future support, upgrades, and vendor roadmaps will be evaluated during the RFP process to ensure longevity and scalability.
Q7: Do we know if there are new versions that will split the roadmap? (Wang) • Not at this stage.
• Understanding the vendor's roadmap, product versions, and long -term support plans will be a key evaluation factor in the RFP process.
Q8: What's the difference between each version? (Wang) • We have not yet identified specific vendor versions. • The RFP process will provide clarity on differences in capabilities, support levels, and pricing tiers.
Q9: Do we have tiering on price discounts? (e.g., pricing for the first 100 users, next 100, etc.) (Wang)
• Pricing tiers and discount structures will be a factor in vendor selection and negotiation during procurement.
• We will evaluate pricing models based on scalability, number of users, and potential cost efficiencies.
Q10: If we reduce the number of users or change the purchasing metric, can we flex down on pricing? (Wang)
• This flexibility will depend on the selected vendor’s pricing structure. • The RFP responses will outline the scalability of licensing and whether costs can be adjusted based on actual usage.
Q11: Do we only pay upon implementation (i.e., no payment until go-live)? (Wang) • We have not yet negotiated contract terms with any vendor. 257
7 • Typically, ERP contracts involve staggered payments for:
o Licensing
o Implementation services
o Project management
o Post-go-live support
• The payment schedule will be determined through RFP negotiations.
Q12: What do future increases look like in maintenance? (e.g., is this based on CPI +?) (Wang) • Future cost escalations will be reviewed during contract negotiations. • Common ERP pricing models include fixed -rate increases, CPI -based adjustments, or discretionary vendor pricing.
• Our goal will be to secure predictable cost structures and prevent excessive long-term increases.
Q13: What level of support are we paying for and why? (Wang) • The cost estimates account for standard support levels, but the exact details will be determined through the RFP process.
• We will evaluate vendors based on:
o Response times and SLAs
o Availability of dedicated support
o Training and ongoing technical assistance
Q14: Who's our executive sponsor? (Wang)
The City Manager, CTO, and Administrative Services Director will serve as the executive sponsor s for this project.
Q15: What are we doing to trade referenceability for discounts? (Wang) We have not yet engaged vendors, so referenceability -based discounts have not been negotiated.
At this stage, we are waiting for Council approval to initiate the RFP. The specific details regarding pricing models, licensing structures, support tiers, and payment schedules will be determined during the vendor evaluation and contract negotiation proce ss. The RFP responses will provide a clear breakdown of costs and capabilities, allowing for a data -driven selection process.
Attachments Provided with Original Staff Report:
A – Draft Resolution 2025 -xxx
Additional Attachments Provided with Supplemental 1:
B - ERP Needs Assessment
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8 259
CITY OF CUPERTINO
Agenda Item
25-13720 Agenda Date: 2/19/2025
Agenda #: 11.
Subject: Amendments to the Cupertino City Council Procedures Manual Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual CITY OF CUPERTINO Printed on 2/12/2025Page 1 of 1
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260
CITY COUNCIL STAFF REPORT
Meeting: February 19, 2025
Subject
Amendments to the Cupertino City Council Procedures Manual Recommended Action
Adopt Resolution No. 25-____ amending the Cupertino City Council Procedures Manual Reasons for Recommendation
On February 7 , 2023, the City Council adopted Resolution No. 23 -021, approving the Cupertino City Council Procedures Manual. The adoption of the Procedures Manual addressed an identified deficiency in the City’s governance policies . The Manual includes rules and guidelines for communication, meeting management, decorum, and decision making. The Procedures Manual was subsequently amended in March 2024 (Resolution No. 24-024).
On February 4, 2025, t he City Council conducted a study session to consider further revisions to the Procedures Manual and provided direction to the City Attorney’s Office to return to Council with proposed amendments to the Manual . A redline of the Procedures Manual is provided as Attachment A . The proposed amendments include revisions made at the direction of Council (in some cases, revised for clarity) and minor additional revisions to Procedures Manual Sections 1.4, 7.4, 8.1, and 8.3 recommended to limit the City’s legal risk and conform to current practices.
