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HomeMy WebLinkAbout05-16-2017 packetCITY OF CUPERTINO AGENDA CITY COUNCIL 3:00 PM 10300 Torre Avenue and 10350 Torre Avenue Tuesday, May 16, 2017 Special Meeting Televised Study Session (3:00) and Non-televised Closed Session (immediately following); Followed by Televised Regular Meeting (6:45) NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, May 16, 2017, commencing at 3:00 p.m. for a study session in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014 and a closed session immediately following in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." The regular meeting items will be heard at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California. SPECIAL MEETING ROLL CALL - 3:00 PM 10350 Torre Avenue, Community Hall Council Chamber STUDY SESSION Page 1 CITY OF CUPERTINO 1 May 16, 2017City Council AGENDA 1.Subject: Study session regarding the Proposed Fiscal Year 2017-2018 Budget Recommended Action: Conduct the Budget study session A. Budget Message/Overview of FY 2017-2018 Proposed Budget B. Review of Pass-through Revenues/Expenses C. Departmental Budgets: * Council and Commissions * Administration * Law Enforcement * Innovation & Technology * Administrative Services * Recreation and Community Services * Planning and Community Development * Public Works D. 5 Year Capital Improvment Program (CIP) E. Questions and Answers F. Public Comments G. Council Comments A - Organization Chart B - City Officials and Commissions and Committee's DIrectory C - Budget Message D - Budget Guide E - Community Profile F - Financial Policies and Schedules G - Council and Commissions G1 - Community Funding apps for 2017-18 H - Administration I - Law Enforcement J - Innovation & Technology K - Administrative Services L - Recreation and Community Services M - Planning and Community Development N - Public Works O - Non Departmental P - Personnel Schedules Q - Capital Improvments CLOSED SESSION - Immediately following the study session 10300 Torre Avenue, City Hall Conference Room A Page 2 CITY OF CUPERTINO 2 May 16, 2017City Council AGENDA 2.Subject: Conference with Legal Counsel-Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9. Name of case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al., Santa Clara County Superior Court Case No. 115CV281214. ADJOURNMENT REGULAR MEETING PLEDGE OF ALLEGIANCE - 6:45 PM 10350 Torre Avenue, Community Hall Council Chamber ROLL CALL CEREMONIAL MATTERS AND PRESENTATIONS 1.Subject: Proclamation for Public Works Week on May 21-27, 2017 Recommended Action: Present Proclamation 2.Subject: Proclamations recognizing Cupertino Green Businesses for their contribution to the health of our community Recommended Action: Present Proclamations 3.Subject: Present certificates and awards for the Cupertino Historical Society's 3rd Annual History Scholarship Award Contest Recommended Action: Present certificates and awards for the Cupertino Historical Society's 3rd Annual History Scholarship Award Contest 4.Subject: Presentation by Cupertino-Hsinchu Sister City Association (CHSCA) regarding its recent Cupertino Student Delegate trip to Hsinchu City, Taiwan Recommended Action: Receive presentation by Cupertino-Hsinchu Sister City Association (CHSCA) regarding its recent Cupertino Student Delegate trip to Hsinchu City, Taiwan 5.Subject: Commendations and presentations from the 2017 Hackathon Winners Recommended Action: Present commendations and accept the presentations from the five winning teams: Volunteer X, Hood Watch, Walk With Me, Connected Carpool, and Charity Channel POSTPONEMENTS Page 3 CITY OF CUPERTINO 3 May 16, 2017City Council AGENDA ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the council on any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the council from making any decisions with respect to a matter not listed on the agenda. CONSENT CALENDAR Unless there are separate discussions and/or actions requested by council, staff or a member of the public, it is requested that items under the Consent Calendar be acted on simultaneously. 6.Subject: Approve the May 2 City Council minutes Recommended Action: Approve the May 2 City Council minutes A - Draft Minutes 7.Subject: Treasurer's Investment Report for Quarter Ending March, 2017 Recommended Action: Accept the Report Staff Report A - Investment Portfolio B - Wells Fargo Value Comparion Report QE March 2017 C - Supplemental Portfolio Analysis 8.Subject: Designation of appointees to the Association of Bay Area Governments (ABAG) Plan Board of Directors Recommended Action: Adopt Resolution No. 17-046 rescinding Resolution No. 6864 and Appointing Directors to ABAG Plan Corporation on Behalf of the City of Cupertino Staff Report A - Draft Resolution Page 4 CITY OF CUPERTINO 4 May 16, 2017City Council AGENDA 9.Subject: Approve the Third Quarter Financial Report and recommended budget adjustments for Fiscal Year 2016-2017 Recommended Action: 1. Accept the City Manager’s Third Quarter Financial Report for FY 2016-17 2. Approve the Third Quarter adjustments for FY 2016-17 as described in the Third Quarter Financial Report 3. Adopt Resolution No. 17-047, approving Third Quarter budget adjustments Staff Report A - Draft Resolution B - Third Quarter Financial Report C - Performance Measures for each department D - Budget Journal for Proposed Adjustments 10.Subject: Establishment of Friendship City Relationships Recommended Action: Review and consider five (5) applications establishing Friendship City relationships with Beijing, People’s Republic of China; Guangzhou, People’s Republic of China; Guiyang, People’s Republic of China; Huizhou, People’s Republic of China; and Xuzhou, People’s Republic of China. Staff Report A - Beijing Friendship City Application B – Guangzhou Friendship City Application C – Guiyang Friendship City Application D – Huizhou Friendship City Application E – Xuzhou Friendship City Application 11.Subject: Award a Contract to Hello Housing to administer the City’s Below Market Rate (BMR) Housing Program funded through the City’s BMR Affordable Housing Fund (AHF) Recommended Action: 1. Adopt Resolution No. 17-048; recommending approval of the FY 2017-18 consultant for Below Market Rate (BMR) Program Administration to City Council for final adoption Staff Report A - Draft Resolution B - RFQ BMR Housing Program Administration C - Hello Housing Proposal D - Housing Commission Resolution 17-01 SECOND READING OF ORDINANCES PUBLIC HEARINGS Page 5 CITY OF CUPERTINO 5 May 16, 2017City Council AGENDA ORDINANCES AND ACTION ITEMS 12.Subject: Community-centered process on a plan for Vallco Recommended Action: That the City Council: 1. Provide direction regarding the initial phase of a community-centered process on a plan for Vallco; and 2. Approve an increase to the Fiscal Year 2016-17 Planning and Community Development- Mid to Long Range program budget of $25,000 for the first phase Staff Report 13.Subject: Three Small Cell License Agreements with 1) Crown Castle Ng West, LLC; 2) Mobilitie, LLC: and 3) GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. Recommended Action: Authorize the City Manager to enter into Small Cell License Agreements with Crown Castle Ng West, LLC; Mobilitie, LLC; and GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. Staff Report A - Small Cell License Agreement - Mobilitie, LLC B - Small Cell License Agreement - Crown Castle Ng West, LLC C - Small Cell License Agreement - GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless D - Exhibit of preferred Small Cell Pole Replacement Design Concepts 14.Subject: Comprehensive Financial Reports for Fiscal Year 2015-16 Recommended Action: Accept the City Financial Reports for Fiscal Year ending June 30, 2016 Staff Report A - Comprehensive Annual Financial Report FY 2015-16 B - Memorandum of Internal Control and Required Communications C - Independent Accountant's Report on the City of Cupertino Investment Policy D - Site Systems and Bank Processes REPORTS BY COUNCIL AND STAFF 15.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 6 CITY OF CUPERTINO 6 May 16, 2017City Council AGENDA The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/index.aspx?page=125 for a reconsideration petition form. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the next City Council meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, 48 hours in advance of the Council meeting to arrange for assistance. Upon request, in advance, by a person with a disability, City Council meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be made available for use during the meeting. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, during normal business hours and in Council packet archives linked from the agenda/minutes page on the Cupertino web site. Members of the public are entitled to address the City Council concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in front of the Council, and deliver it to the Clerk prior to discussion of the item. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item not on the agenda, you may do so by during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less. Page 7 CITY OF CUPERTINO 7 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2371 Name: Status:Type:Study Session Agenda Ready File created:In control:2/14/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Study session regarding the Proposed Fiscal Year 2017-2018 Budget Sponsors: Indexes: Code sections: Attachments:A - Organization Chart B - City Officials and Commissions and Committee's DIrectory C - Budget Message D - Budget Guide E - Community Profile F - Financial Policies and Schedules G - Council and Commissions G1 - Community Funding apps for 2017-18 H - Administration I - Law Enforcement J - Innovation & Technology K - Administrative Services L - Recreation and Community Services M - Planning and Community Development N - Public Works O - Non Departmental P - Personnel Schedules Q - Capital Improvments Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Study session regarding the Proposed Fiscal Year 2017-2018 Budget Conduct the Budget study session A. Budget Message/Overview of FY 2017-2018 Proposed Budget B. Review of Pass-through Revenues/Expenses C. Departmental Budgets: * Council and Commissions * Administration * Law Enforcement * Innovation & Technology * Administrative Services CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 2 powered by Legistar™8 File #:17-2371,Version:1 * Recreation and Community Services * Planning and Community Development * Public Works D. 5 Year Capital Improvment Program (CIP) E. Questions and Answers F. Public Comments G. Council Comments CITY OF CUPERTINO Printed on 5/10/2017Page 2 of 2 powered by Legistar™9 Citizens of Cupertino City Council Committees and Commissions City Manager City TreasurerCity Attorney Sustainability ProgramsPublic AffairsCity Clerk Recreation and Community Services Public WorksCommunity Development Innovation & Technology Administrative Services Finance Human Resources Building Planning Economic Development Code Enforcement (Zoning & Building) Recreation & Education Sports,Safety & Outdoor Recreation TransportationCapital Improvement Program Environmental Programs Development Services Service Center Streets Trees & ROWGrounds Facilities & Fleet InfrastructureGIS ApplicationsVideo Housing Business & Community Services Law Enforcement (Santa Clara County Sherriff – Contract) Code Enforcement 1 10 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2017-18 CITY COUNCIL DIRECTORY OF CITY OFFICIALS David Brandt – City Manager Randolph Stevenson Hom – City Attorney Timm Borden – Director of Public Works Kristina Alfaro – Director of Administrative Services Jeff Milkes – Director of Recreation and Community Services Aarti Shrivastava – Assistant City Manager/Director of Community Development Rod Sinks Council member Barry Chang Council member Steven Scharf Council member Savita Vaidhyanathan Mayor Darcy Paul Vice Mayor 2 11 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2017-18 COMMISSIONS AND COMMITTEES AUDIT COMMITTEE LIBRARY COMMISSION Peter Shin Rose Grymes Eno Schmidt Liana Crabtree Steven Scharf Gopal Kumarappan Rod Sinks Amanda Wo Mark Zavislak Christie Wang HOUSING COMMISSION PLANNING COMMISSION Sue Bose Geoffrey Paulsen Shirley Chu Jerry Liu Nina Daruwalla David Fung Sanjiv Kapil Don Sun John Zhao Alan Takahashi FINE ARTS COMMISSION BICYCLE PEDESTRIAN COMMISSION Janki Chokshi Gerhard Eschelbeck Wenjia Chen Jennifer Shearin Rajeswari Mahaliagan Peter Heller Diana Matley Sean Lyn Michael Sanchez Erik Lindskog PUBLIC SAFETY COMMISSION TEEN COMMISSION Neha Sahai Grace Huang Shivani Sahni Hymanand Nellore Ankita Sahni Sidharth Rajaram Robert McCoy Meesha Reiisieh Christina Lau Gerald Tallinger Anooj Vadodkar Andy Huang SUSTAINABILITY COMMISSION ECONOMIC DEVELOPMENT Angela Chen Meera Ramanathan Darcy Paul Angela Tsui Gary Latshaw Anna Weber Timm Borden Rich Abdalah Vignesh Swminathan Savita Vaidhyanathan David Brandt Aarti Shrivastava Anjali Kausar FISCAL STRATEGIC COMMITTEE Kevin McClelland Mike Rohde Kristina Alfaro Aarti Shrivastava Jason Lundegaard Rod Sinks Darcy Paul Geoffrey Paulsen Timm Borden Lisa Taitano TECHNOLOGY, INFORMATION & PARKS AND RECREATION COMMISSION COMMUNICATIONS COMMISSION Meenakshi Biyani Helen Davis Rajaram Soundararajam Rod Livingood Carol Stanek Neesha Tambe Keita Broadwater Arnold de Leon Judy Wilson Vaishali Deshpande 3 12 Budget Message 13 May 1, 2017 To the Residents of Cupertino, Honorable Mayor and Members of the City Council: I am pleased to submit a balanced FY 2018 Proposed Budget for Council consideration. Cupertino prides itself on being a financially stable organization, which helped the City avoid severe service level reductions and layoffs during the last economic downturn. The City has been fortunate that revenues have outpaced expenditures for the last several years. However, cities in California are expecting a 7-year ramp up of CalPERS retirement rates due to the reduction in the expected investment rate of return from 7.5% to 7.0%, which will increase personnel costs significantly over the forecast period. With healthy reserves and projected surpluses in all five years of the forecast period, the City is well positioned to manage these rapidly increasing costs. The City’s strong incoming financial position notwithstanding, this significant new and permanent liability warrants a response. Consequently, I propose increasing our CalPERS Retirement reserve from $500,000 to $4.8 million in FY 2018. Over the next several months, staff will be exploring the efficacy of transferring part or all of this reserve into a trust account similar to the one we created to fund the City’s OPEB liability. Based on 10-year projections, this approach will allow the City to weather the significant increases to employer retirement rates and minimize their impacts on City operations. Reflected in this budget are increases in salary and benefit costs resulting from three-year bargaining unit contract agreements approved by Council in October 2016. I am pleased that Cupertino employees are compensated well above median for our region allowing us to retain and attract talent. Other budget resources are proposed for maintaining existing service levels and infrastructure with few service level enhancements. The focus for next fiscal year will be on better utilizing existing resources to maximize efficiency in delivering services to our residents. I am recommending strategic investments in the areas of transportation, emergency preparedness, senior recreation services, and Council staff support. A total of 4.0 new positions are requested in this budget to help the City meet demands for enhanced services. However, these are proposed to be limited-term in order to minimize long-term impacts on the City’s fiscal health. I am also recommending a one-year extension of a limited-term position that supports our sustainability programs. Finally, Staff is recommending additional funds for 6 14 contractual services in the Administrative Service Department to assist in modernizing policies and internal processes that have languished for many years. Two new funding sources will assist with our investment in transportation maintenance and improvements. Measure B, a voter-approved county-wide transportation tax will result in approximately $1.3 million additional revenue for local street and road maintenance. The Road Repair and Accountability Act of 2017 (SB1, Beall) signed by Governor Brown in March will provide an additional $336,000 in FY 2018 for pavement maintenance, which will increase to $1.3 million annually by FY 2020. Over the past four years, the City’s investment in pavement maintenance has brought the City’s pavement condition index from 64 (fair) in 2012 up to an improving 78 (good) today. As a city’s index nears 80, more money is spent on preservation rather than rehabilitation, and consequently, maintenance costs are lower and require less effort. Public Works staff is deservedly proud of this remarkable accomplishment and the new Measure B and SB1 will help Cupertino meet and exceed its goal of an 80 pavement condition index. The 2016 fiscal year saw significant development in the City of Cupertino. Projects included a variety of retail, residential, mixed-use and office. In 2017, we expect a drop in the level of large projects and a sustained level or a slight decrease in smaller commercial and residential projects. Below is a list of some of the major projects that have either been recently approved and/or are in the construction stage. These projects contribute to the smart and diverse growth of the city, contribute significantly to the growth in City financial resources, and provide a much desired identity for the community: •Apple Park. Construction has been progressing with an estimated goal of occupancy from Spring 2017 through the end of the year. The project includes an approximately 3.4 million square feet of office and labs for research and development as well as a 1,000 seat theater and supporting facilities. The completion of this project is expected to focus more global interest on the city, and foster economic development by attracting businesses and supporting services. •Main Street. Construction for the retail portion was completed with the majority of the spaces occupied. The office and flex space (which houses small businesses) are 100% occupied. The Grand Opening of the plaza was held on September 17, 2016. Community based events such as tree lighting and holiday music and dance have been planned and held at the plaza. Main Street provides a gathering place for residents and a place to host community events. Other uses that are to come in the upcoming year include a 180- room Marriot Courtyard hotel, 120 apartments and a 0.5-acre public park in addition to the already built Town Square. •Hamptons. In July 2016, the City Council approved the redevelopment for the Hamptons Project located near the Apple Park. The site was identified as a “Priority 7 15 Housing Element Site” in the Housing Element, proposes to replace the existing 342 apartments with a total of 942 apartments. Community benefits include $7 million towards the Civic Center, an additional $7 million for the I-280/Wolfe Road interchange, extension of a recycled water line to the project, and will share the cost toward the establishment and operation of Transportation Demand Association that may fund community shuttles. The project would also add 37 Below Market-rate (BMR) units for a total of 71 affordable units. The project will also pay impact fees for parks, schools and traffic improvements. •Marina Plaza. In September 2016, the City Council approved the Marina Plaza project which was also identified as a “Priority Housing Site” in the Housing Element. The project replaces the existing Marina Shopping Center and Mandarin Gourmet restaurant with 23,000 square feet of new retail and restaurant uses and provides an opportunity to relocate some existing businesses as well as a small market, a new 122-room hotel along De Anza Boulevard, and 188 residential units that include 18 affordable below-market rate units. The project will increase the affordable housing stock in the city and provide a new hotel, which will bring in much needed services and revenue. •Target. On September 27, 2016, Planning Commission approved an application from Target to remodel the existing store at 20745 Stevens Creek Boulevard. The project maintains the existing building footprint but has a redesigned interior to adapt to new consumer trends and a new curbside pickup area on the west side of the building. Project goals also include adding sustainability features such as solar canopies, living walls (greenery), and drought-tolerant planting, accentuating the pedestrian link to the entry plaza. The project has been put on hold for a year and is expected to begin in January 2018. When the construction is completed, the Cupertino Target store will be one of the first new corporate stores in the country to be designed with these features, bringing economic viability and visibility to the city. Organizational Changes Last year, I hired the City’s first Chief Technology Officer (CTO) to lead a newly created department focused on technology services. After assessing staff skills, the CTO has renamed the department Innovation and Technology (IT) and reorganized it into five divisions: Administration, Infrastructure, Applications, GIS, and Video. The Communication program was split into the Video program, which comprises the technical audio-visual side of communications, and Public Affairs. Public Affairs has moved into the City Manager’s Office and is focused on community engagement, outreach, marketing, and branding. IT application and hardware budgets will be centralized and managed by IT. Overall, this change has improved IT customer service, as reflected in our recent internal customer satisfaction surveys, with departments feeling more supported in making technology investments. 8 16 Organizational Accomplishments & Highlights The City is proud of its reputation as a green city. To further its sustainability goals, the following service level enhancements were implemented in FY 2017: Community Choice Energy Last year, the City partnered with the cities of Sunnyvale, Mountain View, the County and with eight other Santa Clara communities to form the Silicon Valley Clean Energy Authority (SVCEA) and operate the region’s first Community Choice Aggregation program. As of April 1, 2017, SVCEA is directly procuring renewable and low greenhouse gas (GHG) emitting electrical power supplies on behalf of the residents and businesses in Santa Clara County. While electric supply is handled by SVCEA, the electricity grid and customer service remain with PG&E. Service to residential customers is being phased in April-October 2017. To see the latest on SVCEA, visit www.svcleanenergy.org. Drought and Storm Response The beginning of the year was a peak for the multi-year State-wide drought emergency. Water conservation was a priority City-wide. Municipal facilities achieved an overall water savings of 35% as compared to 2013. These savings exceeded local area goals and resulted in the conservation of over 47.8 million gallons. Ironically, the very rains that ended the drought emergency were the cause for the State and Federal flood disaster emergencies in Santa Clara County. Fortunately, incidences of flooding and other damage were very light in Cupertino. This is attributed to good preparation, experienced staff and well-maintained infrastructure. Minimum Wage Per Council direction, staff worked with the Cities Association of Santa Clara County on a regional Minimum Wage Ordinance to increase the minimum wage to $15/hour by 2019. In addition to helping craft the ordinance, staff made significant efforts to obtain feedback from business stakeholders through an employer survey, several presentations at Chamber of Commerce Legislative Action Committee, three business outreach meetings, and an online community poll. After Council adopted Ordinance No. 16-2151 establishing a citywide minimum wage on October 4, 2016, staff continued its outreach to ensure compliance with the January 1, 2017 increase to $12/hour. Notices and postcards were sent out to every business license holder in the City and residents were informed of potential price increases. To date, the City has not received any complaints related to compliance. For more information, visit www.cupertino.org/wagewatch. Beekeeping Ordinance In order to address an alarming reduction of bees in the United States, the City Council joined many other cities and towns in the country to approve an amendment to the city’s current Beekeeping Ordinance that had previously prohibited beekeeping within the majority of the 9 17 city’s 13 square miles. The amendment provides more reasonable and flexible regulations to support and encourage urban beekeeping. Community Development Department collaborated with Cupertino’s Rolling Hills 4-H team to develop regulations for the ordinance. The Ordinance became effective on January 6, 2017. Cupertino Scene The City is improving its communication tools to better engage with the public. In February, the Public Affairs team gave the Cupertino Scene a new look. The reimagined Scene is larger, has brighter colors, features more articles, and includes a Q&A section for frequently asked questions. The feedback has been very positive. Implementation of 2016 Bicycle Transportation Plan Following up on recommendations contained within the 2016 Bicycle Transportation Plan, a study of conceptual designs is underway for protected bike lanes on Stevens Creek Boulevard and McClellan Road, as well as for a network of bicycle boulevards on local streets throughout the City. Implementation of these improvements is anticipated to begin in summer, 2017. Also, a Request for Proposals has also been initiated for two major trail projects identified in the plan. Pavement Management This year, the city’s street pavement asset hit a new milestone. The measurement index in which pavement condition is rated advanced from a network value of 70 out of 100 to a value of 78. The value of this is that pavement conditions are becoming very good and the future cost to maintain the network will become less. Also important is that this good condition results in less wear and tear on vehicles, and much better surfaces for biking and walking. Safe Routes to School Now expanded from the initial six-school pilot program to include all fourteen public schools, the Safe Routes to School (SR2S) program has continued to grow its influence among the public school community within Cupertino. Just a few of the many accomplishments include: •Creating a library of educational materials to encourage the use of alternate modes of transportation to schools and to enhance safety for all roadway users; •Scheduled walk audits at every Cupertino school to identify areas of improvement; •Scheduled and coordinated bike rodeos at middle and elementary schools; •Incorporated bike safety education at 6th-grade assemblies in CUSD; •Oversight of the City’s crossing guard and bike fleet programs; and •Travel mode data collection at all schools to monitor overall success of program In addition, the SR2S Program is actively seeking to identify Parent Champions at each school to advocate locally within their school community, and efforts are underway to expand in-class education to every 3rd, 5th and 6th grade student in Cupertino, a key overall goal of the Program. 10 18 Below Market Rate (BMR) Manual Staff updated the Policy & Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual), which was adopted by Council on September 20, 2016. The BMR Manual establishes guidelines and procedures for the on-going administration of affordable units. The amendments improve transparency by making the procedures more accessible and clear. The City has received over 700 applications for placement on the BMR Eligibility List for ownership and rental, which is a record high for Cupertino. While the demand for such units severely outstrips supply, the City continues to work with developers to increase affordable units in their housing projects. Citywide Parks and Recreation System Master Plan The Citywide Parks and Recreation System Master Plan is underway. A new consultant agreement was approved by the City Council in January 2017 with MIG. Work has resumed on the Plan, with on-site tours and interviews conducted in March and April 2017. A stakeholder group will be formed in the coming months. The project is progressing well and expected to be completed in 2018. Stevens Creek Corridor Park Rangers Shifting the City’s Park Rangers from a contract service to in-house City employees has proved to be very beneficial for the Stevens Creek Corridor. The Rangers, hired summer 2016, have become a welcome presence in the Corridor, providing a higher level of safety, security, and customer service. The Rangers monitor and patrol the Corridor, work with the City Naturalist on habitat restoration, and engage and educate visitors and volunteers on a variety of topics including corridor restoration efforts, natural history, wildlife sightings, and leash laws. Technology Services The City has been leveraging software to increase efficiency and transparency, including: •CityWorks expansion of GIS asset management to additional Public Works divisions and replacement of MapGuide with updated property information application to improve internal and community access to data. •OpenGov budgeting module and in house Collective Budgeting tool to assist with budget development. •NeoGov recruiting and onboarding software to assist HR. Labor Negotiations The City successfully negotiated three-year labor agreements with its bargaining groups, highlights include: o Cost of living adjustments (3.5% Year 1, 3.25% Year 2, and 2.5% Year 3); o employees fully funding the employee contribution of retirement by July 2017 (Tier 1 – 8%, Tier 2 – 7%, Tier 3 – 6.25%); 11 19 o Increased health coverage contributions to $810 for family coverage the equivalent of 85% of the Kaiser Plan with 5% increases in January 2018 and January 2019; o Fully covering dental costs and moving all groups to the same $2,500 benefit plan; and o Adding short-term disability for employees not covered under the State Plan. Capital Improvement Projects Completed At the end of fiscal year 2017, ten CIP projects will have been completed, including: •Blacksmith Shop Forge Restoration •Quinlan Community Center Fire Alarm Control Panel Replacement •City Hall Turf Reduction •De Anza Blvd. Monument Sign •Pasadena Avenue Public Improvements •Sidewalk Renovation on Stevens Creek Blvd. •Resurfacing of tennis courts at the Sport Center and at Memorial Park In addition, the Pedestrian Master Plan and the New Service Center Administration Building Feasibility Study were completed. Major progress milestones were achieved on many other projects, with most of these projects expected to be complete by the end of the calendar year. PROPOSED BUDGET OVERVIEW The Proposed Budget reflects a total City budget of $141.2 million, an increase of $8.0 million or 6% when compared to the FY 2017 Final Budget. The City’s General Fund is recommended at $75.0 million, a decrease of $2.2 million or 3.0% from the FY 2017 Adopted Budget. The General Fund is balanced through the use of General Fund revenue of $80 million and is projected to end FY 2018 with approximately $6.8 million in unassigned fund balance that may be transferred to the Capital Reserve per the Reserve and One Time Use Policy as part of the City’s year-end process. The transfer is not reflected in the Proposed Budget. Fund Type Total Proposed Expenditures Total Proposed Revenue 1x Funding Net Balance General $74,978,833 $79,995,647 $0 $5,016,814 Special Revenue $24,092,829 $9,607,812 $7,134,122 $(7,350,895) Debt Service $3,167,538 $0 $3,167,538 $0 Capital Projects $16,730,000 $4,546,000 $0 $(12,184,000) Enterprise $10,576,992 $7,484,000 $400,000 $(2,692,992) Internal Service $11,690,063 $4,768,495 $5,056,074 $(1,865,494) Total 141,236,255 106,401,954 15,757,734 $(19,076,567) 12 20 As shown in the chart below, the Proposed Budget is largely funded by the General Fund (53%). The graph1 below summarizes the changes in the City’s General Fund for an eight-year period: 1 The City received one-time revenue related to the sale of Pruneridge Ave in FY 2014-15. These dollars are not reflected in this graph as they had originally been expected in FY 2013-14. Actual dollars received are not normally shown until the fiscal year has closed. General 74,978,833 53% Special Revenue 24,092,829 17% Debt Service 3,167,538 2% Capital Projects 16,730,000 12% Enterprise 10,576,992 8% Internal Service 11,690,063 8% FY 2017-18 Proposed Budget by Fund 13 21 A total of 197.75 positions are budgeted in FY 2018 with four new requests. I am requesting 4.0 new limited-term positions to: (1) improve the City’s disaster preparedness program by filling the void left by the departure of the County Fire District’s Emergency Services Coordinator 5 years ago; (2) continue investing in sustainability; (3) provide better service to Council (Executive Assistant); (4) improve Senior Center operations and (5) enhance City’s transportation planning needs (Senior Planner). Current Authorized Positions 193.75 FY 2018 Proposed Budget Requests Emergency Services Coordinator (3 Year Limited Term) 1.00 Environmental Program Specialist (Extend 1 Year) 0.00 Executive Assistant (with conversion of an existing position to 3 Year Limited Term) 1.00 Recreation Coordinator (3 Year Limited Term) 1.00 Senior Planner -Transportation (3 Year Limited Term) 1.00 Total Proposed FY 2018 Benefitted Positions 2 197.75 As in the past, we continue to recommend adding positions only on a limited term basis unless, we are confident that the needed level of service will be permanent, our ongoing revenues can 2 Does not include City Council members. FY10 Actuals FY11 Actuals FY12 Actuals FY13 Actuals FY14 Actuals FY15 Actuals FY16 Final Budget FY17 Final Budget FY18 Proposed Budget One-Time Special Projects $0.4 $0.4 $0.4 $0.8 $5.7 $7.0 $9.7 $5.8 $2.8 General Fund Transfers Out $9.4 $7.0 $6.4 $8.2 $22.9 $39.2 $13.2 $13.0 $15.8 General Fund Expenditures $32.6 $33.3 $34.4 $35.7 $35.8 $40.0 $42.2 $58.5 $56.5 General Fund Revenue $36.1 $44.6 $47.6 $54.7 $73.9 $83.5 $77.9 $79.0 $80.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 In MillionsGeneral Fund Revenues Expenditures and Transfers Out 14 22 support the position long term, or we cannot recruit and/or retain the staff resource on a limited term basis. Staff believe that none of these conditions exist to support permanent staff additions at this time. Changes to the Budget and Policies The FY 2018 budget document and process are very similar to those of the past few years. Below are a few highlights from the budget and process: City Sponsorship of Festivals In January 2017, the Recreation & Community Service Department introduced a new Special Event Application and Information Packet for Community and Cultural Festivals at Memorial Park, which outlines event requirements to assist event producers in planning successful events at Memorial Park, including a clearly defined process, how to submit the annual application, an event evaluation, and detailed planning requirements in one place for easy reference. All existing festival producers submitted complete applications in February 2017, which covered the period July 2017-June 2018. Having each event’s facility, park, street closure, and City service requests in advance, including proposed days and times of use, allows staff to more accurately calculate the full City costs to support each festival. In FY 2018, a total of $104,920 is budgeted to cover the cost of 9 festivals as detailed in the Recreation and Community Service’s Cultural Events program. Festival producers are requesting that City Council waive fees associated with these festivals. In addition, the Department will propose Memorial Park festival permit fees in the FY 2017-2018 fee resolution. Revised Fees and Cost Allocation Plan (CAP) Large shifts in the category of cost allocation changes are found almost across the board in this year’s Proposed Budget. These shifts are primarily due to changes in methodology. The City attempted to capture the full cost of providing services to the community in the 2017 CAP and also captured the full cost of providing internal services such as management oversight from City Manager’s Office, legal services, and grounds maintenance even within the same fund. Fully allocating internal service costs to internal service divisions within the General Fund required significant staff time and proved to be of little value. The City has revised the model in FY 2018, as recommended by Matrix Consulting, to align with standard industry practice. In addition, the current fiscal year charges were trued up using actual expenditures. In the prior year, budgeted appropriations were used. Both changes resulted in decreased cost allocation charges citywide. Lastly, the City changed the cost spread methodology for Information Services to be on a per device basis rather than on FTEs. Performance Measures In prior years, citywide performance measures have been reported by departments on a quarterly basis. However, starting in FY 2018, they will be reported bi-annually at Mid-Year and 15 23 at year end. This will allow departments more time between reports to track their progress, collect their results, and ultimately focus efforts on improving performance. Program Budget Detail at the Account Level The City’s Audit Committee recommended a format change to the City’s budget due to the success of the City’s Financial Transparency Portal. The recommendation was to remove these schedules from program budget section as this account level detail and more can be found in the portal. The City also complies with the following additional policies and limits not listed in the Financial Policy section but are updated and/or approved annually: Investment Policy The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor perform agreed-upon procedures to review City compliance with the policy. The full policy is available on the City website as part of the May 16, 2017 City Council agenda packet. GANN Appropriations Limit The City’s appropriations limit for FY 2017 is of $91,867,014 is $5,766,708, or 6.70% higher than the FY 2016 limit of $86,100,307. For FY 2018, the City’s estimated appropriations of proceeds from taxes, less statutory exclusions, are unchanged as of the Final Budget. Data needed to calculate the 2018 GANN will not be available until mid-May. If a city exceeds the legal limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be determined at that time. The appropriations limit is not expected to present a constraint on current or future budget deliberations. This reflects the prior year limit and will not be updated until the Adopted Budget when the information required for this calculation is available. Proposed Budget by Fund General Fund The General Fund pays for core services such as public safety, recreation and community services, planning and community development, streets and trees, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, transient occupancy tax, charges for service, and a variety of other discretionary sources. As illustrated in the chart below, the majority of General Fund revenue supports funding for Public Works, Planning and Community Development, and Law Enforcement. 16 24 General Fund revenue is estimated at $80 million in the FY 2018 Proposed Budget (excluding fund balance). This is an overall increase of $1 million (1%) when compared to the FY 2017 Adopted Budget. This decrease is related to a one-time sales tax payment from the state to reconcile the “triple-flip” in addition to a change in the methodology for cost allocation. The local economic boom has driven strong gains in sales tax, property tax, and transient occupancy tax revenues, which have partially been offset by decreases in development-related fees and charges given the challenging political climate surrounding development in the City. The following chart shows four years of total revenue, expenditures and changes to fund balance for the General Fund: General Fund Revenue, Expenditures and Changes in Fund Balance The General Fund unassigned fund balance is projected to increase from the current year estimate of $6.6 million to $7 million in FY 2018. As shown in the chart below, the FY 2018 ending fund balance is estimated to be $43.7 million, or 8% higher than the FY 2017 year end estimate. The increase in unassigned fund balance is due to increases in revenue sources and decreases in expenditures mostly related to salary savings, special projects and other financing uses. $(10.0) $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 FY15 ACTUALS FY16 ACTUALS FY17 ADOPTED BUDGET FY18 PROPOSED BUDGET Revenue $83.5 $77.9 $79.0 $80.0 Expenditures $86.2 $65.0 $77.2 $75.0 Net Rev-Exp $(2.7)$12.9 $1.8 $5.0In Millions17 25 GENERAL FUND BALANCE Classification FY 15-16 FY 16-17 FY 16-17 FY 17-18 Percent Actual Final Estimate Proposed Change Unassigned 11,301,702 16,629,979 6,572,276 6,896,090 6.5% All other classification 30,549,576 29,360,396 33,964,396 38,657,396 8% Total Fund Balance $41,851,278 $45,990,375 $40,536,486 $45,553,486 7% As shown in the chart below, the majority of city resources are used to support public works (26%), non-de partmental expenses (21%), law enforcement (17%), recreation (13%), and community development (10%). Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds account for 8% of the citywide expenditure budget. The largest Special Revenue Fund is the one for streets, roads, and transportation. Other funds account for storm drain management, affordable housing programs, and park development. The Proposed Budget for Special Revenue Funds for FY 2018 is $24.1 million, an increase of $7.1 million from FY 2017 Adopted Budget. The increase is primarily due costs is capital projects. Budgets within the Special Revenue Funds are funded by $9.6 million in restricted department revenue, and $7.1 million transfers from the General Fund, bringing total funding sources for the fund to $16.7 million. This will result in a projected decrease to fund balance of $7.4 million. The Special Revenue Funds are projected to end the year with fund balances of $35.3 million. Administration 5,467,897 7%Administrative services 3,994,184 5%Community development 7,519,292 10% Council and commissions 924,237 1% Information Services 72,435 0% Law enforcement 12,344,307 17% Non departmental 15,767,734 21% Public works 19,263,776 26% Recreation services 9,624,971 13% Total Expenditures by Department -General Fund 18 26 Capital Projects Funds The Capital Improvement Project Fund, Stevens Creek Corridor Park, and Capital Reserve are currently in the Capital Projects Fund type category. This fund type is typically used to account for financial resources that are used for the acquisition or construction of major capital facilities or to provide facilities for City departments, and are identified in the five-year Capital Improvement Program (CIP). The Proposed budget for the Capital Projects Funds for FY 2018 is $16.7 million, comprised of $5.9 million in new capital projects and $9.2 million in transfers out to the Special Revenue and Enterprise funds to fund capital projects in addition to a $2 million transfer to the General fund for the CalPERS assigned reserve. The FY 2018 budget is $1.7 million higher than FY 2017 budget expenditures based on the cost of the recommended capital projects. Enterprise Funds Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services. Enterprise Funds consist of Resource Recovery for the solid waste collection franchise, Blackberry Farm for the City-owned golf course, the Cupertino Sports Center, and Recreation Programs for cultural, youth, teen, sports, and physical recreation programs. The proposed budget for Enterprise Funds for FY 2018 is $10.5 million, an increase of $0.3 million from the FY 2017 Adopted Budget. Budgets within the Enterprise Funds are funded by $7.5 million in program revenue and $400,000 in transfers from the General Fund. The Enterprise Funds also rely on $2.7 million of prior year fund balance, bringing total funding sources for the funds to $10.6 million. The Enterprise Funds are projected to begin the fiscal year with $6.8 million in fund balances and are projected to end the year with fund balances of $4.1 million. Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other City departments or governments on a cost-reimbursement basis. Internal Service Funds include funds and programs for information technology, City Channel, website, workers’ compensation, equipment, compensated absence, long-term disability, and retiree medical insurance. The Proposed Budget for the Internal Service Funds is $11.7 million, which is $1.2 million higher than the FY 2017 Adopted Budget. This increase is primarily attributed to increased full time staffing and purchase of software and equipment. Budgets within Internal Service Funds are funded by $4.8 million in department revenue, $5.1 from the General Fund, and $1.9 from a combination of depreciation reserves and retained earnings. Special Projects The FY 2018 Proposed Budget includes funding for several one-time Special Projects. These projects are identified as part of the Special Project section within each program and are summarized in the table below. This list excludes one-time capital outlays and ongoing pavement management costs. 19 27 Program Budget Project Name Expenditure Funding Source 122 Sustainability Division Climate Action Plan $160,000 General Fund 305 Government Channel Audio Visual Technology Upgrades $225,000 General Fund 612 Park Facilities Acterra Habitat Enhancement $68,000 General Fund 705 Economic Development Economic Strategic Plan Implementation $175,000 General Fund 711 BMR Housing Below Market Rate Affordable Housing Fund Notice of Funding Availability $8,000,000 Special Revenue fund balance 804 Plan Review Wireless Facilities Master Plan $100,000 General Fund 804 Plan Review Apple Campus 2 $943,069 Pass Thru 807 Service Center Administration Office Improvements $70,000 General Fund 807 Service Center Administration City Facilities Building Assessment $200,000 General Fund 808 McClellan Ranch Park Fence Replacement $12,000 General Fund 809 Memorial Park Cement Work $50,000 General Fund 812 School Site Maintenance Concrete Work $25,000 General Fund 812 School Site Maintenance Water Supply at Collins School $50,000 General Fund 813 Neighborhood Parks Concrete work and Sports Center Fence $110,000 General Fund 814 Sport Fields Jollyman CRK Cement Pad $28,000 General Fund 825 Street Tree Maintenance Tree Survey/Inventory Update $70,000 General Fund 827 Bldg Maint City Hall AC IT Lab $55,000 General Fund 828 Bldg Maint Library Window and mirror replacement and floor polish $23,000 General Fund 829 Bldg Maint Service Center Replace locker room floor $15,000 General Fund 830 Bldg Maint Quinlan Center Various Improvement Projects $140,000 General Fund 831 Bldg Maint Senior Center Various Improvement Projects $26,000 General Fund 832 Bldg Maint McClellan Ranch 4H Barn roof and light repairs $18,000 General Fund 833 Bldg Maint Monta Vista Ct New Floor $25,000 General Fund 834 Bldg Maint Wilson Snack Shack Upgrade $8,000 General Fund 835 Bldg Maint Portal Ramp and door removal $25,000 General Fund 836 Bldg Maint Sports Center Various Projects $95,000 General Fund 837 Bldg Maint Creekside Various Projects $28,000 General Fund 838 Comm Hall Bldg Maint Various Projects $45,000 General Fund 20 28 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Number of Jobs (not seasonally adjusted) Monthly Employement - San Jose/Santa Clara MSA Program Budget Project Name Expenditure Funding Source 839 Teen Center Bldg Maint Repaint Interior $5,000 General Fund 840 Park Bathrooms Various Projects $20,400 General Fund 841 BBF Facilities Maintenance Restroom and Café upgrades $25,000 General Fund 848 Street Lighting Various Projects $118,000 General Fund 852 Franco Traffic Operations Center Maintenance and Upgrades $18,000 General Fund 986 GIS Cityworks logins $17,200 General Fund Total $10,992,669 CURRENT ECONOMIC UPDATE National and State Economic Conditions The U.S. economy is continuing to show steady growth. U.S. Gross Domestic Product (GDP) increased by 1.6% in 2016 according to the Bureau of Economic Analysis, compared with an increase of 2.6% in 2015. The increase in real GDP in 2015 primarily reflected positive contributions from personal consumption, residential fixed investment, local and federal government spending, and exports that were partially offset by contractions in private inventory investment and nonresidential fixed assets. Unemployment is falling while jobs are being created. The U.S. unemployment rate stood at 4.5% in March 2017 representing a 0.5% percentage point drop compared to the March 2016 unemployment rate of 5.0%, according to the Bureau of Labor Statistics. The unemployment rate has improved significantly from a high of 9.6% in 2010 and is at the full employment level. Consumer confidence, as reflected by The Conference Board Consumer Confidence Index, hit the highest level since 2000 in March and now stands at 125.6 up from 116.1 last month. This month’s spike was the result of consumers feeling greater optimism regarding the short-term outlook for business, jobs and personal income prospects. The California economy is inching towards a full economic recovery. California’s unemployment rate fell to 4.9% in March 2017, an improvement compared to last year’s unemployment rate of 5.4%. Personal income is forecast at 3.6% in 2017 and 3.8% in 2018 mostly due to faster growth in wages. Growth in the housing market continues with the prices of single family homes up 6.8% and sales up 6.9% compared to March of last year according 21 29 to the California Association of Realtors (CAR). However, CAR predicts a small 0.8% increase in existing home sales next year. According to the December 2016 UCLA Anderson Business School Forecast, continued job growth, along with wage increases, will power consumption in 2017. Cupertino Economic Conditions Strong economic performance continues in Silicon Valley and Cupertino. Data from the State of California Employment Development Department paints a similar picture. Employment in the San José/Sunnyvale/Santa Clara Metropolitan Statistical Area (MSA) continues to increase. The preliminary estimate of the March 2017 employment level in the MSA was 1.0 million, virtually unchanged from the March 2016 level. The March 2017 unemployment rate of 3.6% has dropped since January and is lower than 4.1% rate experienced a year ago. Our local unemployment rate is lower than the national unemployment rate of 4.5%. Housing prices remain strong compared to the same period in 2016. In March 2017, single family homes sold from a median home price of $1.8 million, a 0.4% increase over the past year. Property Tax revenue is expected to increase compared to last year given the increase in the median home price, reassessments of development projects, and additional TEA property tax share. Construction activity remains strong in Cupertino with Apple Campus 2 driving development growth. KEY BUDGET ASSUMPTIONS Revenue Assumptions The FY 2018 Proposed Budget assumes moderate economic growth. Revenue projections for each category were based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Revenue assumptions are discussed in detail in the Fund Summary section under Financial Policies and Schedules. Personnel Assumptions Negotiated salary increases are assumed in the FY 2018 Proposed Budget. The Council ratified three-year agreements with its two bargaining units in October 2016, including a 5.75% net salary increase and 10% increase in health benefits over the next three years. In addition, the City conducted a comprehensive classification study resulting in the reclassification of 12 staff, which are also reflected in the budget. In addition, budgeted personnel expenditures factor in salary step increases for approximately 43% of employees who have yet to reach the top step in their classification’s salary range. Typically, a step increase is equivalent to a five percent increase in salary with a range of five salary steps. 