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CC 04-16-2024 Item No. 11 Potential service-level reductions for FY 2024-25_Written Communications_2Written Communications CC 04-16-2024 Item No. 11 Potential service-level reductions for FY 2024-25 From:Liang Chao To:City Clerk Subject:Written Communication for 4/16 Council meeting: Attachments for Item 11 - Service Level Reduction Date:Tuesday, April 16, 2024 1:23:43 AM Attachments:2024-01-17 A - Potential Service-Level Reductions Summary (1).pdf To ensure that the meeting record includes the list of services to be cut, not just the changes made. I have attached the full proposed list for service level reduction from the 1/17 Council meeting. Please add this email and the attachment as written communication. Thanks. Liang Chao Councilmember City Council LChao@cupertino.gov 408-777-3192 From: Liang Chao <LChao@cupertino.gov> Sent: Friday, April 12, 2024 8:26 AM To: Matt Morley <MattM@cupertino.gov>; Pamela Wu <PamelaW@cupertino.gov> Cc: Kristina Alfaro <KristinaA@cupertino.gov> Subject: Re: Attachments for Item 11 - Service Level Reduction For the member of the public, it's not easy to find the supplemental reports. We can still add an attachment to this item today (I'm sure, since it has been done in the past). A member of the public who called me about one of the sevices mentioned in the staff report (items not to be cut) said that he had no idea that those NOT mentioned are to be cut. Why not just include the attachment with the full list of services to be cut (if not mentioned in the staff report) for transparency. A small gesture, but it would increase transparency a lot. Thank you for your consideration. Liang Liang Chao Councilmember City Council LChao@cupertino.gov 408-777-3192 From: Matt Morley <MattM@cupertino.gov> Sent: Friday, April 12, 2024 7:42 AM To: Liang Chao <LChao@cupertino.gov>; Pamela Wu <PamelaW@cupertino.gov> Cc: Kristina Alfaro <KristinaA@cupertino.gov> Subject: RE: Attachments for Item 11 - Service Level Reduction Councilmember Chao We will include your questions with responses and request for the January attachment in our supplemental report on Monday. The overall process is as follows: In January, staff provided a list of service level reductions. Council provided direction on those at that meeting – including direction to include some of the items in the upcoming proposed budget; to not include some of the items in the upcoming budget; to look for alternative funding for some; and to provide further information on some. This coming Tuesday (April 16) we will be following up on the last of those Council directions – to provide further information on some of the items. We will utilize the feedback from both meetings to craft the proposed budget, which we will present for Council discussion in May. Following the presentation of the proposed budget, staff will make adjustments as directed by Council and present the final budget for adoption in June. All of this aligns with staff’s commitment to bring multiple budget discussions forward with the public and the Council. Matt Morley Assistant City Manager City Manager's Office MattM@cupertino.gov (408)777-3282 From: Liang Chao <LChao@cupertino.gov> Sent: Friday, April 12, 2024 7:29 AM To: Pamela Wu <PamelaW@cupertino.gov> Cc: Matt Morley <MattM@cupertino.gov> Subject: Re: Attachments for Item 11 - Service Level Reduction I did not get an answer for this. Thank you. Liang Liang Chao Councilmember City Council LChao@cupertino.gov 408-777-3192 From: Liang Chao <LChao@cupertino.gov> Sent: Wednesday, April 10, 2024 10:07 PM To: Pamela Wu <PamelaW@cupertino.gov> Cc: Matt Morley <MattM@cupertino.gov> Subject: Attachments for Item 11 - Service Level Reduction I am confused by this statements in the staff report: ""The following table shows changes to the proposed service-level reductions since they were first introduced on January 17, 2024. Any service-level reductions not listed are assumed to move forward unless Council provides additional direction." Any service-level reduction not listed in the table would assume to "move forward" so the service would be retained or not retained? I assume that it is the later that those services NOT LISTED anywhere in this agenda item would be removed. I see that the attachments for Item 11 does not include the table of all of the service level reductions proposed from the 1/17 meeting. It is a common practice of the city to include relevant materials from previous meetings so the public does not need to look them up from another meeting. Since those service level reductions NOT LISTED, anywhere in this agenda item, would presume to be removed and this is a study session to have a second look and receive Council direction on ALL service level reductions. It is important to include the table with ALL of the proposed service level reductions for transparency and clarify. Don't you think so? I remember that we had a very long list and limited time in January. There were some items that I wish to bring up to provide feedback on, but there was no time to do so then. I appreciate the opportunity to have a second look next Tuesday. Could you please add the 1/17 attachment with all of the proposed service reduction to this agenda item? Thank you for your help to ensure that the public has sufficient information on the agenda item which will have an impact on the services the city provides for them. Liang Liang Chao Councilmember City Council LChao@cupertino.gov 408-777-3192 Potential Service-Level Reductions (SLR) Summary Attachment A Category Department Service‐Level Reductions