Consistent with the City Council’s February 4 direction, staff recommends that the City Council adopt the proposed Resolution (Attachment B ) amending the Cupertino City Council Procedures Manual.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
261
City Work Program (CWP) Item:
N/A
CWP Item Description:
N/A
Council Goal:
Public Engagement & Transparency
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Christopher D. Jensen, City Attorney
Reviewed by: Tina Kapoor, Deputy City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Redline of Cupertino City Council Procedures Manual B – Proposed Resolution No. 25-____
262
1 City of Cupertino
City Council Procedures
Manual
Attachments:
Ex. A – Elected Officials’
Compensation Program
Ex. B – Council Technology Policy
Ex. C – Resolution No. 07-103
Ex. D – Municipal Code Chapter 2.17
Effective Date:
March 20, 2024February 20, 2025
Responsible Departments:
City Manager’s Office
Related Policies & Notes:
See Exhibits A–D.
1. Introduction
1.1 Purpose. The purpose of this Manual is to promote communication, understanding, fairness, and trust among the members of the City Council, City staff, and members of the public concerning their roles, responsibilities, and expectations for management of the business of the City of Cupertino.
1.2 Values. Courtesy and respect for individual points of view should be practiced at all times. All Councilmembers shall respect each other’s right to disagree. All Councilmembers shall act with decorum and courtesy.
1.3 Brown Act. All actions of the City Council and City commissions, committees, and subcommittees shall comply with the Ralph M. Brown Act.
1.4 No Cause of Action Against City. This Manual is intended to govern the internal policies and procedures. Violations of this Manual are enforceable solely through enforcement pursuant to Section 10. Nothing in this Manual is intended to give rise to a claim or cause of action against the City, or any City Councilmember or other City official.
2. Selection of the Mayor and Vice Mayor
2.1 Selection of Mayor and Vice Mayor. The Mayor and Vice Mayor shall be selected annually at a special meeting on the second Thursday of December. The Mayor and Vice Mayor shall not serve consecutive terms; provided, however, this provision shall not prevent the Vice 263
2 Mayor from succeeding to the office of Mayor.
2.2 Removal of Mayor and Vice Mayor. The Mayor or Vice Mayor may be removed from office, for cause, by a 4/5ths affirmative vote of the members. Removal for cause shall mean removal of a Councilmember because of such member’s (a) willful and continued failure substantially to perform their duties, (b) conviction for, or guilty plea to, a felony, or a crime involving moral turpitude, (c) abuse of illegal drugs or other controlled substances or habitual intoxication, or (d) other illegal activities. The removal should proceed with a formal warning, which states with proven evidence of the member’s failure to perform their duties and proposed corrective measures. The Mayor or Vice Mayor must be advised of the proposed cause for removal at least 72 hours before any action is taken. If the Mayor is removed from office, the Vice Mayor shall become Mayor. If either officer is removed from office, the Vice Mayor
3. Councilmember Committees and Subcommittees
3.1 Appointment. The Mayor shall appoint Councilmembers to standing and ad hoc committees and subcommittees established by the City Council, subject to ratification by the Council at its next regular meeting. It will be the responsibility of the committees and subcommittees to inform and submit recommendations to the Council.
3.2 Instructions and Expectations. The Council shall make certain that all Council committees and subcommittees are properly instructed in their assigned scope of work and responsibilities. The committee’s or subcommittee’s jurisdiction shall be defined in writing and approved by a majority of the City Council. All Council committees and subcommittees having a continuing or indefinite jurisdiction shall be subject to the Brown Act.
3.3 Reporting. Council committee and subcommittee members are to keep the Council informed of the work and progress of their committee or subcommittee. These reports or minutes shall be made in writing whenever a recommendation is made to the Council. 4 Other City Commissions and Committees
4.1 Responsibility. The Council will make appointments to City’s commissions and committees. Qualifications to serve on commissions 264
3 and committees shall be set forth in the Municipal Code or by a resolution or motion of the Council that is not inconsistent with the Municipal Code. Appointment of Councilmembers to City committees shall be governed by the procedures in Section 3.
4.2 Attendance at Council Meetings. The Chair or another commission member appointed by the Chair shall attend City Council meetings whenever the commission makes a recommendation to Council regarding an item of business on the Council agenda. The commission liaison shall promptly notify the Chair after an item requiring a commissioner’s appearance is placed on a future City Council agenda.
