Loading...
05 - May 29, 2025 Sister City Program Costs CITY COUNCIL INFORMATIONAL MEMORANDUM Date: May 29, 2025 To: Cupertino City Council From: Tina Kapoor, Acting City Manager Re: Sister City and Friendship City Program Costs Background Council has expressed interest in receiving a more detailed accounting of the costs, including budgeted and indirect costs, associated with administering the Sister and Friendship City program. In 2023, staff prepared a table outlining these costs, which is included as Attachment A. This memo provides updated information on staff support, travel, facility usage, and other program-related expenses. These details are also included as a table, in Attachment B (FY 24) and Attachment C (FY 25). Budgeted Costs The FY 2025 budget includes a total of $59,011 of expenses for the Sister Cities program. These expenses include the following: Expenditures Adopted Budget Employee compensation and benefits: 5% of Full Time Communications and Marketing Coordinator $10,517 Materials: Council travel expenses, gifts, membership $8,887 Contracts: Policy allocates up to $5k for each Sister City $20,000 Cost Allocation/Contingencies: Other staff/overhead expenses $19,607 Total $59,011 These budgeted expenses are aligned with the Sister and Friendship City Policy, which outlines that the City will provide gifts for sister city delegations, pay for 50% of a councilmembers travel expenses, pay for the Sister Cities International membership, and reimburse each Sister City with a student delegation with up to $5,000. Staff Time All program budgets account for staff time and overhead expenses through the employee and cost allocation expenditures, listed above. Combining the employee costs ($10,517) with the cost allocation/contingencies ($19,607), the staff and overhead expenses for the Sister Cities program for FY 25 is $30,124. Throughout this fiscal year, staff time dedicated to Sister and Friendship City activities resulted in an estimated 465 hours as follows: • Delegation preparation, tours, and presentations: about 70 hrs./yr • Festival Support - Parks & Recreation/Public Works Staff: about 305 hrs./yr • Event attendance and support: about 35 hrs./yr • Speechwriting and proclamation support: about 5 hrs./yr • Media and video production: about 50 hrs./yr Significantly, about 305 hours are attributed to the Cherry Blossom and Bhubaneswar festivals. These hours result in an approximate value of $24,738, based on the staff rates within Public Works and Parks and Recreation. The additional 160 hours are attributed to all other operational/administrative activities for the program, which results in an approximate value of $13,221 based on the staff allocated rate within the City Manager’s Office. In total, these hours amount to about $37,959 in staff costs for this fiscal year. This total is $7,835 over the budgeted amount for employee costs and cost allocation expenditures that are already in the FY 25 adopted budget. This increase is due to Sister City and Friendship City programs resuming to pre-COVID activity levels, which began to ramp up in 2023. Staff time will fluctuate on a year-by-year basis for all programs and an adjustment to staff allocations can be made in the future if needed. Friendship Cities and International Delegations Of the staff hours and costs listed above, 15 hours of staff time, totaling an estimated $1,175.42, are attributed to Friendship City delegation visits this fiscal year. During these visits, staff prepared nominal promotional items for guests, that did not exceed the $25 limit per gift. These expenses are budgeted on an annual basis. The policy allows the City to provide Friendship Cities and international delegations with certain promotional items, but they are not eligible for any facility waivers or other perks. Over this past fiscal year, there have been a total of two Friendship City and one International Delegation visits. Travel Costs The Sister City policy allows for one international visit, for the Mayor or their designee, to one of the four sister cities each year. For FY 2025, the City has paid a total of $6,665.51 in costs associated with Sister City travel to Bhubaneshwar. These expenses are budgeted on an annual basis. Any travel costs paid by the Sister City Committee are unknown at this time, as their financial reports will be collected at the end of this fiscal year. Indirect Costs In addition to the budgeted expenses outlined above, the Sister City program incurs indirect costs related to facility use and festival fee waivers. Friendship Cities and other international delegations are not eligible for these waivers. Facility Fee Waivers The Sister City policy allows each Sister City committee with a student delegation to use small meeting room space (not including Community Hall or the Cupertino room at Quinlan) at no cost to the committee up to 18 times per calendar year. They are also allowed complimentary access to a large City facility up to three times per fiscal year. Sister cities who do not have a student delegation are only allowed up to four small meeting room uses per calendar year. As of 2024, all four sister cities have student delegations and per the policy are allowed the 18 uses for small meeting rooms and 3 uses for large meeting rooms. In calendar year 2024 and FY 2025, the four Sister City Committees used the following city facilities: Sister City Small Meeting Room Uses Calendar Year: Jan-Dec 2024 Large Meeting Room Uses Fiscal Year: July 1, 2024 - June 30, 2025 # of uses Hours Waived Fees # of uses Hours Waived Fees Toyokawa 9 24.5 $525 3 9 $353 Hsinchu 0 0 $0 1 6 $180 Copertino 0 0 $0 1 2 $60 Bhubaneshwar 0 0 $0 1 4.5 $360 Total 9 24.5 $525 6 21.5 $953 Festival Fee Waivers Information on all festival fee waivers are included in the adopted and proposed budgets as part of the Cultural Events program budget (100-61-605). Information specific to Sister Cities are included in Attachments A, B, and C. Fees collected by the City are included in the budget as revenue, not expenses, therefore these waived fees are indirect costs that are not included in the budget as they are not expenses for the City. Staff time to set up these rooms and facilitate events are included in the staff costs above. Sustainability Impact No sustainability impact. Fiscal Impact The costs of administering the Sister and Friendship City program for FY 25 is about $91,910, of which $67,919 is attributed to the Cherry Blossom and Bhubaneswar Festivals. A detailed breakdown for each fiscal year from 2022-2025 is included in Attachments A, B, and C. City Work Program Item/Description None Council Goal Fiscal Strategy, Public Engagement and Transparency _____________________________________ Prepared by: Astrid Robles, Acting Assistant to the City Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Rachelle Sanders, Director of Parks and Recreation Approved for Submission by: Tina Kapoor, Acting City Manager Attachments: A – FY 22-23 Sister City Program Costs Table B – FY 23-24 Sister City Program Costs Table C – FY 24-25 Sister City Program Costs Table Recreation  Staff Cost Facility/Park/ Road Permits Public Works  Staff Cost Sheriff Policy  Allocated  Expenses Bhubaneswar Sister City  Initiative Festival $2,160 $6,980 $3,517 $3,744 $16,401 Cherry Blossom Festival $5,578 $17,520 $9,010 $10,944 $43,052 Council Policy:  Student Delegation Fund for  4 Sister Cities  (up to $5k each)* $11,347 $11,347 Council Policy:  Set‐up and access to large  City facility for up to 3  community events per  organization (City‐supported  Committees) $301 $238 $539 Council Policy:  Meeting room space for up to  18 times per organization  (City‐supported Committees) $74 $408 $482 Council Policy:   Meeting room space for up to  4 times per organization  (Non City‐supported  Committees) $0 Council Policy:  Promotional gifts to govt  representatives from visiting  countries max $25 each $94 $94 Council Policy:  Travel expenses to cover 50%  of Council travel for Sister  City Visits/ Conference $832 $832 Budgeted Staff Time to  Facilitate Program (0.1 FTE)  and other staff costs $19,591 $19,591 Total $8,113 $25,146 $12,527 $14,688 $31,864 $92,338 Sister City Program Costs  FY 22‐23 Waived Fees City Paid Expenses Total Attachment A:  FY 22‐23 Sister City Program Costs Table Recreation  Staff Cost Facility/Park/ Road Permits Public Works  Staff Cost Sheriff Policy  Allocated  Expenses Bhubaneswar Sister City  Initiative Festival $2,160 $6,980 $3,517 $3,744 $16,401 Cherry Blossom Festival $5,578 $17,520 $9,010 $10,944 $43,052 Council Policy:  Student Delegation Fund for  4 Sister Cities  (up to $5k each)* $12,895 $12,895 Council Policy:  Set‐up and access to large  City facility for up to 3  community events per  organization (City‐supported  Committees) $595 $678 $1,273 Council Policy:  Meeting room space for up to  18 times per organization  (City‐supported Committees) $64 $348 $412 Council Policy:   Meeting room space for up to  4 times per organization  (Non City‐supported  Committees) $0 Council Policy:  Promotional gifts to govt  representatives from visiting  countries max $25 each $6,156 $6,156 Council Policy:  Travel expenses to cover 50%  of Council travel for Sister  City Visits/ Conference $0 $0 Budgeted Staff Time to  Facilitate Program (0.1 FTE)  and other staff costs $19,148 $19,148 Total $8,397 $25,526 $12,527 $14,688 $38,199 $99,337 Sister City Program Costs  FY 23‐24 Waived Fees City Paid Expenses Total Attachment B:  FY 23‐24 Sister City Program Costs Table Recreation  Staff Cost Facility/Park/ Road Permits Public Works  Staff Cost Sheriff Policy  Allocated  Expenses Bhubaneswar Sister City  Initiative Festival $2,522 $6,140 $3,961 $3,612 $16,235 Cherry Blossom Festival $6,622 $21,649 $11,633 $11,780 $51,684 Council Policy:  Student Delegation Fund for  4 Sister Cities  (up to $5k each)* *$0 $0 Council Policy:  Set‐up and access to large  City facility for up to 3  community events per  organization (City‐supported  Committees) $595 $953 $1,548 Council Policy:  Meeting room space for up to  18 times per organization  (City‐supported Committees) $88 $525 $613 Council Policy:   Meeting room space for up to  4 times per organization  (Non City‐supported  Committees) $0 Council Policy:  Promotional gifts to govt  representatives from visiting  countries max $25 each $1,943 $1,943 Council Policy:  Travel expenses to cover 50%  of Council travel and Staff  travel for Sister City Visits/  Conference $6,666 $6,666 Budgeted Staff Time to  Facilitate Program (0.1 FTE)  and other staff costs $13,221 $13,221 Total $9,827 $29,267 $15,594 $15,392 $21,830 $91,910 Attachment C:  FY 24‐25 Sister City Program Costs Table Sister City Program Costs  FY 24‐25 Waived Fees City Paid Expenses Total *This is on a reimbursement basis only. Reimbursement requests occur in June. Annual average since 2019: $10,240