Fiscal Impact Full‐Time Staffing Impact (FTE) Service Level Impact Narrative Fiscal Accountability Law Enforcement Align Law Enforcement Budget with Actuals $ 1,000,000 None Over the last year and a half, the Sheriffʹs Office has provided significantly less service than allowed under the budget with no apparent impact to crime. This reduction aligns the budget with the actual hours provided. Fiscal Accountability Innovation & Technology Reduce Budget for IT $ 779,187 None Reduced applications utilized by City staff; Cancelled ERP Implementation; Prolonged tech refresh cycles; Significantly reduced replacement parts and supplies, Reduced outside expert technical support. This reduction would reduce efficiencies from some technology uses where the city has historically been comparatively advanced. Fiscal Accountability Public Works Utility True‐up $ 398,407 None Reduction aligns budget with actuals Fiscal Accountability City Attorneyʹs Office Align City Attorneyʹs Office Contract Services and Materials with Actuals $ 226,561 None Reduction aligns budget with FY 2023‐24 Actuals. Specialized outside counsel and legal services are necessary to cover specialized legal representation and services. Fiscal Accountability Parks & Recreation Consolidate Learn to Swim Program $ 87,118 None Consolidate the Learn to Swim program into 100‐63‐612 under BBF, due to the program now being run from the BBF Pool and fully integrated into those operations. Consolidated part‐time staff and program supplies and expenses into that program. Fiscal Accountability Administrative Services Reduce Unemployment Insurance $ 64,148 None New costs are reflective of post ‐COVID estimates SLR Capital Improvement Program Reduce General Fund Transfers to the Capital Improvement Fund $ 2,000,000 2City will initiate and complete CIP projects with the current Capital Reserve fund. The City will initiate only critical health and safety projects, or projects that will create revenue or savings to the City budget. A reduction in capital renewal will lead to a longterm aging of infrastructure impacting the attractiveness of this infrastructure to the public. SLR Public Works Reduce Public Works Materials and Contract Services and Part‐ Time Positions $ 1,768,539 None Some contracts for general services, such as park tree maintenance ($168,880), will move in‐house, extending maintenance timelines; reduction in Public Works Part‐ time Positions ($352,136). SLR Public Works Shift Sidewalk Maintenance to Property Owners1 $ 1,000,000 1.4 The California Streets and Highway Code sections 5610‐5618 assigns responsibility for sidewalks to the adjacent property owner. Cupertino has historically assumed the costs of this work. This proposal will eliminate this service and shift sidewalk maintenance responsibilities to adjacent property owners. This practice is fairly standard across the region. SLR Public Works Shift School District Grounds Maintenance to School District1 $ 737,394 4.2 This reduction would end the field maintenance agreement with the Cupertino Unified School District. The school districts would need to take on the maintenance responsibilities. The City would forego revenue (approximately $57K) from field rentals and the school district could potentially add revenue. SLR Public Works Shift Street Tree Maintenance to Property Owners1 $ 455,008 3 Similar to sidewalk maintenance, street tree maintenance responsibility could shift to adjacent property owners. This practice is fairly standard across the region. 1 of 3 Potential Service-Level Reductions (SLR) Summary Attachment A Category Department Service‐Level Reductions Fiscal Impact Full‐Time Staffing Impact (FTE) Service Level Impact Narrative SLR Various Shift Credit Card Fees to Customers $ 432,668 None Customers would pay a credit card transaction fee for any payments made using a credit card. Currently, the City does not charge credit card fees to customers. Many jurisdictions charge customers a credit card transaction fee for any payments made using a credit card. SLR City Managerʹs Office/Community Development Reduce Part‐Time Staffing, Reclassify Positions and Reduce Recruitment Advertising $ 286,348 None The CMO reclassified the Communications Manager to a lower level position. This will result in decreased capacity in the Communications Division. Reduction of part‐time positions in CMO and CDD. This could result in reduced administrative and communications support in CMO. This could cause a delay and decrease in the operations of the permit counter and the ability to provide historic levels of customer service to resident and community members on all matters related to the Community Development Department. SLR Public Works Defer Vehicle and Equipment Replacement $ 180,000 None Defer vehicle and equipment replacements until future years. This may increase cost and staff time to repair assets that were deferred for replacements. SLR Parks & Recreation Reduce Funding for Library Extra Hours $ 160,000 None The City has historically budgeted for increased library hours. This reduction will have no immediate impact to current operational hours, since Santa Clara County Library District has historically received funds from the state to cover these costs and has not been charging the City for 12 additional operating hours per week. If state funds are discontinued, this will become a true service level reduction. SLR Parks & Recreation/Public Works Reduce 4th of July Funding $ 138,000 None Elimination of 4th of July evening fireworks due to the significant cost of the event, including the fireworks, sheriff