22 30 Non-Personnel Assumptions Non-Personnel budgets were developed based on actual expenditures in prior years, and then adjusted for FY 2018 funding needs. In addition, one-time projects have been separated out in FY 2018 to ensure that expenditure trends reflect ongoing expenditure needs. Contingency budgets are being reduced from 10% to 8% of the total General Fund budget for contractual services and supplies and materials for operating programs. Consistent with past budgets, an additional 5% is allocated to the City Manager’s discretionary budget to cover unanticipated program expenses. ONGOING CHALLENGES Revenue Volatility The City’s revenue mix is heavily reliant on volatile business-to-business sales tax, which makes up approximately 29% of the City’s annual General Fund revenues. Business-to-business sales taxes are very sensitive to economic fluctuations as evidenced by Cupertino’s experience during the dotcom bust from 2000-2004. Our heavy reliance on the volatile high tech industry also makes us vulnerable. The loss of one of our top three sales tax producers in FY 2013-14 only made the City more reliant on a single tax producer, making us more vulnerable to its business volatility. Health Benefits There is uncertainty around potential repeal and replacement of the Affordable Care Act (ACA) and how it would affect health care costs. Rate increases have stabilized with the implementation of the ACA. Retirement Benefits Significant investment losses experienced by CalPERS during the great recession resulted in the overall funded status of the retirement system dropping to 60.0% for public agencies. The funded status is currently estimated at 69%, down from 73% last year due to lower than expected investment returns. The desired goal is 100% funded status, where assets on hand are equal to the desired level of assets needed to pay pension benefits. This CalPERS Board adopted revised actuarial policies that aim to return the system to 100% funded level within 30 years. The new method includes changing the asset smoothing period from 15 years to 5 years and paying gains and losses over a fixed 30 year period with a 5-year ramp up at the beginning of the 30-year period and a 5-year ramp down at the end. In December 2016 CalPERS informed agencies that it would be reducing the discount rate of return for investments by 0.5%. The result of this change is significant and will result in considerable increases in retirement well above what the City had previously forecasted for retirement expenses as noted in the table below. The FY 2018 Proposed Budget includes these 23 31 additional expenses and proposes an increase to the City’s CalPERS Reserve from $500,000 to $4.8 million to help stabilize the budget through this ramp-up period: Fiscal Year FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 5 Year Total Total Rate 29.017% 31.968% 35.764% 38.001% 39.770% Net Rate Increase 10.9% 10.2% 11.9% 6.3% 4.7% 44.00% Increase in $ $617,000 $645,000 $745,000 $439,000 $347,000 $2,793,000 UNMET NEEDS As the City prepared its FY 2018 Proposed Budget, some issues surfaced for which funding had not yet been identified. These items include: Capital Improvement Projects – Several Capital Projects as listed in the unfunded project section of the Capital Improvement Plan (CIP). Current estimate for these unfunded projects is approximately $30 million. CONCLUSION The FY 2018 Proposed Budget is a balanced and fiscally responsible spending plan. I want to take this opportunity to thank the budget team for their enormous effort in preparing the budget for Council consideration. I also want to thank the department heads and staff for their work on this year’s Proposed Budget. Lastly, I want to commend the Council for their leadership, guidance and support in making Cupertino the best community to live, work, and enjoy. Respectfully submitted, David Brandt City Manager 24 32 Budget Guide Mission Statement Budget Guide Glossary Commonly Used Acronyms What is a Revenue, Expenditure and Fund Balance Table 33 City of Cupertino MISSION STATEMENT The Mission of the City of Cupertino is to provide exceptional service, encourage all members of the community to take responsibility for one another, and support the values of education, innovation and collaboration. 25 34 ELEMENTS OF THE BUDGET DOCUMENT The budget is the City’s fundamental policy document. It describes the City’s goals and details how resources are allocated to achieve these goals. In addition, the budget serves as the annual financial plan, an operations guide and a communications tool. The budget guide provides an overview of the elements of the budget document. It includes a glossary of budget terminology. ELEMENTS OF THE BUDGET DOCUMENT The budget document includes the following key elements: 1. Budget Message: The Budget Message is the City Manager’s transmittal letter submitting the budget to the City Council. The Budget Message summarizes the City’s current and long-term financial position, highlights new programs and organizational changes addressed in the budget and outlines both short and long-term goals of our city government. 2. Fiscal Strategic Plan: The Fiscal Strategic Plan Committee was formed to analyze current funding gaps and present a more accurate financial picture. The committee identifies one- time, non-recurring revenue. 3. Budget Guide: The Budget Guide includes the City’s Mission Statement and other tools to assist the reader in identify key terminology in the budget document. 4. Community Profile: This section describes Cupertino’s history, the economic and city profiles, community statistics, recreation and community services, education, and additional areas of interest in the city. 5. Financial and Personnel Summaries: The Financial Summaries section provides financial information on projected revenues, expenditures, fund balances and reserves. This section includes the Budget Summary of Funds as well as detailed fund descriptions and information on all revenue sources and expenditure projections. This section includes fund balance trends and detailed revenue and expenditure projections for the next five years. This section includes an analysis of all City revenues by category. Our major revenue projections are based on trends, current economic indicators and other agency input. Sales tax projections are based on input from our sales tax consultants, industry trends and major company forecasts. Property tax revenues are projected by the county and adjusted by staff based on known trends. Park dedication fees are estimated based on current development 26 35 projects and other taxes are reviewed quarterly and budgets are based on this trend analysis. 7. Departmental Operating Budgets: The Departmental Operating Budgets section details historical and proposed expenditures by operating department. The City is organized into seven key operating functions, including Administration, Law Enforcement, Public and Environmental Affairs, Administrative Services, Recreation and Community Services, Community Development and Public Works. Each department budget includes a summary narrative, financial information regarding the department and each of its major divisions and personnel information. Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on trends. Contract services and capital outlay are justified each year by the departments. Special Projects include any one time project or cost. Departmental expenditures are divided into eight categories, which include the following charges: Employee Compensation represents permanent full-time and part-time salary costs and overtime. Employee Benefits represents PERS retirement, health insurance costs, and other benefits. Materials represents items purchased for repair and maintenance, operational activities such as books, uniforms and recreation supplies, and office supplies. Contract Services represents legal, consulting and other professional services, contract repair and maintenance, utility charges, training and memberships, equipment rentals, insurance and employment services. Cost Allocation represents Cost Allocation and Internal Service charges to user departments Appropriations for Contingency represent 10% of total budgeted materials and contract costs and is place for unexpected expenditures and/or emergencies. Capital Outlay represents expenditures for tangible fixed assets including land, buildings, furniture, equipment and City vehicles. Special Projects represent any one time projects or costs. 27 36 Debt Service/Other represents principal and interest payments on outstanding debt and interfund transfers. 8. Non-Departmental Operating Budgets: The Non-Departmental Operating Budgets section details historical and proposed expenditures for the functions of interfund transfers and debt service. 9. Capital Improvements: The Capital Improvements section details the proposed capital projects for 2015-16 through 2019-20. These projects are organized into five categories: Parks, Buildings, Streets, Traffic Facilities, and Storm Drainage. The five-year budget denotes funding sources and a description of each project. The City Council approves funding of Capital Improvements on a total project basis. The project may expend the funds over multiple years. GLOSSARY OF BUDGET TERMINOLOGY The City's budget contains specialized and technical terminology that is unique to public finance and budgeting. To help the reader understand the terms, a glossary of budgetary terminology has been included in the document. Adopted Budget - Revenues and appropriations approved by the City Council in June for the following fiscal year. Allocated Costs - An expense charged by one department/division to another for services performed or expenditures of a general nature that are charged to one main account and allocated to other departments/divisions by a specified formula. Appropriation - An authorization made by the City Council that permits the City to incur obligations and to make expenditures of resources. Budget - A financial plan for a specific period of time (fiscal year) that matches all planned revenues and expenditures with various municipal services. Budget Amendment - A legal procedure utilized by the City Manager to revise a budget appropriation. Adjustments to expenditures within or between departmental budgets may be accomplished administratively. City Council approval is required for additional appropriations from fund balance or new revenue sources. Capital Improvement Program - A plan for capital expenditures to provide for the acquisition, expansion or rehabilitation of an element of the City's physical plant to be incurred over a fixed period of several future years. 28 37 Capital Outlay - Expenditures relating to the purchase of equipment, land and other fixed assets. Cost Allocation Plan – A plan that details how indirect costs are calculated and allocated to user departments. Cost Recovery - The establishment of user fees that is equal to the full cost of providing services. Department - A major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area. Division - A unit of organization that reports to a department. Enterprise Fund - A fund established to account for activities that are financed and operated in a manner similar to private business enterprises, in which costs of providing services are primarily recovered through user fees. Estimated Budget - The status of appropriations between July 1 and June 30 includes the adopted budget, budget amendments, prior year encumbrances, approved carryovers, and transfers between objects, divisions and departments. Expenditure - Utilization of fund resources. Expenditures include operating expenses, debt service and capital outlays. Expenditure Category - A basis for distinguishing types of expenditures. The major expenditure categories used by the City are: employee compensation, employee benefits, materials, contract services, appropriations for contingency, special projects, capital outlay and debt service. Fiscal Year - A twelve-month time period signifying the beginning and ending period for recording financial transactions. The City has specified July 1 through June 30 for its fiscal year. Fund - A fiscal and accounting entity for which the recording of financial transactions is made for the purpose of carrying on specific activities in accordance with the requirements placed upon the use of financial resources. Fund Balance - The net effect of assets less liabilities at any given point in time. General Fund - The fund used to account for the major operating revenues and expenditures of the City, except for those financial resources that are required to be accounted for in another fund category. General Fund revenues are derived primarily from property and other taxes. Goal - Broad mission statements that define the purpose of a department. 29 38 Infrastructure – Long lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Examples include roadways, bridges, and drainage systems. Internal Service Fund - A fund used to account for the services provided by one department to other departments on a cost-reimbursement basis. Operating Budget - A financial plan for the provision of direct service and support functions that provide basic governmental services. The operating budget contains appropriations for such expenditures as employee compensation, materials, contract services, capital outlay and debt service. It does not include Capital Improvement Project expenditures. Reserve - An account used to designate a portion of the fund balance for a specific future use and is, therefore, not available for general appropriation. Revenue - Increases in fund resources. Revenues include income from user fees, taxes, permits, and other sources. Section - A unit or organization that reports to a division. Self-Supporting Activity - An enterprise activity where all service costs (including principal and interest debt payments) are primarily covered solely from the earnings of the enterprise. Subsidy - Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues. User Fees - Fees charged to users of a particular service provided by the City. 30 39 COMMONLY USED ACRONYMS ABAG Association of Bay Area Governments AYSO American Youth Soccer Organization B/PAC Bicycle/Pedestrian Advisory Committee BAAQMD Bay Area Air Quality Management District BMR Below Market Rate CAFR Comprehensive Annual Financial Report CAP Cost Allocation Plan CMTA California Municipal Treasures Association CPI Consumer Price Index CPUC California Public Utilities Commission CSMFO California Society of Municipal Finance CYSA California Youth Soccer Association EAP Employee Assistance Program EIR Environmental Impact Statement EOC Emergency Operations Center ERAF Education Revenue Augmentation Fund FEMA Federal Emergency Management Agency FLSA Fair Labor Standards Act FPPC Fair Political Practices Commission FSA Flexible Spending Account GASB Governmental Accounting Standards Board GFOA Governmental Finance Officers Association HVAC Heating Ventilation and Air Conditioning IPM Integrated Pest Management JPA Joint Powers Authority LTD Long Term Disability MOU Memorandum of Understanding MTC Metropolitan Transportation Commission OES Office of Emergency Services OPEB Other-Post Employment Benefits PC Planning Commission PEMHCA Public Employees’ Medical and Hospital Care Act PERS (aka Calpers) Public Employees’ Retirement Systems PIO Public Information Officer PTA Parent Teacher Association RDA Redevelopment Agency RFP Request for Proposals RFQ Requests for Qualifications RHNA Regional Housing Needs Allocation RMS Records Management System RWQCB Regional Water Quality Control Board UBC Uniform Building Code YAC Youth Advisory Commission VSP Vision Service Plan 31 40 WHAT IS A REVENUE, EXPENDITURE AND FUND BALANCE TABLE? Administration - City Manager Category Revenue Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - Charges for Services - - - 138,497 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - TOTAL REVENUE -$ -$ -$ 138,497$ Expenditures Employee Compensation 240,187 253,346 267,696 341,585 Employee Benefits 74,550 83,477 89,514 136,310 Materials 35,838 24,391 51,750 32,203 Contract Services 313 - 10,000 10,000 Appropriations for Contingency - - - 4,220 Cost Allocation 3,000 2,900 22,900 131,050 Capital Outlay - - 14,500 - Special Projects - - - - TOTAL EXPENDITURES 353,888$ 364,114$ 456,360$ 655,368$ Fund Balance (Use of)- - - - General Fund Costs 353,888$ 364,114$ 456,360$ 516,871$ 2010-2011 Actual 2011-2012 Actual 2012-2013 Legal B u dget 2013-2014 Recommended B u dget Taxes – Money received from tax revenue Total Revenue – Total all revenue categories Employee Compensation – Full time and part time salaries Licenses and Permits – Money received from these sources Employee Benefits –Employee benefits including, health insurance and retirement Use of Money and Property – Interest earnings, facility and concession rents Materials – All material, conference and training costs Intergovernmental Revenue – Funds received from Federal, State or Local government such as grants Contract Services – All contracted goods and services Charges for Services – Fees collected for services provided by the department Appropriations for Contingency – Fund for unexpected expenses and emergencies Fines and Forfeitures – Money received from fines and penalties Cost Allocation – Cost of services from other City departments and depreciation expenses Miscellaneous Revenue – Money received from various sources such as donations, salvage and legal settlement Capital Outlay – Land, Buildings, vehicles, infrastructure & assets used in operation beyond 1 yr Interdepartmental Revenue – Interdepartmental service charges and transfers Special Projects – One time projects or costs Total Expenditures – Total all expenditure categories Fund Balance – Revenue not spent in the previous year General Fund Costs – Total Expenditures minus Total Revenue minus fund balance equals General Fund Costs REVENUE TOTALS EXPENDITURE 32 41 Community Profile 42 History Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spanish explorer Captain Juan Bautista de Anza. Starting in Sonora, Mexico, Anza led a group up the coast of California, aiming to establish a presidio (fort) on San Francisco Bay. In late March, Anza left the majority of his party of men, women, and children in Monterey to rest and pressed on through the Santa Clara Valley to his San Francisco destination with 18 men and Pedro Font, a diarist, cartographer, and Franciscan priest. With the expedition encamped in what is now Cupertino, Font christened the creek next to the encampment the Arroyo San Joseph Cupertino in honor of his patron, San Guiseppe (San Joseph) of Copertino, Italy. The arroyo is now known as Stevens Creek. The village of Cupertino sprang up at the crossroads of Saratoga-Sunnyvale Road (now DeAnza Boulevard) and Stevens Creek Boulevard. It was first known as West Side, but by 1898, the post office at the Crossroads needed a more unique name. John T. Doyle, a San Francisco lawyer and historian, had given the name Cupertino to his winery in recognition of the name bestowed on the nearby creek – likewise, in 1904, the same name was applied to the Crossroads and to the post office as the Home Union Store in the northeast corner of the Crossroads changed its name to The Cupertino Store. Although Cupertino’s pioneer settlers planted grapes in the late 1800s, many switched to keeping orchards when phylloxera, a root louse, struck the thriving wine industry in 1895. As the orchards flourished, the valley became known for the spring profusion of blossoms. In the late 1940’s Cupertino was swept up in Santa Clara Valley’s postwar population explosion. Concerned by unplanned development, higher taxes, and piecemeal annexation to adjacent cities, Cupertino’s community leaders began a drive for incorporation in 1954. The incorporation was approved in the September 27, 1955 election, and Cupertino officially became Santa Clara County’s 13th City on October 10, 1955. A major milestone in Cupertino’s development was the creation of Vallco Business and Industrial Park by some of the city’s largest landowners in the early 1960’s. Of the 25 property owners, 17 decided to pool their land to form Vallco Park and six sold their land to Varian Associates, a thriving young electronics firm founded by Russell Varian. The name Vallco was derived from the names of the principal developers: Varian Associates and the Leonard, Lester, Craft, and Orlando families. 33 43 2017 Community Economic Profile Cupertino, with a population of 60,572 and the city limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the San Francisco Bay Area. Economic health is an essential component to maintaining a balanced city, which provides high- level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that our success as a partnership is a direct reflection of our success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters business and residential prosperity and strengthens working relationships among all sectors of the community. Cupertino is considered one of the most prestigious cities in which to live and work within Silicon Valley and the San Francisco Bay Area. Because Cupertino is a mature, 90% built-out city, we focus on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc. and Seagate Technologies, and as a community with stellar public schools. DeAnza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City’s proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive. The City strives to retain and attract local companies through active outreach and a responsive and customer- oriented entitlement process. Cupertino is excited to have a number of new mixed-use development projects in final construction phases and almost fully leased, which will provide more retail and dining options, as well as provide additional housing opportunities to meet the needs of the growing community. The Main Street and Nineteen800 mixed-use developments have created a vibrant downtown area for Cupertino offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Rootstock Wine Bar, Oren’s Hummus, Lazy Dog, LYFE Kitchen, 85 Degree Bakery, Target Express, Kula Sushi, Vitality Bowls, Fit 36, Doppio Zero, and Icool In2 Ice Cream. Housing, office, and hotel rooms are available to support the area. The AMC Theater, Bowlmore, Ice Rink, and Silicon Valley Bay Club serve as anchors to the downtown area. 34 44 The construction of new retail and commercial development strengthens existing popular venues in Cupertino, including the Cupertino Marketplace. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals, including Daiso, Marukai Groceries, Super Cue, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Aloha Fresh, Merlion Restaurant, Wingstop, and Erik’s Deli Café. Cupertino Village is undergoing renovations to upgrade buildings, parking, and open courtyard space. The shopping center is home to 99 Ranch Market, Ten Ren Tea, Fantasia Coffee & Tea, Joy Luck Palace, Kee Wah Bakery, and other Asian restaurants, bakeries, and shops. Cupertino features many other stores, including TJ Maxx and Home Goods, Whole Foods, Target, and over 180 restaurants to serve the local workforce and residents. Cupertino features five hotels: Cupertino Inn, Hilton Garden Inn, Marriott Courtyard, Juniper Hotel operated by Curio, and The Aloft Cupertino Hotel. The Residence Inn by Marriott and Hyatt House are under construction. The redevelopment of the Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard, includes a 24-hour Safeway, Ulta Beauty, Ross Stores, Stein Mart, Michael’s, Rite Aid, FedEx Kinko’s and numerous restaurants, such as Fish’s Wild, 1000 Degrees Neapolitan Pizzeria, and Chipotle, to complement the area. Apple Inc.’s plans for a new corporate campus is almost complete and will include approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. The City of Cupertino continues to provide high-level municipal services to complement the sense of community and quality of life enjoyed by our residents. 35 45 2017 City Profile The City of Cupertino operates as a general law city with a City Council-City Manager form of government. Five council members serve four year, overlapping terms, with elections held every two years. The council meets twice a month on the first and third Tuesday at 6:45 p.m. in the Community Hall. The meetings can be viewed on the City website. The City has 197.75 authorized full-time benefited employee positions. City departments include Administration (City Council, Commissions, City Clerk, City Manager, City Attorney, Environmental Affairs, Economic Development, Code Enforcement); Administrative Services (Finance, Human Resources); Community Development (Planning, Building, Housing Services); Recreation and Community Services (Neighborhood Watch, Emergency Preparedness); Public Works (Engineering, Maintenance, Transportation, Solid Waste, and Storm Drain Management); and Innovation & Technology (IT, GIS, Communications). Police service is provided by the Santa Clara County Sheriff’s Department, and fire service is provided through the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions/committees including housing, telecommunications, fine arts, library, planning, audit, parks and recreation, bicycle and pedestrian, teens, economic development, strategic planning, public safety and sustainability. Members of the volunteer boards are appointed by the City Council and vacancies are announced so that interested residents can apply for the positions. Residents are kept informed about city services and programs through the Cupertino Scene, a monthly newsletter; the City Channel, Cupertino’s government access cable TV channel; and the city’s website. Housing The median sales price for an existing single-family home is $1,635,000 for the time between July and October 2016. For housing programs in Cupertino, please see “Programs & Applications.” Community Health Care Facilities Cupertino is served by the Cupertino Medical Clinic, NovaCare Occupational Health Services. Nearby hospitals include Kaiser Permanente Medical Center in Santa Clara, El Camino Hospital in Mountain View, O’Connor Hospital in San Jose, Community Hospital of Los Gatos, Stanford Hospital in Palo Alto, and the Saratoga Walk-in Clinic in Saratoga. Utilities Gas & Electric Pacific Gas and Electric, 800-743-5000 Phone AT&T residential service, 800-894-2355 AT&T business service, 800-750-2355 Cable Comcast, 800- 945-2288 Solid Waste & Recycling Recology, 408-725-0420 36 46 Water San Jose Water Company, 408-279-7900 California Water, 650-917-0152 Sewer Service Cupertino Sanitary District, 408-253-7071 Tax Rates and Government Services Residential, commercial, and industrial property is appraised at full market value as it existed on March 1, 1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975 bears full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 (full cash value) plus any tax levied to cover bonded indebtedness for county, city, school, and other taxing agencies. Assessed valuations and tax rates are published annually after July 1. Assessed Valuation (Secured and Unsecured) Cupertino: $19,395,507,127 (8/1/16) County: $373,922,973 (7/1/16) Retail Sales Tax Grand Total = 9.00%. Breakdown = Cupertino 1.00%, State 6%, County Transportation 0.25%, County General .125%, Local District (Valley Transportation Authority) 1.625%. Transportation Rail: The CalTrain station is four miles north of city. The Amtrak station is 10 miles south. Air: The San Francisco International Airport is located roughly 30 miles north, and the Mineta San Jose International Airport is located approximately 11 miles south. Bus: Cupertino is served by the Santa Clara Valley Transportation Authority. The routes listed below pass through the City. For Cupertino-specific schedules and maps visit their online website: Route 23 San Jose – Mountain View/Palo Alto Route 25 San Jose – De Anza College Route 26 Eastridge – Lockheed Route 36 East San Jose – Vallco Route 51 Vallco – Moffett/Ames Route 53 Westgate – Sunnyvale Route 54 West Valley – Fair Oaks/ Tasman Route 55 De Anza – Great America Route 81 East San Jose – Vallco Express 101 Camden/Branham – Palo Alto Express 501 Palo Alto – I.B.M Bailey Car: The City of Cupertino is in the heart of the world renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway. 37 47 Sister Cities City of Cupertino recognizes the value of developing people-to-people contacts by strengthening the partnerships between the city and its four sister cities of Copertino, Italy; Hsinchu, Taiwan; Toyokawa, Japan, and Bhubaneswar, India. Cupertino’s sister city partnerships have proven successful in fostering educational, technical, economic and cultural exchanges. Over the years, there have been many delegations visiting both the cities as well as many local students participated in annual student exchange programs. Education ________________________________________________________________________________________________________________ Winner of numerous state and national awards for excellence, our city’s schools are widely acknowledged as models of quality instruction. Cupertino Union School District serves over 18,000 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 20 elementary schools and five middle schools, including several choice programs. Eighteen schools have received state and/or national awards for educational excellence. Student achievement is exceptionally high. Historically, district test scores place Cupertino among the premier public school districts in California. The district is a leader in the development of standards-based system of education and is nationally recognized for leadership in the use of technology as an effective tool for learning. Quality teaching and parent involvement are the keys to the district’s success. The Fremont Union High School District serves 10,000 students in a 42 square mile area covering all of Cupertino, most of Sunnyvale, and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered many awards and recognition based on both the achievement of students and the programs designed to support student achievements. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a “Community Service Award” medal that may be worn at their graduation ceremonies. 38 48 Building on its tradition of excellence and innovation, DeAnza College challenges students of every background to develop their intellect, character, and abilities; to achieve their educational goals; and to serve their community in a diverse and changing world. DeAnza College offers a wide range of quality programs and services to meet the work force development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom settings and customized training arranged by employers. Several DeAnza programs encourage economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. Programs & Applications Community Outreach Programs Leadership 95014 Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants’ leadership skills. The ten full-day sessions feature inside looks at local governments, the social sector, local non- profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online. Neighborhood Block Leader Program Good neighborhoods are those where neighbors work together on common issues and look out for each other. Block leaders take extra steps to connect neighbors and build community, making our neighborhoods safer and more harmonious. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods, and leaders gain the inside track on neighborhood development activities. High Transfer Rates to 4‐Year Universities and Colleges (2012‐2013): • University of California: 727 • California State Universities: 1,225 • Private Colleges & Universities: 452 39 49 Neighborhood Watch Neighborhood Watch is a crime prevention program that enlists the active participation of citizens in cooperation with law enforcement to reduce crime in our communities. It involves: neighbors getting to know each other and working together in a program of mutual assistance; citizens being trained to recognize and report suspicious activities in their neighborhoods; and implementation of crime prevention techniques such as home security and operation identification. To organize a Neighborhood Watch program in your neighborhood, please contact the Neighborhood Watch Coordinator at 408.777.3177. eCAP Email Community Alert Program (eCAP) was created by the Santa Clara County Sheriff’s Office to prevent and reduce crime by raising community awareness, minimizing opportunities for crime, and increasing the possibility of solving crimes with the public’s help. Cupertino residents may voluntarily register their email addresses with the Sheriff’s Office for community alert messages. Citizens can sign-up at a Neighborhood Watch meeting or log-on to the City of Cupertino’s eCAP online registration. Affordable Housing: BMR (Below Market Rate) Program The City of Cupertino requires 15% of all new construction be affordable to households below 120% of the County median income. Rental units are affordable to very low and low-income households while ownership units are affordable to median and moderate-income households. The City of Cupertino contracts with West Valley Community Services (WVCS) to screen and place qualified households in most of the city’s BMR units. WVCS maintains a waiting list of interested persons for these BMR units. If interested, please call 408.255.8033. More information can be found online. Smart Phone Applications Mobile 95014 City of Cupertino’s Mobile 95014 app offers latest listing of Cupertino news and events as well as local parks, schools, and recreation offerings in the city. This app showcases environmental services and community services such as Block Leaders and Neighborhood Watch programs. Users can learn about public safety and contact City Council members and City officials. The app also offers links to Cupertino’s social media sites. 40 50 Trees 95014 Trees 95014 is an iPhone/iPad and Android app which provides details about the city-planted trees in Cupertino. Users can search for trees by street name or by current location. The search results show the picture of the tree and details such as location, height, diameter, and species. Cupertino residents can also sign up their tree, name their tree, and request tree service through this app. Eats 95014 Eats 95014 is the local restaurant app that showcases Cupertino’s dining options such as restaurants, grocery stores, farmers’ markets, and vineyards. The app provides information on the services offered at such eating places including store hours, parking information, noise level, directions, and website link. Ready 95014 Ready 95014 is an app that puts safety information into the hands of Cupertino residents. Steps to prepare and respond to emergencies including earthquakes, floods, fires, and pandemics are outlined in an easy-to-understand format. The app also streams Cupertino’s own AM radio station (1670 AM) and has a map of the City’s Area Resource Centers, satellite locations opened after disasters to provide public assistance. The Geographic Information System (GIS) Division captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, reports, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help our staff, citizens, business and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared – on a map! Cupertino.org/GIS has been redesigned to better showcase our department’s services. Among those services is our new Open Data Portal. This site offers the ability to Search, Filter, Download and use API Access to over 50 GIS layers gis.cupertino.opendata.arcgis.com. 41 51 The GIS Division also manages and deploys Cupertino’s GIS-centric asset management system, Cityworks. Cupertino Fleet, Trees, Median/ROWs, Storm Drain, Streetlights, Traffic Signals, Streets and Sidewalk/EOP divisions utilize Cityworks to manage, track, and analyze Cupertino’s infrastructure assets in the office and in the field. Cupertino Green Cupertino is committed to maintaining the City as a sustainable place to live, learn, work, and play for all the community members. To achieve this goal of safeguarding the community’s well-being and environmental health, Cupertino is actively working to implement its first Climate Action Plan (CAP) and provide residents, businesses, and schools with clear and easy-to-access programs and services to jumpstart green leadership. More information can be found online at http://www.cupertino.org/green Social Media Sites Facebook Sites City of Cupertino Facebook Cupertino Rec & Comm. Services Cupertino Teen Center Facebook Cupertino Teens & Teen Programs McClellan Ranch Preserve Facebook Cupertino Senior Center Facebook Cupertino Sports Center Facebook Cupertino Block Leader Facebook Twitter Sites City of Cupertino Twitter Cupertino Fields Twitter Cupertino Rec & Comm. Services YouTube Site – City of Cupertino, City Channel Community Statistics Facts and Figures 1 Population in City Limits 60,572 Median Household Income $136,940 Median Age 40 Registered Voters 27,489 Democrats 10,291 Republicans 6,256 American Independent 144 Other 256 No Political Party designated 10,209 1 U.S. Census Bureau 42 52 Top 40 Sales Tax Producers Third Quarter 2016, in Alphabetical Order A2Z Development Goodfellow Top Grade Scandinavian Designs Alamillo Bear Granite Rock Company Seagate Technology Alexander’s Steakhouse Huawei Enterprise Seele Apple Computers Corporation Insight Solutions Inc. Shane Co. Argonaut Window & Door J C Penney Company Shell Service Stn. BJ’s Restaurant & Brewhouse Kamran & Company Superior Air Handling Benihana Lazy Dog Rest. & Bar Target Stores California Dental Arts Mirapath Teknion CEMEX const. materials Mitsubishi Consumer El. TJ Maxx Chevron Service Stations Permasteelisa The Wiremold Co. Columbia Stone Powersecure TJ Maxx De Anza College Campus Ctr. Rosendin Electric Valero Service Stn. Dynasty Chinese Food Rotten Robbie Service Stn. Whole Foods Market Frener & Reifer Safeway 99 Ranch Markets Demographic Information 43 53 Community and Recreation Services Blackberry Farm Blackberry Farm has been upgraded and restored to improve the natural habitat for native trees, animals, and fish. Improvements to the park include construction of a new ticket kiosk, re-plastered pools, a new water slide, bocce ball, horseshoe courts, and numerous upgrades to the west bank picnic area. The park is located at 21979 San Fernando Avenue. Telephone: 408-777-3140. The Blackberry Farm Golf Course is located at 22100 Stevens Creek Boulevard. Telephone: 408-253-9200. The Quinlan Community Center The City of Cupertino’s Quinlan Community Center is a 27,000 square foot facility that provides a variety of recreational opportunities. Most prominent is the Cupertino Room - a multi-purpose room that can accommodate 300 people in a banquet format. Telephone: 408-777-3120. Cupertino Sports Center The Sports Center is a great place to meet friends. The facility features 17 tennis courts, complete locker room facilities, and a fully-equipped fitness center featuring free weights, Cybex, and cardio equipment. A teen center and a child-watch center are also included. The center is located at the corner of Stevens Creek Boulevard and Stelling Road. Telephone: 408-777-3160. Cupertino Senior Center The Senior Center provides a welcome and friendly environment for adults over age 50. There is a full calendar of opportunities for learning, volunteering, and enjoying life. There are exercise classes, computer lab classes, and English as a second language classes, and cultural and special interest classes. The center also coordinates trips and socials. The Senior Center is located at 21251 Stevens Creek Boulevard and is open Monday through Friday, 8 a.m. to 5 p.m. Telephone: 408-777-3150. Civic Center and Library The complex has a 6,000 square foot Community Hall, plaza with fountain, trees, and seating areas. City Council meetings, Planning Commission sessions, and Parks and Recreation Commission sessions are held in the Community Hall. The 54,000 square foot library continues to be one of the busiest libraries in the Santa Clara County Library system. For more information, call 408-446-1677. McClellan Ranch Park A horse ranch during the 1930’s and 40’s, this 18-acre park has the appearance of a working ranch. Preserved on the property are the original ranch house, milk barn, livestock barn, and two historic buildings: Baer’s Blacksmith Shop, originally located at DeAnza and Stevens Creek, and the old water tower from the Parish Ranch, now the site of Memorial Park. Rolling Hills 4-H Club members raise rabbits, chickens, sheep, swine, and cattle. The Junior Nature 44 54 Museum, which features small live animal exhibits and dispenses information about bird, animal, and plant species of the area, is also located at the ranch. The newly opened Environmental Education Center has Open House hours on Friday, Saturday, and Sunday. McClellan Ranch is located at 22221 McClellan Road. Telephone: 408-777- 3120. Things to Do and See Euphrat Museum of Art The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at DeAnza College, presents one-of-a-kind exhibitions, publications, and events reflecting the rich diverse heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists. Museum hours are 10 a.m. – 3 p.m. Monday through Thursday. Telephone: 408-864-5464. Fujitsu Planetarium The Fujitsu Planetarium on the DeAnza College campus is a must-visit Cupertino facility for stargazers. It hosts a variety of planetarium shows and events, including educational programs for school groups and family astronomy evenings. For more information, visit the website at http://planetarium.deanza.edu or call 408-864-8814. Flint Center The cultural life of the Peninsula and South Bay is enhanced by programs presented at the Flint Center for Performing Arts located at 21250 Stevens Creek Boulevard in the DeAnza College campus. The center opened in 1971 and was named in honor of Calvin C. Flint, the first chancellor of the Foothill-DeAnza Community College District. The box office is open 10 a.m. – 4 p.m. Tuesday through Friday and 1.5 hours prior to any performance. Box office: 408-864- 8816; administrative office: 408-864-8820. Cupertino Historical Society The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is dedicated to the preservation and exhibition of the city’s history. Their museum, located at the Quinlan Community Center, develops and expands the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino. Telephone: 408-973-1495. Farmers’ Market There are two farmers’ markets located in the City of Cupertino. One is held on Fridays from 9:00 a.m. to 1:00 p.m. at Creekside Park, and the other is held every Sunday from 9:00 a.m. to 1:00 p.m. at the Cupertino Oaks Shopping Center, 21275 Stevens Creek Blvd. 45 55 California History Center The California History Center and Foundation is located on the DeAnza College campus. The center has published 37 volumes on California history and has a changing exhibit program. The center’s Stocklmeir Library Archives boast a large collection of books, pamphlet files, oral history tapes, videotapes, and a couple thousand student research papers. The library’s collection is for reference only. Heritage events focusing on California’s cultural and/or natural history are offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June, Tuesday through Thursday, from 9:30 a.m. to noon and 1:00 p.m. to 4:00 p.m. 46 56 Financial Policies and Schedules 57 THE ANNUAL BUDGET PROCESS The City’s annual budget is prepared on a July 1 to June 30 fiscal year basis. The budget process is an ongoing process that includes the phases of development, proposal, adoption, monitoring and budget amendments. The budget development phase begins in December with the preparation of budget instructions and work program development by the City Council and City Manager. During March, departments prepare the budgets for which they are responsible. These proposed department budgets are reviewed by the Finance Division using current and prior year trends data. The City Manager then reviews the proposals with the Director of Administrative Services and departmental staff and makes final decisions which form the basis of the City Managers Proposed Budget. The proposed budget is then submitted to the City Council in May. During the months of May and June, the City Council considers the budget proposals at a study session and public hearing. At these times, the Council hears from Boards, Commissions, community groups, and the public regarding budget requests and recommendations. The final budget is adopted by resolution in June and takes effect on July 1. Budget Amendment Process After the budget is adopted, the City enters the budget monitoring phase. Throughout the year, expenditures are monitored by the Finance Division staff and department managers to ensure that funds are used in an approved manner. Adjustments to expenditures within or between departmental budgets are accomplished on an as-needed basis administratively throughout the year. The City Manager and Department Heads can transfer funds between their line items and/or divisions as needed. City Council approval is required for additional appropriations from fund balances or for new revenue sources. 47 58 STRUCTURE OF CITY FINANCES COST ACCOUNTING The City of Cupertino has six internal service funds that account for innovation & technology, city channel and website, equipment replacement, workers compensation, long-term disability and compensated absence, and retiree health costs experienced by City departments. Fund costs are allocated to user departments or operating funds based on salaries, equipment and software purchase price, actuarial studies and actual and projected service level. Please view the Cost Allocation Plan and Changes to the Internal Service Fund section of this document for details. Other employee fringe benefits such as medical, dental, life insurance, and pensions are directly added to department costs as a percentage of salaries. Staff salary and benefit costs are split among departments and related funds based on the anticipated percentage of time spent working in various departments. OVERHEAD COST ALLOCATION All overhead costs are allocated to the appropriate program within the limits of local, State and federal laws. The City will utilize a two-step method (double step down method) where costs are first allocated among the central service department support programs to arrive at the total costs of central service programs. Beginning in FY14 overhead/indirect costs associated with service department in the General Fund will be allocated based on Cost Allocation Plan (CAP). These total costs are then allocated to the departments and funds that are benefiting from these expenses. The corresponding revenue is collected by the General Fund for indirect/overhead costs associated with Cost Allocation Plan (CAP) and Internal Service Funds and allocated directly to the department providing the service. BASIS OF BUDGETING Basis of Budgeting refers to the method used to recognize revenues and expenditures in the budget. For the City of Cupertino, the basis of budgeting is the same basis used for accounting. The modified accrual basis is followed in the Governmental Funds, including the General, Capital, Debt Service, and Special Revenue funds. Under this basis, revenues are recognized when they become “susceptible to accrual”, which means they are both measureable and available. Measurable means the transaction can be determined. 48 59 The budget is split into nine divisions: City Council and Commissions, Administration, Law Enforcement, Innovation & Technology, Administrative Services, Parks and Recreation, Planning and Community Development, Public Works and Non Departmental (includes budget that are not attributable to any specific division). These divisions are further split into department then programs. The programs within the divisions are balanced at the department level within a given fund. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The Comprehensive Annual Financial Report (CAFR) is prepared by Maze and Associates according to “Generally Accepted Accounting Principles” (GAAP). CITIZEN PARTICPATION Every two years the City of Cupertino has a Community Survey completed by Godbe Research to measure resident’s satisfaction with living in the City, City Services and to identify issues facing the City. In addition, the budget study session and budget hearings are public meetings where citizen are given the opportunity to comment on the budget. The public can also provide feedback to two Council sub-committees, the Fiscal Strategic Planning and Audit Committees. 49 60 FUND STRUCTURE For accounting purposes, a state or local government is not treated as a single, integral entity. Rather, a government is viewed as a collection of smaller separate businesses known as ‘funds’. Fund accounting is an accounting system emphasizing accountability rather than profitability. In this system, a fund is a self-balancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations. The City’s finances are structured in a variety of funds that are the basic accounting and reporting entities in governmental accounting. The funds that comprise the FY 2013-14 budget are grouped into two major categories, Governmental Funds and Proprietary Funds. The purpose of each of the various funds within these two categories is described below: GOVERNMENTAL FUNDS Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City’s expendable financial resources and the related liabilities (except those accounted for in the proprietary funds) are accounted for through governmental funds. Governmental funds include Tax Supported Funds, Special Revenue Funds and Federal Grant Funds. They are accounted for under the modified accrual basis of accounting. Tax Supported Funds Tax Supported Funds include the General and Capital Improvement Funds. The General Fund is the primary operating fund for governmental services. The Capital Improvements Fund is utilized for the acquisition or construction of major capital facilities. Tax Supported Funds Purpose General The General Fund is used to pay for core services such as public safety, parks and recreation, planning and community development, public works, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, franchise fees, charges for services, and a variety of other discretionary sources. Capital Improvement Capital Improvement Projects This fund pays for the acquisition and/or construction of major capital facilities. Stevens Creek Corridor Park Capital Projects This fund pays for the design and construction of the Stevens Creek Corridor Park projects. 