4.3 Performance Expectations. The Council shall make certain that all commissions and committees are properly instructed on their responsibilities and performance expectations. This will include the issuance of a Council‐approved Commission and Committee Handbook and a mandatory annual training session for all Commission and Committee members.
4.4 Appointment. Commission and Committee applicants will be interviewed by the Council before being voted on by the Council in a noticed public meeting. Applicants are considered by motion and appointed by a majority vote of Council. Two members of an immediate family or persons residing in the same household shall not be allowed to serve simultaneously on the same commission or committee.
Immediate family members residing in the same household as a Councilmember are not eligible for appointment to any commission or committee. Former Councilmembers are not eligible for appointment to any commission or committee within four years of having served on the City Council.
4.5 Removal. The City Clerk shall remove notify the City Council and make a recommendation for potential removal of commission members for failure to comply with attendance policies adopted in the Commissioner’s Handbook. Council retains full discretion to review commission and committee member performance and may take disciplinary action as needed, including removal from the commission or committee.
4.6 Undue Influence on Commissioners. Councilmembers should not attempt to influence or publicly criticize commission recommendations or to influence or lobby individual commission members on any item 265
4 under their consideration. It is important for commissions to be able to make objective recommendations to the City Council on items before them. Councilmembers that attempt to influence commission positions on an item may prejudice or hinder their role in reviewing the commission’s recommendation as a member of the City Council.
Individual Councilmembers shall have the right to attend meetings of Cupertino commissions and other Cupertino governmental bodies but shall refrain from speaking or becoming involved in deliberations.
5. Administrative Matters
5.1 Attendance. City Councilmembers acknowledge that attendance at lawful meetings of the City Council is part of their official duty.
Councilmembers shall make a good faith effort to attend all such meetings. Council members shall notify the Mayor or the City Clerk if they will be absent from a meeting.
Council attendance will be noted in the agenda of the next regular meeting and thereafter for that calendar year, if five or more regular meetings are missed.
5.2 Correspondence. Proposed correspondence from the Mayor or other Councilmembers on City stationery should generally be reviewed by the Council in draft form prior to release. On occasion, there are urgent requests from the League of California Cities for correspondence concerning legislation directly affecting municipalities. If the Mayor and the City Manager agree that the League’s position corresponds with that of the Council, the Mayor may send a letter without first obtaining Council approval. City letterhead will be made available for routine correspondence (e.g., thank you notes). Official correspondence (including email) from Councilmembers should be respectful and professional.
5.3 Regional Bodies. The Mayor shall appoint Councilmembers to represent the City of Cupertino on regional bodies subject to ratification by the Council at its next regular meeting. The Mayor should endeavor to provide all Councilmembers a fair opportunity to represent the City.
The positions taken by the appointed representatives should be in alignment with the positions that Council has taken on issues that directly impact the City of Cupertino. If an issue arises that is specific to Cupertino and Council has not taken a position, the issue should be discussed by Council prior to taking a formal position at a regional board meeting to assure that it is in alignment with Council’s position. Council 266
5 representatives to such various boards shall keep the Council informed of ongoing business through brief oral or written reports to the Council.
Councilmembers shall make a good faith effort to attend all regional meetings that require a quorum of the appointed members to convene a meeting. Attendance should not be less than 75% of all scheduled meetings. If a Councilmember is unable to attend, they should notify their alternate as far in advance of the meeting as possible so as to allow the alternate to attend. To ensure continuity of the City’s representation, the alternate should receive all correspondence from the regional bodies that is sent to the primary representative.
5.4 Responses to Public. It will be the responsibility of the City Manager to ensure a response is provided to public correspondence for informational requests addressed to the Council. Staff shall respond to all requests for services as appropriate, and the City Manager shall keep Council informed of the City response.
5.5 Reimbursement. City Councilmembers may be reimbursed for expenses for travel to and lodging at conferences or meetings related to their role as a Councilmember as stated in the Elected Officials’ Compensation Program, as may be amended from time to time (Exhibit A). Any additional expenses that fall outside the scope of this policy may be reimbursed only if approved by the City Council, at a public meeting before the expenses are incurred. Any request for reimbursement of expenses shall be accompanied by an expense form and receipts to document the expenditure. These documents are public records subject to disclosure under the California Public Records Act. Councilmembers shall be eligible to receive City‐issued hardware and software for the conduct of official business pursuant to the Council Technology Policy (Exhibit B).