cost, and rental of equipment needed, as well as staff time needed. SLR Public Works Reduce Impec Janitorial Contract $ 100,000 None Further reductions in cleaning frequency for City facilities. Reduced cleaning has a direct impact on user experience and leads to quicker degredation of facility infrastructure. SLR City Managerʹs Office Reduce Scene from 10 months to quarterly $ 92,400 None Reduction results in less promotion of City services and less community outreach opportunities. SLR City Managerʹs Office Eliminate Select City Work Program Projects $ 75,000 None Elimination of the CWP Enhance the Block Leader Program (grants to Block Leaders for community events), CWP Regulate Diversified Retail, and CWP License Plate Readers projects. Reduction in engagement with community. Reduction in retail diversity. Reduction in support for law enforcement to locate vehicles and suspects associated with criminal activity. SLR Administrative Services Reduce Budget for Internal Audit $ 70,000 None Reduction in the number of internal audit projects. Audits would occur on a less frequent basis. SLR Council Reduce Funding for Partnerships $ 69,307 None Reduction in funding for partnerships including Chamber and Sister Cities. Reduction in cross cultural exchange and economic development opportunities. SLR City Managerʹs Office Reduce City Events/Outreach $ 63,166 None Reduction in City events and outreach including the Community Academy, Public Safety Forum, State of the City, and CREST. Reduction could limit community outreach about public safety, law enforcement, Council goals and initiatives. 2 of 3 Potential Service-Level Reductions (SLR) Summary Attachment A Category Department Service‐Level Reductions Fiscal Impact Full‐Time Staffing Impact (FTE) Service Level Impact Narrative SLR Public Works Reduce Crossing Guard Services $ 50,000 None Reduction in the number of intersections served by crossing guards. The City currently receives $20K from FUHSD and $20K from CUSD. High schools could be eliminated from the crossing guard contract, resulting in a reduction of approximately $70K, but could lose the $20K from FUHSD ($50K savings). Enhancing cost sharing could result in reducing expenditures. SLR Parks & Recreation Reduce Budget for Paid Events $ 38,675 None Reduction in part‐time staffing scheduled for these events and program (e.g., Spelling Bee and Hack Cupertino). Will continue to offer current programs, but support with more volunteers and full‐time staff. SLR Parks & Recreation Shift Sheriff Fees for Festivals to Festival Organizers $ 34,992 None Sheriff expenses for festivals will no longer be covered by the City and will be charged directly to festival organizers starting in FY 2024‐25. SLR Parks & Recreation Reduce Parks & Recreation Expenses $ 33,619 None Elimination of the Poet Laureate Program and Helping Hands Program. Reduce part‐time staff for the preschool program, with a shift in focus to a more robust Tiny Tots (3 year old) program. SLR Parks & Recreation Reduce Park Ranger Services $ 31,155 None Reduction in hours planned for part‐time rangers at the Stevens Creek Corridor and McClellan Ranch Preserve, resulting in a reduced ranger presence at the Environmental Education Center and for some of the nature based programs and events. SLR Parks & Recreation Reduce Budget for Concerts and Movies $ 25,424 None Consolidation of the Neighborhood Events program to reduce part‐time staffing expenses and the reallocation of some events such as movies and band performances to Memorial Park. SLR City Managerʹs Office Eliminate Minimum Wage Mailers $ 23,202 None The City currently prints and mails minimum wage information to businesses. This reduction would result in emailed forms, requiring businesses to print on their own. SLR Parks & Recreation Reduce Senior Center Part‐Time Staffing and Supplies $ 21,748 None Reduction in hours planned for part‐time staff at the Senior Center resulting in longer wait times for customers at the counter, reduced rental support, and reduced amenities in programs and events. SLR Public Works Eliminate Earth Day Festival $ 19,126 None Direct impact to quality of life through community events. Less opportunity for the City to advance goals, especially community outreach, around the Climate Action Plan. SLR Administrative Services/Communi ty Development Reduce Conferences and Training $ 11,046 None The decrease in conference attendance and training opportunities for staff might result in staff being less updated on current changes, new developments, and best practices within their field. The reduction could potentially lead to higher staff turnover rates. Total $ 10,472,238 10.6 1 Reduction will take place over time. Staffing reduction will be through attrition as positions become vacant 3 of 3 From:Long Jiao To:City Clerk; City Council Subject:For 4/16 Council Meeting, Item 11 Date:Monday, April 15, 2024 8:56:17 PM Attachments:image.png image.png CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Council Members, Please include this email as written communication for agenda item 11 of the Council Meeting on 4/16. In February 2024, Cupertino Voice performed a survey regarding potential service-level reductions. You can find the full survey results at https://cupertinovoice.org/?p=132. The total number of participants was 275, including 231 registered voters. While they agreed on many of the potential service reductions, most of the participants voted NO for shifting sidewalk and street tree maintenance to property owners. Below are the screenshots. Thank you, Long Jiao on behalf of Cupertino Voice