50 61 Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, Transportation, Storm Drain, and Environmental Management/ Clean Creeks funds. Special Revenue Funds Purpose Storm Drain Improvement This fund pays for the construction and maintenance of storm drain facilities, including drainage and sanitary sewer facilities. Park Dedication This fund pays for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City’s General Plan. Environmental Management/Clean Creek/ Storm Drain This fund pays for all activities related to operating the Non-Point Source pollution program. Transportation This fund pays for expenditures related to the maintenance and construction of City streets. Housing & Community Development This fund pays for the Federal Housing and Community Development Grant Program activities administered by the City. This fund also pays for activities related to the Below Market Rate Housing Program. Federal Grant Funds Federal Grant Funds include the Community Development Block Grant program. The Community Development Block Grant is a federally funded program for housing assistance and public improvements. Federal Grant Funds Purpose Community Development Block Grant This fund pays for activities related to the Community Development Block Grant (CDBG). 51 62 PROPRIETARY FUNDS Proprietary Funds are used to account for “business-type” activities. Proprietary Funds include Enterprise Funds and Internal Service funds. They are accounted for under the full accrual basis of accounting. Enterprise Funds Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course and Recreation funds. Enterprise Fund Purpose Resource Recovery This fund pays for operating costs related to the collection, disposal, and recycling of solid waste performed under a franchise agreement with Recology. Blackberry Farm Golf Course This fund pays for operating costs related to the Blackberry Farm Golf Course. Sports Center This fund pays for operating costs related to the Sports Center. Recreation Programs This fund pays for operating costs related to the City’s community centers and park facilities. Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Innovation & Technology, City Channel and Website, Equipment, Workers Compensation, Long-Term Disability/Compensated Absence, and Retiree Medical funds. Internal Service Funds Purpose Information Technology This fund pays for all technology related expenses for the citywide management of information services. This fund pays for the replacement of existing hardware and software and the funding of new hardware and software needs city-wide. Equipment is depreciated based on the acquisition or historical costs for the useful life of the asset using the straight line method. City Channel and Website This fund pays for all operating and equipment costs related to City Channel and the City Website. Workers’ Compensation This fund pays for claims and insurance premiums related to workers’ compensation. 52 63 Internal Service Funds Purpose Equipment Maintenance and Fixed Asset Acquisition This fund pays for the purchase and maintenance of fleet and general equipment having a value greater than $5,000 and expected life of more than one year. Assets are depreciated based on the acquisition or historical costs for the useful like of the asset and using the straight line method. Compensated Absences & Long Term Disability This fund pays for liabilities associated with employees retiring or leaving service and claims and premiums associated with long term disability. Retiree Medical This fund pays for Retiree Medical costs. 53 64 FISCAL POLCIES –Revenue Policies PURPOSE To establish revenue polices that assist the City in striving for and maintaining a diversified and stable revenue system to prevent undue or unbalanced reliance on any one source of funds. This revenue diversity will shelter the City from short-run fluctuations in any one revenue source. SCOPE All revenue sources across all funds. POLICY To the extent possible, maximize investment yield while maintaining a high level of liquidity for the City’s anticipated capital costs. Identify and recommend sources of revenue necessary to maintain the services desired by the community and to maintain the City's quality of life. Perform ongoing evaluations of existing sources of revenue to maximize the City's revenue base. Recover costs of special services through user fees. Pursue full cost recovery and reduce the General Fund fee subsidy to the degree feasible. Allocate all internal service and Cost Allocation Plan charges to appropriate user departments and Ensure that Enterprise activities remain self-supporting in the long term. 54 65 FISCAL POLCIES – Expenditure Policies PURPOSE To establish expenditure control polices through the appropriate internal controls and procedures. Management must ensure expenditures comply with the legally adopted or amended budget. SCOPE All expenditure categories across all funds. POLICY Each Department or Division Manager will be responsible for the administration of their department/division budget. This includes accomplishing the goals and objectives incorporated into the budget and monitoring each department/division budget for compliance with spending limits. Accurately charge expenditures to the appropriate chart of accounts; Maintain operating activities at levels which are offset by revenues; The City will make every effort to control expenditures to ensure City services and programs provided to its citizens and tax payers are cost effective and efficient; Evaluate expenditures at the department and project levels to ensure control; Before the City purchases any major asset or undertakes any operating or capital arrangements that create fixed assets or ongoing operational expenses, the implications of such purchases or arrangements will be fully determined for current and future years; All compensation planning and collective bargaining will include analysis of total cost of compensation which includes analysis of salary increases, health benefits, pension contributions, fringe benefits and other personnel costs. The City will only propose operating personnel costs which can be sustained by on-going operating revenues; Reduce costs and improve productivity through the use of efficiency and effective measures and Structure debt financing to provide the necessary capital while minimizing future debt service costs. 55 66 FISCAL POLCIES – Capital Improvement Policy PURPOSE To establish a Capital Improvement Policy to assist in future planning. SCOPE All anticipated Capital Improvement Projects for the current fiscal year plus four additional fiscal years. POLICY The City will prepare and update a five year Capital Improvement Plan (CIP) encompassing all City facilities Projects included in the CIP will have complete information on the need for the project (project justification), description and scope of work, total cost estimates, future cost estimates, future operating and maintenance costs and how the project will be funded. An objective process for evaluating CIP projects with respect to the overall needs of the City will be established through a priority ranking of CIP projects. The ranking of projects will be used to allocate resources to ensure priority projects are completed effectively and efficiently. Changes to the CIP such as addition of new projects, changes in scope and costs of a project or reprioritization of projects will require City Manager and City Council approval. The City will maintain its physical assets at a level adequate to protect the City’s capital investment and to minimize future operating maintenance and replacement costs. The City recognizes that deferred maintenance increases future capital costs, thus placing a burden on future residents. Therefore, the budget will provide for adequate maintenance and the orderly replacement of capital plant and equipment from current revenues when possible. The City will determine the least costly funding method for its capital projects and will obtain grants, contributions and low cost state or federal loans whenever possible. The City will utilize “pay-as-you-go” funding for capital improvement expenditures considered recurring, operating or maintenance in nature. The City may also utilize “pay-as-you-go” funding for capital improvements when current revenues and adequate fund balances are available or when issuing debt would adversely affect the City’s credit rating. 56 67 The City will consider the use of debt financing for capital projects under the following circumstances: • When the project’s useful life will exceed the terms of the financing • When resources are deemed sufficient and reliable to service the long-term debt • When market conditions present favorable interest rates for City financing • When the issuance of debt will not adversely affect the City’s credit rating and debt coverage ratios. 57 68 FISCAL POLCIES –Pension and Retirement Funding Policy PURPOSE To establish a policy for the funding of Retirement and Retiree health. SCOPE Retirement and Retiree Health costs citywide, across all funds. POLICY Fund all current pension liabilities shall be funded on an annual basis. Monitor certain health and dental care benefits for retired employees. Funding the liability for future retiree benefits will be determined by City Council action. 58 69 FISCAL POLCIES –Long Term Financial Stability Policies PURPOSE To establish a policy for Long Term Financial Stability SCOPE All programs across all funds POLICY Ensure ongoing productivity through employee training and retention programs. Pursue consolidation of resources and activities with other agencies and jurisdictions where beneficial. Ensure financial planning flexibility by maintaining adequate fund balances and reserves. Provide for major maintenance and repair of City buildings and facilities on a timely basis. Provide for infrastructure asset preservation that maximizes the performance of these assets at minimum life-cycle costs. Continually evaluate and implement long-term financial planning including technology automation, multiple year capital improvement programs, revenue and expenditure forecasting, automating and streamlining service delivery, stabilizing and repositioning revenue sources, and decreasing expenditures and risk exposure. 59 70 FISCAL POLICIES – Assigned and Unassigned Fund Balance and Use of One Time Funds Policy PURPOSE To establish assigned and unassigned fund balance and one time use policies. SCOPE The General Fund and Capital Funds. POLICY To maintain sufficient assigned and unassigned fund balance (general fund only) in each fund for the ability to meet following economic uncertainties: Economic Uncertainty I –$19,000,000 and represents two months of General Fund (GF) operating expenditures excluding transfers out plus a two year drop in total general fund revenue of 13% or approximately 1.5 months, excluding the use of reserves. Transfers out are primarily used to fund Capital Projects and do not represent on going expenditures. This assignment will change from year to year based on budgeted general fund expenditures and revenues.  Mitigate short-term economic downturns and volatility in revenues (2 years or less)  Sustain city services in the event of an emergency  Meet requirements for debt reserves  Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues Economic Fluctuations – $1,400,000 and represents the most recent transfer of local funds to the State. This reserve may change from year to year based on the Consumer Price Index (CPI).  For shifts of City funds to the state to address State budget deficits. PERS– $100,000 and represents the highest retirement rate increase based on the most recent five years of rate increases. This assignment may change from year to year based on retirement rates and citywide budgeted retirement costs.  For pension cost increases Unassigned – $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures. 60 71  Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process  Absorb unexpected claims or litigation settlements Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy. The chart below summarizes reserve policy levels as described above: Funding Priority Reserve Reserve Level Escalator 1 Description GENERAL FUND 1 Economic Uncertainty $19,000,000 GF Budgeted Operating Expenditures 2 GF Budget Revenue 3 For economic downturns and major revenue changes. 2 Economic Fluctuations $1,400,000 CPI For shifts of City funds to the state to address state budget deficits. 3 PERS $100,000 Budgeted Citywide retirement costs For pension cost increases. 4 Unassigned $500,000 Budgeted GF Operating Expenditures 4 For mid-year budget adjustments and redeployment into the five year budget. CAPITAL PROJECT FUNDS 5 Capital Improvement $5,000,000 None Reserves set aside for future capital projects. 1 Rounded to the nearest hundred thousand 2 Excludes Transfers Out 3 Excludes the use of reserves 4 Excludes Transfers Out 61 72 Changes to Assigned Fund Balance – All reserves listed in this policy are classified as Assigned Fund Balance under Government Accounting Standards Board (GASB) Statement 54. Assigned fund balance is comprised of amounts intended to be used by the government for specific purposes that are neither committed nor restricted. Intent can be expressed by the governing body or by an official body to which the governing body delegates the authority. Changes to assigned fund balances must be approved by City Council. This policy will be reviewed annually as part of the budget process. Replenishment process – Should the City need to utilize any of the assigned fund balances listed in this policy, with the exception of the annual Infrastructure assignment, a plan to replenish the assignment will be developed in conjunction with its use. Excess – Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve: 1) Economic Uncertainty 2) Economic Fluctuations 3) PERS 4) Unassigned 62 73 FISCAL POLICIES – Investment Policy The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor perform agreed-upon procedures to review City compliance with the policy. The full policy is available on the City website as part of the May 6, 2014 City Council agenda packet. 63 74 DEBT LIMIT GANN APPROPRIATIONS LIMIT Fiscal Year 2016-17 Article XIIIB of the California State Constitution as enacted by Proposition 4, the Gann initiative of 1979, mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. The original Article XIIIB was further modified by Proposition 111 and SB 88 approved by California voters in June of 1990. Proposition 111 allows cities more flexibility in choosing certain inflation and population factors to calculate the limit. As of the time of the printing of this document the FY 2015 debt had not been updated by the State of California Department of Finance. As part of the Final Budget the GANN appropriations limit will be updated. Appropriations Subject to Limit The limit is different for each agency and the limit changes each year. Each year’s limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Appropriations (Gann Limit) Appropriations Limit Appropriation Subject to Limit 64 75 agency, modified for changes in inflation and population in each subsequent year. Proposition 111 has modified those factors to allow cities to choose either the growth in California Per Capita Income or the growth in non-residential assessed valuation due to new construction in the city. Alternatively, the city could select a population growth factor represented by the population growth in Santa Clara County. Each year the city establishes its appropriations limit for the following fiscal year. The City’s appropriations limit for FY 2017 is of $91,867,014 is $5,766,708, or 6.70% higher than the FY 2016 limit of $86,100,307. For FY 2018, the City’s estimated appropriations of proceeds from taxes, less statutory exclusions, are unchanged as of the Final Budget. Data needed to calculate the 2018 GANN will not be available until mid-May. If a city exceeds the legal limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be determined at that time. The appropriations limit is not expected to present a constraint on current or future budget deliberations. This reflects the prior year limit and will not be updated until the Adopted Budget when the information required for this calculation is available. 65 76 Information Technology Replacement and Capitalization Policy Purpose The purpose of this policy is to establish guidelines for replacing and capitalizing technology equipment and systems. Replacement is indicated when a product has run its useful life and updating/upgrading is no longer an option. Capitalization of equipment requires the set aside of funding for future replacement. Generally, technology equipment with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Software with an expected life of at least 7 years or a cost of over $10,000 shall also be capitalized. Technology upgrades are determined by the Innovation & Technology Division (IT) and user departments based on functionality, vendor support, and industry standards. Scope This policy covers the City of Cupertino: network infrastructure (routers, switches, firewalls, security appliances); server infrastructure (files servers, database servers, mail servers, web servers, etc); user laptops and workstations; mission-critical systems, telephone system (telephone equipment not already listed previously); desktop software; enterprise software; workgroup software; and broadcast video and audiovisual equipment. Cell phones, printers, and tablet devices are not covered by this policy as these items do not meet the minimum criteria for capitalization. Replacement of these items are at the discretion of the department. Policy All technology shall be replaced according to the following: Network infrastructure (routers, switches, firewalls) shall be replaced when no longer functional, as determined by the Information Services Division (IS), or when parts or support are no longer available from the manufacturer. Replacement needs will be determined by IS annually as part of the operating budget process. Network infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Server infrastructure shall be replaced when it is no longer functional (defined as not being able to meet its intended purpose), or when parts or support are no longer available from the manufacturer. These needs are evaluated annually by IT and user departments as part of the operating budget process. Servers are evaluated as they approach 3 years in service, and placed 66 77 on the schedule accordingly. Server lifetime may be extended by the purchase of additional memory or disk. Server infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. User workstations shall be replaced, on average, after 4 years as is industry standard. Zero Client work stations shall be replaced, on average, every 8 years. IS will determine the need for specific replacements. User workstations shall not be capitalized as they do not meet the minimum criteria for capitalization. Interoperable systems are defined as a group of interdependent and/or interoperable components that together form a single functional unit. These components may be interconnected by their structural relationships, their common functional behavior, or by both. Generally, for a system to be eligible for capitalization, the cumulative value of its components should be at least $5,000 and have a life expectancy of five years or more. Telephone system components (desktop and user equipment) is either repaired or replaced when determined no longer functional; telephone servers may be leased over 5 years and replaced at those times; the replacement period may exceed 5 years if the products are supported by vendors and parts are readily available. Telephone system components shall not be capitalized as they do not meet the minimum criteria for capitalization. Telephone system software is maintained under agreement with vendors and kept within 2 major versions to ensure functionality and vendor support. Enterprise Software replacement shall be determined individually by IS and the end users. Only those large enterprise systems with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. Desktop Software is replaced/updated according to Microsoft’s releases of Windows and Office. Software shall not be more than one version out of date to ensure functionality and vendor support. IS will generally wait at least 90 days after a new release to roll out new versions. Only software with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. Desktop software generally does not meet this criterion. Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when determined no longer functional. Replaced will occur on average after 10 years. Broadcast video and audiovisual equipment/systems with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Equipment that does not meet these criteria may still be capitalized if the item is a component of interoperable systems. 67 78 COMMUNITY FUNDING POLICY Purpose The City of Cupertino currently provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. This policy establishes a standard application process whereby funding decisions of non-profit requests can be addressed on a fair and consistent basis by establishing a set of criteria for evaluating requests, ensuring that all entities follow a formal application process and pre-approving a dollar limit for those requests. Scope All requests for funding must comply with this policy. Policy The applicant should identify the services provided, purpose for the funds, how the expenditure aligns to City priorities and how the funds will be used to benefit the Cupertino community. A recurring organization should state how prior year funds, if any, were used. The applicant should include information about the organization, its budget and its purpose. Non-profit organizations which serve multi-jurisdictions should state what they have requested from other cities/organizations they service in regards to this program request. Cupertino does not fund ongoing operational costs. Requests should be for one-time, project specific needs. The organization must show that their staff has the experience to implement and manage the project. More than 75% of the budget must go to direct service costs versus administrative costs. Staff should include all requests and funding recommendations for Council consideration. Staff report will reference City rules and regulations. Non-profits will be notified of our process in advance and no proposals will be entertained after March 1 of each year. City Council will make the final decision as part of the budget process 68 79 FISCAL YEAR 2017-18 PROPOSED BUDGET FINANCIAL OVERVIEW BY FUND Revenue Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2017-18 Proposed Budget Total Sales Tax 22,790,000$ -$ -$ -$ -$ -$ 22,790,000$ Property Tax 20,757,000$ -$ -$ -$ -$ -$ 20,757,000$ Transient Occupancy 6,708,000$ -$ -$ -$ -$ -$ 6,708,000$ Utility Tax 3,200,000$ -$ -$ -$ -$ -$ 3,200,000$ Franchise Fees 3,040,000$ -$ -$ -$ -$ -$ 3,040,000$ Other Taxes 2,850,000$ 1,350,000$ -$ -$ -$ -$ 4,200,000$ Licenses & Permits 2,145,000$ -$ -$ -$ -$ -$ 2,145,000$ Use of Money & Property 1,647,790$ 2,000$ -$ -$ 231,200$ -$ 1,880,990$ Intergovernmental 484,000$ 1,980,590$ -$ -$ 15,000$ -$ 2,479,590$ Charges for Services 13,337,897$ 384,100$ -$ -$ 7,181,800$ 4,167,492$ 25,071,289$ Fines & Forfeitures 600,000$ 6,000$ -$ -$ 56,000$ -$ 662,000$ Miscellaneous 435,960$ -$ -$ -$ -$ -$ 435,960$ Transfers In/Other Financing Uses 2,000,000$ 12,772,122$ 3,167,538$ 4,546,000$ 400,000$ 5,657,077$ 28,542,737$ TOTAL REVENUE 79,995,647$ 16,494,812$ 3,167,538$ 4,546,000$ 7,884,000$ 9,824,569$ 121,912,566$ Appropriation Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2017-18 Proposed Budget Total Employee Compensation 17,078,787$ 936,733$ -$ -$ 1,952,091$ 2,336,566$ 22,304,177$ Employee Benefits 7,210,639$ 511,493$ -$ -$ 603,569$ 1,830,031$ 10,155,732$ Materials 4,784,228$ 742,316$ -$ -$ 534,167$ 1,387,706$ 7,448,417$ Contract Services 18,165,196$ 796,900$ -$ 125,000$ 6,135,360$ 2,024,155$ 27,246,611$ Cost Allocation 7,812,849$ 555,816$ -$ -$ 759,543$ 733,706$ 9,861,914$ Capital Outlays 85,000$ 5,638,000$ -$ 4,421,000$ -$ -$ 10,144,000$ Special Projects 2,670,469$ 14,872,000$ -$ -$ 95,000$ 2,371,930$ 20,009,399$ Contingencies 1,253,931$ 39,571$ -$ -$ 273,496$ 340,418$ 1,907,416$ Transfers Out 12,590,196$ -$ -$ 12,184,000$ 223,766$ -$ 24,997,962$ Debt Service/Other Uses 3,327,538$ -$ 3,167,538$ -$ -$ 665,551$ 7,160,627$ TOTAL EXPENDITURES 74,978,833$ 24,092,829$ 3,167,538$ 16,730,000$ 10,576,992$ 11,690,063$ 141,236,255$ Net Increase (Decrease) in Fund Balance/Retained Earnings 5,016,814$ (7,598,017)$ -$ (12,184,000)$ (2,692,992)$ (1,865,494)$ (19,323,689)$ 69 80 FISCAL YEAR 2017-18 PROPOSED BUDGET FLOW OF FUNDS CHART Revenue by Fund Expenditures by Department SOURCE OF FUNDS Revenue by Object Expenditures by Object $4,546,000 Capital Project Funds: $4,546,000 Capital Projects: $22,368,000 $16,494,812 Enterprise Fund: $7,884,000 Internal Service: $9,824,569 70 81 FISCAL YEAR 2017-18 PROPOSED BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Proposed Budget Expenditures Projected Program Revenues Proposed Budget Fund Balance/ Retained Earnings (Usage) / Proposed General Fund Contribution General Fund 10 City Council 100 City Council 442,623 535,636 - (93,013) 101 Community Funding 52,411 - - 52,411 110 Sister Cities 43,750 - - 43,750 11 Commissions - 131 Telecommunication Commission 10,925 - - 10,925 140 Library Commission 23,894 - - 23,894 142 Fine Arts Commission 43,037 - - 43,037 150 Public Safety Commission 17,052 - - 17,052 155 Bike/Ped Safety Commission 4,912 - - 4,912 160 Recreation Commission 29,736 - - 29,736 165 Teen Commission 59,018 - - 59,018 170 Planning Commission 135,379 - - 135,379 175 Housing Commission 33,621 - - 33,621 180 Sustainability Commission 27,879 - - 27,879 12 City Manager - 120 City Manager 952,399 319,142 - 633,257 122 Sustainability Division 778,875 31,452 - 747,423 126 Public Affairs 470,946 150,355 - 320,591 13 City Clerk - 130 City Clerk 599,962 80,947 - 519,015 132 Duplicating/Mail Services 85,018 - - 85,018 133 Elections 288 - - 288 14 City Manager Discretion - 123 City Manager Contingency 540,821 - - 540,821 15 City Attorney - 141 City Attorney 2,039,588 263,033 - 1,776,555 20 Law Enforcement - 200 Law Enforcement SC Sherif 11,635,886 450,000 - 11,185,886 201 Interoperability Project 48,813 - - 48,813 202 Code Enforcement 659,608 250,000 - 409,608 31 Government Channel - 307 Public Access Support 72,435 - - 72,435 40 Administrative Services - 400 Admin Services Administration 790,510 67,899 - 722,611 41 Finance - 405 Accounting 1,134,474 906,996 - 227,478 406 Business Licenses 213,935 - - 213,935 44 Human Resources - 412 Human Resources 978,882 708,222 - 270,660 417 Insurance Administration 876,383 718,112 - 158,271 60 Recreation & Community Service - 601 Rec & Comm Svcs Administration 495,907 42,000 - 453,907 634 Park Planning and Restoration 253,235 - - 253,235 636 Library Services 788,892 - - 788,892 61 Business and Community Services - 602 Administration 919,005 - - 919,005 605 Cultural Events 438,337 5,000 - 433,337 71 82 FISCAL YEAR 2017-18 PROPOSED BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Proposed Budget Expenditures Projected Program Revenues Proposed Budget Fund Balance/ Retained Earnings (Usage) / Proposed General Fund Contribution 630 Facilities 579,747 631,379 - (51,632) 632 Comm Outreach & Neigh Watch 292,247 - - 292,247 62 Recreation and Education - 608 Administration 1,082,488 49,125 - 1,033,363 623 Youth, Teen and Senior Adult Rec 2,206,884 735,750 - 1,471,134 63 Sports, Safety & Outdoor Rec - 612 Park Facilities 1,968,178 469,000 - 1,499,178 615 Administration 243,820 - - 243,820 633 Disaster Preparedness 356,231 10,500 - 345,731 70 Planning & Community Development - 700 Community Development Admin 345,677 - - 345,677 71 Planning - 701 Current Planning 2,151,008 2,795,000 - (643,992) 702 Mid Long Term Planning 725,588 1,057,500 - (331,912) 704 Annexations 10,141 - - 10,141 705 Economic Development 508,547 - - 508,547 72 Housing Services - 712 Human Service Grants 41,836 - - 41,836 73 Building - 713 General Building 791,962 721,000 - 70,962 714 Construction Plan Check 1,283,854 335,000 - 948,854 715 Building Code Enforcement 1,349,597 1,225,000 - 124,597 718 Muni-Bldg Code Enforcement 311,082 - - 311,082 80 PW Admin - 800 Public Works Admin 766,715 - - 766,715 82 Developmental Services - 804 Plan Review 2,117,716 1,374,529 - 743,187 806 CIP Administration 854,429 - - 854,429 83 Service Center - 807 Service Center Administration 1,804,912 69,000 - 1,735,912 84 Grounds - 808 McClellan Ranch Park 82,847 - - 82,847 809 Memorial Park 747,097 14,000 - 733,097 812 School Site Maintenance 996,892 135,000 - 861,892 813 Neighborhood Parks 1,554,798 - - 1,554,798 814 Sport Fields Jollyman CRK 593,604 - - 593,604 815 Civic Center Ground Maint 191,442 175,467 - 15,975 85 Streets - 818 Storm Drain Maintenance 449,950 1,700 - 448,250 848 Street Lighting 605,360 - - 605,360 850 Environmental Materials 185,216 - - 185,216 86 Trees and Right of Way - 824 Overpasses and Medians 1,453,793 - - 1,453,793 825 Street Tree Maintenance 1,251,142 10,000 - 1,241,142 826 Weekend Work Program 441,278 - - 441,278 87 Facilities and Fleet - 827 Bldg Maint City Hall 629,738 382,657 - 247,081 828 Bldg Maint Library 334,605 293,621 - 40,984 829 Bldg Maint Service Center 314,654 429,314 - (114,660) 830 Bldg Maint Quinlan Center 504,647 228,304 - 276,343 72 83 FISCAL YEAR 2017-18 PROPOSED BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Proposed Budget Expenditures Projected Program Revenues Proposed Budget Fund Balance/ Retained Earnings (Usage) / Proposed General Fund Contribution 831 Bldg Maint Senior Center 248,657 241,641 - 7,016 832 Bldg Maint McClellan Ranch 146,444 - - 146,444 833 Bldg Maint Monta Vista Ct 150,687 151,450 - (763) 834 Bldg Maint Wilson 67,491 - - 67,491 835 Bldg Maint Portal 58,766 - - 58,766 837 Bldg Maint Creekside 85,913 81,781 - 4,132 838 Comm Hall Bldg Maint 267,259 250,130 - 17,129 839 Teen Center Bldg Maint 47,033 97,866 - (50,833) 840 Park Bathrooms 154,965 - - 154,965 841 BBF Facilities Maintenance 298,208 568,674 - (270,466) 852 Franco Traffic Operations Center 18,000 - - 18,000 88 Transportation - 844 Traffic Engineering 979,024 282,000 - 697,024 845 Traffic Signal Maintenance 713,733 - - 713,733 846 Safe Routes 2 School 146,761 - - 146,761 90 Citywide - Non Departmental - 001 No Department 15,757,734 - - 15,757,734 502 EE Housing Loan 10,000 - - 10,000 GENERAL FUND SUBTOTAL I 74,978,833$ 17,345,182$ -$ 57,633,651$ General Fund Revenue/Fund Balance General Fund Revenue - 62,650,465 - (62,650,465) Unassigned Fund Balance - --$ - GENERAL FUND SUBTOTAL II -$ 62,650,465$ -$ (62,650,465)$ TOTAL GENERAL FUND 74,978,833$ 79,995,647$ -$ (5,016,814)$ Special Revenue Fund Minor Storm Drain Improvement - 100,000 300,000 200,000 Non Point Source 761,720 484,122 (193,476) 84,122 HCD General Administration 88,814 62,918 (25,896) - CDBG- Capital Grants 284,484 204,484 (80,000) - Public Service Grants 47,188 47,188 - - Below Market Rate Housing 8,610,724 1,000,000 (7,610,724) - Sidewalk, Curb and Gutter Maint 1,085,525 315,800 80,275 850,000 Street Pavement Maintenance 6,744,384 1,328,100 583,716 6,000,000 Street Signs/Markings 831,990 177,200 (654,790) - Parkland Fund - 250,000 250,000 - CIP - Storm Drain Impv Orange and Byrne 3,388,000 3,388,000 - - CIP - Storm Drain Impv Byrne and SCB 1,500,000 1,500,000 - - CIP - Street Median Irrigation Replacement 750,000 750,000 - - TOTAL SPECIAL REVENUE FUNDS 24,092,829$ 9,607,812$ (7,350,895)$ 7,134,122$ Debt Service Public Facilities Corporation 3,167,538 - - 3,167,538 TOTAL DEBT SERVICE 3,167,538$ -$ -$ 3,167,538$ Capital Funds CIP - McClellan Ranch Community Garden Improvements 70,000 70,000 - - CIP - ADA Improvements 95,000 95,000 - - 73 84 FISCAL YEAR 2017-18 PROPOSED BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Proposed Budget Expenditures Projected Program Revenues Proposed Budget Fund Balance/ Retained Earnings (Usage) / Proposed General Fund Contribution CIP - SC Bank Repair Concept 100,000 100,000 - - CIP - Tennis Court Resurfacing 515,000 515,000 - - CIP - Traffic Signal Foothill-I280 SB 100,000 100,000 CIP - McClellan West Parking Lot Improvements 550,000 550,000 - - CIP - Service Center Shed 400,000 400,000 - - CIP - Bike Plan Implementation 1,000,000 1,000,000 - - CIP - Prelim Planning and Design 125,000 125,000 - - CIP - Capital Project Support 50,000 50,000 - - CIP - Inclusive Play Area 30,000 30,000 - - CIP - Senior Center Walkway 64,000 64,000 - - CIP - Outfall Repair Slope Stblz-Regnart 400,000 400,000 - - CIP - Annual Street Light Install 30,000 30,000 - - CIP - McClellan Sidewalk -RB to Hwy85 430,000 430,000 - - CIP - Retaining Wall Repair Regnart Rd 367,000 367,000 - - CIP - New Admin Building Feasability Study 200,000 200,000 - - CIP - International Cricket Ground Feasability Study 20,000 20,000 Transfer Out 12,184,000 - (12,184,000) - TOTAL CAPITAL FUNDS 16,730,000$ 4,546,000$ (12,184,000)$ -$ Enterprise Funds Resources Recovery 3,269,762 2,246,000 (1,023,762) - Golf Course 708,461 403,000 (5,461) 300,000 Sports Center 2,448,037 2,286,200 (61,837) 100,000 Sports Center Maintenance 484,623 - (484,623) - Youth Teen Recreation 2,214,409 1,510,300 (704,109) - Outdoor Recreation 1,451,700 1,038,500 (413,200) - TOTAL ENTERPRISE FUNDS 10,576,992$ 7,484,000$ (2,692,992)$ 400,000$ Internal Service Funds Information Services Admin 515,134 - (515,134) - Information Technology 2,812,304 2,361,792 99,193 549,705 Information Tech Equip Acquisition - - - - GIS 863,088 - (863,088) - Government Channel 1,569,256 - (205,109) 1,364,147 City Web Site 1,664,219 - -1,664,219 Equipment Maintenance 1,251,239 1,416,325 165,086 - Equipment Fixed Asset Acquisition 1,029,200 305,500 (723,700) - Workers' Compensation Claims 498,240 601,003 102,763 - Disability Claims 83,883 83,875 (8) - Leave Payouts 435,014 - 74,503 509,517 Retiree Medical Insurance 968,486 - -968,486 TOTAL INTERNAL SERVICE FUNDS 11,690,063$ 4,768,495$ (1,865,494)$ 5,056,074$ TOTAL ALL FUNDS 141,236,255$ 106,401,954$ (24,093,381)$ 10,740,920$ 74 85 FISCAL YEAR 2017-18 PROPOSED BUDGET FUND BALANCE REPORT FUND Fund Balance 7/1/2016 Projected Fund Balance 7/1/2017 Projected Program Revenue Proposed Budget Expenditures Projected Fund Balance 7/1/2018 100 GENERAL FUND 52,233,358 40,575,190 79,995,647 74,978,833 45,592,004 SPECIAL REVENUE 210, 215 Storm Drain Improvement 1,175,023 377,358 1,800,000 1,500,000 677,358 230 Environmental Management/ Clean Creek / Storm Drain 445,753 346,506 470,122 761,720 54,908 260, 261 265 Housing & Community Development 12,840,591 23,316,195 1,314,590 9,031,210 15,599,575 270 Transportation 10,080,754 200,000 12,660,100 12,799,899 60,201 280, 281 Park Dedication 9,091,485 18,658,277 250,000 0 18,908,277 TOTAL SPECIAL REVENUE FUNDS 33,633,606$ 42,898,336$ 16,494,812$ 24,092,829$ 35,300,319$ Debt Service 365 Public Facilities Corporation 1,596,982$ 1,596,982$ 3,167,538$ 3,167,538$ 1,596,982$ Capital Funds 420 Capital Improvement Fund 5,528,752 2,678,899 4,546,000 4,546,000 2,678,899 427 Stevens Creek Corridor Park 264,009 47,882 - - 47,882 429 Capital Reserve 9,546,057 15,841,449 - 12,184,000 3,657,449 TOTAL CAPITAL FUNDS 15,338,818$ 18,568,230$ 4,546,000$ 16,730,000$ 6,384,230$ Enterprise Funds 520 Resource Recovery 5,454,012 4,129,458 2,246,000 3,269,762 3,105,696 560 Blackberry Farm 572,586 105,116 703,000 708,461 99,655 570 Sports Center 886,843 931,500 2,386,200 2,932,660 385,040 580 Recreation Programs 2,170,187 1,644,921 2,548,800 3,666,109 527,612 TOTAL ENTERPRISE FUNDS 9,083,628$ 6,810,995$ 7,884,000$ 10,576,992$ 4,118,003$ Internal Service Funds 610 Information Technology 2,821,765 1,395,586 2,911,497 4,190,526 116,557 615 City Channel and Website 532,383 396,773 3,028,366 3,233,475 191,664 620 Workers' Compensation 1,162,066 1,162,385 600,993 498,240 1,265,138 630 Equipment 3,756,710 2,503,351 1,721,825 2,280,439 1,944,737 641 Compensated Absence & LTD 288,013 3,340 593,392 518,897 77,835 642 Retiree Medical 10,129,806 9,198,471 968,486 968,486 9,198,471 TOTAL INTERNAL SERVICE FUNDS 18,690,743$ 14,659,906$ 9,824,559$ 11,690,063$ 12,794,402$ TOTAL ALL FUNDS 130,577,135$ 125,109,639$ 121,912,556$ 141,236,255$ 105,785,940$ 75 86 GENERAL FUND SUMMARY The General Fund is the City’s primary operating fund. It accounts for basic services such as public safety, public works, planning and development, park maintenance, code enforcement, and the administrative services required to support them. The fund also accounts for the City’s discretionary funding sources (e.g., property tax, sales tax, transient occupancy tax and utility tax). As a rule, general fund resources are used only to fund operations that do not have other dedicated (restricted) funding sources. Operations that rely heavily upon non-general fund resources, such as street maintenance, solid waste collection, and recreation are accounted for in other funds. Information on these funds may be found in the Other Funds section of this document. For FY 2017-18, final General Fund revenue estimates (excluding fund balance) total $80 million, representing a 1% increase from the FY 2016-17 adopted budget, mostly due to transfer in of $2 million back to the General Fund from the Capital Reserve to assist in funding the CalPERs assigned reserve. When fund balance carryover is included, General Fund resources total $45.6 million, which is 38% above FY 2016-17 adopted budget. Final General Fund expenditure estimates total $75 million, representing a 3% decrease from FY 2016-17 projections, mostly due to decreases in costs allocation of due to a change in methodology as described in the budget message. The General Fund’s ending fund balance is projected to increase by 38% from FY 2016-17 adopted budget. This is due to a strong revenue forecast that exceeds budgeted expenditures in FY 2017-18. This section provides information on the FY 2017-18 General Fund budget including, expenditure and revenue highlights, transfers to other funds, reserve funds and the financial forecast. FY 14-15 FY 15-16 FY 16-17 FY 17-18 Percent Actual Actual Adopted Proposed Change Beginning Fund Balance 45,680,396 52,233,358 52,194,840 33,053,374 -37% Operating Revenue 83,505,136 77,932,145 79,004,004 79,995,647 1% Operating Expenditures (86,202,200) (65,023,330) (77,222,454) (74,978,833) -3% Net Revenue/Expenditures (2,697,064) 12,908,815 1,781,550 5,016,814 182% Assigned/Other 30,549,577 22,325,755 29,360,396 38,657,396 32% Unassigned 11,301,702 29,869,085 3,692,978 6,896,090 87% Total Ending Fund Balance 41,851,279 52,194,840 33,053,374 45,553,486 38% GENERAL FUND OPERATING SUMMARY 76 87 General Fund Revenue Estimates for the FY 2017-18 beginning fund balance and for the individual General Fund revenue accounts are based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. FY 2017-18 revenue estimates are based on the anticipated increase or decrease in activity and receipts over the current year. Each source of revenue can be influenced by external (outside of the City’s control) and/or internal factors. The FY 2017-18 revenue estimates are built on the assumption that the economic recovery continues to positively impact on the City’s tax revenues, while uncertainty surrounding development activities will reduce development-related fees and charges. As shown in the chart below, FY 2017-18 revenues are estimated at $78 million, a 1.3% decrease below the FY 2016-17 Adopted Budget. *FY17-18 Proposed to FY 16-17 Adopted Approximately 54% of Cupertino’s General Fund operating revenues are generated by sales and property taxes followed by charges for service and the transient occupancy tax. The chart on the next page illustrates the sources of General Fund revenue by category. FY 15-16 FY 16-17 FY 16-17 FY 17-18 Percent REVENUES Actuals Adopted Estimate Proposed Change* Sales Tax 21,350,056 22,440,000 25,940,000 22,790,000 1.6% Property Tax 18,139,368 18,741,000 20,741,000 20,757,000 10.8% Transient Occupancy 5,852,244 6,708,000 6,708,000 6,708,000 0.0% Utility Tax 3,370,830 3,122,000 3,122,000 3,200,000 2.5% Franchise Fees 3,478,024 2,900,000 2,900,000 3,040,000 4.8% Other Taxes 2,595,773 1,600,000 2,200,000 2,850,000 78.1% Licenses & Permits 3,073,109 2,499,000 2,499,000 2,145,000 -14.2% Use of Money & Property 1,400,899 776,980 896,980 1,647,790 112.1% Intergovernmental 428,991 230,500 230,500 484,000 110.0% Charges for Services 15,454,535 19,003,224 36,024,574 13,337,897 -29.8% Fines & Forfeitures 558,517 600,000 600,000 600,000 0.0% Miscellaneous 2,229,799 383,300 3,205,977 2,435,960 535.5% TOTAL REVENUE 77,932,145 79,004,004 105,068,031 79,995,647 1.3% GENERAL FUND REVENUE SUMMARY 77 88 The FY 2017-18 General Fund revenue estimates are discussed by category in the material that follows. Sales tax is an excise tax imposed on retailers for the privilege of selling tangible personal property. The Use Tax is an excise tax imposed on a person for the storage use, or other consumption of tangible personal property purchased from any retailer. The proceeds of sales and use taxes imposed within the boundaries of Cupertino are distributed by the State to various agencies, with the City of Cupertino receiving one percent, as shown in the chart to the right. Sales Tax 28% Property Tax 26% Transient Occupancy 9% Utility Tax 4% Franchise Fees 4% Other Taxes 3% Licenses & Permits 3% Use of Money & Property 2% Intergovernmental 1% Charges for Services 17% Fines & Forfeitures 1% Miscellaneous 3% FY 2017-18 Estimated Operating General Fund Revenue Total Revenue: $79,995,647 SALES & USE TAX FY 15-16 Actual 21,350,056 FY 16-17 Adopted 22,440,000 FY 16-17 Estimate 25,940,000 FY 17-18 Proposed 22,790,000 % of General Fund 28.5% % Change from FY 16-17 Adopted 1.6% Agency Sales Tax Distribution State 6.250% Valley Transportation Authority 1.125% City of Cupertino 1.000% County Transportation 0.500% County General Purpose 0.125% Total: 9.000% 78 89 $0 $5 $10 $15 $20 $25 $30 Revenue (in millions)Sales Tax Collection Historical Trend The City’s sales tax revenues are generated from five principal economic categories: business- to-business 67.0% (includes electronic equipment and software manufacturers and distributors), construction 13.2%, general retail 8.2%, food products 8.2%, and transportation 3.0%. Our two largest sales tax payers in the business-to-business category represent a large part of that sector and therefore can significantly affect sales tax trends. The top tax payer’s corporate growth and increased business technology spending has driven growth in this sector. Sales tax activity has increased across all sectors, particularly business-to-business and construction. Given this trend, the City’s FY 2016-17 sales tax revenue is expected to increase modestly. Sales and Use Tax receipts increased 9.9% in FY 2014-15 and took a slight dip of 1.8% in FY 2015-16. This chart reflects the FY 2016-17 actuals are expected to increase by 21.5% this increase is due to a onetime $3.5 mil payment related to the close out of the triple flip. Sales Tax revenues are estimated to generate $22.8 million in FY 2017-18, which is down 12.1% from the FY 2016-17 estimate due to the close out of the triple flip. PROPERTY TAX FY 15-16 Actual 18,139,368 FY 16-17 Adopted 18,741,000 FY 16-17 Estimate 20,741,000 FY 17-18 Proposed 20,757,000 % of General Fund 25.9% % Change from FY 16-17 Adopted 10.8% Under current law, property is assessed at actual full cash value with the maximum levy being 1% of the assessed valuation. The assessed value of real property that has not changed ownership can be adjusted by the change in the California Consumer Price Index (CCPI) up to a maximum of 2% per year. Property which changes ownership, property which is substantially altered, newly-constructed property, State-assessed property, and personal property are assessed at the full market value in the first year and subject to the two percent cap, thereafter. 79 90 $0 $5 $10 $15 $20 $25 MillionsProperty Tax Historical Trend In 1978, voters approved the passage of Proposition 13, which froze property tax rates and limited the amount that rates could increase each year. Cupertino had one of the lowest property tax rates in Santa Clara County receiving $.02 for every $1.00 paid. Subsequent legislation required Counties to provide “no/low tax” cities with a Tax Equity Allocation (TEA) equal to 7% of the property tax share, however, the property tax distribution for the no/low tax cities in Santa Clara County was limited to 55% of what other TEA cities in the state received. In FY 2006-07 West Valley cities won the passage of State legislation which restored a portion of TEA property tax revenue. This TEA change provided an additional $1.35 million in property tax annually and increased the City’s share of property taxes to 5.6%. Cupertino, in conjunction with three other West Valley cities, continued its legislative efforts to gain parity with other no/low property tax cities in the state. In FY 2015-16, Governor Brown agreed to restore TEA revenues over a five-year period. As shown in the graph above, Cupertino will keep 6.44% of property tax revenues compared to 6.16% in FY 2016-17. TEA will be fully restored to 7% by FY 19-2020 as shown in the following chart. City of Cupertino 6.5% Santa Clara County 34.6% Cupertino Union Elementary 24.8% Bay Area Air Quality Management 0.0% Foothill DeAnza Community College 6.4% Fremont Union High 16.7% Mid-Pen Regonal Open Space 1.5% Santa Clara Valley Water 1.7% ERAF 7.8% Property Tax Allocation FY 17-18 80 91 Property Tax receipts increased 15.2% in FY 2015-16. Similar gains are anticipated in FY 2016-17 due in part to the restoration of TEA funds and the changes in valuation for Apple Campus 2. Property Tax revenues are estimated to generate $20.8 million in FY 2017-18, which is up 10.8% from the FY 2016-17 Budget. TRANSIENT OCCUPANCY TAX FY 15-16 Actual 5,852,244 FY 16-17 Adopted 6,708,000 FY 16-17 Estimate 6,708,000 FY 17-18 Proposed 6,708,000 % of General Fund 8.4% % Change from FY 16-17 Adopted 0% FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 All Other Agencies 0.8562 0.8562 0.8562 0.8562 0.8562 0.8562 ERAF 0.0860 0.0832 0.0804 0.0776 0.0748 0.0720 City of Cupertino 0.0560 0.0588 0.0616 0.0644 0.0672 0.0700 0.0000 0.2000 0.4000 0.6000 0.8000 1.0000 1.2000 Changes in Property Tax Rate (TEA Phase-In) All Other Agencies ERAF City of Cupertino 81 92 $0 $1 $2 $3 $4 $5 $6 $7 $8 MillionsTransient Occupancy Tax Historical Trend Transient occupancy taxes (TOT) are levied on five hotels located in the City at the rate of 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upwards trend shown in the TOT Tax Historical Trend graph to the right. In addition, the new Hyatt House, which due to open in September 2018, should increase ongoing TOT collections significantly. UTILITY TAX FY 15-16 Actual 3,370,830 FY 16-17 Adopted 3,122,000 FY 16-17 Estimate 3,122,000 FY 17-18 Proposed 3,200,000 % of General Fund 4.0% % Change from FY 16-17 Adopted 2.5% The utility user tax (UUT), approved by voters in 1990, is assessed on gas, electricity and telecommunication service provided within the City’s jurisdiction at a rate of 2.4% of billed charges. Revenues generated from this tax can be used for general City purposes. The City’s tax rate is generally lower than that of other cities within Santa Clara County, as shown in the chart above. In March 2002, voters approved extending the utility tax’s sunset date from 2015 to 2030. This extension corresponded with the extended debt maturity date resulting from the refinancing of debt for capital improvement projects. To maintain tax revenues currently received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area. Gas/Electric Cable Water Telecom Sunnyvale 2.00%-- --2.00% Cupertino 2.40%-- --2.40% Mountain View 3.00%-- --3.00% Los Altos 3.50% 3.20% 3.50% 3.20% Palo Alto 5.00%--5.00% 5.00% Gilroy 5.00% 4.50%--4.50% San Jose 5.00%--5.00% 4.50% Utility User Tax Comparison 82 93 In FY 2015-16, UUT revenues increased by 17.8% compared to FY 2014-15, primarily due to the settlement payout that was taken from UUT receipts. UUT revenues are anticipated to make a slight increase in FY 2017-18 with an 4.1% increase. Further decreases are not anticipated for UUT and budgeted revenues will remain at $3.2 million for FY 2017-18 and beyond. This revenue source will be monitored closely as the fiscal year progresses. FRANCHISE FEES FY 15-16 Actual 3,478,024 FY 16-17 Adopted 2,900,000 FY 16-17 Estimate 2,900,000 FY 17-18 Proposed 3,040,000 % of General Fund 3.8% % Change from FY 16-17 Adopted 0.0% Franchise fees are received from cable, solid waste, water, gas and electricity franchisees that operate in the City. The fees range from 1% to 12% of the franchisee’s gross revenues depending on each particular agreement. As shown in the graph below, these revenues are relatively steady and not sensitive to economic fluctuations. Franchise fee revenues increased by 22% in FY 2015-16 from the previous year and but are expected to decline in FY 2016-17. Budgeted revenues are expected to remain at approximately $3 million for FY 2017-18. This revenue source will be monitored closely as the fiscal year progresses. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Millions Utility Tax Historical Trend $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Millions Franchise Fee Collection Historical Trend 83 94 OTHER TAXES FY 15-16 Actual 2,595,773 FY 16-17 Adopted 1,600,000 FY 16-17 Estimate 2,200,000 FY 17-18 Proposed 2,850,000 % of General Fund 3.6% % Change from FY 16-17 Adopted 78.1% Other taxes are comprised mainly of business license taxes, construction taxes, and property transfer taxes. As shown in the graph, business license taxes are relatively steady while construction and property transfer taxes are extremely volatile and sensitive to economic fluctuations. With the influx of several major construction projects beginning in 2012, revenues began increasing. The largest of the projects included the Apple Campus 2 and Main Street developments. These projects coupled with a strong housing recovery created a record year for revenues in FY 2013-14. These revenues have since returned to historic levels. In FY 2017-18 revenues are expected to be at $2.9 million. CHARGES FOR SERVICES FY 15-16 Actual 15,454,535 FY 16-17 Adopted 19,003,224 FY 16-17 Estimate 36,024,574 FY 17-18 Proposed 13,337,897 % of General Fund 16.7% % Change from FY 16-17 Adopted -29.8% $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 MillionsOther General Fund Taxes Historical Trend CONSTRUCTION TAX BUSINESS LICENSE TAX PROPERTY TRANSFER TAX 84 95 82 $0 $5 $10 $15 $20 $25 $30 $35 $40 MillionsCharges for Services Historical Trend This category accounts for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City attempts to recover the cost of the services, including planning, zoning, and engineering permit processing for new property development as well as some recreation-related fees. As such, this revenue source is sensitive to economic fluctuations, as shown in the graph below. The Apple Campus 2 generated large one-time revenues in FY 2013-14 and is expected to continue bringing in healthy revenue in FY 2016-17 though not to the same levels as previously seen. Large development projects attributed to a spike in revenues in this category in FY 2013-14. In addition, beginning in FY 2013-14, enterprise funds, internal service funds, and special funds began charging for overhead services previously subsidized by the General Fund. Some internal strategic support services (HR, Finance, City Clerk, etc.) also began charging internal departments for their services to accurately capture the true cost of providing various programs and services within City operations. After a comprehensive cost allocation plan (CAP) was approved by Council in April 2016, new CAP charges are included to capture internal strategic support services that were previously excluded (City Council, Facilities, Maintenance, etc.). In FY 2015-16, the City’s administration changed its methodology for tracking developer deposits driven by increased developer activity and, as a result, both budgets for revenues and expenses were increased by anticipated deposit amounts leading to another large increase in revenue. For FY 2016-17, Charges for Services will decrease to $13.3 million due largely to the removal of charges from strategic support that were added in the prior year. In addition, revised fees approved by Council in June will go into effect beginning in August FY 17-18 and will result in increased revenue estimates. LICENSES & PERMITS FY 15-16 Actual 3,073,109 FY 16-17 Adopted 2,499,000 FY 16-17 Estimate 2,499,000 FY 17-18 Proposed 2,145,000 % of General Fund 2.7% % Change from FY 16-17 Adopted -14.2% 85 96 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 MillionsLicenses & Permits Historical Trend $0 $500 $1,000 $1,500 $2,000 $2,500 ThousandsUse of Money and Property Historical Trend Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations for compliance with state and municipal building codes. Past referendums limited the height and density of new construction and building of condominium housing. Some residential developers hesitated to invest in Cupertino for fear that their project will not be approved or will be reversed by voter referendum. However, this trend began to reverse in FY 2011-12 with the economic recovery. The Apple Campus 2 project and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14. Since then, activity has slowed. FY 2015-16 revenues are tracking lower than projected by $3.2 million as no new large development projects have been approved as previously anticipated. Revenue is anticipated to remain flat in FY 2017-18 as development activity continues to slow. USE OF MONEY AND PROPERTY FY 15-16 Actual 1,400,899 FY 16-17 Adopted 776,980 FY 16-17 Estimate 896,980 FY 17-18 Proposed 1,647,790 % of General Fund 2.1% % Change from FY 16-17 Adopted 112.1 The use of money and property category is comprised of General Fund interest earnings as well as facility and concession rental income of City-owned property. The City’s portfolio is approximately $122.8 million. Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady. Investment earnings are a function of the amount of excess cash available for 86 97 $0 $100 $200 $300 $400 $500 $600 $700 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18ThousandsFines & Forfeitures Historical Trend CITY FINES PARKING FINES ADMIN CITATIONS investment, current interest rates, and composition of investments. The City’s investment policy requires investments to be made in this order of priority: safety, liquidity, and yield. The unprecedented turmoil in the financial markets and state cash flow problems necessitated a weighting of the portfolio toward safety and lower average yieldsIn March 2017, the Federal Reserve raised short-term interest rates by a quarter percentage point to a range of 0.75% to 1%. Two more increases are forecasted for 2017, followed by three more in 2018. Investment earnings are expected to remain low as the Federal Reserve remains cautious with interest rates. Economists predicted interest rates would increase in FY 2017-18 when the unemployment rate was projected to fall below 6.5%. The unemployment rate did fall below that threshold but the Federal Reserve did not increase key rates until December 2015 from range of 0%-0.25% to a range of 0.25%-0.5%. Lackluster GDP growth will likely keep rates low. Revenue in this category is estimated to increase slightly in FY 2016-17 as General Fund reserves stabilize and interest rates cautiously ease up. FINES AND FORFEITURES FY 15-16 Actual 558,517 FY 16-17 Adopted 600,000 FY 16-17 Estimate 600,000 FY 17-18 Proposed 600,000 % of General Fund 0.8% % Change from FY 16-17 Adopted 0.0% Fines and forfeiture account for revenues generated from vehicle, parking, and miscellaneous code violations issued by the County Sheriff and the City’s Code Enforcement officers. The recent downtrend in County fines, resulting from lower court assessed fines and forfeitures, have leveled off in recent years as shown on the chart on the next page. Parking fine revenues have also leveled off but are expected to increase with approval of a part-time Code Enforcement Officer expected to begin in May 2016. Fines and Forfeitures revenue is expected to remain flat in FY 2016-17 and remain at this level for FY 2017-18. 87 98 INTERGOVERMENTAL FY 15-16 Actual 428,991 FY 16-17 Adopted 230,500 FY 16-17 Estimate 230,500 FY 17-18 Proposed 484,000 % of General Fund 0.6% % Change from FY 16-17 Adopted 110% Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue. Current year estimates are up compared to budgeted levels prior year budget levels due to anticipated State mandate reimbursements. In FY 2017-18, revenues of $484,000 are anticipated. MISCELLANEOUS FY 15-16 Actual 2,229,799 FY 16-17 Adopted 383,300 FY 16-17 Estimate 3,205,997 FY 17-18 Proposed 2,435,960 % of General Fund 3.0% % Change from FY 16-17 Adopted 535.5% Miscellaneous revenues account for the sale of land and other miscellaneous revenues such as administrative fees. Staff is recommending the transfer in of fund balance from the Capital Reserve back to the General Fund for an increase in the CalPERS assigned reserve to assist in smoothing out significant increases due to the reduction in the discount rate. 88 99 General Fund Expenditures Estimates for the FY 2017-18 General Fund expenditures are based upon anticipated personnel and non-personnel cost increases. This year department budgets reflect actual projected costs based on the 2016-17 Final Adopted Budget, removing any one time costs, and accounting for changes in personnel costs and any other anticipated/known increased costs in FY 2017-18. In addition, most budgets were given additional funds for any unexpected expenditures that is accounted for in the contingency account. Lastly, per the City’s Reserve policy and unassigned General Fund balance above the $500,000 maximum balance will be transferred to the Capital Fund for future capital and infrastructure projects, however this transfer will now be completed as part of the year end close and not in the budget. As shown in the chart below, FY 2017-18 expenditures are estimated at $75 million, a 3% decrease below the final budget. This decrease is primarily attributed to changes in charges for services due to decreased information systems costs and changes to the City’s Cost Allocation Plan (CAP). The largest General Fund operating expenditure categories include personnel costs (34%), contract services (24%) and Transfers Out (21% each) as illustrated in the FY 2017-18 General Fund Expenditures by Category chart on the next page. 2014-2015 2015-2016 2016-2017 2017-18 Percent EXPENDITURES Actuals Actuals Adopted Proposed Change Employee Compensation 12,843,889 13,430,658 15,348,029 17,078,787 11% Employee Benefits 5,243,862 5,543,191 6,350,028 7,210,639 14% Total Personnel Costs 18,087,751 18,973,848 21,698,057 24,289,426 12% Non-Personnel Costs Materials 4,020,636 3,323,691 4,173,507 4,784,228 15% Contract Services 14,554,123 16,819,679 17,849,345 18,165,196 2% Cost Allocation 3,336,264 3,078,935 13,262,836 7,812,849 -41% Capital Outlay & Special Projects 7,016,144 9,657,395 5,780,639 2,755,469 -52% Contingencies 9,916 5,010 1,249,396 1,253,931 0% Other Uses 82 827 247,300 160,000 -35% Total Non-Personnel 28,937,166 32,885,537 42,563,023 34,931,673 -18% Transfers 39,177,284 13,163,945 12,961,373 15,757,734 22% TOTAL EXPENDITURES 86,202,200 65,023,330 77,222,454 74,978,833 -3% GENERAL FUND EXPENDITURE SUMMARY 89 100 Personnel Costs Personnel cost total $24.3 million in FY 2017-18, comprising 32% of General Fund expenditures. These costs are made up of salaries and compensation for benefitted and part time staff (70%), retirement benefits (17%), and other fringe benefits (13%), including health coverage. Costs were calculated by taking an extract of payroll system information. This individual position-level information was then reviewed, corrected, and updated by each department to include current vacancies and filled positions, accurate salary step status, as well as any position reallocations. Also, all categories of benefit costs in the coming year were projected. The most recent retirement plan and health plan information for each position was also updated from the payroll system. Not included in personnel costs, is the ongoing contribution for retiree healthcare which is included in the transfers category. Costs in salary and benefits are up due primarily to reclassification that occurred as part of the citywide classification study and negotiated increases of 3.5% that are effective at the beginning of the fiscal year, both of which were approved by Council in October 2016. Also as part of labor negotiations the City significantly increased its contribution toward healthcare up from approximately 50-60% to 85% of plan costs as a fixed number. The current fiscal year builds on that increase, providing a 5% escalator over Life and Long-Term disability rates are projected to remain flat in FY 2017-18. In addition as part of negotiation the City agreed to add short term disability benefits for employees not currently covered under the State’s plan this resulted in a slight increase this fiscal year. Lastly retirement rates are projected to increase a net 2%. The change to the PERS discount rate will be Employee Compensation 17,078,787 23% Employee Benefits 7,210,639 10% Materials 4,784,228 6% Contract Services 18,165,196 24% Cost Allocation 7,812,849 10% Capital Outlay & Special Projects 2,755,469 4% Contingencies 1,253,931 2% Other Uses 160,000 0% Transfers 15,757,734 21% General Fund Expenditures by Category 90 101 discussed in General Fund forecast section as the impact of this change will not materialize until FY 2018-19. A total of 197.75 FTEs are budgeted in FY 2017-18, up from 190.75 in FY 2016-17. This increase of 4.0 FTE represents a 4% increase in staffing. The growth in positions is summarized below: FY 2016-17 Adopted Budget 190.75 Deputy City Attorney (Council Item) 1.00 Business System Analyst (Mid-Year Budget) 2.00 FY 2017-18 Proposed Budget Requests Environmental Program Specialist (Extend by 1 year) 0.00 Executive Assistant (with conversion of an existing position to 3-Year Limited Term) 1.00 Recreation Coordinator (3-Year Limited Term) 2.00 Senior Planner-Transportation (3-Year Limited Term) 1.00 Proposed FY 2017-18 Benefitted Positions 197.75 Positions requested as part of the Proposed Budget are summarized below: Department(s) Classification Salaries Benefits Total Costs Funding Source/Purpose City Council/ Administration Executive Admin $79,176 $34,394 $113,570 General Fund. Admin support for City Council, City Clerk and City Manager Administration Environmental Program Specialist, 1 year extension, limited term $86,404 $36,828 $123,232 General Fund Sustainability and CAP Recreation and Community Services (2) Recreation Coordinator $152,148 $66,844 $218,992 General Fund. Disaster Preparedness & Senior Center Public Works Senior Planner $107,772 $49,171 $156,943 General Fund. Transportation Projects POSITIONS FUNDED BY THE GENERAL FUND $349,426 $153,815 $612,737 Non-Personnel Non-personnel cost total $31.8 million in FY 2017-18, comprising 47% of General Fund expenditures. These costs are made up of contractual services (24%), cost allocation charges (10%), materials (6%), capital outlays and special projects (4%) and program contingencies (2%). Costs were developed based on FY 2016-17 Adopted budget and actual expenditures in prior 91 102 years, and then adjusted for FY 2017-18 funding needs. One-time projects were moved to a separate category in FY 13-14 to ensure that expenditure trends reflect ongoing expenditure needs. In the current year a concerted effort was made to differentiate costs related to special projects and capital outlays that are required to be depreciated. A new special projects series was created in contracts section of accounts for any new special projects going forward. Contingencies totaling 2% of the total General Fund and 5% of Material and Contract budgets has been established. This contingency level is within the recommended range by the Government Finance Officers Association. Contingencies have allocated proportionately amongst operating programs based on each program’s share of General Fund budget for contractual services and supplies and materials. The remaining is allocated to the City Manager’s Discretionary Program. Program contingency budgets may be used to cover unanticipated program expenses at the department’s discretion, while the use of the City Manager’s Discretionary Program will require City Manager approval. The 5% is consistent with best practices adopted by the Governmental Accounting Standards Board (GASB) which recommends a 5-15% contingency. 92 103 General Fund Transfers Transfers out represent transfers of monies out of the General Fund to various other funds. These transfers provide resources to the receiving fund to support operating and capital project costs. For Fiscal Year 2016-17, budgets have been established for the following transfers. Transfer Out from General Fund Description Amount Special Revenue Funds Pavement, Sidewalk, Curb and Gutter Maintenance $7,134,122 Debt Service Fund Annual Debt Payment $ 3,167,538 Enterprise Fund General Fund subsidy of several Recreation Enterprise Funds $400,000 Internal Service Funds General Fund Subsidy of Government Channel, City Website, GIS and Compensated Absence Funding $5,056,074 TOTAL GENERAL FUND TRANSFERS OUT $15,757,734 93 104 GENERAL FUND—RESERVES AND CLASSIFICATION OF FUND BALANCE The Government Accounting Standards Board (GASB) Statement No. 54 establishes five categories for the classification of fund balance: Non-spendable, Restricted, Committed, Assigned and Unassigned. Although only the General Fund is addressed in this section, Statement No. 54 applies to the Special Revenue and Capital Project funds as well. Non-spendable fund balance includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Loans receivable or prepaid expenses comprise this category in the City. Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution, external parties (such as creditors, grant providers or contributors) or through enabling legislation. Franchise fees collected for public, educational, and governmental access purposes comprise this classification. Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority, such as the City Council. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. The City has no fund balance in this category. Assigned fund balance is comprised of amounts intended to be used by the government for specific purposes that are neither restricted nor committed. Intent can be expressed by the governing body or by an official body to which the governing body delegates the authority. Reserves discussed in the Reserve and Use of One Time Funds Policy are assigned to this classification. General Fund assigned reserves at June 30, 2013 are projected to be at policy levels. Unassigned fund balance is the classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. 94 105 Actuals Actuals Final Budget Year End Projection Proposed Budget CLASSIFICATION 2014-15 2015-16 2016-17 2016-17 2017-18 Non Spendable Loans Receivable 886,148 868,608 1,032,275 1,032,275 1,032,275 Prepaid Items 52,097 68,773 66,428 66,428 66,428 Total Non Spendable 938,245 937,381 1,098,703 1,098,703 1,098,703 - - - Restricted - - - Encumbered Fund Balance Public Access Television 761,653 888,374 761,693 761,693 761,693 Total Restricted 761,653 888,374 761,693 761,693 761,693 - - - Committed - - - None in this classification - - - - Total Committed - - - - - - - - Assigned - - - Economic Uncertainty I 18,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Economic Uncertainty II - - - - Economic Fluctuation 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 CIP Future Project 8,099,679 PERS 100,000 100,000 100,000 100,000 4,793,000 Reserve for Encumbrances - 7,000,000 11,604,000 11,604,000 Revenue Liability - - - - - General Building - - - - Wolfe Road Transportation Study 1,000,000 - - - - I-280 Trail Study 250,000 - - - - Total Assigned 28,849,679 20,500,000 27,500,000 32,104,000 36,797,000 Total UnAssigned 11,301,702 29,869,085 3,692,978 6,572,276 6,896,090 TOTAL FUND BALANCE 41,851,279 52,194,840 33,053,374 40,536,672 45,553,486 FISCAL YEAR 2017-18 PROPOSED BUDGET General Fund Classification of Fund Balance 95 106 Five-Year General Fund Forecast The financial forecast is a planning tool that helps staff identify important trends and anticipate the longer term consequences of budget decisions. The forecast tools can be been instrumental in modeling the effects of such recent issues as rising retirement system costs, increases in employee compensation, and potential scenarios of future revenue performance. The forecast is not a plan but a model based on cost and revenue assumptions that are updated regularly as new information becomes available. Of these components, future costs projections based on known costs, are relatively reliable. Revenue forecasts, on the other hand, are based on assumptions related to future economic conditions, which are fraught with uncertainty. Economic forecasts in the financial markets and the media swing from optimistic to pessimistic on a seemingly daily basis and demonstrate the difficulties of committing to a particular prediction of the future. For this reason the forecast should be updated regularly. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the 2017-18 Forecast is discussed below. Key economic forecasts were reviewed in the development of the revenue estimates, including the national, State and regional economic forecasts produced by the Congressional Budget Office, California’s Legislative Analyst’s Office (LAO), and economist Steven Levy of the Center for Continuing Study of the California Economy (CCSCE). The City also uses a sales tax consultant to assist in the development of sales tax revenue estimates. While economic conditions are the primary drivers for economically sensitive revenues like the sales tax and property tax categories, performance is primarily driven by other factors for non- economically sensitive categories such as the utility user tax and franchise fee categories. These revenue categories are more heavily impacted by rate changes, energy prices, and consumption levels. Collections from local, State, and federal agencies are primarily driven by the grant and reimbursement funding available from these agencies. As a result, these General Fund revenues experience no significant net gain or loss in times of an economic expansion or slowdown. All revenue projections based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. National Economic Outlook Both locally and nationally uncertainty is the main theme among forecasts. Most are projecting either moderate economic growth or a mild recession during the next two years, according to several economic forecasts. In the growth scenario Growth will be driven by employment, personal income, and the stock market. Under the recession scenario Economists are expecting a big stock market decline comparable to the dot.com bust of the early 2000s. It’s important to note that national economy has been expanding since June 2009. The expansion has now surpassed 89 months, making it the 4th longest in U.S. history. Expansions commonly end 96 107 because of imbalances that build up and overheat the economy. These can be driven by major changes in the economy and or public policy changes. Cupertino Economic Outlook The outlook for Cupertino and the Silicon Valley overall has been positive, with steady growth in this Forecast. Sales taxes continue to be very strong, driven by business to business sales in the City’s technology sector. Property taxes have also had a strong performance the last two years but are expected to stabilize as interest rates begin to rise during the forecast period. The limited supply of housing may eventually dampen growth as well. Large construction projects have generated strong development-related revenue for the City’s coffers but have started to level off. The majority of revenues associated with the Apple Campus 2 project have already been collected per the development agreement. No other major projects are anticipated at this time. Development projects that have yet to be approved and permitted are not included in this Forecast out of prudence. It would be risky to rely on these one-time revenues given the political uncertainty around development projects. In summary, the steady recovery from the great recession is expected to continue impacting the City’s revenue performance. The economically sensitive revenues, such as sales tax and property tax receipts, are expected to experience moderate growth over the forecast period. Development-related revenue such as licenses and permits, construction tax, and charges for service are expected to decline from the peak experienced in FY 2013-14 due to one-time projects. As shown in the chart on the next page, operating expenditures are expected to exceed operating revenues in all but the final year of the forecast. In addition, reserve levels are projected to increase as the City proactively prepares for future expenditure liabilities. Per the City’s new Reserve Policy any additional unassigned fund balance above the $500,000 maximum will be transferred out to the Capital Reserve at the end of the year. 97 108 21,500,000 22,000,000 22,500,000 23,000,000 23,500,000 24,000,000 24,500,000 25,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Sales Tax Forecast FIVE-YEAR SALES TAX FORECAST FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Sales Tax 25,940,000 22,790,000 23,359,750 23,827,000 23,884,000 24,409,000 The City’s heavy reliance on the volatile business-to-business sector of its sales tax revenue base has made it vulnerable to large swings. Currently, the City’s two largest sales tax generators—both technology companies—account for a large portion of the City’s total sales tax. Moderate growth in base sales tax revenues are anticipated in the range of 2-3% annually in the out years. These increases will be somewhat offset by a reduction of sales tax related to construction once Apple Campus 2 is complete. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Proposed Forecast Forecast Forecast Forecast Assigned/Other 20,105,456 18,271,662 22,191,662 23,936,662 26,531,662 28,751,662 Unassigned 6,496,719 14,010,513 4,778,903 518,482 1,899,563 4,264,800 TOTAL BFB 26,602,175 32,282,175 26,970,565 24,455,144 28,431,225 31,317,459 REVENUE Sales Tax 21,350,056 22,790,000 23,359,750 23,827,000 23,884,000 24,409,000 Property Tax 18,139,368 20,757,000 22,418,000 22,866,000 23,323,000 23,789,000 Transient Occupancy 5,852,244 6,708,000 7,580,000 7,656,000 7,694,000 7,732,000 Utility Tax 3,370,830 3,200,000 3,200,000 3,222,000 3,245,000 3,268,000 Franchise Fees 3,478,024 3,040,000 2,853,000 2,902,000 2,957,000 3,013,000 Other Taxes 2,595,773 2,850,000 2,921,000 2,994,000 3,069,000 3,146,000 Licenses & Permits 3,073,109 2,145,000 1,600,000 1,650,000 1,703,000 1,756,000 Use of Money & Property 1,400,899 1,647,790 1,714,000 1,714,000 1,714,000 1,714,000 Intergovernmental 428,991 484,000 265,000 265,000 265,000 265,000 Charges for Services 15,454,535 13,337,897 12,717,164 12,972,000 13,193,000 13,417,000 Fines & Forfeitures 558,517 600,000 600,000 600,000 600,000 600,000 Miscellaneous/Non-Op 2,229,799 2,435,960 0 0 0 0 TOTAL REVENUE 77,932,145 79,995,647 79,227,914 80,668,000 81,647,000 83,109,000 FIVE-YEAR GENERAL FUND FORECAST BEGINNING FUND BALANCE 98 109 19,000,000 19,500,000 20,000,000 20,500,000 21,000,000 21,500,000 22,000,000 22,500,000 23,000,000 23,500,000 24,000,000 24,500,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Property Tax Forecast Given the volatility of business-to-business revenue, which accounts for 68.3% of the City’s sales tax, a key goal of the City’s long-term fiscal strategic plan is to diversify its sales tax base by building up the general retail and food product sectors. Development projects such as the Rosebowl, Main Street, and Marina Plaza are expected to generate new or replacement retail. When fully operational, these developments should help boost retail sales and reduce the City’s reliance on business-to-business revenues. As the housing recovery experienced in the last few years slows, property taxes in Cupertino are expected to continue experiencing strong growth through FY 2018-19 due to the reassessment of large development projects and additional tax equity allocation (TEA) funds. Assessed values for Cupertino properties are estimated to increase by $708.7 million in FY 2015-16 but only $480.1 million in FY 2016-17. In FY 2017-18, however, the Apple Campus 2 property is expected to be reassessed, increasing property tax revenues by nearly 9%. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Property Tax 18,139,368 20,757,000 22,418,000 22,866,000 23,323,000 23,789,000 FIVE-YEAR PROPERTY TAX FORECAST FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Transient Occupancy 5,852,244 6,708,000 7,580,000 7,656,000 7,694,000 7,732,000 FIVE-YEAR TRANSIENT OCCUPANCY TAX FORECAST 99 110 6,000,000 6,200,000 6,400,000 6,600,000 6,800,000 7,000,000 7,200,000 7,400,000 7,600,000 7,800,000 8,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Transient Occupancy Forecast 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Licenses and Permits Forecast Transient occupancy tax (TOT) revenues are projected to continue with moderate growth into FY 2016-17 as occupancy rates are at record levels given our strong local economy. In FY 2018-19, the 148 rooms in the Hyatt House hotel project located at Vallco Park is expected to open for business. These additional rooms are expected to fill unmet demand and increase TOT revenues by $820,000 in FY 2018-19. Beyond FY 2018-19, the forecast assumes that out year growth between 1.5% and 2.0%. Not included in the forecast is the proposed hotel at Marina Plaza, which is still under review. As development activity slows, licenses and permit revenue has declined. FY 2016-17 EE revenues are tracking 11% below prior year actuals. Staff is expected to take increases the City’s fee schedule in early June, with the change rate expected to be effective in August 2017. Revenues are expected to decline due to decreased development activity over the next two years and will stabilize by FY 18-19. This forecast does not assume any development activity related to the proposed redevelopment of the Vallco Park Mall or the Oaks Shopping Center. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Licenses & Permits 3,073,109 2,145,000 1,600,000 1,650,000 1,703,000 1,756,000 FIVE-YEAR LICENSES & PERMITS FORECAST FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Charges for Services 15,454,535 13,337,897 12,717,164 12,972,000 13,193,000 13,417,000 FIVE-YEAR CHARGES FOR SERVICES FORECAST 100 111 12,200,000 12,400,000 12,600,000 12,800,000 13,000,000 13,200,000 13,400,000 13,600,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Charges for Services Forecast FY 2016-17 revenues from charges and services are lower due to the implementation of a new cost allocation plan (CAP), which spreads overhead costs to user departments and reflects the true cost of providing services in each program. In addition, revenues are expected to increase based on the revised fee schedule that goes into effect August 2017. For out years, the revenue stream is expected to decrease then stabilize as development-related activity slows. Utility user taxes are not sensitive to economic fluctuations as they are based on usage and rates. The forecast assumes no growth as declining consumption is offsetting projected rate increases. Franchise fee agreements have escalators based on CPI and the forecast assumes annual growth in collections tracks with CPI. The solid waste management contract was renewed and did not significantly impact projections for this revenue source. Other taxes are made up of construction, property transfer, and business license tax revenue. These revenues have continued to decelerate from a peak in FY 2013-14 driven by construction taxes from large development projects. The forecast assumes collections will return to base levels in FY 2017-18 with minimal growth in the out years. Intergovernmental revenues will decrease in FY 2017-18 assumes new base level is reached, grant revenues are assumed to remain at base levels throughout the forecast period. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Utility User Tax 3,370,830 3,200,000 3,200,000 3,222,000 3,245,000 3,268,000 Franchise Fees 3,478,024 2,850,000 2,853,000 2,902,000 2,957,000 3,013,000 Other Taxes 2,595,773 2,850,000 2,921,000 2,994,000 3,069,000 3,146,000 Intergovernmental 428,991 484,000 265,000 265,000 265,000 265,000 Use of Money & Proper 1,400,899 1,647,790 1,714,000 1,714,000 1,714,000 1,714,000 Fines & Forfeitures 558,517 600,000 600,000 600,000 600,000 600,000 Miscellaneous/Non-Op 2,229,799 435,960 0 0 0 0 FIVE-YEAR FORECAST - OTHER REVENUE 101 112 Use of money and property is expected to remain relatively flat throughout the forecast period based on the City’s current conservative investment strategy and low interest rates. The Federal Reserve has been hesitant to increase the Fed Funds rate due to mixed economic indicators. Fines and Forfeitures are anticipated to increase in FY 2017-18 will remain flat in the out years. Miscellaneous and non-operational revenues are not assumed in the forecast. An in-depth analysis of the General Fund expenditure categories was completed to develop the FY 2017 expenditure estimates included in this Forecast. As displayed in the chart above, General Fund expenditures are projected to increase from $65.0 million in FY 2015-16 actual to $75 million in FY 2017-18 and increase in all years of the forecast. The swings in expenditures are mostly driven by special projects that can range from development projects to facility improvements. It is important to note that the Forecast is adjusted to eliminate one-time additions/deletions and annualize partial year allocations that were included in the 2016-17 Adopted Budget. Various one-time additions scheduled to expire in June 2016 were eliminated in the out years of the Forecast. The following discussion focuses on the assumptions used for estimating each of the expenditure categories in the General Fund Forecast. Personnel Expenditures Personnel costs in FY 2017-18 are increasing due to increases in compensation due to newly negotiated salary increase in October 2016, reclassification changes as part of the City’s FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Proposed Forecast Forecast Forecast Forecast Personnel Costs 18,973,848 24,289,426 24,262,157 25,140,004 26,195,928 26,909,942 Non-Personal (ongoing)20,144,196 22,949,424 24,929,941 26,131,765 27,220,902 27,584,382 Non-Personal (one-time)9,657,395 10,568,318 9,269,914 9,430,234 9,569,231 9,710,591 Cost Allocation/Contingecies 3,083,945 1,413,931 2,000,000 2,000,000 2,000,000 2,000,000 Total Non-Personnel 51,859,385 59,221,099 60,462,012 62,702,003 64,986,061 66,204,915 Transfers 13,163,945 15,757,734 16,000,000 16,000,000 16,000,000 16,000,000 TOTAL EXPENDITURES 65,023,330 74,978,833 76,462,012 78,702,003 80,986,061 82,204,915 Assigned/Other 30,549,576 38,657,396 36,657,396 36,657,396 36,657,396 36,657,396 Unassigned 11,301,702 6,896,090 9,661,992 11,627,989 12,288,928 13,193,013 TOTAL EFB $41,851,278 $45,553,486 $46,319,388 $48,285,385 $48,946,324 $49,850,409 EXPENDITURES ENDING FUND BALANCE FIVE-YEAR GENERAL FUND FORECAST 102 113 classification study and costs related to the progression thru the five salary steps available for each position and the recommendation to add four additional positions. These costs are projected to increase 2.5% in the first year of the forecast based on negotiated contracts and by 1% annually in the out years of the Forecast. In addition, costs related to the implementation of the increases to minimum wage have also been factored into the forecast. As discussed in more detail below, these cost increases are driven mostly by assumed changes in salary and retirement costs. Health Benefits Health benefits account for about 9% of all personnel costs in the General Fund, mostly made up of health insurance costs. Given that the City pays employees a fixed dollar amount for health and dental insurance costs, as opposed to covering a percentage of premiums. In October of 2016 City Council approved labor contracts that resulted in a significant increase in the flat dollar amount the City pays toward health costs. In addition, and escalator to the flat rate costs have also been built in for January 2018 and January 2019 for health only. Cost increases in health above the negotiated flat amount and any increases dental are fully absorbed by employees. While not factored into the forecast, there is uncertainty around how the implementation of the Affordable Care Act (ACA) will affect the City. Beginning in 2018, the so called “Cadillac Tax” will impose an excise tax for any employer-sponsored health coverage whose value exceeds $10,200 per year for individuals and $27,500 for families. A 40% excise tax will be imposed on the amount that exceeds the predetermined thresholds. Most of the City’s current health plans would fall under the definition of a Cadillac plan, which could increase the City’s cost of providing health benefits to employees. The City’s health care administrator, CalPERS, has given assurances that coverage plans will fall below the Cadillac Tax threshold. Retirement Benefits The chart below shows the current breakdown of retirement costs borne by the City and employees for the three retirement tiers. Virtually all employees in the City are currently covered under the Tier 1 retirement system. Savings from the Tier 2 and Tier 3 are not expected to be substantial for another 10-15 years. Tier EEs Benefits Employer Share Employer Pickup Total Employer Share Employee Share Total Rate I 114 2.7@ 55 Highest Year 26.169% 0.00% 26.17% 8.00% 34.17% II 13 2% @ 60 Highest 3 Yr Avg 26.169% 0.00% 26.17% 7.00% 33.17% II 67 2% @62 Highest 3 Yr Avg 26.169% 0.00% 26.17% 6.25% 32.42% 103 114 Significant investment losses experienced by CalPERS during the great recession resulted in overall funded status of the retirement system dropping to 60.8%.1 Given the economic recovery, the funded status of the system has improved to 70%.2 However, the desired goal is 100% funded status, where assets on hand are equal to the desired level of assets needed to pay pension benefits. After a thorough analysis, CalPERS actuaries determined the retirement system was at significant risk of falling to dangerously low funded status levels under existing actuarial policies. In December 2016 CalPERS informed agencies that it would be reducing the discount rate of return for investments by .5%. The result of this change is drastic and will result in significant increases in retirement well above what the City had previously forecasted for retirement expenses. The City anticipates retirement rates increasing by the following in forecast period, these increases will result in costs almost doubling in the forecast period: Fiscal Year FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 5 Year Total Total Rate 29.017% 31.968% 35.764% 38.001% 39.770% Net Rate Increase 10.9% 10.2% 11.9% 6.3% 4.7% 44.00% Increase in $ $617,000 $645,000 $745,000 $439,000 $347,000 $2,793,000 Other Benefits The Forecast assumes an annual 2% cost escalator for life insurance, long-term disability insurance, and the employee assistance program. Workers’ compensation costs vary widely depending on the number and type of claims, which makes these costs very hard to predict. The forecast assumes a 2% annual increase. No increases were forecasted for the following benefits: car allowance, internet allowance, stand by pay and recreation bucks. Non-Personnel Expenditures Non-personnel expenditures in FY 2017-18 were adjusted to remove one-time uses and build forecast projections off of base levels. For the out years of the Forecast, a growth rate based on projected CPI has been assumed from the FY 2017-18 non-personnel base levels in each of the four years. The average growth rate for the non-personnel category is 3% annually. Transfers represent the General Fund’s contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital project reserves, acquire new equipment, and to subsidize enterprises and operations. With the implementation of full cost allocation in FY 2015-16, General Fund expenses will be shifted to other City funds causing some of those funds’ revenues to fall short of expenses and necessitating the use of fund 1 CalPERS Pension & Health Benefits Committee, Agenda Item 9A: Amortization Periods and Smoothing Methods for Retirement Trust Funds. April 16, 2013. 2 See Footnote #1. 104 115 balances to cover expenses. The General Fund benefits in the near term with the cost shift, however, after fund balances in those other funds are drawn down to minimum levels, and absent aggressive revenue or cost actions in those other funds, General Fund subsidies are projected to kick in and remain flat in the forecast in order to maintain those fund balance minimums. General Fund reserves are projected to increase by $2 million over the Forecast period. This driven by the City’s ongoing strong revenues and the City’s conservative approach to ongoing expenditure growth. Although the General Fund unassigned fund balance is expected grow substantially over the forecast period, it is anticipated that any unassigned fund balance over the $500,000 will be transferred to the Capital Reserve or into the assigned reserve for PERS costs or into the City’s Irrevocable Trust should it move forward with this option to assist in smoothing anticipated increases in retirement. As mentioned several times throughout this document any General Fund unassigned fund balances above the $500,000 maximum will be transferred out to the Capital Reserve. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Proposed Forecast Forecast Forecast Forecast Assigned - - Economic Uncertainty I 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Economic Uncertainty II - - - - - - Economic Fluctuation 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 CIP Future Project - - - - PERS 100,000 4,793,000 4,793,000 4,793,000 4,793,000 4,793,000 One Time Revnue - - - - - - Equipment Fund Loan for 1A - - - - - - Reserve for Encumbrances - 11,604,000 11,604,000 11,604,000 11,604,000 11,604,000 Revenue Liability - - - - - - General Building - - - - - - Wolfe Road Transportation Study - - - - - - I-280 Trail Study - - - - - - Total Assigned 20,500,000 36,797,000 36,797,000 36,797,000 36,797,000 36,797,000 FIVE-YEAR GENERAL FUND FORECAST FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Proposed Forecast Forecast Forecast Forecast Unassigned EFB 11,301,702 6,896,090 9,661,992 11,627,989 12,288,928 13,193,013 FIVE-YEAR GENERAL FUND UNASSIGNED FUND BALANCE FORECAST 105 116 ALL FUNDS SUMMARY This section provides information on the FY 2017-18 Special Revenue, Debt Service, Capital Project, Enterprise and Internal Service Funds budgets including, expenditure and revenue highlights, transfers to other funds, reserve funds and the financial forecast. Revenue Estimates Estimates for the FY 2017-18 beginning fund balance and for the individual revenue accounts are based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Each source of revenue can be influenced by external (outside of the City’s control) and/or internal factors. The FY 2017-18 revenue estimates are built on the assumption that the economy will continue to experience modest growth, which will positively impact the City’s economic performance. Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, Transportation, Storm Drain, and Environmental Management/Clean Creeks funds. Revenue Revenue sources for special revenue funds are summarized in the table below and discussed in greater detail following the table: Revenues are projected decrease by $28.3 million dollars, largely due to the city not receiving one-time Below Market housing dollars for FY 17-18 as per the prior year. 2015-16 2016-17 Actuals Final Budget Other Taxes 676,659 33,034,404 1,350,000 Use of Money & Property 287,512 10,000 2,000 Intergovernmental 2,103,033 3,094,741 1,980,590 Charges for Services 400,969 0 384,100 Miscellaneous Revenue 489,424 0 0 Fines and Forfeitures 6,387 502,000 6,000 Transfers In 8,702,676 8,181,679 12,772,122 Total Revenue Sources $12,666,660 $44,822,824 $16,494,812 REVENUE SOURCES 2017-18 Proposed Budget 106 117 Expenditures Expenditure uses for special revenue funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $7 million dollars, which is primarily due to an increase in costs related to new and existing capital and BMR projects. Fund Balance Fund balance represents a funds savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. CHANGES TO FUND BALANCE 2015-16 2016-17 2017-18 Proposed Budget Actuals Final Budget Beginning Balance 37,370,525 33,775,118 61,616,848 Net Increase (Decrease) in Fund Balance (3,595,407) 27,841,730 (7,598,017) Ending Balance $33,775,118 $61,616,848 $54,018,831 Debt Service Fund The Debt Service Fund provides for the payment of principal and interest and associated administrative costs incurred with the issuance of debt instruments for the City’s Public Facilities Corporation. The budget funds the Corporation’s annual payment of principal and interest on the City Hall/Library, Wilson/Memorial Open Space and Library Certificates of Participation (COP) that will be paid off by the year 2030. 2015-16 2016-17 Actuals Final Budget Employee Compensation 837,860 926,579 936,733 Employee Benefits 402,692 442,507 511,493 Materials 812,863 761,606 742,316 Contract Services 311,927 718,400 796,900 Cost Allocation 453,696 379,431 555,816 Capital Outlays 4,397,548 2,863,000 5,638,000 Special Projects 9,045,481 10,850,000 14,872,000 Contingencies 0 39,571 39,571 Transfers Out 0 0 0 Total Expenditures Uses $16,262,068 $16,981,094 $24,092,829 2017-18 Proposed Budget EXPENDITURE USES 107 118 Revenue Revenue sources for Debt Service Funds are summarized in the table below and discussed in greater detail following the table: There is no projected change to revenues. Expenditures Expenditure uses for Debt Service Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are expected to remain the same. This represents a repayment of debt and payments which are fixed for the life of the loan that is set to be paid off in 2030. Fund Balance Fund balance represents a funds savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. REVENUE SOURCES 2015-16 2016-17 Actuals Final Budget Use of Money & Property 4,795 0 0 Transfers In 3,167,033 3,167,538 3,167,538 Total Revenue Sources $3,171,828 $3,167,538 $3,167,538 2017-18 Proposed Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Debt Service 3,169,038 3,167,538 3,167,538 Transfers Out 0 0 0 Total Expenditures Uses $3,169,038 $3,167,538 $3,167,538 2017-18 Proposed Budget CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 1,594,191 1,596,982 1,596,982 Net Increase (Decrease) in Fund Balance 2,791 0 0 Ending Balance $1,596,982 $1,596,982 $1,596,982 2017-18 Proposed Budget 108 119 Capital Project Funds This fund pays for the acquisition and/or construction of major capital facilities. Revenue Revenue sources for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: Revenue is projected to increase by $639,000. This increase represents the movement of fund balance between the Capital Reserve and Capital Fund. Expenditures Expenditure uses for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $3.7 million dollars primarily due to an increase in special project costs and the transfers out of funds to fund capital projects in other funds. Fund Balance Fund balance represents a funds savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. 2015-16 2016-17 Actuals Final Budget Intergovernmental 0 0 0 Transfers In 3,291,725 5,907,000 6,546,000 Total Revenue Sources $3,291,725 $5,907,000 $6,546,000 REVENUE SOURCES 2017-18 Proposed Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 20,241 0 0 Employee Benefits 6,291 0 0 Materials 3,726 0 0 Contract Services 8,000 0 125,000 Contingencies 0 0 0 Cost Allocation 0 0 0 Special Projects 3,030,399 5,907,000 6,421,000 Transfers Out 5,549,993 9,165,000 12,184,000 Total Expenditures Uses $8,618,649 $15,072,000 $18,730,000 2017-18 Proposed Budget 109 120 *As part of the Final Budget the Capital Fund anticipated using $9.2 million in fund balance, however due to the defunding and closeout of projects and a large transfer in of unassigned fund balance from the General Fund, the City anticipates ending the fiscal year with a net increase of $3.2 million with a total FY 17-18 beginning balance of $18.5 million dollars. Enterprise Funds Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course and Recreation funds. Revenue Revenue sources for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Revenue is projected to decrease by $928,000, this is primarily driven by increased charges for services that are more in line with prior year actuals and a decrease in transfers due to the department using unassigned fund balance to cover operational shortages. As part of the budget process each fund is evaluated, funds that are bringing in less revenue than they are expending require the use of fund balance or a subsidy from the General Fund. CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 20,671,116 15,344,192 6,179,192 Net Increase (Decrease) in Fund Balance (5,326,924) (9,165,000) (12,184,000) Ending Balance $15,344,192 $6,179,192 ($6,004,808) 2017-18 Proposed Budget 2015-16 2016-17 Actuals Final Budget Use of Money & Property 107,187 213,200 231,200 Intergovernmental 16,007 0 15,000 Charges for Services 7,577,085 6,834,500 7,181,800 Miscellaneous Revenue 72,804 0 56,000 Transfers In 1,635,000 1,764,091 400,000 Total Revenue Sources $9,408,083 $8,811,791 $7,884,000 REVENUE SOURCES 2017-18 Proposed Budget 110 121 Expenditures Expenditure uses for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $264,000. This increase is driven primarily by an increase in salary and benefits costs, contract services and cost allocation and a decrease in special projects. Fund Balance Fund balance represents a funds savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. CHANGES TO FUND BALANCE 2015-16 2016-17 2017-18 Proposed Budget Actuals Final Budget Beginning Balance 8,684,139 9,083,628 7,582,882 Net Increase (Decrease) in Fund Balance 399,489 (1,500,746) (2,692,992) Ending Balance $9,083,628 $7,582,882 $4,889,890 EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 1,423,182 1,599,429 1,952,091 Employee Benefits 387,473 457,858 603,569 Materials 369,073 471,214 534,167 Contract Services 5,553,741 6,032,888 6,135,360 Contingencies 9,458 273,496 273,496 Cost Allocation 592,752 661,972 759,543 Special Projects 284,688 549,000 95,000 Transfers Out 388,228 266,680 223,766 Total Expenditures Uses $9,008,594 $10,312,537 $10,576,992 2017-18 Proposed Budget 111 122 Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Information Technology, City Channel and Website, Equipment, Workers Compensation, Long- Term Disability/Compensated Absence, and Retiree Medical funds. Revenue Revenue sources for Internal Service Funds are summarized in the table below and discussed in greater detail following the table: Revenues are project to increase by $2.5 million dollars. The increase is primarily due to transfers in from the General Fund to fund Government Channel and website operations. Expenditures Expenditure uses for Internal Service Funds are summarized in the table below and discussed in greater detail following the table: 2015-16 2016-17 Actuals Final Budget Use of Money & Property 74,464 0 0 Intergovernmental 0 0 0 Charges for Services 4,693,577 5,191,403 4,668,224 Miscellaneous Revenue 29,320 0 0 Transfers In 1,917,504 2,645,673 5,056,074 Other Financing Uses 21,944 0 601,003 Total Revenue Sources $6,736,808 $7,837,076 $10,325,301 REVENUE SOURCES 2017-18 Proposed Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 1,334,370 1,539,737 2,336,566 Employee Benefits 1,410,999 1,536,479 1,830,031 Materials 407,652 499,984 1,387,706 Contract Services 1,890,433 2,639,022 2,024,155 Contingencies 0 210,163 340,418 Cost Allocation 210,072 795,737 733,706 Special Projects 235,213 2,490,105 2,371,930 Transfers Out 731,841 765,500 665,551 Total Expenditures Uses $6,220,580 $10,476,727 $11,690,063 2017-18 Proposed Budget 112 123 Expenditures are projected to increase by $1.2 million dollars, this is primarily due to salary and benefit costs and costs related equipment purchases. Retained Earnings Internal Service Funds carry retained earning instead of fund balance. Retained earnings represent a funds savings and are calculated in the same manner as fund balance, taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. CHANGES TO FUND BALANCE 2015-16 2016-17 2017-18 Proposed Budget Actuals Final Budget Beginning Balance 8,684,139 9,200,368 6,560,717 Net Increase (Decrease) in Fund Balance 516,229 (2,639,651) (1,364,762) Ending Balance $9,200,368 $6,560,717 $5,195,955 113 124 Five Year Budget Forecast 125 FISCAL YEAR 2017-18 PROPOSED BUDGET FIVE YEAR FORECAST - GENERAL FUND FUND BALANCE 2017-2018 2018-2019 2019-2020 2020-2021 2020-2021 Beginning Fund Balance 42,317,331 41,851,278 45,990,375 40,536,672 45,553,486 48,319,388 50,285,385 50,946,324 Assigned/Other 30,549,576 29,360,396 33,964,396 38,657,396 38,657,396 38,657,396 38,657,396 38,657,396 Unassigned 11,301,702 16,629,979 6,572,276 6,896,090 9,661,992 11,627,989 12,288,928 13,193,013 Total Ending Fund Balance 41,851,278 45,990,375 40,536,672 45,553,486 48,319,388 50,285,385 50,946,324 51,850,409 Classification 2015-16 Actuals 2016-17 Adopted 2016-17 Estimate 5 YEAR FORECAST 114 126 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022STORM DRAIN IMPROVEMENT  Investment Earnings14,240            ‐ ‐ ‐ ‐ ‐ ‐ ‐   Transfer in from Capital Reserve /General Fund‐ 1,950,000       1,950,000       1,700,000       210,000          210,000          210,000          210,000            Developer Fees154,698          100,000          100,000          100,000          100,000          100,000          100,000          100,000            Miscellaneous487,009          ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 655,947          2,050,000       2,050,000       1,800,000       310,000          310,000          310,000          310,000          PARK DEDICATION  Park Dedication Fee255,918          17,821,125     17,821,125     250,000          250,000          250,000          250,000          250,000            Investment Earnings77,771            ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 333,689          17,821,125     17,821,125     250,000          250,000          250,000          250,000          250,000          ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN  Investment Earnings2,615              ‐ ‐ ‐ ‐ ‐ ‐ ‐   Fees374,519          502,000          502,000          386,000          386,000          386,000          386,000          386,000            Transfer in from Capital Reserve/General Fund128,676          128,679          156,834          84,122            ‐ ‐ ‐ ‐ TOTAL 505,809          630,679          658,834          470,122          386,000          386,000          386,000          386,000          TRANSPORTATION  Investment Earnings84,189            10,000            10,000            2,000              2,000              2,000              2,000              2,000                Transfer from Capital Reserve/General Fund8,574,000       6,103,000       6,152,982       10,988,000     6,900,000       7,100,000       7,100,000       5,800,000         Intergovernmental Revenue1,701,151       2,780,151       2,801,255       1,666,000       1,815,000       1,815,000       1,815,000       3,165,000         Charges for Services‐ ‐ ‐ 4,100              ‐ ‐ ‐ ‐   Miscellaneous1,709              ‐ 25,859            ‐ ‐ ‐ ‐ ‐ TOTAL 10,361,048     8,893,151       8,990,096       12,660,100     8,717,000       8,917,000       8,917,000       8,967,000       PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST115127 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTHOUSING & COMMUNITY DEVELOPMENT  Investment Earnings 108,699           ‐ ‐ ‐ ‐ ‐ ‐ ‐   Intergovernmental Revenue401,882          314,590          314,590          314,590          314,590          314,590          314,590          314,590            Other Taxes299,586          15,113,279     15,113,279     1,000,000       1,000,000       1,000,000       1,000,000       1,000,000         Transfer from General Fund‐ ‐ 3,614              ‐ ‐ ‐ ‐ ‐ TOTAL 810,167          15,427,869     15,431,483     1,314,590       1,314,590       1,314,590       1,314,590       1,314,590       TOTAL SPECIAL REVENUE FUNDS 12,666,660     44,822,824     44,951,538     16,494,812     10,977,590     11,177,590     11,177,590     11,227,590     116128 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ DEBT SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PUBLIC FACILITIES CORPORATION  Investment Earnings4,795              ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Debt Refinancing‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Transfer from General Fund3,167,033       3,167,538       3,079,000       3,167,538 3,169,438 3,172,838 3,169,138 3,168,488TOTAL3,171,828       3,167,538       3,079,000       3,167,538       3,169,438       3,172,838       3,169,138       3,168,488       PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST117129 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022CAPITAL IMPROVEMENT PROJECTS  Transfers from Capital Reserves/Enterprise Funds500,000          5,907,000       5,907,000       4,546,000       ‐                  ‐                  ‐                  ‐                    Grants/Other Income‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 500,000          5,907,000       5,907,000       4,546,000       ‐                  ‐                  ‐                  ‐                  CAPITAL RESERVES  Transfers In2,791,725       ‐                  15,000,000     ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 2,791,725       ‐                  15,000,000     ‐                  ‐                  ‐                  ‐                  ‐                  STEVENS CREEK CORRIDOR PARK  Transfers from Park Dedication‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Transfers from Capital Reserves‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Transfers from Recreation‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Grants‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL CAPITAL FUNDS 3,291,725       5,907,000       20,907,000     4,546,000       ‐                  ‐                  ‐                  ‐                  PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST118130 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ ENTERPRISE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022RESOURCE RECOVERY  Investment Earnings/Rentals52,789            7,000              7,000              25,000            25,000            25,000            25,000            25,000              Charges for Services2,576,077       1,917,000       1,917,000       2,150,000       2,150,000       2,150,000       2,150,000       2,150,000         Intergovernmental Revenue ‐ Grants16,007            ‐                  ‐                  15,000            ‐                  ‐                  ‐                  ‐                    Transfers from General Fund/Capital Reserve‐                  ‐                  53,215            ‐                  ‐                  ‐                  ‐                  ‐                    Miscellaneous ‐ Household Hazardous Waste72,804            ‐                  ‐                  56,000            ‐                  ‐                  ‐                  ‐                  TOTAL 2,717,676       1,924,000       1,977,215       2,246,000       2,175,000       2,175,000       2,175,000       2,175,000       BLACKBERRY FARM GOLF COURSE  Investment Earnings/Rentals29,220            22,000            22,000            22,000            22,000            22,000            22,000            22,000              Charges for Services312,064          381,000          381,000          381,000          381,000          381,000          381,000          381,000            Transfer from General Fund/Capital Reserve262,008          326,929          332,931          300,000          300,000          300,000          300,000          300,000          TOTAL 603,293          729,929          735,931          703,000          703,000          703,000          703,000          703,000          SPORTS CENTER  Investment Earnings/Rentals9,490              1,200              1,200              1,200              1,200              1,200              1,200              1,200                Charges for Services2,222,608       2,285,000       2,285,000       2,285,000       2,285,000       2,285,000       2,285,000       2,285,000         Transfer from General Fund657,732          999,054          1,030,662       100,000          100,000          100,000          100,000          100,000          TOTAL 2,889,830       3,285,254       3,316,862       2,386,200       2,386,200       2,386,200       2,386,200       2,386,200       RECREATION PROGRAMS  Investment Earnings15,689            183,000          183,000          183,000          ‐                  ‐                  ‐                  ‐                    Charges for Services2,466,336       2,251,500       2,251,500       2,365,800       2,365,800       2,365,800       2,365,800       2,365,800         Transfer from General Fund/Capital Reserves/CIP715,260          438,108          457,312          ‐                  2,796,992       2,796,992       2,796,992       2,796,992       TOTAL 3,197,284       2,872,608       2,891,812       2,548,800       5,162,792       5,162,792       5,162,792       5,162,792       TOTAL ENTERPRISE FUNDS9,408,083       8,811,791       8,921,820       7,884,000       10,426,992     10,426,992     10,426,992     10,426,992     PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST119131 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022  Investment Earnings24,168            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Charges for Services1,655,088       2,884,971       2,996,196       2,361,792 2,361,792 2,361,792 2,361,792 2,361,792  Transfers In from General Fund237,000          647,264          801,267          549,705‐                  ‐                  ‐                  ‐                  TOTAL 1,916,256       3,532,235       3,797,463       2,911,497       2,361,792       2,361,792       2,361,792       2,361,792         Investment Earnings5,058              ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Charges for Services779,676          ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Transfers In from General Fund40,000            1,848,409       2,025,624       3,028,366 2,628,366       2,628,366       2,628,366       2,628,366       TOTAL 824,734          1,848,409       2,025,624       3,028,366       2,628,366       2,628,366       2,628,366       2,628,366         Investment Earnings20,724            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Charges for Services958,056.00     500,732.00     500,732.00     ‐                  ‐                  ‐                  ‐                  ‐                    Other Financing Sources‐                  ‐                  ‐                  601,003.00     ‐                  ‐                  ‐                  ‐                    Transfers In from General Fund‐                  ‐                  1,192              ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 978,780          500,732          501,924          601,003          ‐                  ‐                  ‐                  ‐                    Investment Earnings22,096            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Charges for Services1,219,560       1,721,825       1,721,825       1,721,825       1,290,825       1,290,825       1,290,825       1,290,825         Transfers In‐                  ‐                  9,468              ‐                  ‐                  ‐                  ‐                  ‐                    Other Financing Sources21,944            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Miscellaneous29,320            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 1,292,920       1,721,825       1,731,293       1,721,825       1,290,825       1,290,825       1,290,825       1,290,825         Investment Earnings1,959              ‐‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Charges for Services81,197            83,875            83,875            83,875            83,875            83,875            83,875            83,875              Transfers In from General Fund640,004          150,000          150,000          509,517          150,000          150,000          150,000          150,000          TOTAL 723,160          233,875          233,875          593,392          233,875          233,875          233,875          233,875          CITY CHANNELWORKERSʹ COMPENSATION VEHICLE/EQUIPMENT REPLACEMENTCOMPENSATED ABSENCE & LONG‐TERM DISABILITYINFORMATION TECHNOLOGYPROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST120132 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST  Investment Earnings459                 ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    Transfers In from General Fund1,000,500       ‐                  ‐                  968,486          931,335          931,335          931,335          931,335          TOTAL 1,000,959       ‐                  ‐                  968,486          931,335          931,335          931,335          931,335          TOTAL ALL PROGRAMS 6,736,808       7,837,076       8,290,179       9,824,569       7,446,193       7,446,193       7,446,193       7,446,193       RETIREE MEDICAL 121133 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022STORM DRAIN IMPROVEMENT210‐90‐978 Minor Storm Drain Improvements50,141            75,000           150,829            ‐ ‐ ‐ ‐ ‐ 210‐90‐979 2012‐13 Minor Storm Drain Improvements 11,131            ‐‐‐ ‐ ‐ ‐ ‐ 210‐90‐980 SD Master Plan Update219,247          50,000           95,000              ‐ ‐ ‐ ‐ ‐ 210‐90‐981 Calabazas Creek Outfall Repair‐ ‐135,000            ‐ ‐ ‐ ‐ ‐ 210‐99‐042 SD Improvement ‐ Foothill/Cupertino Rd.‐ 1,900,000      1,900,000         ‐ ‐ ‐ ‐ ‐ 210‐99‐060 SD Improvement ‐ Byrne & SCB‐ ‐‐1,500,000       ‐ ‐ ‐ ‐ 215‐90‐982 Bubb Road/Elm Court SD Improvement 1,906,249       ‐178,255            ‐ ‐ ‐ ‐ ‐ 215‐90‐983 Monta Vista Storm Drain System1,571,211       ‐322,808            ‐ ‐ ‐ ‐ ‐ TOTAL 3,757,979       2,025,000      2,781,892         1,500,000       PARK DEDICATION280‐99‐009 CIP ‐ Lawrence Mitty Park 16,666            ‐8,207,484         ‐ ‐ ‐ ‐ ‐ TOTAL 16,666            ‐8,207,484         ‐ ‐ ‐ ‐ ‐ ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN230‐81‐802 Non Point Source497,048          630,679         630,679            671,613          671,613          671,613          671,613          671,613          TOTAL 497,048          630,679         630,679            671,613          671,613          671,613          671,613          671,613          TRANSPORTATION270‐85‐820 Sidewalk, Curb and Gutter Maint992,176          1,001,932      1,028,610         1,085,525       1,085,525       1,085,525       1,085,525       1,085,525       270‐85‐821 Street Pavement Maintenance8,756,565       7,275,167      9,637,953         6,744,384       5,744,384       5,744,384       5,744,384       5,744,384       270‐85‐822 Street Signs/Markings762,709          662,359         707,131            831,990          831,990          831,990          831,990          831,990          270‐90‐954 Monumemt Gateway Sign‐ ‐60,859              ‐ ‐ ‐ ‐ ‐ 270‐90‐958 Orange and Byrne Sidewalk Improvements73 ‐499,927            3,388,000       ‐ ‐ ‐ ‐ 270‐90‐959 Access Transition Plan Upgrade1,900              ‐‐‐ ‐ ‐ ‐ ‐ 270‐90‐960 Bridge Rehab Minor31 535,000         699,969            ‐ ‐ ‐ ‐ ‐ 270‐90‐961 Street Median Irrigation Plant Replacement 12,406            220,000         630,920            750,000          ‐ ‐ ‐ ‐ 270‐90‐962  Bicycle Pedestrian Facility Improvements 282,847          83,000           823,695            ‐ ‐ ‐ ‐ ‐ 270‐90‐974 Fiber Network Interco107,808          ‐335 ‐ ‐ ‐ ‐ ‐ 270‐90‐975 Speed Bump Vista Lazaneo9,200              ‐1,600                ‐ ‐ ‐ ‐ ‐ 270‐90‐976 Phase 2 McClellan Sidewalk Improvements 28,072            ‐1,989,317         ‐ ‐ ‐ ‐ ‐ 270‐90‐977  SCB Perimeter Turn Ext.116,876          ‐‐‐ ‐ ‐ ‐ ‐ PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST122134 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST270‐99‐029 SD Improvements ‐ Homestead65,737            ‐                ‐                   ‐                  2,398,000       ‐                  ‐                  ‐                  270‐99‐044 Traffic Calm Rodrigues/Pacifica‐                  ‐                24,000              ‐                  ‐                  ‐                  ‐                  ‐                  270‐99‐946 Sidewalk Renovation SCB‐                  ‐                250,000            ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 11,136,398     9,777,458      16,354,316       12,799,899     10,059,899     7,661,899       7,661,899       7,661,899       HOUSING & COMMUNITY DEVELOPMENT260‐72‐707 General Administration56,323            65,062           63,768              88,814            88,814            88,814            88,814            88,814            260‐72‐709 Affordable Housing366,928          442,379         284,484            284,484          284,484          284,484          284,484          284,484          260‐72‐710 Public Service Grants45,982            47,188           47,188              47,188            47,188            47,188            47,188            47,188            265‐72‐711 Below Market Rate Housing384,745          4,111,583      4,369,540         8,610,724       475,000          475,000          475,000          475,000          TOTAL 853,978          4,666,212      4,764,980         9,031,210       895,486          895,486          895,486          895,486          TOTAL ALL SPECIAL REVENUE 16,262,068     17,099,349    32,739,351       24,002,722     11,626,998     9,228,998       9,228,998       9,228,998       123135 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ DEBT SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PUBLIC FACILITIES CORPORATION   5301 Principal2,091,500       3,167,538       3,167,538       3,167,538       2,220,000       2,290,000       2,355,000       2,425,000          5301 Interest + Fees1,077,538       ‐                  ‐                  ‐                  949,438          882,838          814,138          743,488             5301 Debt Refinancing‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 3,169,038       3,167,538       3,167,538       3,167,538       3,169,438       3,172,838       3,169,138       3,168,488       PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST124136 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022CAPITAL IMPROVEMENT PROJECTS420‐90‐880 McClellan Environmental Ed Facility809,076          ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐897 Sports Center Tennis Ct Retaining Wall‐                  ‐                  50,000            420‐90‐898 SCCP Chain MP‐McClellan to SCB106,799          ‐                  15,408            ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐903 McClellan Ranch Ped. Parking Landscape 299,744          ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐904 Sports Center‐Resurface Tennis Courts 1,064,554       ‐                  104,681          ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐938 Public Building Solar ‐ Service Center‐                  ‐                  34,854            ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐940 Civic Center Parking Structure101,085          ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐942 Civic Master Plan Implementation3,952              ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐943 Senior Center Floor Repair71,283            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐944 Senior Center/Mary Landscape134,657          ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐969 DeAnza/McClellan Signal Maintenance‐                  ‐                  145,700          ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐971 Stelling.280 Pedestrian Bridge Lighting‐                  ‐                  46,500            ‐                  ‐                  ‐                  ‐                  ‐                  420‐90‐999 Green Bike Lanes‐                  ‐                  95,000            ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐002 Blackberry Farm Splash Pad‐                  ‐                  70,000            ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐003 McClellan Ranch Trash Enclosure‐                  154,000          154,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐004 McClellan Ranch ‐ Community Garden Impro‐                  30,000            30,000            70,000             ‐                  ‐                  ‐                  ‐                  420‐99‐005 Memorial Park MP and Parking ‐                  150,000          150,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐006 Portal Park ‐ Renovation Master Plan‐                  ‐                  ‐                  ‐                  50,000            ‐                  ‐                  ‐                  420‐99‐007 ADA Improvements‐                  75,000            150,000          95,000            75,000            75,000            75,000            75,000            420‐99‐010 Memorial Park Phase I Concept Design‐                  ‐                  ‐                  ‐                  ‐                  250,000          ‐                  ‐                  420‐99‐014 Stevens Creek Bank Repair Concept‐                  ‐                  ‐                  100,000          ‐                  ‐                  420‐99‐015  Tennis Court Resurfacing ‐ Various Parks‐                  588,000          588,000          515,000          ‐                  ‐                  ‐                  ‐                  420‐99‐017 Sports Center Upgrades‐                  290,000          290,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐020 McClellan Ranch West ‐ Simms House Remo 159,585          ‐                  (19,656)           ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐022 Quinlan Cupertino Room Lighting33,819            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐023 Quinlan Fire Alarm Control Panel Upgrade 2,149              ‐                  118,850          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐025 Service Center Parking Lot Modifications22,700            ‐                  1,798              ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐026 Bicycle Transportation Plan Update44,750            ‐                  2,211              ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐027 Pasadena Avenue Public Improvements/Gran67,290             ‐                  346,405           ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐028 Traffic Signal Foothill‐I280 SB‐                  ‐                  ‐                  100,000          420‐99‐030 McClellan West ‐ Parking Lot Improvements‐                  400,000          103,507          550,000          ‐                  ‐                  ‐                  ‐                  420‐99‐031 Recreation Facilities Monument Signs ‐                  385,000          385,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐033  City Hall Turf Reduction ‐                  320,000          420,000          ‐                  ‐                  ‐                  ‐                  ‐                  PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST125137 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST420‐99‐034 Service Center Shed No. 3 Improvement ‐                  100,000          100,000          400,000           ‐                  ‐                  ‐                  ‐                  420‐99‐035 Stocklmeir House ‐ New Sewer Lateral‐                  50,000            50,000            ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐036 2016 Bike Plan Implementation ‐                  2,000,000       2,000,000       1,000,000       ‐                  ‐                  ‐                  ‐                  420‐99‐037 Bikeway Enhancements and Branding Study‐                  60,000            60,000            ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐038 Fiber Network Extension to Service Center ‐                  350,000          350,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐039 Pedestrian Master Plan ‐                  120,000          120,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐040 Retaining Wall Repair ‐ Cordova Road‐                  350,000          350,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐041 Retaining Wall Replacement ‐ Regnart Road‐                  450,000          450,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐043  Service Center New Admin Building Feasibil‐                  35,000            35,000             ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐045 Citywide Park and Recreation Master Plan 120,823          ‐                  379,176          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐047 CIP Prelim Planning & Design‐                  ‐                  ‐                  125,000          ‐                  ‐                  ‐                  ‐                  420‐99‐048 Capital Project Support‐                  ‐                  ‐                  50,000            ‐                  ‐                  ‐                  ‐                  420‐99‐049 Intʹl Cricket Ground‐Feasibility‐                  ‐                  ‐                  20,000            ‐                  ‐                  ‐                  ‐                  420‐99‐051 Inclusive Play Area ‐ Planning‐                  ‐                  ‐                  30,000            ‐                  ‐                  ‐                  ‐                  420‐99‐052 Jollyman Park Pathway Installation‐                  ‐                  ‐                  ‐                  200,000          500,000          ‐                  ‐                  420‐99‐053 Linda Vista Park ‐ Renovation Master Plan‐                  ‐                  ‐                  ‐                  70,000            ‐                  ‐                  ‐                  420‐99‐054 Senior Ctr Walkway Replacement‐                  ‐                  ‐                  64,000            ‐                  ‐                  ‐                  ‐                  420‐99‐055 Outfall Repair/Slope Stabilization‐Regnart‐                  ‐                  ‐                  400,000          ‐                  ‐                  ‐                  ‐                  420‐99‐056 St Light Install ‐ Annual Infill‐                  ‐                  ‐                  30,000            30,000            30,000            30,000            30,000            420‐99‐057 McClellan Sdwlk‐RB to Hwy85 Over‐                  ‐                  ‐                  430,000          ‐                  ‐                  ‐                  ‐                  420‐99‐058 St Light Install‐Randy & Larry‐                  ‐                  ‐                  367,000          ‐                  ‐                  ‐                  ‐                  420‐99‐059 Senior Center Repairs‐                  ‐                  ‐                  200,000          ‐                  ‐                  ‐                  ‐                  420‐99‐885  Golf Irrigation Upgrades‐                  ‐                  493,000          ‐                  ‐                  ‐                  ‐                  ‐                  420‐99‐XXX Memorial Park Phase I Construction‐                  ‐                  ‐                  ‐                  ‐                  ‐                  1,000,000       ‐                  420‐99‐XXX Monta Vista Park Master Plan‐                  ‐                  ‐                  ‐                  ‐                  50,000            ‐                  ‐                            Capital Projects 3,042,266       5,907,000       7,669,434       4,546,000       425,000          905,000          1,105,000       105,000          Transfers Out:  0100 Transfer to Recreation Programs‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    0100 Transfer to Capital Reserves‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                    0100 Transfer to General Fund‐                  ‐                  ‐                  2,000,000       ‐                  ‐                  ‐                  ‐                            Transfers Out from Current Operations‐                  ‐                  ‐                  2,000,000       ‐                  ‐                  ‐                  ‐                  TOTAL CAPITAL IMPROVEMENT3,042,266       5,907,000       7,669,434       6,546,000       425,000          905,000          1,105,000       105,000          126138 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTCAPITAL RESERVES 429‐90‐001 Transfer to Capital Improvement5,549,993       9,165,000       8,704,608       10,184,000     425,000          905,000          1,105,000       105,000          TOTAL 5,549,993       9,165,000       8,704,608       10,184,000     425,000          905,000          1,105,000       105,000          STEVENS CREEK CORRIDOR PARK427‐90‐870 Stevens Creek Corridor Park‐Phase 12,666              ‐                  27,560            ‐                  ‐                  ‐                  ‐                  ‐                  427‐90‐881 Stevens Creek Corridor Park‐Phase 223,723            ‐                  110,096          ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 26,390            ‐                  137,656          ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL ALL CAPITAL PROJECTS 8,618,649       15,072,000     16,511,698     16,730,000     850,000          1,810,000       2,210,000       210,000          127139 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ ENTERPRISE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022RESOURCE RECOVERY520‐81‐801 Resource Recovery2,997,198       3,261,613       3,197,464       3,269,762       3,269,762       3,269,762       3,269,762       3,269,762       TOTAL 2,997,198       3,261,613       3,197,464       3,269,762       3,269,762       3,269,762       3,269,762       3,269,762       BLACKBERRY FARM GOLF COURSE560‐63‐616 Golf Course576,176          723,383          686,628          708,461          708,461          708,461          708,461          708,461          560‐90‐885 CIP Golf Irrigation Upgrade ‐                  ‐                  469,418          ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 576,176          723,383          1,156,046       708,461          708,461          708,461          708,461          708,461          SPORTS CENTER570‐63‐621 Sports and Physical1,905,160       2,375,952       2,329,238       2,448,037       2,448,037       2,448,037       2,448,037       2,448,037       570‐87‐836 Maintenance394,048          411,031          395,164          484,623          484,623          484,623          484,623          484,623          570‐99‐032 Childrenʹs Play Area‐                  470000 470000‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 2,299,208       2,786,983       2,724,402       2,932,660       2,932,660       2,932,660       2,932,660       2,932,660       RECREATION PROGRAMS580‐62‐613 Youth Teen Recreation1,827,648       1,971,176       1,960,007       2,214,409       2,214,409       2,214,409       2,214,409       2,214,409       580‐63‐620 Sports, Safety and Outdoor Recreation1,101,007       1,292,550       1,274,036       1,451,700       1,451,700       1,451,700       1,451,700       1,451,700       580‐90‐001 Transfer out to CIP‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐884 Fenced Dog Park‐                  ‐                  5,000              ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐896 Sports Center Sport Court143,788          ‐                  18,898            ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐907 Wilson Ball Safety Net Screen8,027              ‐                  268                 ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐908 Wilson Bleacher Shade Canopy14,381            ‐                  268                 ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐909 Wilson Park ‐ Renovation Master Plan‐                  ‐                  55,000            ‐                  ‐                  50,000            ‐                  ‐                  580‐90‐929 Quinlan Interior Upgrades37,482            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  580‐90‐945 Wilson Bldg Landsc Imprv500                 ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  580‐99‐019 Blacksmith Forge Restoration3,180              ‐                  56,819            ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 3,136,012       3,263,726       3,370,296       3,666,109       3,666,109       3,716,109       3,666,109       3,666,109       TOTAL ALL ENTERPRISE FUNDS 9,008,594       10,035,705     10,448,208     10,576,992     10,576,992     10,626,992     10,576,992     10,576,992     PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST128140 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022INFORMATION TECHNOLOGY610‐30‐300 Administration‐                  287,169.00      ‐                  515,134.00     515,134.00     515,134.00     515,134.00     515,134.00     610‐34‐310 Information Technology1,930,718       2,825,213       2,691,744       2,812,304       2,812,304       2,812,304       2,812,304       2,812,304       610‐35‐986 GIS337,780          757,171          647,264          863,088          863,088          863,088          863,088          863,088          610‐90‐986 GIS13,501            ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  610‐90‐989 Network Upgrade 92,627            721,500          1,095,700       ‐                  ‐                  ‐                  ‐                  ‐                  610‐90‐991 New Project Contingency6,802              ‐                  3,334              ‐                  ‐                  ‐                  ‐                  ‐                  610‐90‐992 Video Division2,637              ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  610‐90‐995 Planning Software47,371            ‐                  91,554            ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 2,431,435       4,591,053       4,529,596       4,190,526       4,190,526       4,190,526       4,190,526       4,190,526       CITY CHANNEL615‐31‐305  Government Channel798,214          1,602,614       1,479,086       1,569,256       1,569,256       1,569,256       1,569,256       1,569,256       615‐32‐308 City Web Site314,268          543,737          369,323          1,664,219       1,664,219       1,664,219       1,664,219       1,664,219       TOTAL 1,112,482       2,146,351       1,848,409       3,233,475       3,233,475       3,233,475       3,233,475       3,233,475       WORKERSʹ COMPENSATION620‐44‐418 Workers Comp Insurance37,016            501,605          500,732          498,240          498,240          498,240          498,240          498,240          TOTAL 37,016            501,605          500,732          498,240          498,240          498,240          498,240          498,240          VEHICLE/EQUIPMENT REPLACEMENT630‐85‐849 Equipment Maintenance1,136,608       1,448,830       1,395,195       1,251,239       1,251,239       1,251,239       1,251,239       1,251,239       630‐90‐985 Fixed Asset Acquisition7,167              1,222,000       1,259,231       ‐                  ‐                  ‐                  ‐                  ‐                  TOTAL 1,143,775       2,670,830       2,654,426       1,251,239       1,251,239       1,251,239       1,251,239       1,251,239       641‐44‐419 Long Term Disability82,201            83,875            83,875            83,883            83,883            83,883            83,883            83,883            641‐44‐420 Compensated Absence494,451          434,673          434,673          435,014          435,014          435,014          435,014          435,014          TOTAL 576,652          518,548          518,548          518,897          518,897          518,897          518,897          518,897          COMPENSATED ABSENCE & LONG‐TERM DISABILITYPROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST129141 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTRETIREE MEDICAL 642‐44‐414 Retiree Benefits919,219          931,335          931,335          968,486          968,486          968,486          968,486          968,486          TOTAL 919,219          931,335          931,335          968,486          968,486          968,486          968,486          968,486          TOTAL ALL INTERNAL SERVICE 6,220,580       11,359,722     10,983,046     10,660,863     10,660,863     10,660,863     9,692,377       9,692,377       130142 FISCAL YEAR 2017‐18 PROPOSED BUDGETFIVE YEAR FORECAST ‐ SPECIAL FUNDS FUND BALANCE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022SPECIAL REVENUEBeginning Fund Balance 33,633,606   42,898,336    42,898,336   42,898,336   35,390,426   34,741,018     36,689,610      38,638,202     Assigned6,711,969     2,233,308      2,233,308     35,390,426   34,741,018   36,689,610     38,638,202      40,636,794     Unassigned‐                40,665,028    40,665,028   ‐                ‐                ‐                  ‐                  ‐                  Total Ending Fund Balance 6,711,969     42,898,336    42,898,336   35,390,426   34,741,018   36,689,610     38,638,202      40,636,794     DEBT SERVICE Beginning Fund Balance 1,596,982     1,596,982      1,596,982     1,596,982     1,596,982     1,596,982       1,596,982        1,596,982       Assigned1,596,982     1,596,982      1,596,982     1,596,982     1,596,982     1,596,982       1,596,982        1,596,982       Unassigned‐                ‐                 ‐                ‐                ‐                ‐                  ‐                  ‐                  Total Ending Fund Balance 1,681,000     1,596,982      1,596,982     1,596,982     1,596,982     1,596,982       1,596,982        1,596,982       CAPITAL PROJECTBeginning Fund Balance 15,338,818   18,568,230    18,568,230   18,568,230   6,384,230     5,534,230       3,724,230        1,514,230       Assigned15,338,818   18,568,230    18,568,230   6,384,230     5,534,230     3,724,230       1,514,230        1,304,230       Unassigned‐                ‐                 ‐                ‐                ‐                ‐                  ‐                  ‐                  Total Ending Fund Balance 15,338,818   18,568,230    18,568,230   6,384,230     5,534,230     3,724,230       1,514,230        1,304,230       ENTERPRISEBeginning Fund Balance 9,083,628     6,810,995      6,810,995     6,810,995     4,118,003     3,968,003       3,768,003        3,618,003       Assigned9,089,628     6,810,995      6,810,995     4,118,003     3,968,003     3,768,003       3,618,003        3,468,003       Unassigned‐                ‐                 ‐                ‐                ‐                ‐                  ‐                  ‐                  Total Ending Fund Balance 9,089,628     6,810,995      6,810,995     4,118,003     3,968,003     3,768,003       3,618,003        3,468,003       INTERNAL SERVICEBeginning Fund Balance 18,690,743   14,659,906    14,659,906   14,659,906   13,823,612   10,608,942     7,394,272        4,179,602       Assigned18,690,743   14,659,906    14,659,906   13,823,612   10,608,942   7,394,272       4,179,602        964,932          Unassigned‐                ‐                 ‐                ‐                ‐                ‐                  ‐                  ‐                  Total Ending Fund Balance 18,690,743   14,659,906    14,659,906   13,823,612   10,608,942   7,394,272       4,179,602        964,932          PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST131143 Council and Commissions City Council Commissions 144 Citizens of CupertinoCity CouncilTechnology, Information, and Communications CommissionTeen CommissionLibrary CommissionParks and Recreation CommissionBicycle and Pedestrian CommissionPlanning CommissionPublic Safety CommissionFine Arts CommissionEconomic Development CommitteeAudit CommitteeHousing CommissionFiscal Strategic Plan CommitteeSustainability Commission132145 COUNCIL AND COMMISSIONS Budget Unit 2018 Proposed City Council $ 538,784 100-10-100 City Council 442,623 100-10-101 Community Funding 52,411 100-10-110 Sister Cities 43,750 Commissions $ 385,453 100-11-131 Telecommunication Commission 10,925 100-11-140 Library Commission 23,894 100-11-142 Fine Arts Commission 43,037 100-11-150 Public Safety Commission 17,052 100-11-155 Bicycle and Pedestrian Commission 4,912 100-11-160 Parks and Recreation Commission 29,736 100-11-165 Teen Commission 59,018 100-11-170 Planning Commission 135,379 100-11-175 Housing Commission 33,621 100-11-180 Sustainability Commission 27,879 Total $ 924,237 133 146 DEPARTMENT SUMMARY Council and Commissions Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 15,654 15,654 Total Expenditures 682,595 719,235 1,280,408 924,237 Fund Balance - - - - General Fund Costs $ 498,561 $ 663,296 $ 500,885 $ 388,601 PROPOSED BUDGET It is recommended that a budget of $924,237 be approved for the Council and Commissions Budget. This represents a decrease of $356,171 from the FY 2016-17 Final Adopted Budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 34,034 31,416 779,523 535,636 Fines and Forfeitures - - - - Miscellaneous Revenue 150,000 24,522 - - Interdepartmental Revenue - - - - Total Revenues 184,034 55,938 779,523 535,636 Expenditures Employee Compensation 201,434 182,893 226,934 271,219 Employee Benefits 127,323 147,952 143,813 190,421 Materials 128,605 126,845 125,956 149,566 Contract Services 62,453 98,765 84,062 120,512 Cost Allocation 162,780 162,780 683,989 176,865 Capital Outlay - - - - Special Projects - - - - 134 147 PROPOSED EXPENDITURES FY 2017-18 $385,453 (42%) $538,784 (58% City Council Commissions 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 0.7 0.7 1.3 0.9 135 148 CITY COUNCIL - CITY COUNCIL Budget Unit 100-10-100 Budget at a Glance Total Revenues 535,636 Total Expenditures 442,623 Fund Balance - General Fund Costs (93,013) % Funded by General Fund 0.0% Total Staffing 5.85 PROGRAM OVERVIEW The Mayor and Council members, acting as the elected representatives of the residents of Cupertino, establish public policies to meet community needs and assure orderly development of the City. SERVICE OBJECTIVES The City Council objectives are carried out by city staff under the sole direction of the City Manager. PROPOSED BUDGET It is recommended that a budget of $442,623 be approved for the City Council Budget. This represents a decrease of $336,695 from the FY 2016-17 Final Adopted Budget. Overall, the proposed budget for City Council has decreased largely due to changes in cost allocation offset by increases in personnel costs. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. To increase staff support for Council and Administration, staff requests to add an Executive Assistant position which will support the Mayor, Council, and the City Clerk's Office. This increase will be partially offset by under-filling the Senior Office Assistant with a three-year limited-term Office Assistant and eliminating two part-time Office Assistants currently supporting the Council and Administration. Increased personnel costs in this budget reflect this proposal as well as increases associated with negotiated compensation increases per Council-approved labor agreements. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 136 149 City Council - City Council Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 9,041 9,041 Total Expenditures 419,943 430,255 779,318 442,623 Fund Balance - - - - General Fund Costs $ 235,909 $ 374,317 $ (205) $ (93,013) STAFFING Total current authorized positions – 5.30 Staffing is proposed to increase to account for additional support staff for the Mayor and Council, including reallocation of existing staff to better reflect time spent to support Council. Total recommended positions – 5.85 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 34,034 31,416 779,523 535,636 Fines and Forfeitures - - - - Miscellaneous Revenue 150,000 24,522 - - Interdepartmental Revenue - - - - Total Revenues 184,034 55,938 779,523 535,636 Expenditures Employee Compensation 83,544 73,688 75,909 123,793 Employee Benefits 82,732 107,545 82,063 128,237 Materials 101,455 96,790 91,000 86,500 Contract Services 473 493 387 387 Cost Allocation 151,740 151,740 520,918 94,665 Capital Outlay - - - - Special Projects - - - - 137 150 CITY COUNCIL - COMMUNITY FUNDING Budget Unit 100-10-101 Budget at a Glance Total Revenues - Total Expenditures 52,411 Fund Balance - General Fund Costs 52,411 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This budget provides funding for various community activities and community-based organizations throughout the fiscal year. SERVICE OBJECTIVES •Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. •Grant funding requests in a fair and equitable manner. •Grant funding requests per the Community Funding Policy adopted by City Council on April 2, 2013. PROPOSED BUDGET It is recommended that a budget of $52,411 be approved for the Community Funding Budget. This represents an increase of $11,258 from the FY 2016-17 Final Adopted Budget. The proposed increase is due to a new request from Rotary to fund the Community Academy. The following table shows the requests for the prior fiscal year and the current funding requests that have been received: 138 151 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Non-Profit Organization Funding FY 2017 Deer Hollow 10,000 Historical Society 10,000 Euphrat Museum 10,000 Iranian Federated Women’s Club 750 TOTAL FY 2016-17 $40,750 FY 2018 Deer Hollow 15,000 Historical Society 15,000 Euphrat Museum 10,000 Cupertino Rotary 12,000 TOTAL FY 2017-18 $52,000 139 152 City Council - Community Funding Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 30,000 70,000 41,153 52,411 Fund Balance - - - - General Fund Costs $ 30,000 $ 70,000 $ 41,153 $ 52,411 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 30,000 70,000 40,750 52,000 Cost Allocation - - 403 411 Capital Outlay - - - - Special Projects - - - - 140 153 CITY COUNCIL - SISTER CITIES Budget Unit 100-10-110 Budget at a Glance Total Revenues - Total Expenditures 43,750 Fund Balance - General Fund Costs 43,750 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Cupertino, Italy; and Bhubaneswar, India. SERVICE OBJECTIVES •To further international communication and understanding through the Sister City Program. •To foster educational, technical, economic and cultural exchanges. •To encourage student exchange programs to promote communication and understanding among people of different cultures. PROPOSED BUDGET It is recommended that a budget of $43,750 be approved for the Sister Cities Budget. This represents an increase of $18,309 from the FY 2016-17 Final Adopted Budget. The proposed increase reflects support for an additional student delegation from Bhubaneswar, India as well as increases in personnel costs to accurately reflect staff time spent on managing this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 141 154 City Council - Sister Cities Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 12,288 16,392 25,441 43,750 Fund Balance - - - - General Fund Costs $ 12,288 $ 16,392 $ 25,441 $ 43,750 STAFFING Total current authorized positions – 0.05 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.1 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 1,912 3,305 3,397 12,635 Employee Benefits 613 1,423 1,602 5,079 Materials 443 2,344 3,100 3,100 Contract Services 9,320 9,320 15,000 20,000 Cost Allocation - - 2,342 2,936 Capital Outlay - - - - Special Projects - - - - 142 155 COMMISSIONS - TELECOMMUNICATION COMMISSION Budget Unit 100-11-131 Budget at a Glance Total Revenues - Total Expenditures 10,925 Fund Balance - General Fund Costs 10,925 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Technology, Information & Communications Commission (TICC) advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology. Commissioners also serve as a resource for the Planning Commission in offering technical guidance for antenna sightings. The Chief Technology Officer serves as staff liaison. The commission also supports public and educational access to cable services. SERVICE OBJECTIVES •Continue to work with appropriate companies in bringing advanced services to interested residents. •Monitor AT&T and Comcast services and revenue. •Negotiate and manage public access provider KMVT to ensure maximum programming value for Cupertino residents. •Work with Community Development and Public Works regarding antenna placement and negotiate agreements for communication services that serve Cupertino. PROPOSED BUDGET It is recommended that a budget of $10,925 be approved for the Telecommunication Commission Budget. This represents a decrease of $20,568 from the FY 2016-17 Final Adopted Budget. The proposed decrease represents a reduction in staff time allocated in this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 143 156 Commissions - Telecommunication Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 2,016 2,016 Total Expenditures 20,790 18,611 31,493 10,925 Fund Balance - - - - General Fund Costs $ 20,790 $ 18,611 $ 31,493 $ 10,925 STAFFING Total current authorized positions – 0.10 Staff time is being reallocated to reflect minimal staff effort in this program. Total recommended positions – 0.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 14,376 12,707 14,031 - Employee Benefits 5,358 4,847 5,458 - Materials - - 450 750 Contract Services - - - - Cost Allocation 1,056 1,056 9,538 8,159 Capital Outlay - - - - Special Projects - - - - 144 157 COMMISSIONS - LIBRARY COMMISSION Budget Unit 100-11-140 Budget at a Glance Total Revenues - Total Expenditures 23,894 Fund Balance - General Fund Costs 23,894 % Funded by General Fund 100.0% Total Staffing 0.05 PROGRAM OVERVIEW The Library Commission is a five member commission appointed by the City Council to review and make recommendations related to the operations and services of the Cupertino Library. The Cupertino Library is operated by Santa Clara County Library Services. The building is provided by the City of Cupertino for which the County pays a rental fee. County Library management serves as Commission staff and Recreation and Community Services personnel serves as City liaison. SERVICE OBJECTIVES •Monitor the various service activities of the library and make recommendations for improvements to appropriate bodies. •Support library advocacy groups, including Friends of the Cupertino Library and Cupertino Library Foundation. •Advocate library funding and service levels at the city, county, and state levels. •Represent the Cupertino library in the local community. •Participate in state and local library workshops and conferences. •Participate in the long range planning of quality library services for the City. •Develop potential resources to expand volunteer efforts in the library. •Investigate ways to expand access to non-traditional media. •Continue library advocacy in Cupertino activities and with other organizations. •Initiate and coordinate the Cupertino Poet Laureate program. •Continue emphasis on integrating additional technology into library services. PROPOSED BUDGET It is recommended that a budget of $23,894 be approved for the Library Commission Budget. This represents an increase of $4,136 from the FY 2016-17 Final Adopted Budget. 145 158 The proposed increase of $2,700 in contract services is requested to allow the Poet Laureate Steering committee to contract for marketing services, tracking site visitors, and providing technical support. The increased personnel costs due to a change in the staff liaison are offset by decreases in cost allocation. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Commissions - Library Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 216 216 Total Expenditures 9,206 3,844 19,758 23,894 Fund Balance - - - - General Fund Costs $ 9,206 $ 3,844 $ 19,758 $ 23,894 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 5,018 1,284 4,919 7,612 Employee Benefits 1,970 627 2,129 3,413 Materials 176 180 700 700 Contract Services 1,514 1,225 2,000 4,700 Cost Allocation 528 528 9,794 7,253 Capital Outlay - - - - Special Projects - - - - 146 159 STAFFING Total current authorized positions – 0.05 There are no recommended changes to the current level of staffing. Total recommended positions – 0.05 147 160 COMMISSIONS - FINE ARTS COMMISSION Budget Unit 100-11-142 Budget at a Glance Total Revenues - Total Expenditures 43,037 Fund Balance - General Fund Costs 43,037 % Funded by General Fund 100.0% Total Staffing 0.15 PROGRAM OVERVIEW The Cupertino Fine Arts Commission is charged with advancing the arts in the City through a number of activities and programs. These include overseeing the “Quarter Percent for Art” requirement for developments over 50,000 square feet; promoting art in public places; making recommendations to City Council regarding arts opportunities; awarding grants to individuals and organizations; selecting winners for the "Energized by Art" Utility Box Contest to transform gray utility boxes into student eco-art canvasses; and selecting the “Distinguished Artist of the Year,” the “Emerging Artist of the Year” and the "Young Artists of the Year." SERVICE OBJECTIVES •Foster, encourage and assist the realization, preservation, advancement and development of fine arts for the benefit of the citizens of Cupertino. •Act as a catalyst for the promotion of fine arts activities and provide liaison and coordination between fine arts activities, groups and facilities. •Enhance the interaction between arts, local schools, private property owners and businesses through personal outreach. •Review and approve public art proposals. •Encourage and facilitate "art in unexpected places" through the donation of underutilized spaces, such as blank walls or utility screens, for private installation of art. PROPOSED BUDGET It is recommended that a budget of $43,037 be approved for the Fine Arts Commission Budget. This represents a decrease of $5,224 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in the cost allocation program. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 148 161 The recommended budget includes additional funds to host receptions to present the Emerging & Distinguished Artist Awards and the Young Artists Awards as well as increase the award amounts for the Emerging and Distinguished Artists. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 149 162 Commissions - Fine Arts Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 300 300 Total Expenditures 21,120 23,659 48,261 43,037 Fund Balance - - - - General Fund Costs $ 21,120 $ 23,659 $ 48,261 $ 43,037 STAFFING Total current authorized positions – 0.25 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.15 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 12,099 14,509 15,120 16,275 Employee Benefits 4,842 5,615 6,191 6,820 Materials 2,420 1,793 4,550 7,200 Contract Services 187 170 450 950 Cost Allocation 1,572 1,572 21,650 11,492 Capital Outlay - - - - Special Projects - - - - 150 163 COMMISSIONS - PUBLIC SAFETY COMMISSION Budget Unit 100-11-150 Budget at a Glance Total Revenues - Total Expenditures 17,052 Fund Balance - General Fund Costs 17,052 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Cupertino Public Safety Commission (PSC), a five member board appointed by the City Council, assists the Council by reviewing and recommending public safety services associated with police, fire, emergency planning, and traffic. The Sheriff’s West Valley Patrol Division Commander, who is the City’s Chief of Police, serves as staff liaison. SERVICE OBJECTIVES •Review safety issues and concerns and make recommendations to the City Council. •Promote public education programs concerning safety issues. •Provide assistance in implementing public safety programs approved by the City Council. •Work with various city departments to resolve issues and concerns related to public safety. PROPOSED BUDGET It is recommended that a budget of $17,052 be approved for the Public Safety Commission Budget. This represents a decrease of $114 from the FY 2016-17 Final Adopted Budget. This proposed budget is relatively unchanged from last fiscal year and supports the SCC Sheriff Teen/Citizen Academy and public outreach events, such as residential burglary presentations, senior safety presentations, identity protection seminar and transportation forum. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 151 164 Commissions - Public Safety Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 904 904 Total Expenditures 14,921 10,494 17,166 17,052 Fund Balance - - - - General Fund Costs $ 14,921 $ 10,494 $ 17,166 $ 17,052 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 3,241 65 300 5,000 Contract Services 11,680 10,428 11,000 10,000 Cost Allocation - - 4,962 1,148 Capital Outlay - - - - Special Projects - - - - 152 165 COMMISSIONS - BICYCLE AND PEDESTRIAN COMMISSION Budget Unit 100-11-155 Budget at a Glance Total Revenues - Total Expenditures 4,912 Fund Balance - General Fund Costs 4,912 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Cupertino Bicycle and Pedestrian Commission (BPC) is a five-member board appointed by the City Council, which assists the Council by reviewing, monitoring, and making recommendations on City transportation matters pertaining to bicycle and pedestrian traffic, parking, education, and recreation within Cupertino. The City’s Senior Civil Engineer serves as staff liaison. SERVICE OBJECTIVES •Review and make recommendations on City transportation infrastructure, development standards, public and private development projects, and citizen outreach and education efforts as they affect bicycle and pedestrian traffic in the City of Cupertino. •Promote safe, efficient, and enjoyable travel for bicycle and pedestrian traffic within Cupertino. PROPOSED BUDGET It is recommended that a budget of $4,912 be approved for the Bicycle and Pedestrian Commission Budget. This represents a decrease of $1,031 from the FY 2016-17 Final Adopted Budget. The decrease is attributed to cost allocation plan adjustments, offset by a $300 proposed increase in costs for meeting materials. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 153 166 Commissions - Bicycle and Pedestrian Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 320 320 Total Expenditures 3,405 9,516 5,943 4,912 Fund Balance - - - - General Fund Costs $ 3,405 $ 9,516 $ 5,943 $ 4,912 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials -6,442 -300 Contract Services 3,405 3,074 4,000 4,000 Cost Allocation - - 1,623 292 Capital Outlay - - - - Special Projects - - - - 154 167 COMMISSIONS - PARKS AND RECREATION COMMISSION Budget Unit 100-11-160 Budget at a Glance Total Revenues - Total Expenditures 29,736 Fund Balance - General Fund Costs 29,736 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW The Parks and Recreation Commission is a five-member citizen’s commission appointed by the City Council to make recommendations pertaining to parks, recreation and community services. The Director of Recreation and Community Services serves as staff liaison. SERVICE OBJECTIVES •Engage the public in dialog regarding the design of new programs and facilities. Make recommendations regarding these projects to the City Council. •Work with staff and the public to draft and/or revise policies for use of Recreation and Community Services facilities. •Consider public input regarding the operation of Recreation and Community Services facilities and make recommendations for their improvement. •Participate on a number of special committees dealing with Recreation and Community Services. •Serve as ambassadors for the Recreation and Community Services Department. PROPOSED BUDGET It is recommended that a budget of $29,736 be approved for the Parks and Recreation Commission Budget. This represents a decrease of $31,236 from the FY 2016-17 Final Adopted Budget. A significant portion of the decrease is due to changes in staffing costs resulting from a staffing reallocation to support the Recreation Commission. Previously, 10% of the Recreation and Community Services Director was budgeted here. In FY 2018, it is recommended that 5% the Director and 5% of the Administrative Assistant be allocated to the Commission to better reflect actual staff effort. In addition, cost allocation costs are down compared to last year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 155 168 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Commissions - Parks and Recreation Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 87 87 Total Expenditures 7,149 19,625 60,972 29,736 Fund Balance - - - - General Fund Costs $ 7,149 $ 19,625 $ 60,972 $ 29,736 STAFFING Total current authorized positions – 0.10 There are no recommended changes to the current level of staffing. Total recommended positions – 0.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 4,398 13,248 31,491 13,317 Employee Benefits 1,652 4,897 12,357 5,581 Materials 346 646 581 581 Contract Services 225 305 500 500 Cost Allocation 528 528 15,956 9,670 Capital Outlay - - - - Special Projects - - - - 156 169 COMMISSIONS - TEEN COMMISSION Budget Unit 100-11-165 Budget at a Glance Total Revenues - Total Expenditures 59,018 Fund Balance - General Fund Costs 59,018 % Funded by General Fund 100.0% Total Staffing 0.30 PROGRAM OVERVIEW The Teen Commission is comprised of nine teens representing grades 8-12. The Teen Commission advises the City Council and staff on teen issues. A Recreation Coordinator in Recreation and Community Services serves as the staff liaison. SERVICE OBJECTIVES •Engage the public in dialog regarding the design of new programs, and make recommendations regarding these projects to City staff. •Assist staff with the programming and promotion of the Teen Center. •Assist staff with the evaluation of teen programming. •Work with staff and the public to create new avenues to interact with teens. PROPOSED BUDGET It is recommended that a budget of $59,018 be approved for the Teen Commission Budget. This represents a decrease of $3,824 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges, offset by proposed increases in contract services and staffing costs. In FY 2018, the Teen Commission proposes to develop a teen incubator program. A proposed increase of $10,000 is recommended for marketing, supplies, training, and other program needs. Increases in personnel costs are associated with negotiated salary and benefit increases within Council- approved labor contracts. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 157 170 Commissions - Teen Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 194 194 Total Expenditures 27,537 11,669 62,842 59,018 Fund Balance - - - - General Fund Costs $ 27,537 $ 11,669 $ 62,842 $ 59,018 STAFFING Total current authorized positions – 0.30 There are no recommended changes to the current level of staffing. Total recommended positions – 0.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 17,283 1,837 23,542 27,015 Employee Benefits 6,578 830 10,357 11,718 Materials 884 6,374 1,700 1,700 Contract Services 163 -725 10,725 Cost Allocation 2,628 2,628 26,324 7,666 Capital Outlay - - - - Special Projects - - - - 158 171 COMMISSIONS - PLANNING COMMISSION Budget Unit 100-11-170 Budget at a Glance Total Revenues - Total Expenditures 135,379 Fund Balance - General Fund Costs 135,379 % Funded by General Fund 100.0% Total Staffing 0.25 PROGRAM OVERVIEW The Planning Commission is a five-member citizen board appointed by the City Council. The functions of the Planning Commission are as follows: •Advise the City Council on land use and development policy related to the General Plan; •Implement the General Plan through review and administration of specific plans and related ordinances; •Review land use applications for conformance with the General Plan and ordinances; and •Promote the coordination of local plans and programs with regional and other agencies. SERVICE OBJECTIVES •Conduct periodic reviews of the General Plan. These reviews test the fundamental goals and measure performance of short-term objectives. •Conduct public hearings for approximately 80 land development applications. Ensure that decisions are made fairly and expeditiously in accordance with adopted General Plan policies, zoning ordinances, development plans, and design guidelines. •Review specific plans, zoning ordinance amendments, and amendments to the General Plan and make recommendations to Council. •Serve on the Planning Commission Design Review Committee, the Environmental Review Committee, and in an advisory role to the Housing Commission and Economic Development Committee. PROPOSED BUDGET It is recommended that a budget of $135,379 be approved for the Planning Commission Budget. This represents an increase of $2,617 from the FY 2016-17 Final Adopted Budget. 159 172 The recommended budget includes additional funds for planning commissioner stipends and required advertisements and legal and display notices. These increases are offset by a decrease due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Commissions - Planning Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 2,572 2,572 Total Expenditures 93,960 83,849 132,762 135,379 Fund Balance - - - - General Fund Costs $ 93,960 $ 83,849 $ 132,762 $ 135,379 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 49,666 48,482 32,440 44,529 Employee Benefits 16,012 16,847 12,974 15,051 Materials 19,640 11,614 22,900 35,260 Contract Services 5,485 3,750 9,250 17,250 Cost Allocation 3,156 3,156 52,626 20,717 Capital Outlay - - - - Special Projects - - - - 160 173 STAFFING Total current authorized positions – 0.25 There are no recommended changes to the current level of staffing. Total recommended positions – 0.25 161 174 COMMISSIONS - HOUSING COMMISSION Budget Unit 100-11-175 Budget at a Glance Total Revenues - Total Expenditures 33,621 Fund Balance - General Fund Costs 33,621 % Funded by General Fund 100.0% Total Staffing 0.15 PROGRAM OVERVIEW The Cupertino Housing Commission (CHC) is a five-member board appointed by the City Council to assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals. The Commission also oversees the Community Development Block Grant (CDBG) program. SERVICE OBJECTIVES Make recommendations to the City Council as follows: •Develop housing policies and strategies for implementation of General Plan Housing Element goals. •Develop affordable housing proposals, innovative approaches to affordable housing development and number and type of affordable units and the target groups to be served. •Identify sources of funds to develop and build affordable housing. •Evaluate funding requests from CDBG and the Affordable Housing funds, possible fee waivers or other incentives. •Propose CDBG Action Plan. •Review Cupertino's Housing Element. PROPOSED BUDGET It is recommended that a budget of $33,621 be approved for the Housing Commission Budget. This represents a decrease of $5,012 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributed to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The recommended budget includes additional funds for staff overtime and meeting expenses. 162 175 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Commissions - Housing Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 4 4 Total Expenditures 22,275 21,321 38,633 33,621 Fund Balance - - - - General Fund Costs $ 22,275 $ 21,321 $ 38,633 $ 33,621 STAFFING Total current authorized positions – 0.10 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.15 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 13,138 13,833 14,146 14,642 Employee Benefits 7,566 5,320 5,955 7,456 Materials -596 675 975 Contract Services --- - Cost Allocation 1,572 1,572 17,853 10,544 Capital Outlay - - - - Special Projects - - - - 163 176 COMMISSIONS - SUSTAINABILITY COMMISSION Budget Unit 100-11-180 Budget at a Glance Total Revenues - Total Expenditures 27,879 Fund Balance - General Fund Costs 27,879 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW The Sustainability Commission is a five-member board appointed by the City Council to serve in an advisory capacity by providing expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino’s Climate Action Plan and General Plan Environmental Resources/Sustainability Element. SERVICE OBJECTIVES To fulfill their mission, the Commission engages in the following activities: •Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits; •Suggest recommendations, review, and monitor the City’s General Plan Environmental Resources/Sustainability Element and its intersections with the CAP; •Advise the City Council how to strategically accelerate Cupertino’s progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability; •Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, drafting of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll- out of pollution prevention campaigns, etc.; •Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate operational performance of City facilities, businesses, educational institutions and homes by reducing costs, improving public health, and serving community needs; Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field’s best practices. 164 177 •Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council’s goals and policies. •Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council. PROPOSED BUDGET It is recommended that a budget of $27,879 be approved for the Sustainability Commission Budget. This represents an increase of $11,213 from the FY 2016-17 Final Adopted Budget. This increase is due to funding for materials and supplies, which were not previously accounted for in the FY 2016-17 Adopted Budget, in addition to increased personnel costs based on negotiated benefit increases approved by Council. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 165 178 Commissions - Sustainability Commission 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures - - 16,666 27,879 Fund Balance - - - - General Fund Costs $ - $ - $ 16,666 $ 27,879 STAFFING Total current authorized positions – 0.10 There are no recommended changes to the current level of staffing. Total recommended positions – 0.10 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - 11,939 11,401 Employee Benefits - - 4,727 7,066 Materials - - - 7,500 Contract Services - - - - Cost Allocation - - - 1,912 Capital Outlay - - - - Special Projects - - - - 166 179 CUPERTINO HISTORICAL SOCIETY AND MUSEUM REQUEST FOR FUNDING FROM THE CUPERTINO CITY COUNCIL 2017 The Cupertino Historical Society makes the following request for funding in compliance with the City’s policy for processing budget requests from non-profit organizations, adopted 4/2/13. 1. Funding Request - $15,000 to be used for the following projects: We are continuing to significantly change and upgrade our museum exhibits. We recently completed two very successful exhibits, “Cupertino Christmas” and “The 10 elements of Chinese Culture”. We have displayed Chinese Railroad history panels in the hall way for daily public viewing. Next we plan to display the culture of India with music, dress and art projects to coincide with Diwali. • We have held special preschool and senior center visits to our museum with hands on activities to encourage appreciation of our history. • We will continue our practice of keeping our museum open for extended hours during festivals and events at QCC and Memorial park (Christmas Tree Lighting, Breakfast with Santa, Chinese New year, Blossom Festival, 4th of July, Fall Festival, Ikebana exhibit, Diwali in the park...) • We held a strategic planning session in 2016-17, and out of that session our top priority was to bring history alive in our community. Hands on history projects like churning butter, tea pouring, weaving or art will be incorporated in our exhibits. • We have instituted a successful historical essay contest with 5 high schools through the FUHSD for the last 3 years, and that we are holding it again in March 2017. The funds will help us to continue this program of awarding scholarships. • We will continue working with the city staff to provide historical photos for the city. We plan to loan black smith items and farm implements to the McClellan Ranch for display. • We will continue leading History Walks on a quarterly basis through the Parks and Recreation department. Along with the walks, we have begun to explore programming with the parks and recreation department for hands on history projects. We hope to be involved in the historic signage along the Stevens Creek Corridor and the Stocklmeir house renovation as it gets underway because so much history happened along the corridor from the Ohlones and Elisha Stephens through our agrarian period to present day life. Our 1912 Kelley farm truck has safely been stored and maintained and can be used for display at community events. • We completed a historical sites brochure and will use the funds to print the brochure and make it available, for free, to the public in locations such as the Quinlan Center, City Hall, the Cupertino Library and the Chamber of Commerce. • We continue adding exhibits to our Traveling Trunk program. We take the exhibits out to local schools to teach the children about life in Cupertino’s past. • We will continue to support membership drives, especially in the Chinese-American and Indo- American communities through our many events and exhibits, celebrating our many cultures, Sip of History at a local winery and our successful Quarterly speaker programs. • We would also like to produce Postcards, Tote bag, Wine glasses, along with our Historical Sites brochure to promote Cupertino’s history. These items would be available in public places such as the Cupertino Library, Quinlan Community Center, McClellan Ranch Park, Black Berry Farm, Cupertino Community Center, Chamber of Commerce, local hotels for tourists/visitors. 2. About our Organization: The Cupertino Historical Society and Museum is a nonprofit 501(c)(3) organization dedicated to ensuring that the heritage of Cupertino stays alive for all to understand and share and for all to assimilate as their heritage. The Society was established in 1966 and the museum was opened in 1990 at Quinlan. Our web page, quarterly newsletters and history blanket all reflect our Cupertino History. 180 Mission Statement: We preserve and illuminate Cupertino’s past to inspire our youth, strengthen the sense of community and shape a better future by making Cupertino history relevant and available to all. Staffing: CHS is an all-volunteer organization except for one part time director. Budget: Our annual operating budget averages income of $49,000 & expenses of $85,000. We cover our annual operating losses from our operational savings accounts & retained earnings from our endowment. 3. How the $15,000 funded in the 2015-16 budget was used: The funds allowed us to continue the services of a consultant to catalog our collections, to help with set up of our new exhibits and to assist us with maintaining the Snyder Hammond house and land. We continued the clearing of weeds on the property on a biannual basis and continued security surveillance of the property and work with Gate of Heaven and Lehigh. We are collaborating with Granite Construction, the contractor for the Santa Clara Valley Water District’s Permanente Creek Flood Control project with the use of our property. We worked with the city staff to provide historical photos for the city’s 60th Birthday video, and photos for City of Cupertino Planning Division’s photo booth at the Fall Festival, “Then & Now” photos for the Video department images for the City Channel. We continued our speaker series, developed our historical sites brochure and continue collecting oral histories from our senior citizens. Finally, we were able to collaborate with the City of Cupertino Parks and Recreations Department to coordinate our activities with city functions such as tree lighting ceremony, Chinese New Year and Diwali Festival. We started our quarterly history walks at McClellan Ranch Park. We also continued planning and collaborating with our city librarian for our speaker series. Thank you for your consideration of our request to represent the wonderful city of Cupertino's history as it unfolds. We are living history now! The Board of Directors of the Cupertino Historical Society and Museum February 27, 2017 181 Euphrat Museum of Art Cupertino Community Funding Grant Application Text (Submitted 2/28/17) Organizational Mission Statements: The Euphrat Museum of Art’s mission is to research, produce and present challenging exhibitions and educational materials that provide a resource of visual ideas and a platform for communications. Our exhibitions and programs highlight our heritage of different cultures; enhance understanding of art fundamentals, art history, and esthetics; and augment college instruction. Brief Description of Organization: The Museum traditionally presents one-of-a-kind exhibitions, events, and programs that reflect the rich diverse heritage of our area. Our award winning Arts & Schools Program provides over 28,000 student hours of instruction each year, joining professional artists and students of all ages in using art as part of the community building process. Brief Description of Services Provided: The Euphrat Museum of Art serves the Cupertino community through one-of-a-kind exhibitions, events, artist presentations and lectures, outreach through our Arts & Schools Program, and community involvement with Cupertino festivals and events. Purpose of Requested Funds: The funds awarded will go towards exhibition and outreach program expenses and will greatly help enable us to offer the one-of-a-kind exhibitions, events, and programs we are known for. City Priority Funding: The City is committed to being a model multicultural community that appreciates and respects the complexity and richness of our residents. Euphrat Museum exhibitions, programs, and events reflect the rich diverse heritage of our area and provide a resource of visual ideas and a platform for communications among all constituencies. This contributes to Cupertino’s ongoing goal of citizen engagement. The Euphrat participates in many of the City’s festivals and events which helps create a deeper sense of community in Cupertino and draw people together. The Euphrat itself also provides a place where community can gather and participate in a range of enriching educational activities. The community has shown avid interest in the Euphrat as seen by attendance at events, participation in activities, and the desire to volunteer or become involved in some way. We serve a wide range of Cupertino citizens and groups of all ages and backgrounds in the museum and in the community. Preschool age students visit the museum for 182 Teaching Tours and take art classes at the Quinlan Community Center. After school art classes take place at a number of Cupertino elementary schools in partnership with the Cupertino Parks and Recreation Department. Summer programs and School Recess camps also take place at several Cupertino schools. Impacts on Cupertino Community: As Cupertino’s only art museum, we serve the Cupertino community through one-of-a-kind exhibitions, events, artist presentations and lectures, outreach through our Arts & Schools Program, and community involvement with the Silicon Valley Fall Festival, Cupertino’s Earth Day Festival, the Cherry Blossom Festival, and more. We also host Cupertino Poet Laureate and other local events. We collaborate with organizations, including local small groups, non-profits, businesses, and government agencies. Our audience and participants include enthusiastic community members, artists, De Anza, and Cupertino area elementary, middle, and high school students and families — and our acclaim increasingly expands out to Bay Area, national and international audiences. A major exhibition in 2016-17 is "Justice for All?”, a community-wide partnership with Silicon Valley Reads, the Santa Clara County Office of Education, and the Santa Clara County Library System. This exhibition and related events have had excellent attendance and feature articles in the Mercury News, Metro Silicon Valley, and community newspapers like the Cupertino Courier. Staff Competency:: Diana Argabrite, Director of the Euphrat Museum of Art and the Arts & Schools Program, has been with the museum for twenty-eight years. She has received a number of awards and grants including the CREST award from the City of Cupertino, the Innovation of the Year award from the Foothill De Anza College District, and was nominated for a National Medal in Museum Services. She also received two California Arts Council Artist-in-Residence grants at Cupertino Union School District's lowest income schools. She has been a member of the California Arts Project team, and has presented numerous workshops for artists, classroom teachers, and various community organizations including the Mexican Museum and the California Historical Society. Argabrite is also a studio artist who creates collaborative public art projects and mixed-media artworks. She has a B.A. in Studio Art from the University of California, Santa Cruz, and an M.A. in Art and Art Education from San Jose State University. Usage of Prior Year's Funds: Funding received for 2016 – 2017 is used for direct service costs including exhibition related expenses, events, and community outreach and involvement. 15% of the funds awarded were used for administrative staff time for organizing 2016 – 2017 exhibitions. 183 PROJECT BUDGET SUMMARY Administrative staff 1,500 Artist presentations 1,600 Exhibition and installation supplies and materials 3,050 Equipment rental (U Haul for art deliveries) and art shipping 1,650 Promotion (advertising, printing posters) 475 Office expenses (postage, supplies, other) 1,725 TOTAL COST OF ACTIVITY 10,000 FUNDS GRANTED 10,000 Requests Made to Other Agencies: Not applicable. 184 Friends of Deer Hollow Farm 2017 - 2018 Grant Request 1 Contact Information Organization: Friends of Deer Hollow Farm Box 4282 Mountain View, CA 94040 http://deerhollowfarmfriends.org President: Lauren Merriman President 408-234-0453 laurencmerriman@gmail.com Contact: Park Chamberlain Board member 408-446-4704 chamberlain54@comcast.net Organization Information 501(c)(3)? Yes Year Established 1994 Fiscal Sponsor Same as name and address above. Total Budget $130,800 (2016-2017 fiscal year) Board Members 12 Staff members 0 Volunteers More than 70 Organizational Mission Statement The mission of Friends of Deer Hollow Farm is to: • Preserve Deer Hollow Farm as an educational center and working farm. • Support the Farm’s environmental education programs for the benefit of schools and the community by raising funds through donations, grants and public events. 185 Friends of Deer Hollow Farm 2017 - 2018 Grant Request 2 Brief Description of the Organization Deer Hollow Farm is a 160 year-old historic ranch located in to Rancho San Antonio County Park and Open Space Preserve, immediately west of Cupertino. Its mission is to provide environmental education and historical programs for our community. Friends of Deer Hollow Farm is an all-volunteer, non-profit 501(c)(3) organization that has supported Deer Hollow Farm and its outstanding educational program since 1994. Brief Description of Services Provided Deer Hollow Farm is an educational center where the public, school classes, and community groups can observe and participate in a historic working farm. No entrance fee, parking fee or admission fee is charged. The Farm houses many live farm animals. Without these animals, the Farm would not be a living history center, but rather a museum of old farm buildings. These Farm animals and the Farm’s environmental education program teach children and the community about: • The value of protected land and wildlife • The source of their food • The process of turning fleece into cloth • Principles of recycling and avoiding waste • The interdependence of all life • The culture and history of the Bay Area’s Native American Ohlone people. Environmental Education Classes Since 1976, the Farm has offered an environmental education program to elementary school students throughout Santa Clara County and the Peninsula. These outdoor, hands-on classes are so popular that a lottery is held annually to fill the 5,000 available spaces. The Deer Hollow Farm classes reinforce the California State elementary school curriculum in history, science, and social studies through exciting and innovative outdoor activities. The classes are taught by trained volunteers in small groups that allow time for individual interaction and questions. The lessons the children are receiving at their schools come alive for them at the Farm and in the replica Ohlone Village. FODHF funds a scholarship program for children from low-income schools, as identified by the federal free-lunch guidelines. Our scholarships pay all costs associated with tuition and transportation. This year, 40% of our field trip students will attend for free. Purpose of Requested Funds: Garage Interior Remodel Total Program Budget $12,550 186 Friends of Deer Hollow Farm 2017 - 2018 Grant Request 3 Requested Amount $12,550 Percent of total budget 100% Type of Request One-Time Request The large garage at Deer Hollow Farm is the main indoor work area for all maintenance projects, the storage of tools and equipment, etc. This project is to purchase and install new storage, lighting, and work benches in the garage to help organize tools and work spaces and to eliminate rodent habitat. The storage in the garage is currently a mix of well-used high-school lockers, wood-working projects, and re-purposed office cabinets. It is difficult to organize tools and materials when the storage containers themselves are cluttered and do not fit the space efficiently. There is also a gap behind all of the current storage containers which has encouraged rats to nest. The project includes finishing the interior walls with plywood to eliminate rodent habitat. Storage Containers at Ohlone Village Total Program Budget $2,450 Requested Amount $2,450 Percent of total budget 100% Type of Request One-Time Request The Ohlone Village at the Farm is the main teaching sites for elementary school classes and is in use continually during the school year. The existing wooden storage boxes used in the Ohlone Village to protect the Ohlone teaching materials are beginning to weather and warp. The replica artifacts are now at risk to damage from moisture and nesting rodents. This project is to replace the storage boxes with nine metal ‘job site’ containers. The boxes are rodent-proof and weather- and rust-resistant; they also have a built-in locking system. They each measure 45 inches in length. TOTAL BOTH PROJECTS: $15,000 187 Friends of Deer Hollow Farm 2017 - 2018 Grant Request 4 City Priority Funding: this section to be completed by the city. Impact on the Cupertino Community Based on four quarterly surveys of Farm visitors by zip code in 2013-14, Bay Area citizens visit the Farm more than 100,000 times each year, and there are about 11,800 visits to the Farm by Cupertino residents each year. Elementary schools located in Cupertino are sending 610 students on 23 Deer Hollow Farm field trip classes for the 2016-2017 school year. These students come from these elementary schools: Collins, Eaton, Garden Gate, Lincoln, St. Joseph of Cupertino, and Stevens Creek. Schools located in Cupertino Union School District, but not physically located in Cupertino, are sending an additional 348 students in 14 classes; these schools are Christa McAuliffe, De Vargas, Dilworth, and Nimitz. Staff Competency Our staff skills include business leaders, community leaders, educators, and farm volunteers. Deer Hollow Farm is operated by a partnership between Midpeninsula Regional Open Space District, County of Santa Clara, City of Mountain View, and FODHF. FODHF's staff is 100% volunteer including our 12 Board members and more than 70 volunteers from 12 surrounding cities who annually give 8,000 hours as docents, animal caretakers, gardeners, and maintenance workers. Farm volunteers, many of them FODHF donors, teach the Farm’s field trips, assist with Summer Camp, care for the 100 farm animals, tend the orchard and vegetable garden, help maintain the grounds, and staff the fund- raising events and the Nature Center. At Least 75% of Funding Will Go Toward Direct Service? - Yes Usage of Prior Year's Funds The Cupertino City Council has approved a grant to FODHF to support Deer Hollow Farm for the past seven fiscal years: 2010: $5,000 2011: $5,000 2012: $10,000 2013: $10,000 2014: $10,000 2015: $10,000 2016: $15,000 Through FY2015, 100% of these amounts were used to help fund the operations of the Farm. The 188 Friends of Deer Hollow Farm 2017 - 2018 Grant Request 5 larger grant in FY2016 was used to fund a major renovation of the animal fencing and purchase of new veterinary equipment; refer to the 2016 project request for details. None of the funds have ever been used for FODHF administrative costs. Requests Made to Other Agencies: FODHF enjoys a broad base of support. In the past two years we have received support from the following organizations. Details and funding amounts on request. City of Cupertino Town of Los Altos Hills County of Santa Clara Cupertino Rotary Los Altos Community Foundation Los Altos Rotary Endowment Fund Mountain View Kiwanis Foundation Mountain View Rotary Sereno Properties Foundation (1% for Good Recipient ) Silicon Valley Realtors Foundation 189 190 191 4/19/2017 Grant Application All proceeds for the event went direc tly to provide the educational activities at the event or to subsequent services in Cupertino Requests Made to Other Sponsorship solicitations go to other businesses, not toAgencies: governments or agencies _ . ...; /.� http://forms4.cupertino.org/grant/adm in _popup.aspx?GA _Id= 11 3/3 192 Administration City Manager City Clerk City Manager Discretionary Fund City Attorney 193 City ManagerExecutive AssistantDeputy City ManagerCity ClerkAssistant City Manager.17Management Analyst.40Public Information OfficerSustainability ManagerSustainability Program CoordinatorManagement Analyst.60Community Outreach SpecialistDeputy City ClerkExecutive AssistantOffice Assistant.7Office Assistant.3167194 City Attorney Deputy City Attorney Assistant City Attorney Legal Services Manager 168 195 ADMINISTRATION Budget Unit 2018 Proposed City Manager $ 2,202,220 100-12-120 City Manager 952,399 100-12-122 Sustainability Division 778,875 100-12-125 Economic Development - 100-12-126 Public Affairs 470,946 City Clerk $ 685,268 100-13-130 City Clerk 599,962 100-13-132 Duplicating and Mail Services 85,018 100-13-133 Elections 288 City Manager Discretionary $ 540,821 100-14-123 City Manager Contingency 540,821 City Attorney $ 2,039,588 100-15-141 City Attorney 2,039,588 Total $ 5,467,897 169 196 DEPARTMENT SUMMARY Administration Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 2,353 113 592,628 610,996 Total Expenditures 3,290,920 3,837,931 5,379,564 5,467,897 Fund Balance - - - - General Fund Costs $ 3,011,606 $ 3,482,487 $ 2,545,572 $ 4,622,968 PROPOSED BUDGET It is recommended that a budget of $5,467,897 be approved for the Administration Budget. This represents an increase of $88,333 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This decrease is offset by increases in salary and benefits due to a request for one new three year limited term Executive Assistant that is split between City Council and Administration and negotiated increases to salary and benefits. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 259,314 338,580 2,833,992 844,929 Fines and Forfeitures - - - - Miscellaneous Revenue 20,000 16,863 - - Interdepartmental Revenue - - - - Total Revenues 279,314 355,444 2,833,992 844,929 Expenditures Employee Compensation 1,433,337 1,391,112 1,409,025 1,976,893 Employee Benefits 465,291 482,995 520,513 782,277 Materials 211,074 165,297 206,520 306,066 Contract Services 787,877 998,653 1,513,000 1,255,568 Cost Allocation 315,180 294,828 922,878 376,097 Capital Outlay - - - - Special Projects 75,809 504,933 215,000 160,000 170 197 PROPOSED EXPENDITURES FY 2017-18 $540,821 (10%) $685,268 (13%) $2,202,220 (40%) $2,039,588 (37%) City Manager City Attorney City Clerk City Manager Discretionary Fund 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 3.3 3.8 5.4 5.5 171 198 City of Cupertino FY17/18 Budget Performance Measures City Clerk Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Online information and updated records that can be easily accessed in a timely manner. Response to records requests to comply with State law of 10 days. Enabled by… Enabled by… All can fully participate in local government to achieve the community & organizational goals. So that… GOAL: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Enabled by… So that… Residents have access to timely, engaging, and important information. GOAL: Streamline information processing for Council, staff and community members for compliance with State requirements and facilitate independent and transparent access to public information. City of Cupertino FY17/18 Budget Performance Measures Public Affairs Division Measure Ongoing Target City Council minutes for regular meetings presented for Council approval by the following regular meeting 100% Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document 100% Public Record Act requests responded to by the Statutory deadline date 100% Measure Ongoing Target Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts 10% annual increase Social media engagement: average number of engagements (reactions, comments, shares) per post on City Hall Facebook account 10% annual increase Access Cupertino: Average response time to customers organization-wide Respond within 2 days Leveraging the communication skills, knowledge, and experience of employees while also utilizing existing and emerging technologies to enhance, improve, and streamline the communication process. 172 199 City of Cupertino FY17/18 Budget Performance Measures Sustainability Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. An agency implementing Council and community sustainability goals to effectively safeguard shared resources. Engaged community partners and volunteers supporting CAP implementation. Enabled by… Enabled by… Cupertino is a healthy, resilient, environmentally -vibrant City for current and future residents to live, work, learn and play. So that… GOAL: Implement Cupertino’s Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings across municipal operations and community partners. 1 Cupertino’s GHG inventories are conducted roughly every 3-5 years. It is currently being updated in 2017 based on 2015 data. Measure Ongoing Target % community-wide emissions reduced from baseline of 307,288 MT CO2e/yr1 15% reduction by 2020 (261,195 MT CO2e/yr) Initiate and implement all Climate Action Plan near-term measures x% initiated x% complete or ongoing 100% 100% Increase the total number of Certified Green Businesses through the city’s GreenBiz program to improve efficiency and conserve resources 100 173 200 CITY MANAGER - CITY MANAGER Budget Unit 100-12-120 Budget at a Glance Total Revenues 319,142 Total Expenditures 952,399 Fund Balance - General Fund Costs 633,257 % Funded by General Fund 66.5% Total Staffing 3.37 PROGRAM OVERVIEW The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole, the City Manager carries out the City’s adopted goals and objectives. The City Manager oversees Sustainability and Public Affairs. SERVICE OBJECTIVES •Accomplish the City Council’s work program. •Manage City operations. •Ensures all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed. •Advise the City Council on policy, and the financial conditions and needs of the City. •Investigate all complaints concerning the operation of the City. •Prepare reports and initiate recommendations as may be desirable or as requested by the City Council. •Ensure that the City’s policies and procedures provide a foundation for a secure financial position. PROPOSED BUDGET It is recommended that a budget of $952,399 be approved for the City Manager Budget. This represents a decrease of $213,873 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to cost allocation changes. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The increase in personnel costs is partially attributed to a reallocation of existing staff to better reflect time spent supporting this program. 174 201 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: City Manager - City Manager Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 123 -3,486 3,486 Total Expenditures 713,295 805,105 1,166,272 952,399 Fund Balance - - - - General Fund Costs $ 588,783 $ 680,593 $ 150,207 $ 633,257 STAFFING Total current authorized positions – 3.02 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.37 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 124,512 124,512 1,016,065 319,142 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 124,512 124,512 1,016,065 319,142 Expenditures Employee Compensation 423,648 469,105 524,865 622,201 Employee Benefits 125,030 163,567 184,325 235,855 Materials 45,303 38,229 43,880 44,380 Contract Services 11,011 26,024 12,040 14,540 Cost Allocation 108,180 108,180 397,676 31,937 Capital Outlay - - - - Special Projects - - - - 175 202 CITY MANAGER - SUSTAINABILITY DIVISION Budget Unit 100-12-122 Budget at a Glance Total Revenues 31,452 Total Expenditures 778,875 Fund Balance - General Fund Costs 747,423 % Funded by General Fund 96.0% Total Staffing 1.80 PROGRAM OVERVIEW The Sustainability Division of the City Manager’s Office works to bring environmental awareness across departments and engage staff, students, residents and businesses in building public good through activities that reduce greenhouse gas emissions, help to mitigate financial and regulatory risk, provide utility cost assurances, conserve scarce resources, prioritize public health and prepare for the impacts of climate change. In this capacity, the Division teams with regional partners and adjacent jurisdictions to develop collective approaches to implement the City's ambitious Climate Action Plan. SERVICE OBJECTIVES •Collect and analyze relevant data to demonstrate municipal compliance with current and burgeoning state and federal regulations. •Serve as technical resource on sustainability initiatives by preparing staff reports, developing local policies and ordinances, coordinating educational events, and making presentations to Council, City departments and applicable outside organizations. •Coordinate municipal and community-wide greenhouse gas emissions inventories, develop emissions targets, execute a community-wide climate action plan, and track progress to achieve emissions reductions over time. •Expand existing compliance-focused environmental services to offer innovative energy, water and resource conservation programs that effectively engage employees and community members. •Evaluate existing departmental programs and benchmark environmental achievements on an ongoing basis. •Research tools and best practices for efficient utilities management and conservation and adapt these into the City’s organizational culture, operations and budgets. •Manage or perform resource audits, identify energy conservation and renewable energy generation opportunities, calculate feasibility and develop projects that are cost effective and conserve resources. 176 203 •Work with schools to expand successful municipal programs into educational institutions through effective partnerships that empower students as environmental leaders. PROPOSED BUDGET It is recommended that a budget of $778,875 be approved for the Sustainability Division Budget. This represents an increase of $16,292 from the FY 2016-17 Final Adopted Budget. Sustainability Division expenses for this year are attributed to continuing program services to implement the Climate Action Plan measures in the near term and reduce overall greenhouse gas emission. The Sustainability Division is proposing to reallocate a portion of a Management Analyst position to the City Manager's Office and make the current limited-term Sustainability Program Coordinator into a permanent position. Staffing is augmented with college interns, which focus on increasing the number of Green businesses enrolled in the Green Biz program and help with climate action plan related outreach and program support. The current Sustainability Program Coordinator was hired in January 2017, to fill what was left of a 1 year limited-term position previously held by the Utility Analyst. Staff is requesting to make the Sustainability Program Coordinator position permanent. This position is proposed to be allocated across the Sustainability Division (75%) and Environmental Division Resource Recovery fund (25%). This position has become essential to the Sustainability Division in performing duties related to greenhouse gas inventory data tracking, climate action plan implementation tracking, program coordination, tracking utility expenditures and usage for energy, natural gas, water, fuel; and helping with community outreach and education. If this proposal is not approved, the Sustainability Division will need to significantly reduce program offerings to community and business members and implementation of the City’s Climate Action Plan will be delayed. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 177 204 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Funding Source Description Residential Energy & Water Efficiency Pilot $75,000 General Fund Pilots to promote residential energy and water efficiency in the community Employee Commute Incentives and Program $50,000 General Fund Introduce an internal Employee Commute program to encourage alternative commuting to work Green Zero Waste Events Pilot $11,000 General Fund Pilot to provide reusable dishware and flatware for events and overall outreach on creating Zero Waste Events Citywide Employee Engagement $12,000 General Fund Develop an internal program to encourage employees to adopt sustainable behavior Utility Box Project $12,000 General Fund Utility Box Art contest Total $160,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 178 205 City Manager - Sustainability Division Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 2,230 -12,129 12,129 Total Expenditures 252,869 758,671 762,583 778,875 Fund Balance - - - - General Fund Costs $ 201,405 $ 672,821 $ 731,131 $ 747,423 STAFFING Total current authorized positions – 1.55 The Sustainability Division is proposing to make the current 1 year limited-term Sustainability Program Coordinator into a permanent position. Total recommended positions – 1.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 31,464 68,987 31,452 31,452 Fines and Forfeitures - - - - Miscellaneous Revenue 20,000 16,863 - - Interdepartmental Revenue - - - - Total Revenues 51,464 85,850 31,452 31,452 Expenditures Employee Compensation 77,337 137,722 164,097 165,944 Employee Benefits 27,541 51,409 63,252 66,571 Materials 12,058 23,862 35,885 36,225 Contract Services 54,603 18,533 147,000 147,000 Cost Allocation 22,212 22,212 125,220 191,006 Capital Outlay - - - - Special Projects 56,889 504,933 215,000 160,000 179 206 CITY MANAGER - ECONOMIC DEVELOPMENT Budget Unit 100-12-125 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW The Economic Development program is being transferred to Planning and Community Development – Economic Development. A complete discussion of this program can be found under Budget Unit 100-71-705. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 180 207 City Manager - Economic Development Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 169,706 - - - Fund Balance - - - - General Fund Costs $ 125,702 $ - $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 44,004 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 44,004 - - - Expenditures Employee Compensation 64,732 - - - Employee Benefits 22,042 - - - Materials 29,829 - - - Contract Services 36,831 - - - Cost Allocation 16,272 - - - Capital Outlay - - - - Special Projects - - - - 181 208 CITY MANAGER - PUBLIC AFFAIRS Budget Unit 100-12-126 Budget at a Glance Total Revenues 150,355 Total Expenditures 470,946 Fund Balance - General Fund Costs 320,591 % Funded by General Fund 68.1% Total Staffing 1.90 PROGRAM OVERVIEW The Public Affairs Division is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Public Affairs Division oversees and maintains many of the City’s lines of communication with residents, including the City’s website, social media accounts, monthly newsletter, videos, event tabling, flyers, and press releases. Public Affairs also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. SERVICE OBJECTIVES •Serve as the communications link between the City of Cupertino and residents •Ensure that the community has easy access to important, useful, and timely information through various forms of media including print, online, and video •Build community pride and positive identification with the City among residents •Increase interest and participation in City services, projects, and activities •Promote City Council and departmental goals, initiatives, programs, and services •Assist in creating better internal and external communication •Enhance the City’s relationship with the news media PROPOSED BUDGET The Public Affairs Division was reorganized into the City Manager’s Office in FY 2016-17. It was previously budgeted under the Innovation and Technology Department (formerly known as the Information Services Department). The Public Affairs Division budget request is approximately $30,000 less compared to last year, mostly due to salary savings from staff reallocations and savings resulting from bringing graphic design costs for the Scene, the City's monthly newsletter, in-house. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 182 209 City Manager - Public Affairs Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - 18,368 Total Expenditures - - - 470,946 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 320,591 STAFFING Total current authorized positions – 0.00 The reduction in staffing reflects the reallocation of staff to reflect actual duties within the Administration budget. Total recommended positions – 1.90 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 150,355 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 150,355 Expenditures Employee Compensation - - - 186,448 Employee Benefits - - - 80,449 Materials - - - 107,374 Contract Services - - - 18,000 Cost Allocation - - - 60,307 Capital Outlay - - - - Special Projects - - - - 183 210 CITY CLERK - CITY CLERK Budget Unit 100-13-130 Budget at a Glance Total Revenues 80,947 Total Expenditures 599,962 Fund Balance - General Fund Costs 519,015 % Funded by General Fund 86.5% Total Staffing 3.00 PROGRAM OVERVIEW The City Clerk’s office responsibilities include administrative duties associated with the City Council’s agenda and actions; publishing legal notices; posting notice of all commission vacancies; processing codification of City’s Municipal Code; records management; and compliance with Public Records Act requests. SERVICE OBJECTIVES •The division’s goals are to ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information, including digital access to City records. •Provide complete, accurate and timely information to the public, staff and City Council. •Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days. •Respond to Public Record Act requests within the time specified by State law. •Provide a digital City Council packet to members of the City Council and staff for use on mobile devices. PROPOSED BUDGET It is recommended that a budget of $599,962 be approved for the City Clerk Budget. This represents a decrease of $123,696 from the FY 2016-17 Final Adopted Budget. To increase staff support for Council and Administration, staff requests to add an Executive Assistant position which will support the Mayor, Council, and the City Clerk's Office. Costs will be partially offset by under-filling an existing Senior Office Assistant with a three-year limited-term Office Assistant and eliminating two part-time Office Assistants, one of which supports this program. Increased personnel costs in this budget reflect this proposal as well as increases associated with negotiated compensation increases per Council-approved labor agreements. 184 211 This decrease in cost allocation is primarily due to changes in the cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: City Clerk - City Clerk Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 4,622 4,622 Total Expenditures 512,073 516,494 723,658 599,962 Fund Balance - - - - General Fund Costs $ 497,673 $ 489,218 $ 324,934 $ 519,015 STAFFING Total current authorized positions – 3.00 There are no recommended changes to the current level of staffing. Total recommended positions – 3.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 14,400 27,276 398,724 80,947 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 14,400 27,276 398,724 80,947 Expenditures Employee Compensation 257,360 263,000 286,942 323,903 Employee Benefits 92,194 106,264 121,175 134,875 Materials 32,792 21,478 19,509 25,441 Contract Services 34,087 34,192 54,295 57,531 Cost Allocation 95,640 91,560 237,115 53,590 Capital Outlay - - - - Special Projects - - - - 185 212 CITY CLERK - DUPLICATING AND MAIL SERVICES Budget Unit 100-13-132 Budget at a Glance Total Revenues - Total Expenditures 85,018 Fund Balance - General Fund Costs 85,018 % Funded by General Fund 100.0% Total Staffing 0.40 PROGRAM OVERVIEW The City Clerk’s office provides mail service for all City Departments. SERVICE OBJECTIVES •Administer mail service to each department and satellite facilities in a timely manner. •Process and deliver routine incoming and outgoing mail and packages daily to each department and satellite facilities. •Provide additional special deliveries as needed. PROPOSED BUDGET It is recommended that a budget of $85,018 be approved for the Duplicating and Mail Services Budget. This represents an increase of $11,189 from the FY 2016-17 Final Adopted Budget. The increase in personnel costs is attributed to the reallocation of an Office Assistant to support the Mayor, Council, the City Manager's Office, and the City Clerk's Office, offset by the elimination of part-time staff support. This is part of a proposal to increase staff support for Council and Administration, staff requests to add an Executive Assistant position which will support the Mayor, Council, and the City Clerk's Office. Costs will be partially offset by under-filling the Senior Office Assistant with an Office Assistant and eliminating two part-time Office Assistants, one of which supports this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 186 213 City Clerk - Duplicating and Mail Services 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 3,867 3,867 Total Expenditures 104,190 71,364 73,829 85,018 Fund Balance - - - - General Fund Costs $ 104,190 $ 71,364 $ 73,829 $ 85,018 STAFFING Total current authorized positions – 0.00 Staffing is proposed to increase to account for reallocating Office Assistant support to reflect time that will be spent supporting the City Clerk's Office. The position will be allocated 0.40 Duplicating and Mail Services, 0.30 City Council, 0.20 City Manager, and 0.10 Public Affairs. Total recommended positions – 0.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 28,929 16,287 23,725 22,953 Employee Benefits 13,739 849 237 11,198 Materials 41,221 33,371 32,000 33,000 Contract Services 14,001 14,557 14,000 14,000 Cost Allocation 6,300 6,300 - - Capital Outlay - - - - Special Projects - - - - 187 214 CITY CLERK – ELECTIONS Budget Unit 100-13-133 Budget at a Glance Total Revenues - Total Expenditures 288 Fund Balance - General Fund Costs 288 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The City Clerk’s office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents. SERVICE OBJECTIVES •Administer elections and Fair Political Practices Commission filings in compliance with State law. •Conduct a local election in even-numbered years and ballot measure elections as necessary, in compliance with the California Elections Code. •Facilitate timely filing of required and voluntary documentation from candidates and election committees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest, as well as candidate biographies and photographs. •Make election-related information available to the public and news media in a timely manner. PROPOSED BUDGET It is recommended that a budget of $288 be approved for the Elections Budget. This represents a decrease of $296,580 from the FY 2016-17 Final Adopted Budget. The decrease is due to there being no election in 2017. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 188 215 City Clerk - Elections Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 63,053 4,594 296,868 288 Fund Balance - - - - General Fund Costs $ 63,053 $ 4,594 $ 296,868 $ 288 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 5,660 22 15,700 100 Contract Services 57,393 4,572 281,168 - Cost Allocation - - - 188 Capital Outlay - - - - Special Projects - - - - 189 216 CITY MANAGER DISCRETIONARY FUND - CITY MANAGER CONTINGENCY Budget Unit 100-14-123 Budget at a Glance Total Revenues - Total Expenditures 540,821 Fund Balance - General Fund Costs 540,821 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This fund was established to meet city wide unexpected expenses that may occur during the year. In FY 2013-14, an Appropriations for Contingency expenditure category was added to each General Fund department to serve as a contingency for any unexpected expenditures that might occur. This category is 10% of each program’s budgeted materials and contract services. A second level of contingency was also built in for unexpected expenditures that may occur over the 10% contingency. For all programs within the General Fund, 5% of the total budgeted materials and contract services were placed in this program. This brings total Appropriations for Contingencies for the General Fund to 15% of total budgeted materials and contract services. This percentage is consistent with best practices adopted by the Governmental Accounting Standards Board (GASB) which recommended 5-15% contingency. Any unspent contingency funds will go to fund balance at the end of the year. It is anticipated that this budget along with appropriations for contingency levels in program budget will decrease over the next few years to somewhere between the 5-10% level based on historical trends. PROPOSED BUDGET It is recommended that a budget of $540,821 be approved for the City Manager Contingency Budget. This represents an increase of $821 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 190 217 City Manager Discretionary - City Manager Contingency 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - 505,000 505,000 Total Expenditures 47,845 -540,000 540,821 Fund Balance - - - - General Fund Costs $ 47,845 $ - $ 540,000 $ 540,821 STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 1,114 - - - Employee Benefits 20 - - - Materials 1,357 - - - Contract Services 45,354 -35,000 35,000 Cost Allocation - - - 821 Capital Outlay - - - - Special Projects - - - - 191 218 CITY ATTORNEY - CITY ATTORNEY Budget Unit 100-15-141 Budget at a Glance Total Revenues 263,033 Total Expenditures 2,039,588 Fund Balance - General Fund Costs 1,776,555 % Funded by General Fund 87.1% Total Staffing 4.00 PROGRAM OVERVIEW The City Attorney is the legal counsel to the City Council, City Commissions, City Manager and staff. These legal services include providing legal advice, research and analysis, preparing and reviewing legislation including ordinances and resolutions and drafting or reviewing legal documents, contracts and agreements. The City Attorney also represents the City, its departments and City staff in any litigation, code enforcement, claims or administrative actions involving City business. SERVICE OBJECTIVES •Attend City Council meetings and provide the Council with high quality legal advice and services, staff Planning Commission meetings and attend other Commission and staff meetings as requested. •Provide legal services to the City Manager and staff necessary to accomplish their objectives in a timely and cost-effective manner. •Administer general liability claims filed against the City in a manner that minimizes City exposure and liability. PROPOSED BUDGET It is recommended that a budget of $2,039,588 be approved for the City Attorney Budget. This represents an increase of $223,234 from the FY 2016-17 Final Adopted Budget. The proposed increased costs in salary and benefits are due to the addition of a Deputy City Attorney position that was added as part of the FY 2016-17 Mid-Year Financial Report. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 192 219 City Attorney - City Attorney Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency -113 63,524 63,524 Total Expenditures 1,427,889 1,681,703 1,816,354 2,039,588 Fund Balance - - - - General Fund Costs $ 1,382,955 $ 1,563,897 $ 428,603 $ 1,776,555 STAFFING Total current authorized positions – 3.00 A Deputy City Attorney position was added as part of the FY 2016-17 Mid-Year Financial report. Total recommended positions – 4.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 44,934 117,805 1,387,751 263,033 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 44,934 117,805 1,387,751 263,033 Expenditures Employee Compensation 580,217 504,998 409,396 655,444 Employee Benefits 184,725 160,906 151,524 253,329 Materials 42,854 48,335 59,546 59,546 Contract Services 534,597 900,775 969,497 969,497 Cost Allocation 66,576 66,576 162,867 38,248 Capital Outlay - - - - Special Projects 18,920 - - - 193 220 Law Enforcement Law Enforcement 221 Senior Code Enforcement Officer Code Enforcement Officer Law Enforcement (Contract) 194 222 3CITY OF CUPERTINO 2017-2018 PROPOSED BUDGET LAW ENFORCEMENT Budget Unit 2018 Proposed Law Enforcement $ 12,344,307 100-20-200 Law Enforcement 11,635,886 100-20-201 Interoperability Project 48,813 100-20-202 Code Enforcement 659,608 Total $ 12,344,307 195 223 DEPARTMENT SUMMARY Law Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency -220 10,000 10,000 Total Expenditures 10,283,772 10,988,736 11,884,384 12,344,307 Fund Balance - - - - General Fund Costs $ 10,166,710 $ 10,772,934 $ 11,184,384 $ 11,644,307 PROPOSED BUDGET It is recommended that a budget of $12,344,307 be approved for the Law Enforcement Budget. This represents an increase of $459,923 from the FY 2016-17 Final Adopted Budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 107,062 122,119 100,000 100,000 Charges for Services - - - - Fines and Forfeitures - - 600,000 600,000 Miscellaneous Revenue 10,000 93,682 - - Interdepartmental Revenue - - - - Total Revenues 117,062 215,802 700,000 700,000 Expenditures Employee Compensation 174,863 178,915 215,676 239,683 Employee Benefits 73,415 76,449 79,678 98,809 Materials 42,717 69,190 62,578 62,578 Contract Services 9,927,281 10,623,426 11,342,859 11,770,217 Cost Allocation 65,496 40,536 173,593 163,020 Capital Outlay - - - - Special Projects - - - - 196 224 PROPOSED EXPENDITURES FY 2017-18 Law Enforcement $12,344,307 (100%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 10.3 11.0 11.9 12.3 197 225 LAW ENFORCEMENT - LAW ENFORCEMENT Budget Unit 100-20-200 Budget at a Glance Total Revenues 450,000 Total Expenditures 11,635,886 Fund Balance - General Fund Costs 11,185,886 % Funded by General Fund 96.1% Total Staffing - PROGRAM OVERVIEW This program provides for law enforcement, emergency communications, School Resource Officers, and Youth Probation Program. Services are provided by the Santa Clara County Sheriff’s Department, while communication services are provided by the Santa Clara County General Services Administration. The County’s Youth Probation Program, also managed by the Sheriff’s Department, is funded through a partnership with the Cupertino Union School District and the City of Cupertino. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services and additional resources from specialized units. The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction. This grant will be used to partially offset the cost of a second School Resource Officer for the FY 2016-17 school year. SERVICE OBJECTIVES •Protect life and property through innovative and progressive policing methods. •Respond to Priority 1 emergency situations within an average of less than five minutes. •Enforce the vehicle code with the goal of increasing traffic safety. •Divert first time/minor youth offenders from the juvenile justice system. •Provide daily on-site interaction with our youth. PROPOSED BUDGET It is recommended that a budget of $11,635,886 be approved for the Law Enforcement Budget. This represents an increase of $429,691 from the FY 2016-17 Final Adopted Budget. The proposed increase is primarily due to negotiated increases in the City Law Enforcement contract with Santa Clara County. 198 226 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Law Enforcement - Law Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 9,704,372 10,419,888 11,206,195 11,635,886 Fund Balance - - - - General Fund Costs $ 9,587,310 $ 10,204,087 $ 10,756,195 $ 11,185,886 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 107,062 122,119 100,000 100,000 Charges for Services - - - - Fines and Forfeitures - - 350,000 350,000 Miscellaneous Revenue 10,000 93,682 - - Interdepartmental Revenue - - - - Total Revenues 117,062 215,802 450,000 450,000 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 32,065 51,633 51,803 51,803 Contract Services 9,672,307 10,368,255 11,086,070 11,513,428 Cost Allocation - - 68,322 70,655 Capital Outlay - - - - Special Projects - - - - 199 227 LAW ENFORCEMENT - INTEROPERABILITY PROJECT Budget Unit 100-20-201 Budget at a Glance Total Revenues - Total Expenditures 48,813 Fund Balance - General Fund Costs 48,813 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara, its fifteen cities and towns, and all special districts. SERVICE OBJECTIVES SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery. PROPOSED BUDGET It is recommended that a budget of $48,813 be approved for the Interoperability Project Budget. This represents an increase of $6 from the FY 2016-17 Final Adopted Budget. The proposed program budget is relatively unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 200 228 Law Enforcement - Interoperability Project Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 48,359 48,359 48,807 48,813 Fund Balance - - - - General Fund Costs $ 48,359 $ 48,359 $ 48,807 $ 48,813 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 48,359 48,359 48,539 48,539 Cost Allocation - - 268 274 Capital Outlay - - - - Special Projects - - - - 201 229 LAW ENFORCEMENT - CODE ENFORCEMENT Budget Unit 100-20-202 Budget at a Glance Total Revenues 250,000 Total Expenditures 659,608 Fund Balance - General Fund Costs 409,608 % Funded by General Fund 62.1% Total Staffing 2.00 PROGRAM OVERVIEW The Law Enforcement Code Enforcement Program provides for the enforcement of various provisions of the municipal code relating to parking citations, noise, animal control and other compliance areas. Assistance is provided to the Sheriff Department in the areas of traffic control and other complaint responses. SERVICE OBJECTIVES •Respond to resident, City department, or outside agency referrals within 48 hours. •Provide services with an emphasis on community education and customer service. •Enforce the codes in a fair, equitable, and objective manner. •Manage the animal control services contract with the City of San José. PROPOSED BUDGET It is recommended that a budget of $659,608 be approved for the Code Enforcement Budget. This represents an increase of $30,226 from the FY 2016-17 Final Adopted Budget. The increases in personnel costs reflect negotiated employee compensation increases based on Council-approved labor contracts and are partially offset by a reduction in cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 202 230 Law Enforcement - Code Enforcement Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency -220 10,000 10,000 Total Expenditures 531,042 520,488 629,382 659,608 Fund Balance - - - - General Fund Costs $ 531,042 $ 520,488 $ 379,382 $ 409,608 STAFFING Total current authorized positions – 2.00 There are no recommended changes to the current level of staffing. Total recommended positions – 2.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - 250,000 250,000 Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 250,000 250,000 Expenditures Employee Compensation 174,863 178,915 215,676 239,683 Employee Benefits 73,415 76,449 79,678 98,809 Materials 10,652 17,557 10,775 10,775 Contract Services 206,615 206,812 208,250 208,250 Cost Allocation 65,496 40,536 105,003 92,091 Capital Outlay - - - - Special Projects - - - - 203 231 Innovation & Technology Innovation & Technology Video Applications Infrastructure GIS 232 Chief Technology Officer Applications Manager Business Systems Analyst (2) GIS Manager GIS Technician (1.5) Infrastructure Manager Network Specialist IT Assistant (2) Media Communications Specialist (3) Administrative Assistant 204 233 INNOVATION & TECHNOLOGY Budget Unit 2018 Proposed Innovation & Technology $ 515,134 100-30-300 Information Services Administration - 610-30-300 Innovation & Technology Administration 515,134 100-30-304 Cupertino Scene - Video $ 1,641,691 615-31-305 Video 1,569,256 100-31-307 Public Access Support 72,435 Applications $ 1,664,219 615-32-308 Applications 1,664,219 Infrastructure $ 2,812,304 610-34-310 Infrastructure 2,812,304 GIS $ 863,088 610-35-986 GIS 863,088 Citywide - Non Departmental $ 0 610-90-989 Network Upgrade - Total $ 7,496,436 205 234 DEPARTMENT SUMMARY Innovation & Technology Category 2015 Actual 2016 Actual 2016-17 Final Budget 2018 Proposed Appropriations for Contingency 4,798 -104,922 220,364 Total Expenditures 3,524,416 3,982,307 6,832,923 7,496,436 Fund Balance (2,723,310) (2,416,930) (3,413,244) (3,845,930) General Fund Costs $ 582,946 $ 816,379 $ 3,210,836 $ 3,650,506 PROPOSED BUDGET It is recommended that a budget of $7,496,436 be approved for the Innovation & Technology Budget. This represents an increase of $663,513 from the FY 2016-17 Final Adopted Budget. This increase is due to consolidating all hardware and software procurement and services under the governance of Innovation & Technology. Previously these funds were allocated to individual departments. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 218,160 821,028 208,843 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 218,160 821,028 208,843 - Expenditures Employee Compensation 1,171,517 1,340,171 1,559,028 2,037,051 Employee Benefits 372,125 459,595 605,103 741,122 Materials 277,229 282,078 342,956 1,064,067 Contract Services 896,154 1,295,203 1,781,791 1,072,322 Cost Allocation 566,292 454,040 1,254,518 1,018,780 Capital Outlay - - - - Special Projects 236,301 151,222 1,184,605 1,342,730 206 235 PROPOSED EXPENDITURES FY 2017-18 $515,134 (7%) $863,088 (12%) $2,812,304 (38%) $1,641,691 (22%) Infrastructure Applications Video GIS Innovation & Technology $1,664,219 (22%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2016-17 Final 2018 Proposed 3.5 4.0 6.8 7.5 207 236 City of Cupertino FY17/18 Budget Performance Measures Department: Information Technology Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Integrated information services enable customers’ access to the tools and information they need, when and where they need it. So that… Enabled by… GOAL: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement. Measure Ongoing Target GIS: Open Data site visits per month 140 GIS: Number of annual requests (map, data, Web applications, Cityworks, schema, other) completed 400 GIS: Property Information site visits per month 200 GIS: Cityworks utilization - number of assets maintained Number of active users in the system 30 30 Video: Percentage of scheduled projects/Number of projects completed on time 95% Video: Percentage of requests originating outside of Video Dept 95% Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on time 80% Infrastructure: Percentage based upon number of HelpDesk KACE tickets/SLA measurements 90% Infrastructure: % Customer satisfaction based upon Satisfaction Rate from KACE tickets 85% Infrastructure: % of network uptime (not including planned maintenance) 99.99% Applications: % of citywide-enterprise application project management performed on time and on budget 95% Applications: Number of site visits/Number of site hits 5% annual increase Tools and services leverage existing, emerging and innovative technologies to enhance, improve, and streamline business and communications processes. 208 237 INNOVATION & TECHNOLOGY – ADMINISTRATION Budget Unit 100-30-300 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2017-18, this program was largely split between Innovation & Technology Administration and the Public Affairs Program within the City Manager's Office as part of a department reorganization. A discussion of the Innovation & Technology Administration program can be found under Budget Unit 610-30-300. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 209 238 Innovation & Technology - Information Services Administration 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - 8,632 - Total Expenditures 419,975 360,844 719,926 - Fund Balance - - - - General Fund Costs $ 378,623 $ 319,492 $ 511,083 $ - STAFFING Total current authorized positions – 2.45 Total recommended positions – 0.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 41,352 41,352 208,843 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 41,352 41,352 208,843 - Expenditures Employee Compensation 201,362 181,714 290,669 - Employee Benefits 65,617 54,642 108,043 - Materials 55,215 49,535 59,075 - Contract Services 78,868 56,041 94,209 - Cost Allocation 18,912 18,912 159,298 - Capital Outlay - - - - Special Projects - - - - 210 239 INNOVATION & TECHNOLOGY – ADMINISTRATION Budget Unit 610-30-300 Budget at a Glance Total Revenues - Total Expenditures 515,134 Fund Balance (515,134) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.85 PROGRAM OVERVIEW The Innovation & Technology Department's focus, organizational structure and name has changed for FY 2017-18 to reflect the bimodal nature of this team. The department maintains efficient cost effective, highly resilient technical solutions while, at the same time, exploring leading edge technologies that may yield significant advantages. The Administration Division within I&T is responsible for management, strategic planning, governance, policy setting and leadership in the use of computer, video, radio, GIS, and telecommunications technologies to support the delivery of cost effective services to the City of Cupertino. Additionally, Administration is responsible for budget development, procurement, and administrative services. SERVICE OBJECTIVES •Develop a roadmap to effectively leverage existing technology and adopt emerging technology to meet business needs. •Create and sustain a workplace atmosphere that promotes a balance between employee innovation, accountability and business needs. •Ensure two-way communication between and among the City organization and stakeholders. •Improve user experience including ease of use, availability, and accessibility within the context of compliance with industry standards. •Ensure transparent and easy access to City information and services via multiple technologies, e.g. social media, TV, web and radio. PROPOSED BUDGET This program was created in FY 2017-18 as part of a department reorganization. Previously, administration of the department was budgeted in the General Fund under the Information Services Administration program (100-30-300). 211 240 This budget accounts for 25% of the Chief Technology Officer (CTO) and 60% of the Administrative Assistant, along with front desk staffing. As advised by the City Attorney's office, $100,000 is requested for legal services. This budget also includes $50,000 in technical consulting services previously budgeted in Infrastructure 610-34-310. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 212 241 Innovation & Technology - Innovation & Technology Administration 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - 103,789 Total Expenditures - - - 515,134 Fund Balance - - - (515,134) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.00 Total recommended positions – 0.85 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - 171,763 Employee Benefits - - - 49,401 Materials - - - 17,901 Contract Services - - - 152,200 Cost Allocation - - - 20,080 Capital Outlay - - - - Special Projects - - - - 213 242 INNOVATION & TECHNOLOGY - CUPERTINO SCENE Budget Unit 100-30-304 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW The Cupertino Scene budget was moved into Public Affairs within the City Manager's Office as part of the department reorganization approved by Council in FY 2016-17. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 214 243 Innovation & Technology - Cupertino Scene 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 6,181 - Total Expenditures 141,775 120,001 135,103 - Fund Balance - - - - General Fund Costs $ 141,775 $ 120,001 $ 135,103 $ - STAFFING Total current authorized positions – 0.35 Total recommended positions – 0.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 37,369 26,743 23,706 - Employee Benefits 14,933 11,705 10,912 - Materials 85,481 77,545 78,263 - Contract Services 321 336 300 - Cost Allocation 3,672 3,672 15,741 - Capital Outlay - - - - Special Projects - - - - 215 244 VIDEO - VIDEO Budget Unit 615-31-305 Budget at a Glance Total Revenues - Total Expenditures 1,569,256 Fund Balance (205,109) General Fund Costs 1,364,147 % Funded by General Fund 86.9% Total Staffing 3.25 PROGRAM OVERVIEW The Video program operates the City’s government access television station, providing multi-media support services, and overseeing video production for all City departments. SERVICE OBJECTIVES •Provide information regarding the activities and decisions of the City Council and the recommendations of its advisory bodies. •Expand community awareness of local government and its decision-making processes by providing live and re-broadcast coverage of City meetings. •Increase community awareness of City services. •Provide information pertinent to City residents from other local, state and federal governmental entities. •Provide an additional venue for emergency communications in the event of a disaster. •Provide video production and audio/visual services to City departments. PROPOSED BUDGET It is recommended that a budget of $1,569,256 be approved for the Video Budget. This represents an increase of $90,170 from the FY 2016-17 Final Adopted Budget. The proposed budget includes increases to personnel costs and maintenance costs in contract services partially offset by a reduction in cost allocation charge. Increases in personnel costs are related to a reallocation of staffing within the department, negotiated increases approved by Council in FY 2016-17, and the request for additional part-time staffing support ($33,000) that will allow the department to hire two video interns to convert videos to digital format and catalog video footage. The proposed increase in contract services costs ($30,000), is due to a greater preventive and service maintenance schedule for newly installed systems and the Community Hall and the video control room completed in FY 2016-17 ($10,000), as well as anticipated preventive maintenance costs for new conference room audiovisual systems to be installed in FY 2017-18. 216 245 The remaining $20,000 increase is due to the development and ongoing service costs of a new online video hosting platform that will be integrated into the new website design, and later merged with future app development allowing an increased video presence on the City's social media sites. Proposed projects in capital outlay include audiovisual technology upgrades for conference rooms citywide and the EOC ($225,000), field equipment to allow for higher quality outdoor video footage ($45,000), and a back-up battery system for Community Hall and City Hall control rooms ($36,000).These increases are offset by a reduction in cost allocation charges which have decreased this year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 217 246 Video - Video Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 10,757 10,757 Total Expenditures 833,059 798,214 1,479,086 1,569,256 Fund Balance (693,751) (255,694) -(205,109) General Fund Costs $ - $ - $ 1,479,086 $ 1,364,147 STAFFING Total current authorized positions – 3.40 The 0.15 decrease in staffing is the result of internal reallocations to better reflect staff time spent in this program. Total recommended positions – 3.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 139,308 542,520 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 139,308 542,520 - - Expenditures Employee Compensation 288,161 325,174 357,597 507,637 Employee Benefits 111,340 109,555 145,402 175,404 Materials 48,293 69,648 47,950 50,950 Contract Services 68,197 52,585 68,000 108,650 Cost Allocation 284,561 189,176 449,380 409,858 Capital Outlay - - - - Special Projects 32,506 52,076 400,000 306,000 218 247 VIDEO - PUBLIC ACCESS SUPPORT Budget Unit 100-31-307 Budget at a Glance Total Revenues - Total Expenditures 72,435 Fund Balance - General Fund Costs 72,435 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The City contracts to provide management of Community Access Television Programming. SERVICE OBJECTIVES •Encourage Cupertino-based communities of interest to use facilities to express their interests, concerns, and ideas. •Provide training in cable communication production for individuals and community groups. •Assist individuals and community groups to develop and produce programs for broadcast. PROPOSED BUDGET It is recommended that a budget of $72,435 be approved for the Public Access Support Budget. This represents an increase of $3,458 from the FY 2016-17 Final Adopted Budget. The City contracts to provide management of Community Access Television programming. The recommended budget reflects an increase of $3,407 for the annual 5% escalation. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 219 248 Video - Public Access Support Category 2015 Actual 2016 Actual 2016-17 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 62,548 63,871 68,977 72,435 Fund Balance - - - - General Fund Costs $ 62,548 $ 63,871 $ 68,977 $ 72,435 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 62,548 63,871 68,135 71,542 Cost Allocation - - 842 893 Capital Outlay - - - - Special Projects - - - - 220 249 APPLICATIONS - APPLICATIONS Budget Unit 615-32-308 Budget at a Glance Total Revenues - Total Expenditures 1,664,219 Fund Balance - General Fund Costs 1,664,219 % Funded by General Fund 100.0% Total Staffing 3.20 PROGRAM OVERVIEW The Applications Division is responsible for the development, procurement, project management, implementation and ongoing maintenance of all enterprise level applications, e.g., Financial ERP, Land Based Management System, and Recreation Software. Additionally, the Application Division is responsible for the City's website and all online applications. SERVICE OBJECTIVES •Deliver business solutions that meet customer requirements and integrate within the City's application framework. •Assist departments in developing streamlined, effective business processes that are easy to understand. •Work closely with City staff and members of the community to ensure that the City's enterprise applications are effective and relevant. •Collaborate with departments to determine that the City's enterprise applications meet the functions, requirements and long-term strategy of the organization. •Create and maintain effective online and mobile user access to municipal information and services. •Enable and facilitate the use of communication and technical resources by nontechnical staff and customers. PROPOSED BUDGET It is recommended that a budget of $1,664,219 be approved for the Applications Budget. This represents an increase of $1,294,896 from the FY 2016-17 Final Adopted Budget Starting in FY 2017-18 the Applications Division is responsible for all costs ($913,990) associated with the procurement, implementation, development, ongoing maintenance and consulting services for enterprise applications. The costs were previously allocated in other Department/Division budgets. In addition, the budget reflects 2.0 Business Systems Analysts (BSAs) approved by Council at 221 250 Mid-Year FY 2016-17; this brought the staff count up to 3.0 BSAs. For FY 2017-18, Applications is requesting to reclassify one of the three BSA positions to an Applications Manager position to provide strategic planning, budget and overall supervision for this team. In addition, $12,000 is requested for technical training for this Division. Proposed capital outlays in this budget include, purchasing a Community Hall Speaker card application ($20,000), revamping the website intranet for employees ($31,530), licensing Peak Democracy for community engagement ($12,000), and Splunk, the log analyzer application ($10,000) which is a platform that provides operational intelligence on business applications (application monitoring, log analysis, traffic). The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 222 251 Applications - Applications Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 5,966 5,966 Total Expenditures 224,267 278,253 369,323 1,664,219 Fund Balance (186,767) (37,112) - - General Fund Costs $ - $ 76,015 $ 369,323 $ 1,664,219 STAFFING Total current authorized positions – 0.75 As part of the department reorganization, the staffing allocation in this program budget now includes: 0.15 Chief Technology Officer, 0.05 Administrative Assistant, 1.0 Applications Manager, and 2.0 Business Systems Analysts. Total recommended positions – 3.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 37,500 237,156 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 37,500 237,156 - - Expenditures Employee Compensation 62,008 155,986 123,900 407,623 Employee Benefits 26,476 30,688 37,266 149,570 Materials 3,871 5,172 7,392 718,040 Contract Services 103,244 66,534 86,125 225,250 Cost Allocation 14,928 19,872 57,569 84,240 Capital Outlay - - - - Special Projects 13,740 -51,105 73,530 223 252 INFRASTRUCTURE - INFRASTRUCTURE Budget Unit 610-34-310 Budget at a Glance Total Revenues - Total Expenditures 2,812,304 Fund Balance (2,262,599) General Fund Costs 549,705 % Funded by General Fund 19.5% Total Staffing 4.55 PROGRAM OVERVIEW This activity provides for all technology related expenses for the citywide management of information technology services. The Information Technology Manager and staff are responsible for Helpdesk, Network LAN/WAN/WiFi availability and performance, security and compliance, Incident Response, disaster recovery and business continuity, project management of implementations and upgrades, purchasing and inventory control, technical training and maintenance contract negotiations. SERVICE OBJECTIVES •Maintain standards and procedures for the replacement and maintenance of all City owned computing devices, printers, peripherals and systems defined by City policy. •Maintain and service the City’s wide area network among all City facilities. Facilitate technical contracts maintenance and negotiations. •Recommend and manage consultant contracts for intermediate technical services. •Manage and maintain a Disaster Recovery Plan and Security Program to provide consistent availability and integrity for data and Business Systems. PROPOSED BUDGET It is recommended that a budget of $2,812,304 be approved for the Infrastructure Budget. This represents an increase of $120,560 from the FY 2016-17 Final Adopted Budget. Proposed increases in personnel costs, materials, and special projects are mostly offset by decreases in contract services, and cost allocation. The increases in personnel costs reflect a proposal to utilize IT Interns to perform a technology refresh that involves asset tagging, inventorying and deploying desktops ($30,000), additional overtime to maintain equipment and access functionality ($10,000), and negotiated employee compensation increases approved by Council in FY 2016-17. Proposed special projects include Storage Phase II Hyper-converged, MFP Refresh citywide and Voice-over IP. This increase is offset by a decrease in contract services is a result of moving maintenance, software and general service agreements to the Innovation & 224 253 Technology Applications Division. In addition, software costs previously budgeted under contract service were moved to the materials account under software. The decrease in cost allocation charges is primarily due to changes in how the city applies these charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 225 254 Infrastructure - Infrastructure Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 4,798 -73,386 83,386 Total Expenditures 1,651,865 1,930,718 2,691,744 2,812,304 Fund Balance (1,651,865) (1,758,218) (2,691,744) (2,262,599) General Fund Costs $ - $ 172,500 $ - $ 549,705 STAFFING Total current authorized positions – 4.70 The 0.25 decrease in staffing is the result of several internal reallocations to appropriately reflect staff time that will be spent on this program. Total recommended positions – 4.55 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 581,925 461,832 509,774 580,473 Employee Benefits 153,578 182,286 208,001 235,555 Materials 84,370 79,988 134,276 256,116 Contract Services 582,976 984,204 1,276,722 304,600 Cost Allocation 244,219 222,408 489,585 406,174 Capital Outlay - - - - Special Projects - - - 946,000 226 255 GIS - GIS Budget Unit 610-35-986 Budget at a Glance Total Revenues - Total Expenditures 863,088 Fund Balance (863,088) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.65 PROGRAM OVERVIEW The GIS Program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, applications, reports, and charts we provide tools to view, understand, question, interpret, and visualize our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help staff, citizens, business and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared – on a map! SERVICE OBJECTIVES •Proactive GIS Management, work with each department to improve existing workflows using GIS Systems. •Define standards, improve quality, and establish tools and procedures for perpetual data maintenance and appropriate access. •Improve efficiencies with regional agencies through GIS integration and collaboration. •Improve GIS services both internally and to the public. •Expand the awareness of the GIS technology and integration of geographic information in departments and applications in which GIS use is not common but where substantial benefits may be achieved. PROPOSED BUDGET It is recommended that a budget of $863,088 be approved for the GIS Budget. This represents an increase of $215,824 from the FY 2016-17 Final Adopted Budget. Each year based on direction from senior management, department requests, and the annual work plan, the GIS program evaluates hardware, software, and professional service needs and adjusts the GIS program budget accordingly. The proposed budget includes $137,000 for software updates, analytics, customization, web design support, aerial photo acquisition and an impervious surface creation (green infrastructure) storm water mandatory permit. 227 256 Increases in personnel costs reflect utilizing IT Interns to update City asset inventories in the field, negotiated employee compensation increases approved by Council in FY 2016-17, and a reallocation of staffing from the Innovation & Technology Administration program. In addition, Council approved the addition of an Asset Management Technician position at Mid-Year, which is partially budgeted in this program. An increase of $17,200 in capital outlay is requested for additional Cityworks logins and storeroom licenses. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 228 257 GIS - GIS Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - 16,466 Total Expenditures 872 337,780 647,264 863,088 Fund Balance (872)(323,280)-(863,088) General Fund Costs $ - $ 14,500 $ 647,264 $ - STAFFING Total current authorized positions – 2.30 The total recommended positions reflects the partial transfer of an Asset Management Technician position. Total recommended positions – 2.65 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 691 188,721 253,382 369,555 Employee Benefits 181 70,720 95,479 131,192 Materials -189 16,000 21,060 Contract Services -71,631 188,300 210,080 Cost Allocation --82,103 97,535 Capital Outlay --- - Special Projects -6,519 12,000 17,200 229 258 CITYWIDE - NON DEPARTMENTAL NETWORK UPGRADE Budget Unit 610-90-989 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2017-18, this program was transferred into Infrastructure as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 610-34-310. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 230 259 Citywide - Non Departmental - Network Upgrade 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 190,055 92,627 721,500 - Fund Balance (190,055) (42,627) (721,500) - General Fund Costs $ - $ 50,000 $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 190,055 92,627 721,500 - 231 260 Administrative Services Administrative Services Finance Human Resources 261 Director of Administrative Services/Treasurer Finance Manager/Deputy Treasurer Senior Accountant Accounting Technician Accountant II Account Clerk II Account Clerk II Human Resources Analyst II Human Resources Analyst II Human Resources Technician Senior Management Analyst Administrative Assistant 232 262 ADMINISTRATIVE SERVICES Budget Unit 2018 Proposed Administrative Services $ 790,510 100-40-400 Administration 790,510 Finance $ 1,348,409 100-41-405 Accounting 1,134,474 100-41-406 Business Licenses 213,935 Human Resources $ 3,740,888 100-44-412 Human Resources 878,882 642-44-414 Retiree Benefits 968,486 100-44-417 Insurance Administration 876,383 620-44-418 Workers Compensation Insurance 498,240 641-44-419 Long Term Disability 83,883 641-44-420 Compensated Absence 435,014 Total $ 5,879,807 233 263 DEPARTMENT SUMMARY Administrative Services Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 146,784 146,784 Total Expenditures 5,242,354 4,849,197 6,632,270 5,879,807 Fund Balance (1,719,561) 107,616 (1,800,615) 93,383 General Fund Costs $ 2,941,618 $ 4,409,339 $ 1,001,625 $ 2,970,958 PROPOSED BUDGET It is recommended that a budget of $5,879,807 be approved for the Administrative Services Budget. This represents a decrease of $752,463 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This decrease is offset by increases in salary and benefits due to the addition of a part time intern to assist the Human Resources division with clerical tasks and negotiated increases to salary and benefits. Lastly, Contract Services are up due to increases in consulting services for both the Human Resources and Finance division of this department. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 581,175 359,148 3,830,030 3,002,232 Fines and Forfeitures - - - - Miscellaneous Revenue -188,325 - - Interdepartmental Revenue --- - Total Revenues 581,175 547,473 3,830,030 3,002,232 Expenditures Employee Compensation 1,142,088 1,151,260 1,277,269 1,394,052 Employee Benefits 1,845,241 1,355,605 1,466,008 1,621,692 Materials 89,534 122,740 120,274 130,274 Contract Services 1,522,588 1,928,007 1,932,236 2,309,263 Cost Allocation 176,988 176,988 1,689,699 277,742 Capital Outlay -37,264 - - Special Projects 465,914 77,332 -- 234 264 PROPOSED EXPENDITURES FY 2017-18 $790,510 (13%) $1,348,409 (23%) $3,740,888 (64%) Human Resources Finance Administrative Services 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 5.2 4.8 6.6 5.9 235 265 City of Cupertino FY17/18 Budget Performance Measures Department: Administrative Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Citizens can enjoy high quality of services that meet community priorities. So that… So that… So that… So that… So that… So that… So that… GOAL: Financial Stability – Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. Finance Human Resources Measure Ongoing Target General fund balance as a % of budgeted appropriations 35% Credit Rating AA+ Funding allocated to high priority services (Public Works, Community Development, Law Enforcement) 63% Actual revenue vs. budget (within x% budget) 10% Actual expenditures (% below budget) 5% Measure Ongoing Target # of Worker’s Compensation Cases 0 Total recordable Injury Rate YTD 0% % absenteeism (% of total annual work hours) 2% % turnover rate 1% % Employee satisfaction 100% % Employee participation in wellness activities 75% Average # of applications received per recruitment 50 Recruitment timeline - # days from hiring request to offer letter 60 days # of Worker’s using the Telework program 17 Utilization of Full-service employee portal 100% The City can ensure a safe working environment for all employees. The agency supports a professional and engaged workforce offering diverse and quality community services. The City is financially responsible. The City can invest in Community priorities. GOAL: To create a thriving organization with meaningful careers in public service. The agency builds a flexible and productive work arrangement. The City attracts and retains a talented workforce. 236 266 ADMINISTRATIVE SERVICES - ADMINISTRATION Budget Unit - 100-40-400 Budget at a Glance Total Revenues 67,899 Total Expenditures 790,510 Fund Balance - General Fund Costs 722,611 % Funded by General Fund 91.4% Total Staffing 2.80 PROGRAM OVERVIEW Oversees and coordinates the Human Resources/Risk Management, Finance, Budget and Treasury divisions. Staff support is provided to the Fiscal Strategic and Audit Committees. SERVICE OBJECTIVES •Manage the City's investment portfolio to obtain safety of funds, liquidity and a reasonable rate of return. •Provide short and long-term fiscal planning including the implementation of the Fiscal Strategic Plan. •Perform special projects for the City Manager. •Manages the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. •Manages the City's budget process PROPOSED BUDGET It is recommended that a budget of $790,510 be approved for the Administration Budget. This represents an increase of $46,117 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. Increases in this program are due to the increased allocation of the Administrative Services Director from 50% to 80% to better account for time spent in this program. In addition, the proposed budget includes increased costs in contract services due to anticipated consulting services department wide for finance and human resources. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 237 267 Administrative Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 2,401 2,401 Total Expenditures 431,899 521,806 744,393 790,510 Fund Balance - - - - General Fund Costs $ 372,823 $ 462,730 $ 23,156 $ 722,611 STAFFING Total current authorized positions – 2.50 Increase allocation for Director from 50% to 80% to better account for time spent in this program. Total recommended positions – 2.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 59,076 59,076 721,237 67,899 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 59,076 59,076 721,237 67,899 Expenditures Employee Compensation 261,775 241,226 266,904 378,630 Employee Benefits 99,893 94,416 114,152 174,269 Materials 23,057 41,661 31,924 31,924 Contract Services 11,990 26,855 1,550 147,827 Cost Allocation 35,184 35,184 327,462 55,459 Capital Outlay -37,264 - - Special Projects -45,200 -- 238 268 FINANCE - ACCOUNTING Budget Unit 100-41-405 Budget at a Glance Total Revenues 906,996 Total Expenditures 1,134,474 Fund Balance - General Fund Costs 227,478 % Funded by General Fund 20.1% Total Staffing 5.40 PROGRAM OVERVIEW The Finance Division oversees all financial accounting and treasury functions for the City. Accurate and timely maintenance of all City financial records, including financial reporting, revenue collection, banking and investments, disbursement of all funds, and payroll processing are handled by the Finance Division. All required Federal, State and other regulatory reporting with respect to the City's financial condition are prepared in the Accounting program of Finance. In addition, Finance monitors the City's two investment policies, manages budget-to-actual activities for both operational and capital budgets, performs all financial analyses, conducts research, and prepares reports on all fiscal matters of the City for internal and external customers. SERVICE OBJECTIVES •Process all financial transactions of the City of Cupertino, including general ledger accounting, cash management and investment of City funds, payroll, accounts payable, revenue collections, banking, and miscellaneous billing. •Record all City financial transactions prudently and within all regulatory requirements. •Produce timely and accurate financial reports. •Maintain a high level of professionalism when fulfilling the City’s financial policies, processing its financial transactions, and representing the City to its residents. •Respond promptly to inquiries from the public and other City departments. PROPOSED BUDGET It is recommended that a budget of $1,134,474 be approved for the Accounting Budget. This represents a decrease of $339,684 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. Salary and benefits are up in this program due to negotiated increases in salary and benefits. In addition, contract services are up due to a change in services providers for both the City's 239 269 outside auditors and sales tax consultants. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Finance - Accounting Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 7,228 7,228 Total Expenditures 1,402,766 1,136,717 1,474,158 1,134,474 Fund Balance - - - - General Fund Costs $ 1,265,318 $ 999,269 $ 306,777 $ 227,478 STAFFING Total current authorized positions – 5.75 Decrease in staffing is due to the limited term assignment of a management analyst ending. Total recommended positions – 5.