5.6 Council Training. Any member of the City Council and City commissions or advisory committees formed by the City Council shall receive ethics and anti‐harassment training required by state law. New members must receive the training within their first year of service and shall comply with ongoing training requirements imposed by state law and shall attend training on the Brown Act and Rosenberg’s Rules of Order. Members shall attend training sessions that are offered locally in the immediate vicinity of Santa Clara County, by completing online a state‐approved public service ethics education program, or through a state‐approved training which may be provided at a conference 267
6 attended by the member. The City Clerk shall keep ethics training records for five years.
5.7 Mayor’s Initiative Budget. The Mayor may use the Mayor’s initiative budget established as part of the City Manager’s discretionary fund for projects that the Mayor deems appropriate during the Mayor’s term of office, subject to the requirements of Resolution No. 07‐103 (Exhibit C).
The amount of the Mayor’s initiative budget is determined by the City Council.
6. Relationship with City Staff
6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal Code Chapter 2.17 (Exhibit D) governs the City Council’s relationship with the City Manager and their staff under the Council‐Manager form of government. To the extent that the provisions of Chapter 2.17 are not set below, they are incorporated by reference into this Manual.
6.2 Council/Manager Form of Government. Under the Council/Manager form of government, the City Council sets policy direction as the direct representatives of the community. with tThe City Manager providesing the professional expertise to manage the organization and carry out the Council’s direction. To enable the City Council to make informed decisions while weighing community input, the City Manager provides staff recommendations and presents options, along with their associated pros and cons. The City Manager is responsible for carrying out the Council’s policy direction through the day‐to‐day management of City functions, including the oversight of City operating departments. Neither individual Councilmembers nor the Council as a whole shall interfere with the City Manager’s performance of the administrative duties conferred upon them in Cupertino Municipal Code section 2.28.040.
6.3 Council‐Manager Relations. The City Council and its members shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry, and neither the City Council nor any Councilmember shall give orders to any subordinates of the City Manager. The City Manager shall take instructions from the City Council only when given at a duly held meeting of the City Council, and no individual Councilmember shall give any instructions to the City Manager. In the event that any suggestion or comment from an individual Councilmember might be perceived as an instruction by the City Manager or any staff, the City 268
7 Manager and/or staff should assume positive intent and treat it as a suggestion or comment.
6.4 Individual Councilmember Influence on Staff Decisions Prohibited. Individual Councilmembers shall not attempt to influence staff decisions, recommendations, workloads, and schedules, and department priorities without prior knowledge and approval of the City Council. If a Councilmember wishes to influence the actions, decisions, recommendations, workloads, work schedules and priorities of staff, that member must prevail upon the City Council to do so as a matter of Council policy.
6.5 Decorum. All Councilmembers and City staff shall treat each other with dignity, courtesy, and respect. In exercising the City Council’s policymaking authority, Councilmembers must often critique, modify, or reject a staff recommendation. While thorough vetting and criticism of staff policy recommendations or decisions is a necessary component of Council’s policymaking role, criticism should focus on the policy recommendations and decisions and should avoid personal attacks.
Councilmembers shall refrain from publicly criticizing the general abilities, character, or motivations of any staff member and should share any such concerns privately with the City Manager or City Attorney.
6.6 Councilmember Access to Information. City Councilmembers have free access to the flow of any information related to the operation of the City. The City Manager shall ensure that such information is communicated by staff in full and with candor to the Council. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council, based on the guidelines set forth in Cupertino Municipal Code section 2.17.043. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from that Councilmember as to why the information is needed. No Councilmember shall circumvent the City Manager’s direction regarding a request for information by seeking information through a Public Records Act request. A Councilmember may file a 269
8 request for information by seeking information through a Public Records Act request to the same extent as any member of the public.
6.7 Authority of City Council. Nothing in this Manual shall limit the City Council’s power to accept, reject, amend, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, department priorities, and the conduct of city business through the office of the City Manager. This power cannot be delegated to individual Councilmembers, nor to committees composed of Councilmembers consisting of less than a quorum of the City Council.
7. Agendas and Staff Reports
7.1 Future Agenda Items. The City Manager, the City Attorney, the Mayor, or any two Councilmembers may request that an item be added to a future agenda for Council action. The City Manager shall provide a quarterly report to Council regarding the status of future agenda items, which may include a request to remove items from the list of future agenda items. Any item may be removed for the future agenda items list by a majority vote of the City Council.At the requestor’s discretion, the agenda request may also include additional information explaining the rationale for or timing of the agenda item. Under the “Future Agenda Items” section of each regular Council meeting agenda, the City Manager shall include a document listing all current future agenda requests.
7.2 Preparation of Agenda. The City Clerk shall prepare the agenda in consultation with the City Manager, the Mayor, and the City Attorney.
Absent exigent circumstances, an item will be scheduled for Council action no sooner than 14 days after receipt of a request to add the item to the future agenda items list. Any item requiring preparation of a staff report requires City Manager approval or, in case of a report prepared by City Attorney’s Office staff, City Attorney approval, before being added to an agenda. The Mayor, in consultation with the City Manager and the City Clerk, shall determine the order of items on the agenda.
7.3 Agenda Item Descriptions. Each agenda item shall include a brief general description of the matter to be discussed (approximately 20 words in length), including any action that may be taken under the California Environmental Quality Act, and should generally include the recommendation of the City Manager. If the agenda item includes any budget request or modification, the amount of the request or 270
9 modification should be stated when possible. The brief description of the agenda item should be comprehensible by a typical resident. For example, an amendment to the Municipal Code should include a description of the amendment, rather than only the Code section to be amended; similarly, an item related to a development project should include not only the street address, but the common name of the project when applicable. Where practicable, the second reading of an ordinance should have the same agenda title as the first reading.
7.4 Staff Reports. Staff reports should include the following sections:
1. Subject
2. Recommended Action
2.3. Executive Summary (optional)
2. Background
2.3. Reasons for Recommendation and Available Options
3.4. Sustainability Impact
5. Fiscal Impact
6. City Work Program Item
7. City Work Program Item Description
4.8. Council Goal
9. California Environmental Quality Act
The “Background” section should include the date, at least the month and the year, previous meetings were held and decisions were made on the item. Where applicable, maps and charts should be provided in the staff report for easy reference.
7.5 Agenda Publication. Agenda packets for a regular meeting should be published and delivered to Councilmembers no later than the Wednesday prior to a Tuesday Council meeting. Councilmembers are encouraged to contact staff in advance for answers to questions regarding an agenda packet. Written communications addressed to Council shall be forwarded to Council and made available to members of the public, consistent with the requirements of the Brown Act.
7.6 Supplemental Materials. Supplemental reports and materials received by the City Clerk after the agenda is published but before 12:00 p.m. on the Monday prior to the City Council meeting shall be published and delivered to Councilmembers at 5:00 p.m. on Monday. Supplemental reports and materials received by the City Clerk after 12:00 p.m. on Monday but before 4:00 p.m. on the day of the meeting shall be published and delivered to Councilmembers prior to the Council 271
10 meeting. Council questions and staff‐prepared responses will be included in supplemental materials provided to Council and the public.
7.7 Written Communication. All written communications on an agenda item sent after the meeting agenda is posted shall be included with the Council agenda materials and made available to the public. Any written communications on items not on the agenda shall be included with the Council agenda materials and made available to the public if the sender requests that the communication be so included. Written communication received before 4:00 p.m. on the day of a regular City Council meeting will be posted by 5:00 p.m. Written communication received after 4:00 p.m. on the day of the regular City Council meeting will be posted on the business day following the meeting.
8. Meeting Procedures
8.1 Meeting Schedule. The City Council conducts its regular meetings on the first and third Tuesdays of the month, except when Council is in recess. At the second regular meeting in January, tThe City Council will approve the schedule of meetings for the calendar year, which in addition to the regular meeting schedule may include the cancellation of regular meetings and the addition of special meetings and study sessions. This practice does not, however, preclude the Mayor or a majority of the members of the City Council from calling additional meetings pursuant to the Brown Act. The City Council may by resolution reschedule regular meetings that occur the day after a Monday holiday on Wednesday of the holiday week. When a regular City Council meeting is rescheduled to a Wednesday, the agenda shall be published the prior Wednesday; the meeting shall start at 6:45 p.m. and follow the adopted Order of Business for regular City Council meetings.
8.2 Rules of Order. City Council meetings shall be governed by Rosenberg’s Rules of Order except as otherwise provided by this Manual. Unless otherwise required by state law or City ordinance, decisions of the Council shall be made by a majority of members present and voting.
The Mayor may impose additional reasonable procedural rules not inconsistent with Rosenberg’s Rules of Order and the provisions of this Manual, unless objected to by a majority of Councilmembers present.
8.3 Order of Business. The order of agenda items for regular Council 272
11 meetings is as follows:
1. Call to Order
2. Pledge of Allegiance
3. Roll Call
4. Closed Session Report
5. Ceremonial Items
6. Postponements and Orders of the Day
7. Oral Communications (public comment on non‐agenda matters)
8. Consent Calendar
9. Public Hearings
10. Action Calendar
11. Items Removed from the Consent Calendar
12. City Manager Report
13. Oral Communications (continued)
14. Councilmember Reports
15. Future Agenda Items
16. Adjournment
Oral communications shall be limited to 30 minutes. Additional speakers wishing to comment on non‐agenda items may be given time to speak at the end of the agenda, after the City Manager’s report.
Councilmember Reports should focus on Council committee assignments and ceremonial appearances and may include other information relevant to matters within the jurisdiction of the City Council. In the absence of an objection made by a majority of Councilmembers present and voting, the Mayor may modify the order of business to facilitate the fair and efficient conduct of Council meetings. The Mayor shall determine the Order of Business of a special City Council meeting, subject to overruling by any objections sustained by a majority of vote of the City Council.
8.4 Consent Calendar.
8.4.1 Adding Item to Consent Calendar. The Mayor, the City Manager, the City Attorney, or the City Clerk may recommend that items appearing on the agenda be placed on the consent calendar for action by the City Council. All items placed on the consent calendar shall appear together on the agenda with the recommendation as to the action to be taken by the City Council with respect to such item. Upon the motion of any member of the City Council, all items placed upon the consent calendar may be 273
12 acted upon together, and each shall be deemed to have received the action recommended.
8.4.2 Removing Item from Consent Calendar. Items may be removed from the consent calendar only by a member of the City Council. Any member of the City Council who would like to remove any item from the consent calendar shall notify the City Manager and the City Clerk no later than 12:00 p.m. on the day of the City Council meeting. A request to remove a consent calendar item shall be made in writing and shall state the reason for removing the item from the consent calendar. Items may be removed from the consent calendar after 12:00 p.m. on the day of the City Council meeting only by a majority vote of the Council. Items removed from the consent calendar shall be placed on the agenda for consideration after the action calendar.
8.5 Public Comment. An opportunity for public comment shall be provided for the consent calendar, each other agenda item under consideration, and, during regular meetings, on any matter that is within the subject matter jurisdiction of the City Council. The Mayor may consolidate public comment for related agenda items, subject to overruling by a majority vote of the Council. Non‐ agenda matters (including Council and staff reports) may be addressed by the public during oral communications. Members of the public wishing to speak regarding an item shall submit a request to comment to the Clerk (ʺblue cardʺ) or, where applicable, raise their hand in Zoom within nine minutes of the time the Mayor opens public comment or prior to the close of public comment on the item, whichever is earlier. Each individual speaker will ordinarily have up to three minutes to address the Council. If a speaker representing five or more two or more members of the public in attendance and wishing to comment on the item but electing not to speak, the speaker may have up to two minutes per group member to speak, up to a total of 10 minutes, to address the Council. Consolidation of time among speakers is not otherwise allowed. If a large number of speakers wish to address Council on an item, the Mayor may reduce the time allotted to each speaker consistent with the Brown Act. Twice the speaking time will be provided to any member of the public who uses a translator.
8.6 Communications with Members of the Public. The City Council may ask questions of speakers providing public comment but should avoid 274
13 an extended discussion with members of the public during meetings.
Additionally, when a member of the public provides comments regarding a matter that is not on the agenda, Councilmembers may (1) refer the speaker to staff; (2) refer the speaker to appropriate reference material; (3) request that staff report back at a future meeting; or (4) request that staff place the item on a future agenda.
Councilmembers should not otherwise respond to or comment on an item of business that is not on the agenda. City staff should generally avoid responding to comments or questions from members of the public during Council meetings, although the City Manager or City Attorney may offer to arrange a time to discuss the subject matter of public comments with members of the public subsequent to the Council meeting.
8.7 Conduct of Meetings
8.7.1 Councilmembers. Members of the City Council value and recognize the importance of the trust invested in them by the public to accomplish the business of the City. Councilmembers shall accord courtesy to each other, to City employees, and to members of the public appearing before the City Council.
8.7.2 City Employees. City staff shall observe the same rules of decorum applicable to the City Council. City staff shall act at all times in a businesslike and professional manner towards Councilmembers and members of the public.
8.7.3 Members of the Public. Members of the public attending City Council meetings are encouraged to treat Councilmembers, City staff, and other members of the public with the same courtesy that Councilmembers and City staff must accord to them. Any members of the public who engages in conduct that disrupts a City Council meeting shall be removed from the meeting.
Nothing in this Manual or any rules of conduct that may be adopted by the City Council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City, or of the acts or omissions of the City Council, City advisory bodies, or City staff.
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14 8.8 Discussion and Deliberation
8.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte communications prior to deliberation on a quasi‐judicial matter.
A quasi‐ judicial matter is typically a hearing in which the City Council hears evidence and makes findings of fact to reach a conclusion based on the applicable law. An ex parte communication occurs when a Councilmember hearing a quasi‐ judicial matter communicates directly or indirectly with any person or party in connection with a matter before the Council, without notice and the opportunity for all parties to participate.
8.8.2 Relevance. All discussion must be relevant to the issue before the City Council. A Councilmember is given the floor only for the purpose of discussing the pending matter; discussion which departs from the item agendized for discussion is out of order. Councilmembers should avoid repetition and shall not discuss matters that are not on the agenda. Arguments for or against a measure should be stated as concisely as possible.
8.8.3 Council Questions and Deliberations. Councilmembers may obtain the floor by seeking recognition from the Mayor. Following presentations to Council on an agenda item, Councilmembers shall each be given five minutes to ask questions of any presenter.
The Mayor may allow additional time for questions where appropriate. Following public comment, the Mayor may request that a motion be made and seconded. After the motion has been stated to the Council and seconded, any member of the Council has a right to discuss the motion after obtaining the floor. A member who has been recognized shall limit their time to five minutes, but may reserve any portion of their time for further questions or deliberations, as applicable, by advising the Mayor before yielding the floor. Councilmembers may yield any unused speaking time during Councilmember questions or deliberations to colleagues who have already used their allotted time. The Mayor may allow additional time for deliberations where appropriate to encourage meaningful discussion and exchange of ideas. This rule shall displace any conflicting rule in the City’s adopted rules of procedure.
8.8.4 Opportunity for Equal Participation. It is the policy of the Council to encourage the full, fair participation of all members of the 276
15 Council in discussions and deliberations. The Mayor may impose reasonable limits on the time any Councilmember is permitted to speak to advance this policy. In addition, all Councilmembers wishing to be recognized should be given an opportunity to speak before any member is allowed to speak a second time.
8.8.5 Civility. While it is appropriate to vigorously debate a motion, its nature, or its consequences, Councilmembers shall avoid attacks on the motives, character, or personality of other Councilmembers, City staff, and members of the public. The Mayor shall rule out of order any Councilmember who engages in such attacks.
8.8.6 Role of the Mayor. The Mayor has the responsibility for controlling and expediting the discussion of an agenda item. It is the duty of the Mayor to keep the subject clearly before the Councilmembers, to rule out irrelevant discussion, and to ensure civil discussion among Councilmembers.
8.9 Meeting Length. Meetings of the City Council shall adjourn by 11:00 p.m. unless the time of adjournment is extended by a vote of a majority of the City Council. Discussion of an agenda item shall not begin after 10:30 p.m. Any motion to extend the meeting beyond 11:00 p.m. shall include a list of specific agenda items to be discussed or approved and shall specify the order these items shall be considered. If a meeting continues past 11:00 p.m., it shall end at 11:30 p.m. All meetings shall be adjourned at 11:30 p.m. unless by a vote of a majority of the City Council suspends this rule and Council votes affirmatively to extend the meeting past 11:30 p.m. Following the adjournment of the meeting, any remaining items on the agenda shall be continued to the next regular meeting of the City Council.
8.10 Public Hearing Procedures. The order of proceeding where there is a public hearing item (non‐appeal items) before the City Council shall be as follows:
1. Open Public Hearing
2. Staff Report (preferably 10 minutes)
3. Applicant’s presentation (where applicable) (preferably 8 minutes)
4. Questions from the Council
5. Public comment
6. Applicant’s response to public comment (where applicable) 277
16 (preferably 2 minutes)
7. Close Public Hearing
8. City Council discussion and vote
Where the public hearing involves an appeal of a decision to the City Council, the order of proceeding shall be as follows:
1. Open Public Hearing
2. Staff Report (preferably 10 minutes)
3. Appellant’s statement (preferably 8 minutes)
4. Applicant’s statement (where applicable) (preferably 8 minutes)
5. Questions from the Council
6. Public comment
7. Applicant’s response to public comment (where applicable) (preferably 2 minutes)
8. Appellant’s response to public comment (preferably 2 minutes)
9. Close Public Hearing
10. City Council discussion and vote
8.11 City Council Recess Period. The City Council recess period shall begin the first Tuesday in August at 12:00 a.m. and end the Tuesday following Labor Day at 12:00 a.m. During any recess period, the City Manager is authorized to take such ministerial actions for matters of operational urgency, including such emergency actions as are necessary for the immediate preservation of the public peace, health, or safety, as would normally be taken by the City Council during the period of recess, except for those duties specifically reserved to the Council by law. This authority extends throughout the period of recess established by the City Council and includes the authority to execute agreements and make expenditures necessary for the exigent operational matters. The City Manager shall make a full and complete report to the City Council at its first regularly scheduled meeting following the period of recess of actions taken by the City Manager pursuant to this section, at which time the City Council may make such findings as may be required to ratify the actions of the City Manager. Nothing in this Section prevents the City Council from calling a special meeting during the recess period.
9. Closed Sessions
A closed session may be held at any regular or special meeting for any purpose authorized by the Brown Act. The City Attorney will schedule closed session meetings in consultation with the Mayor and the City 278
17 Manager. Public comment shall be received in open session prior to a closed session. To ensure strict compliance with the Brown Act, the City Attorney or the City Attorney’s designee shall report out in public session any reportable action taken during closed session and any other information from closed session authorized to be disclosed based on a majori ty vote of the City Council. Any documents referenced or presented during closed sessions shall be shared with Councilmembers upon request and shared in the same manner as other closed session materials, with appropriate protections for confidentiality.
10. Enforcement of Rules; Suspension of Rules. Nothing in this Manual shall be cited to invalidate a properly noticed and acted upon action of the City Council. Any rule set forth in this Manual may be suspended by three votes of the Council. The City Council may enforce repeated or serious violations of the rules set forth in th is Manual through a censure action placed on a Council agenda.
11. Information Memoranda.
11.1 Staff Information Memoranda. Two Councilmembers may request an information memorandum be provided on any matter within the subject matter jurisdiction of the City Council. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from one or more requesting Councilmembers as to why the information is needed.
11.2 Councilmember Information Memoranda. Individual Councilmembers may prepare information memoranda for inclusion in their Councilmember Reports. Councilmember memoranda may address any matter within the subject matter jurisdiction of the City Council that the Councilmember wishes to share with their fellow Councilmembers and the public, thereby enhancing transparency and accountability in City operations; provided however, that Councilmember memoranda shall not include confidential or deliberative information or communications or information protected by law from disclosure.
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RESOLUTION NO. 25-___
A RESOLUTION OF THE CUPERTINO CITY COUNCIL AMENDING THE
CUPERTINO CITY COUNCIL PROCEDURES MANUAL
WHEREAS, on February 7, 2023, the Cupertino City Council adopted Resolution No. 23-021, adopting the Cupertino City Council Procedures Manual; and
WHEREAS, on March 19, 2024, the City Council adopted Resolution No. 24-024, amending the City Council Procedures Manual; and
WHERAS, on February 19 , 202 5, the City Council considered further amendments to the City Council Procedures Manual.
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council hereby adopts the Cupertino City Council Procedures Manual, as amended, attached hereto as Exhibit A.
2. Resolution No. 24-024 and any other procedures, policies, or rules that are inconsistent with the Council Procedures adopted herein are hereby repealed and rescinded.
3. This Resolution shall take effect on February 20, 2025.
PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 19th day of February, 2025, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
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Resolution No. 25-___