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 137,448 137,448 1,167,381 906,996 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 137,448 137,448 1,167,381 906,996 Expenditures Employee Compensation 512,598 434,398 567,868 573,535 Employee Benefits 188,672 184,768 242,400 259,004 Materials 14,635 21,813 36,171 36,171 Contract Services 146,051 388,510 51,465 178,215 Cost Allocation 75,096 75,096 569,026 80,321 Capital Outlay - - - - Special Projects 465,715 32,132 -- 240 270 FINANCE - BUSINESS LICENSES Budget Unit 100-41-406 Budget at a Glance Total Revenues - Total Expenditures 213,935 Fund Balance - General Fund Costs 213,935 % Funded by General Fund 100.0% Total Staffing 0.60 PROGRAM OVERVIEW Monitor business licensing activity for compliance with the City Municipal Code and applicable state law. SERVICE OBJECTIVES •Issue business licenses to entities conducting business within the city limits of Cupertino. •Collect appropriate business license fees. •Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments. •Identify non-compliant business activity. PROPOSED BUDGET It is recommended that a budget of $213,935 be approved for the Business Licenses Budget. This represents an increase of $6,962 from the FY 2016-17 Final Adopted Budget. The increase in salary and benefits is due to a 5% increase in allocation of an Accountant II position to business licenses from finance to better account with time spent in this program. This is offset by a slight decrease in the cost allocation plan charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 241 271 Finance - Business Licenses Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 418 418 Total Expenditures 89,488 159,191 206,973 213,935 Fund Balance - - - - General Fund Costs $ 89,488 $ 159,191 $ 206,973 $ 213,935 STAFFING Total current authorized positions – 0.55 Increase Accountant II allocation by 5% to better account for time spent in this program. Total recommended positions – 0.60 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 58,510 69,802 39,952 47,895 Employee Benefits 22,036 31,194 19,570 25,640 Materials 564 1,324 6,022 6,022 Contract Services 3,122 51,614 34,196 34,196 Cost Allocation 5,256 5,256 106,815 99,764 Capital Outlay - - - - Special Projects - - - - 242 272 HUMAN RESOURCES - HUMAN RESOURCES Budget Unit 100-44-412 Budget at a Glance Total Revenues 708,222 Total Expenditures 878,882 Fund Balance - General Fund Costs 170,660 % Funded by General Fund 19.4% Total Staffing 2.85 PROGRAM OVERVIEW The Human Resources Division is responsible for the administration of a full range of human resource, employee benefit and labor relations programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee development, benefits and retirement. In addition, Human Resources administer risk management, safety and wellness programs, and a self-insured workers’ compensation program. Funding for retiree medical insurance is also covered in the Human Resources budget. SERVICE OBJECTIVES •Provide for a working environment where respect for the individual is encouraged and safeguarded. •Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner. •Enter into agreements with employee groups concerning terms and conditions of employment. •Provide an employee development program addressing immediate and long-term training needs. •Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position. •Ensure equal employment opportunities. •Administer classification plan. •Administer employee benefits. •Provide personnel services consistent with the operational needs of the user department. PROPOSED BUDGET It is recommended that a budget of $878,882 be approved for the Human Resources Budget. This represents a decrease of $506,942 from the FY 2016-17 Final Adopted Budget. 243 273 This decrease is primarily due to changes in how cost allocation charges were applied this year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This proposed budget includes a request for an employee engagement initiative budgeted for a total of $20,000. The cost to have Gallup perform the survey and compile the results is approximately half of these costs with the other half covering costs associated with implementing changes. In addition, there is a request for funding for a part-time intern at eight hours per week to assist with clerical duties in the division; this increase is offset by decreased allocation for the Director of Administrative Services. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 244 274 Human Resources - Human Resources Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 11,299 11,299 Total Expenditures 708,299 854,024 1,385,824 878,882 Fund Balance - - - - General Fund Costs $ 545,869 $ 691,400 $ (66,848) $ 170,660 STAFFING Total current authorized positions – 3.15 Decrease allocation for Director from 50% to 20% to better account for time spent in this program. Total recommended positions – 2.85 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 162,429 162,624 1,452,672 708,222 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 162,429 162,624 1,452,672 708,222 Expenditures Employee Compensation 271,162 366,508 364,441 352,907 Employee Benefits 221,392 110,203 153,255 187,257 Materials 51,278 57,911 46,153 56,153 Contract Services 108,588 263,723 153,620 252,620 Cost Allocation 55,680 55,680 657,056 18,646 Capital Outlay - - - - Special Projects 199 - - - 245 275 HUMAN RESOURCES - RETIREE BENEFITS Budget Unit 642-44-414 Budget at a Glance Total Revenues - Total Expenditures 968,486 Fund Balance - General Fund Costs 968,486 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW Provides administration of the City’s Other Post Employment Benefits (OPEB). SERVICE OBJECTIVES Provide investment oversight and appropriate funding for the City’s retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability. Annual contributions from the City are deposited into the trust and invested in a portfolio of equity, bond, and money market funds. PROPOSED BUDGET It is recommended that a budget of $968,486 be approved for the Retiree Benefits Budget. This represents an increase of $37,151 from the FY 2016-17 Final Adopted Budget. The increase is due to a change in the City's unfunded liability based on the October 2016 actuary study. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 246 276 Human Resources - Retiree Benefits Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 1,298,785 919,219 931,335 968,486 Fund Balance (1,298,785) 81,281 (931,335) - General Fund Costs $ - $ 1,000,500 $ - $ 968,486 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits 1,298,785 919,219 920,000 957,466 Materials - - - - Contract Services - - 5,495 5,495 Cost Allocation - - 5,840 5,525 Capital Outlay - - - - Special Projects - - - - 247 277 HUMAN RESOURCES - INSURANCE ADMINISTRATION Budget Unit 100-44-417 Budget at a Glance Total Revenues 718,112 Total Expenditures 876,383 Fund Balance - General Fund Costs 158,271 % Funded by General Fund 18.1% Total Staffing 0.15 PROGRAM OVERVIEW Manages Risk Management safety programs and self-insured Workers’ Compensation and General Liability Programs. SERVICE OBJECTIVES •Satisfy statutory regulations regarding Workers’ Compensation and employee safety. •Promotes work environment that emphasizes safe work practices. PROPOSED BUDGET It is recommended that a budget of $876,383 be approved for the Insurance Administration Budget. This represents an increase of $6,076 from the FY 2016-17 Final Adopted Budget. Salary and benefits are up in this program due to negotiated increases in salary and benefits. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 248 278 Human Resources - Insurance Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 37,603 37,603 Total Expenditures 668,119 644,571 870,307 876,383 Fund Balance - - - - General Fund Costs $ 668,119 $ 456,246 $ 381,567 $ 158,271 STAFFING Total current authorized positions – 0.15 There are no changes in staffing levels. Total recommended positions – 0.15 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 488,740 718,112 Fines and Forfeitures - - - - Miscellaneous Revenue -188,325 - - Interdepartmental Revenue --- - Total Revenues -188,325 488,740 718,112 Expenditures Employee Compensation 14,615 15,682 15,468 16,897 Employee Benefits 5,869 6,703 7,099 7,893 Materials -18 4 4 Contract Services 646,063 620,596 808,030 813,030 Cost Allocation 1,572 1,572 2,103 956 Capital Outlay - - - - Special Projects - - - - 249 279 HUMAN RESOURCES - WORKERS COMPENSATION INSURANCE Budget Unit 620-44-418 Budget at a Glance Total Revenues 601,003 Total Expenditures 498,240 Fund Balance 102,763 General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.20 PROGRAM OVERVIEW Provides oversight of our Workers’ Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance. SERVICE OBJECTIVES •Monitor costs associated with claims. •Analyze and implement proactive measures to curtail costs. •Implement a return to work policy. PROPOSED BUDGET It is recommended that a budget of $498,240 be approved for the Workers Compensation Insurance Budget. This represents a decrease of $2,492 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 250 280 Human Resources - Workers Compensation Insurance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 49,667 49,667 Total Expenditures 345,128 37,016 500,732 498,240 Fund Balance (334,160) (37,016) (500,732) 102,763 General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.20 There are no changes in staffing levels. Total recommended positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 10,968 - - 601,003 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 10,968 - - 601,003 Expenditures Employee Compensation 23,428 23,644 22,636 24,188 Employee Benefits 8,596 9,102 9,532 10,163 Materials -13 - - Contract Services 308,904 57 400,780 400,780 Cost Allocation 4,200 4,200 18,117 13,442 Capital Outlay - - - - Special Projects - - - - 251 281 HUMAN RESOURCES - LONG TERM DISABILITY Budget Unit 641-44-419 Budget at a Glance Total Revenues - Total Expenditures 83,883 Fund Balance (83,883) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW Oversee claims and premiums associated with long term disability. SERVICE OBJECTIVES •Monitor employee injuries and provide proactive risk management for disability avoidance. •Obtain and manage insurance policy. PROPOSED BUDGET It is recommended that a budget of $83,883 be approved for the Long Term Disability Budget. This represents an increase of $8 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged since last fiscal year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 252 282 Human Resources - Long Term Disability 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 6,168 6,168 Total Expenditures 51,384 82,201 83,875 83,883 Fund Balance (51,384) (82,201) (83,875) (83,883) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 51,384 82,201 77,100 77,100 Cost Allocation - - 607 615 Capital Outlay - - - - Special Projects - - - - 253 283 HUMAN RESOURCES - COMPENSATED ABSENCE Budget Unit 641-44-420 Budget at a Glance Total Revenues - Total Expenditures 435,014 Fund Balance 74,503 General Fund Costs 509,517 % Funded by General Fund 117.1% Total Staffing - PROGRAM OVERVIEW Provide for payment of liabilities associated with employees retiring or leaving service. SERVICE OBJECTIVES Properly account and disburse benefits as set forth in the employee contracts. PROPOSED BUDGET It is recommended that a budget of $435,014 be approved for the Compensated Absence Budget. This represents an increase of $341 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior fiscal year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 254 284 Human Resources - Compensated Absence 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 32,000 32,000 Total Expenditures 246,486 494,451 434,673 435,014 Fund Balance (35,232) 145,553 (284,673) 74,503 General Fund Costs $ - $ 640,004 $ 150,000 $ 509,517 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 211,254 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 211,254 - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 246,486 494,451 400,000 400,000 Cost Allocation - - 2,673 3,014 Capital Outlay - - - - Special Projects - - - - 255 285 Recreation and Community Services Administration Business & Community Services Recreation & Education Sports, Safety, & Outdoor Recreation 286 Facility Attendant (2) Director Recreation & Community Services Administration Administrative Assistant Recreation Manager Business & Community Services Division Recreation Manager Sports, Safety & Outdoor Recreation Division Assistant Director Recreation & Education Division Recreation Supervisor Office Assistant Recreation Supervisor Senior Office Assistant (2) Recreation Coordinator Community Coordi- nator - Block Leaders Recreation Coordinator Special Programs Coordinator Recreation Coordinator Recreation Supervisor Special Programs Coordinator Recreation Coordinator (6) Case Manager Sr. Office Assistant Recreation Coordinator (2) Facility Attendant Park Improvement Manager Office Assistant Administrative Assistant Code Enforcement (2) Special Programs Coordinator (2) 256 287 RECREATION AND COMMUNITY SERVICES Budget Unit 2018 Proposed Administration $ 1,538,034 100-60-600 Leadership 95014 - 100-60-601 Administration 495,907 100-60-634 Park Planning and Restoration 253,235 100-60-636 Library Services 788,892 Business and Community Services $ 2,229,336 100-61-602 Administration 919,005 100-61-603 Blackberry Farm Picnic Area - 100-61-604 Community Hall Operations - 100-61-605 Cultural Events 438,337 100-61-607 Quinlan Center Operations - 100-61-630 Facilities 579,747 100-61-632 Community Outreach and Neighborhood Watch 292,247 Recreation and Education $ 5,503,781 100-62-608 Administration 1,082,488 100-62-609 Youth Program - 100-62-610 Teen Program - 100-62-611 Teen Center - 100-62-612 Park Facilities - 580-62-613 Youth Teen Recreation 2,214,409 100-62-623 Youth, Teen and Senior Adult Recreation 2,206,884 Sports, Safety and Outdoor Recreation $ 7,176,427 100-63-612 Park Facilities 1,968,178 100-63-615 Administration 243,820 560-63-616 Blackberry Farm Golf Course 708,461 100-63-618 Creekside Park Youth Sport - 580-63-620 Outdoor Recreation 1,451,700 570-63-621 Sports Center Operations 2,448,037 100-63-633 Disaster Preparedness 356,231 100-63-637 Monta Vista Recreation Center - Senior Programs $ 0 100-64-622 Senior Adult Supervision - 257 288 100-64-623 Youth, Teen and Senior Adult Recreation - 100-64-624 Senior Adult Recreation - 100-64-630 Facilities - Community Services $ 0 100-65-632 Community Outreach and Neighborhood Watch - 100-65-633 Disaster Preparedness - 100-65-635 Neighborhood Watch - 100-65-636 Library Services - Total $ 16,447,578 258 289 Final Budget Fund Balance (5,044,285) 976,182 (230,193) (1,184,607) General Fund Costs $ 3,978,690 $ 5,652,465 $ 8,931,310 $ 8,082,217 PROPOSED BUDGET It is recommended that a budget of $16,447,578 be approved for the Recreation and Community Services Budget. This represents a decrease of $286,904 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This decrease is offset by increases in salary and benefits due to a request for two new three year limited term Recreation Coordinators for Disaster Preparedness and Senior Programs and negotiated increases to salary and benefits. 2018 2015 2016 2017 DEPARTMENT SUMMARY Recreation and Community Services Category Actual Actual Proposed Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 274,906 562,456 571,200 601,325 Intergovernmental Revenue 3,500 (1,387) 10,500 10,500 Charges for Services 1,023,259 5,642,870 6,975,279 6,505,929 Fines and Forfeitures - - - - Miscellaneous Revenue 47,087 58,928 16,000 63,000 Interdepartmental Revenue - - - - Total Revenues 1,348,752 6,262,866 7,572,979 7,180,754 Expenditures Employee Compensation 3,311,995 3,523,471 4,278,926 4,958,694 Employee Benefits 1,017,564 1,120,347 1,275,282 1,580,194 Materials 1,037,949 1,076,671 1,252,336 1,395,942 Contract Services 3,707,956 3,941,287 4,403,536 4,552,277 Cost Allocation 971,151 1,140,589 4,950,320 3,501,914 Capital Outlay -5,848 90,500 - Special Projects 311,760 116,801 108,025 83,000 Appropriations for Contingency 13,352 14,135 375,557 375,557 Total Expenditures 10,371,727 10,939,149 16,734,482 16,447,578 259 290 PROPOSED EXPENDITURES FY 2017-18 $1,538,034 (9%) $2,229,336 (14%) $7,176,427 (44%) $5,503,781 Sports, Safety & Outdoor Rec Recreation & Education Business & Community Services Administration (33%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 10.4 10.9 16.7 16.4 260 291 City of Cupertino FY17/18 Budget Performance Measures Department: Recreation and Community Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Enabled by… Enabled by… So that… GOAL: Create a positive, healthy and connected community. Measure Ongoing Target % Recreation and Community Services Department customers surveyed who rate services as good or excellent 85% % programs maintain minimum registration 80% % Department’s total cost recovery for all (direct and indirect) costs 40% # of new programs or events offered 50 % change in participants +1% City investment in quality recreation and community programs. Improved business processes to improve customer experience Cupertino has an exceptional system of parks & services that align with community values. 261 292 RECREATION & COMMUNITY SERVICES - LEADERSHIP 95014 Budget Unit 100-60-600 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to the Recreation and Education Division - Administration as part of a department reorganization. A complete discussion of the program can be found under Budget Unit 100-62-608. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 262 293 Recreation and Community Services - Leadership 95014 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 30,955 36,439 - - Fund Balance - - - - General Fund Costs $ 18,340 $ 20,564 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue 12,615 15,875 - - Interdepartmental Revenue - - - - Total Revenues 12,615 15,875 - - Expenditures Employee Compensation 9,875 10,103 - - Employee Benefits 3,721 4,012 - - Materials 4,242 6,863 - - Contract Services 11,522 13,865 - - Cost Allocation 1,596 1,596 - - Capital Outlay - - - - Special Projects - - - - 263 294 RECREATION & COMMUNITY SERVICES - ADMINISTRATION Budget Unit 100-60-601 Budget at a Glance Total Revenues 42,000 Total Expenditures 495,907 Fund Balance - General Fund Costs 453,907 % Funded by General Fund 91.5% Total Staffing 1.90 PROGRAM OVERVIEW •Provides overall department administration, as well as project management, community outreach and support to the Parks and Recreation Commission. •Oversees a national accreditation process for the Department. SERVICE OBJECTIVES •Provide overall department administration, budget control, and employee development and evaluation; •Support the Planning and Public Works Departments in the development of new parks, including, the Parks and Recreation System Master Plan, Stevens Creek Boulevard to McClellan Ranch Preserve Corridor Master Plan and the renovation of existing parks; •Monitor and facilitate partnerships in regards to Library and Emergency Services; •Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan; •Promote partnerships with CUSD, FUHSD, and De Anza College with quarterly meetings and joint projects; •Continually evaluate the efficiency and effectiveness of the department, working to receive national accreditation. PROPOSED BUDGET It is recommended that a budget of $495,907 be approved for the Administration Budget. This represents a decrease of $562,436 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. A proposed increase of $41,115 represents the cost for the leadership academy program, including instructors and fees. This is offset by projected revenue from participating agencies 264 295 in the program of $42,000. The budget was also increased by $10,000 (contract services) for additional training opportunities within the department and by $6,000 (materials) to support a national accreditation process and associated program fees. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Recreation and Community Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency -4,677 10,000 10,000 Total Expenditures 470,980 562,814 1,058,343 495,907 Fund Balance - - - - General Fund Costs $ 439,300 $ 519,834 $ 953,602 $ 453,907 STAFFING Total current authorized positions – 1.85 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.90 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 104,741 - Fines and Forfeitures - - - - Miscellaneous Revenue 31,680 42,980 -42,000 Interdepartmental Revenue - - -- Total Revenues 31,680 42,980 104,741 42,000 Expenditures Employee Compensation 274,418 250,990 257,701 257,608 Employee Benefits 93,475 94,547 101,439 105,964 Materials 32,540 66,757 27,406 74,521 Contract Services 7,091 82,387 1,000 11,000 Cost Allocation 63,456 63,456 658,797 36,814 Capital Outlay - - - - Special Projects - - 2,000 - 265 296 RECREATION & COMMUNITY SERVICES – PARK PLANNING AND RESTORATION Budget Unit 100-60-634 Budget at a Glance Total Revenues - Total Expenditures 253,235 Fund Balance - General Fund Costs 253,235 % Funded by General Fund 100.0% Total Staffing 1.00 PROGRAM OVERVIEW •Provides for park planning, renovation, outreach, and monitoring of Capital Improvement Projects and grant funding opportunities. •Works with other county and open space areas to identify potential partnerships for future park and trail expansion. SERVICE OBJECTIVES •Identify and monitor grant funding opportunities; •Promote partnerships with Santa Clara County (SCC), SC Valley Water District (SCVWD) and Mid-Peninsula Regional Open Space District (MROSD);Support the Public Works Department in the planning and development of new parks and restoration of existing parks; •Assist with the Stevens Creek Boulevard to McClellan Ranch Preserve Creek Corridor Master Plan and oversee the Parks and Recreation System Master Plan and monitoring of the Stevens Creek Corridor Park & Restoration Phase 2 Project. PROPOSED BUDGET It is recommended that a budget of $253,235 be approved for the Park Planning and Restoration Budget. This represents an increase of $2,946 from the FY 2016-17 Final Adopted Budget. The increases in personnel costs, which reflect negotiated employee compensation increases based on Council-approved labor contracts, are mostly offset by a reduction in cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 266 297 Recreation and Community Services - Park Planning and Restoration 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - - - Total Expenditures 184,334 260,816 250,289 253,235 Fund Balance - - - - General Fund Costs $ 184,334 $ 260,816 $ 250,289 $ 253,235 STAFFING Total current authorized positions – 1.00 There are no recommended changes to the current level of staffing. Total recommended positions – 1.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 118,245 141,510 141,565 151,209 Employee Benefits 42,814 51,924 54,255 63,864 Materials 2,266 5,914 9,675 11,500 Contract Services 19,036 55,601 10,000 10,000 Cost Allocation - - 34,794 16,662 Capital Outlay - - - - Special Projects 1,974 5,866 -- 267 298 RECREATION & COMMUNITY SERVICES - LIBRARY SERVICES Budget Unit 100-60-636 Budget at a Glance Total Revenues - Total Expenditures 788,892 Fund Balance - General Fund Costs 788,892 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This budget augments the existing hours of library service currently provided to our community through the Santa Clara County (SCC) Library Joint Powers Authority. SERVICE OBJECTIVES •Provide 12 extra hours per week of library service for our constituents. •Explore partnerships with the SCC Library for recreation and community programs. PROPOSED BUDGET It is recommended that a budget of $788,892 be approved for the Library Services Budget. This represents a decrease of $374,572 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 268 299 Recreation and Community Services - Library Services 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures - - 1,163,464 788,892 Fund Balance - - - - General Fund Costs $ - $ - $ 1,163,464 $ 788,892 STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - 447,752 454,871 Cost Allocation - - 715,712 334,021 Capital Outlay - - - - Special Projects - - - - 269 300 BUSINESS AND COMMUNITY SERVICES - ADMINISTRATION Budget Unit 100-61-602 Budget at a Glance Total Revenues - Total Expenditures 919,005 Fund Balance - General Fund Costs 919,005 % Funded by General Fund 100.0% Total Staffing 6.25 PROGRAM OVERVIEW The Business & Community Services division supports Department programs and services through the provision of customer service, development and administration of policies, as well as managing the Department's marketing and recreation software. The division is also responsible for the Department's community outreach programs, including City Events and Community Festivals at Memorial Park, as well as the Neighborhood Watch and Block Leader programs. This division manages Quinlan Community Center (QCC) and Community Hall, as well as facility and park picnic rentals. SERVICE OBJECTIVES •Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards. •Procure and implement a new recreation software system to streamline customer registration, memberships, point of sale, and facility rentals. •Utilize data from customer satisfaction surveys and program and revenue reports to improve programs and services. Enhance program marketing and communications through effective brochures, website, flyers, banners, and social media. •Increase participation at City events including 4th of July, Summer Concert Series, Cinema at Sundown, Breakfast with Santa, and the Tree Lighting Ceremony. •Issue parks and facilities permits for community festivals and events that promote our diverse culture and connected community. •Maintain a positive relationship with neighborhoods adjacent to our facilities and parks. •Facilitate connected, safe neighborhoods through neighborhood activation and mobile recreation programs, leveraging existing Block Leader and Neighborhood Watch participants. 270 301 PROPOSED BUDGET It is recommended that a budget of $919,005 be approved for the Administration Budget. This represents an increase of $133,670 from the FY 2016-17 Final Adopted Budget. The increase in salary and benefits is primarily due to the reallocation of 35% of a Recreation Manager and 45% of a Special Programs Coordinator to Administration. This reallocation is offset by the associated savings in the Facilities and Community Outreach programs. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Business and Community Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 460 460 Total Expenditures 586,766 634,208 785,335 919,005 Fund Balance - - - - General Fund Costs $ 586,766 $ 634,208 $ 785,335 $ 919,005 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 358,652 394,592 397,930 506,532 Employee Benefits 165,976 178,195 184,949 243,155 Materials 4,382 3,665 29,250 30,170 Contract Services - - 6,000 8,500 Cost Allocation 57,756 57,756 166,746 130,188 Capital Outlay - - - - Special Projects - - - - 271 302 STAFFING Total current authorized positions – 5.25 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 6.25 272 303 BUSINESS AND COMMUNITY SERVICES – BLACKBERRY FARM PICNIC AREA Budget Unit 100-61-603 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety, and Outdoor Recreation – Park Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 273 304 Business and Community Services - Blackberry Farm Picnic Area 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency 300 - - - Total Expenditures 637,583 606,953 - - Fund Balance - - - - General Fund Costs $ 379,035 $ 331,819 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property -36,260 - - Intergovernmental Revenue --- - Charges for Services 258,548 238,874 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 258,548 275,134 - - Expenditures Employee Compensation 352,393 346,539 - - Employee Benefits 53,505 52,930 - - Materials 77,640 91,714 - - Contract Services 119,064 81,551 - - Cost Allocation 23,976 23,976 - - Capital Outlay - - - - Special Projects 10,706 10,243 -- 274 305 BUSINESS AND COMMUNITY SERVICES – COMMUNITY HALL OPERATIONS Budget Unit 100-61-604 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 275 306 Business and Community Services - Community Hall Operations 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 92,681 95,784 - - Fund Balance - - - - General Fund Costs $ 92,681 $ 67,365 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property -28,420 - - Intergovernmental Revenue --- - Charges for Services --- - Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues -28,420 - - Expenditures Employee Compensation 56,972 59,637 - - Employee Benefits 25,828 25,903 - - Materials 293 656 - - Contract Services - - - - Cost Allocation 9,588 9,588 - - Capital Outlay - - - - Special Projects - - - - 276 307 BUSINESS AND COMMUNITY SERVICES – CULTURAL EVENTS Budget Unit 100-61-605 Budget at a Glance Total Revenues 5,000 Total Expenditures 438,337 Fund Balance - General Fund Costs 433,337 % Funded by General Fund 98.9% Total Staffing 0.80 PROGRAM OVERVIEW The Business and Community Service Division's Events program produces the City's special events at Memorial Park and Quinlan Community Center including the Summer Concert Series, Cinema at Sundown, Shakespeare in the Park, 4th of July, Tree Lighting, and Breakfast with Santa. This program staff also serves as liaison and issues permits for community and cultural events at Memorial Park including the Cherry Blossom Festival, World Journal Festival, Kids 'N Fun Festival, Fall Festival, Veteran's Day Memorial Ceremony, and Diwali Festival. Expanded programs will be developed to activate neighborhoods and build community through mobile recreation activities. SERVICE OBJECTIVES •Provide a summer concert series. •Produce a summer movie series. •Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino. •Organize and facilitate the city-wide July 4th celebration. •Bring the community together with the annual Tree Lighting celebration. •Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park. •Implement the new Neighborhood Activation program, bringing recreation activities to our neighborhoods based on community input. PROPOSED BUDGET It is recommended that a budget of $438,337 be approved for the Cultural Events Budget. This represents an increase of $61,845 from the FY 2016-17 Final Adopted Budget. This budget increases part-time staffing ($21,000), program materials ($5,000), and contractual services ($14,000) for expanded neighborhood activation. This program activates 277 308 neighborhood's through a mobile recreation program by bringing outdoor cinema, concerts, pop-up parks, and guest performers to neighborhoods throughout the spring, summer, and fall. In addition, a proposed new mobile climbing wall will also increase part-time staffing ($30,000) in this budget to support up to four bookings per week during a 6-month season. Extremely popular in other cities, the climbing wall will be available by request for block parties, festivals, and community events and will also be scheduled in public spaces throughout the spring, summer, and fall. In addition, $40,000 for the purchase of a truck to safely tow the climbing wall will be budgeted in the PW Fleet budget. As the City greatly values these community and cultural events, the Department is bringing forward a recommendation in this Proposed Budget for City Council to waive costs totaling $104,920 to festival producers as detailed in the table below. Proposed Festivals Date Festival Producer Recreation Facility Permit Sheriff PW Materials Total Est. Cost Kids 'N Fun Festival Aug. 12, 2017 Taiwanese Cultural and Sports Association $1,642 $5,195 $3,300 $2,823 $12,961 Fall Festival Sept. 9, 2017 Cupertino Rotary $1,385 $4,461 $3,484 $3,030 $12,359 Diwali Sept. 30, 2017 Cupertino Chamber of Commerce $1,385 $4,732 $2,017 $3,004 $11,137 Veteran's Day Nov. 11, 2017 Cupertino Veteran's Memorial $680 $18 $1,600 $2,299 Ikebana Flower Show March 3- 4, 2018 WAFU Ikebana Society $258 $19,065 $19,323 Egg Hunt March 24, 2018 Home of Christ Church $902 $798 $733 $18 $2,451 Holi April 8, 2018 Cupertino Chamber of Commerce $902 $1,529 $733 $18 $3,182 Cherry Blossom April 28- 29, 2018 Toyakawa Sister City $3,606 $16,007 $3,667 $5,801 $29,081 World Journal May 12, 2018 World Journal/ Cupertino Chinese School $1,868 $3,589 $3,667 $3,004 $12,127 Total City Costs for FY 2017-18 Events: $12,627 $55,374 $17,603 $17,717 $1,600 $104,920 278 309 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Business and Community Services - Cultural Events 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 12,453 12,453 Total Expenditures 177,671 138,777 376,492 438,337 Fund Balance - - - - General Fund Costs $ 177,671 $ 138,777 $ 376,492 $ 433,337 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - 5,000 Interdepartmental Revenue - - - - Total Revenues - - - 5,000 Expenditures Employee Compensation 44,108 42,757 122,797 160,849 Employee Benefits 11,646 16,136 36,907 37,004 Materials 10,224 8,488 15,850 20,850 Contract Services 108,178 67,880 144,696 164,496 Cost Allocation 3,516 3,516 37,289 42,685 Capital Outlay - - - - Special Projects - - 6,500 - 279 310 STAFFING Total current authorized positions – 0.75 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.80 280 311 BUSINESS AND COMMUNITY SERVICES – QUINLAN CENTER OPERATIONS Budget Unit 100-61-607 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 281 312 Business and Community Services - Quinlan Center Operations 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 283,197 246,527 - - Fund Balance - - - - General Fund Costs $ 156,783 $ 124,754 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 126,414 121,773 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 126,414 121,773 - - Expenditures Employee Compensation 111,333 105,407 - - Employee Benefits 28,077 29,096 - - Materials 32,302 41,429 - - Contract Services 6,878 7,423 - - Cost Allocation 26,304 22,800 - - Capital Outlay - - - - Special Projects 78,304 40,371 -- 282 313 BUSINESS AND COMMUNITY SERVICES - FACILITIES Budget Unit 100-61-630 Budget at a Glance Total Revenues 631,379 Total Expenditures 579,747 Fund Balance - General Fund Costs (51,632) % Funded by General Fund 0.0% Total Staffing 2.75 PROGRAM OVERVIEW Community Hall provides space for City Council meetings and various Commission meetings, as well as facility space which can be used for a variety of activities including the Cupertino Library. The Quinlan Community Center is the home office of the Recreation and Community Services Department, and provides the community with facility space for a variety of recreational activities. SERVICE OBJECTIVES •Provide a facility for community meetings, parties, and other similar activities. •Provide a facility for City Channel programming, and City Council, Planning Commission, Parks & Recreation Commission and other City meetings. •Offer in-person and on-line registration for recreation programs. •Schedule facility space for contractual and staff-run classes and camps. •Rent the facility for meetings, birthday parties, wedding receptions, community events, and other similar activities. •House the Cupertino Historical Society. •Serve as the City’s Emergency Operations Shelter in case of disasters. •Develop a master plan for this facility with the rest of the Stevens Creek to McClellan Ranch Corridor that will serve the community’s long-term goals for improvements or changes. PROPOSED BUDGET It is recommended that a budget of $579,747 be approved for the Facilities Budget. This represents a decrease of $467,386 from the FY 2016-17 Final Adopted Budget. The slight decrease in full-time salary and benefits is related to an internal reallocation of staffing within the department to appropriately reflect staff time spent on this program. The decrease in this program budget is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets 283 314 due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Business and Community Services - Facilities 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - 5,695 5,695 Total Expenditures -6,580 1,047,133 579,747 Fund Balance - - - - General Fund Costs $ - $ 6,580 $ (203,155) $ (51,632) STAFFING Total current authorized positions – 2.60 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 2.75 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 262,000 142,000 Intergovernmental Revenue - - - - Charges for Services - - 988,288 489,379 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 1,250,288 631,379 Expenditures Employee Compensation -5,126 288,901 301,728 Employee Benefits -1,454 94,253 101,702 Materials --60,015 68,465 Contract Services --36,000 17,000 Cost Allocation --546,269 85,157 Capital Outlay --10,000 - Special Projects --6,000 - 284 315 BUSINESS AND COMMUNITY SERVICES – COMMUNITY OUTREACH AND NEIGHBORHOOD WATCH Budget Unit 100-61-632 Budget at a Glance Total Revenues - Total Expenditures 292,247 Fund Balance - General Fund Costs 292,247 % Funded by General Fund 100.0% Total Staffing 1.05 PROGRAM OVERVIEW Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in delivering timely and pertinent information to neighbors and gathering input for the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff’s Office. SERVICE OBJECTIVES •Aid in the development, implementation and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together. •Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods. •Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs. •Train residents to connect and organize neighbors and neighborhoods. •Get Block Leaders involved in the City-wide Park and Recreation Master Plan. •Create and implement Neighborhood Watch meetings and groups. •Disseminate important safety information via the Electronic Community Alert Program (E-CAP) and NextDoor. •Organize and conduct annual National Night Out. PROPOSED BUDGET It is recommended that a budget of $292,247 be approved for the Community Outreach and Neighborhood Watch Budget. This represents a decrease of $29,949 from the FY 2016-17 Final Adopted Budget. 285 316 Decreased full-time salary and benefits costs are related to an internal reallocation of staffing within the department to appropriately reflect staff time spent on this program. An additional decrease is due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Business and Community Services - Community Outreach and Neighborhood Watch 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - 1,560 1,560 Total Expenditures - - 322,196 292,247 Fund Balance - - - - General Fund Costs $ - $ - $ 322,196 $ 292,247 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - 191,606 173,131 Employee Benefits - - 49,555 47,406 Materials - - 18,250 18,250 Contract Services - - 9,500 9,500 Cost Allocation - - 51,725 42,400 Capital Outlay - - - - Special Projects - - - - 286 317 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.05 287 318 RECREATION AND EDUCATION - ADMINISTRATION Budget Unit 100-62-608 Budget at a Glance Total Revenues 49,125 Total Expenditures 1,082,488 Fund Balance - General Fund Costs 1,033,363 % Funded by General Fund 95.5% Total Staffing 3.45 PROGRAM OVERVIEW The Recreation and Education Division provides for the administration and coordination of youth, teen, and senior programs throughout the city. Community services focus on youth includes after-school enrichment classes, youth camps, special events, preschool, teen, leadership training opportunities and volunteer coordination. Senior programs focus on enhancing a healthy lifestyle through quality education, recreation, travel, socials and volunteer opportunities. The Leadership 95014 program provides a leadership training opportunity for adults living and working in the Cupertino community. SERVICE OBJECTIVES •Provide management and supervision of all programs, activities, personnel, and facilities within the division. •Establish program goals and priorities. •Educate participants on Cupertino’s City government, schools, businesses and nonprofit sectors. •Expand advertising and marketing in the community. •Enhance executive leadership skills to enable participants to make a positive impact. •Ensure operational hours accommodate community usage. •Provide community outreach to individual neighborhoods throughout the city. PROPOSED BUDGET It is recommended that a budget of $1,082,488 be approved for the Administration Budget. This represents a decrease of $119,205 from the FY 2016-17 Final Adopted Budget. The decrease is largely due to a reallocation of staffing within the department to better reflect actual time spent on each program. Three Recreation Coordinator positions were reallocated by 0.4 each to other programs within the department. In addition, the decrease in cost allocation is primarily due to changes in how the city applied these charges. Large shifts in cost allocation charges are found in most program budgets due 288 319 to a change in methodology as explained on page 15. This budget increases contract services for Leadership 95014 ($6,250). The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Recreation and Education - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 3,848 3,848 Total Expenditures 94,591 146,457 1,201,693 1,082,488 Fund Balance - - - - General Fund Costs $ 94,591 $ 146,457 $ 1,182,693 $ 1,033,363 STAFFING Total current authorized positions – 4.93 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.45 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 3,000 33,125 Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - 16,000 16,000 Interdepartmental Revenue - - - - Total Revenues - - 19,000 49,125 Expenditures Employee Compensation 61,293 91,979 443,519 401,786 Employee Benefits 24,311 42,068 211,445 148,131 Materials 3,813 7,222 33,141 39,416 Contract Services 374 388 14,950 22,200 Cost Allocation 4,800 4,800 494,790 452,107 Capital Outlay - - - - Special Projects - - - 15,000 289 320 RECREATION AND EDUCATION - YOUTH PROGRAM Budget Unit 100-62-609 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 290 321 Recreation and Education - Youth Program 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 48,286 36,819 - - Fund Balance - - - - General Fund Costs $ 11,988 $ 27,740 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 23,160 - - - Intergovernmental Revenue - - - - Charges for Services 13,138 9,079 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 36,298 9,079 - - Expenditures Employee Compensation 35,561 20,843 - - Employee Benefits 7,442 7,823 - - Materials 3,147 6,017 - - Contract Services - - - - Cost Allocation 2,136 2,136 - - Capital Outlay - - - - Special Projects - - - - 291 322 RECREATION AND EDUCATION - TEEN PROGRAM Budget Unit 100-62-610 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 292 323 Recreation and Education - Teen Program 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 15,865 23,127 - - Fund Balance - - - - General Fund Costs $ 15,865 $ 23,127 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 8,471 12,950 - - Employee Benefits 2,936 5,664 - - Materials 679 1,169 - - Contract Services 1,643 1,208 - - Cost Allocation 2,136 2,136 - - Capital Outlay - - - - Special Projects - - - - 293 324 RECREATION AND EDUCATION - TEEN CENTER Budget Unit 100-62-611 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 294 325 Recreation and Education - Teen Center Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 85,162 60,953 - - Fund Balance - - - - General Fund Costs $ 82,014 $ 57,110 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 600 2,000 - - Intergovernmental Revenue - - - - Charges for Services 2,548 1,844 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 3,148 3,844 - - Expenditures Employee Compensation 65,253 40,634 - - Employee Benefits 10,865 2,878 - - Materials 5,324 13,721 - - Contract Services - - - - Cost Allocation 3,720 3,720 - - Capital Outlay - - - - Special Projects - - - - 295 326 RECREATION AND EDUCATION - PARK FACILITIES Budget Unit 100-62-612 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to the Sports, Safety, and Outdoor Recreation Division as part of a department reorganization. The Nature Classes/Camps were incorporated into Programs and McClellan Ranch Preserve was incorporated into Park Facilities. A complete discussion of this program can be found under Budget Unit 580-63-620. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 296 327 Recreation and Education - Park Facilities 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 190,995 333,317 - - Fund Balance - - - - General Fund Costs $ 185,586 $ 329,491 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 4,836 3,456 - - Intergovernmental Revenue - - - - Charges for Services 572 370 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 5,408 3,826 - - Expenditures Employee Compensation 95,108 183,282 - - Employee Benefits 35,117 60,206 - - Materials 21,018 46,158 - - Contract Services 244 4,163 - - Cost Allocation 11,508 11,508 - - Capital Outlay - - - - Special Projects 28,000 28,000 -- 297 328 RECREATION AND EDUCATION – YOUTH TEEN RECREATION Budget Unit 580-62-613 Budget at a Glance Total Revenues 1,510,300 Total Expenditures 2,214,409 Fund Balance (704,109) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.25 PROGRAM OVERVIEW Provide fee-based youth/teen programs, including academic and enrichment classes, STEAM and recreational camps, playgrounds, and special events with reduced impact to the General Fund. SERVICE OBJECTIVES • Provide a nine -month preschool program, summer camps, and an extensive variety of contractual classes for youth, teen, and adults, while collaborating with the Cupertino Union School District and Fremont Union High School district on select program offerings. • Promote programs through social media to increase community awareness. • Increase the number of youth and teen Science Technology Engineering Art Math (STEAM) programs offered. • Expand all-day summer camp offerings to meet daycare needs of families in the community. PROPOSED BUDGET It is recommended that a budget of $2,214,409 be approved for the Youth Teen Recreation Budget. This represents an increase of $254,402 from the FY 2016-17 Final Adopted Budget. The increase is largely due to a reallocation of 0.50 Recreation Coordinator within the department to better reflect actual time spent on each program and increased costs for part-time staffing due to minimum wage salary increases. New program offerings include parent tot preschool and expanded teen excursions. Supply budgets are also proposed to increase due to the expansion of programs offered in the areas of parent tot programs, all day camps, and contracted classes. Materials are increasing due to ceramic studio equipment needs: kiln shelving, kiln stilts, and tables and chairs for Portal and Wilson park buildings. 298 329 The requested increase for contractual services ($65,000) are due to expanded class offerings for existing contractor program areas as well as bringing on three new contractors in the areas of: communications and debate, youth ceramics, and computer programming. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Recreation and Education - Youth Teen Recreation 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 85,476 85,476 Total Expenditures 1,594,504 1,827,648 1,960,007 2,214,409 Fund Balance (1,594,504) 258,058 (125,899) (704,109) General Fund Costs $ - $ 581,748 $ 438,108 $ - STAFFING Total current authorized positions – 1.75 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 2.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 1,503,958 1,396,000 1,510,300 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 1,503,958 1,396,000 1,510,300 Expenditures Employee Compensation 368,918 428,178 402,151 530,720 Employee Benefits 74,445 84,793 67,837 109,842 Materials 63,190 70,134 75,688 87,588 Contract Services 855,773 936,993 1,045,600 1,110,600 Cost Allocation 232,178 307,549 283,255 290,183 Capital Outlay - - - - Special Projects - - - - 299 330 RECREATION AND EDUCATION – YOUTH, TEEN AND SENIOR ADULT RECREATION Budget Unit 100-62-623 Budget at a Glance Total Revenues 735,750 Total Expenditures 2,206,884 Fund Balance - General Fund Costs 1,471,134 % Funded by General Fund 66.7% Total Staffing 5.00 PROGRAM OVERVIEW Coordinate and provide program services for youth, teen, and seniors at various sites such as elementary school sites, the teen center, the senior center, and Quinlan Community Center. Provide youth enrichment programs, both City sponsored and in conjunction with the Cupertino Union School District (CUSD), to the community. Provide volunteer opportunities for teens in the Cupertino community. Provide a safe, comfortable, and well maintained Teen Center for students in grades 6-12. Provide Case Management services for seniors to continue to remain independent and safe in their own homes. Provide senior adult recreation programs such as trips, memberships, classes, and social events. Senior Center members support programs and services and give over 23,000 hours of volunteer service annually. SERVICE OBJECTIVES • Enhance partnerships with Cupertino Union School District (CUSD), Fremont Union High School District, the SCC Library, YMCA, and other local non-profit agencies. • Provide appreciation events for teen and senior volunteers who support the recreation department throughout the year. • Coordinate the volunteer efforts of teens in the program areas of summer camps, aquatics, and outdoor park improvements through the Leader In Training program and Civically Active Teens. • Maintain maximum operating hours for teens to drop-in during non-school hours to partake in leisure and enrichment activities at the Teen Center in partnership with the Teen Commission. • Continue to provide multi-lingual case management services. • Offer educational courses, group travel, and socialization opportunities to adults aged 50 and over. • Provide volunteer service opportunities for adults aged 50 and over. • Offer a recreation noon-time program at various elementary school sites within CUSD to promote life balance and wellness. 300 331 PROPOSED BUDGET It is recommended that a budget of $2,206,884 be approved for the Youth, Teen and Senior Adult Recreation Budget. This represents an increase of $183,957 from the FY 2016-17 Final Adopted Budget. The addition of 1.0 three-year limited-term Recreation Coordinator is requested in this budget to support additional programming such as the reinstatement of the Noontime program at various elementary school sites. In addition, part time staffing expenses have increased to extend operational hours and additional front desk and facility coverage to better meet the needs of seniors in our city. The proposed increase in contract services is due to extended hours at the senior center which allows staff to provide additional class offerings on Saturdays and on weekday evenings. A revenue increase of $20,000 is projected. Materials were increased to support the implementation of the department's new recreation software that includes $16,000 for new membership cards, key tags and required data plans. Lastly, large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 301 332 Recreation and Education - Youth, Teen and Senior Adult Recreation 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - 61,164 61,164 Total Expenditures - - 2,022,927 2,206,884 Fund Balance - - - - General Fund Costs $ - $ - $ 1,307,177 $ 1,471,134 STAFFING Total current authorized positions – 4.17 The department is requesting to add 1.0 three-year limited-term Recreation Coordinator, which is mostly allocated in this budget (0.90). In addition, staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 5.00 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 1,000 1,000 Intergovernmental Revenue - - - - Charges for Services - - 714,750 734,750 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 715,750 735,750 Expenditures Employee Compensation - - 524,334 649,620 Employee Benefits - - 146,917 213,676 Materials - - 577,843 585,723 Contract Services - - 123,800 143,800 Cost Allocation - - 588,869 552,901 Capital Outlay - - - - Special Projects - - - - 302 333 SPORTS, SAFETY & OUTDOOR RECREATION - PARK FACILITIES Budget Unit 100-63-612 Budget at a Glance Total Revenues 469,000 Total Expenditures 1,968,178 Fund Balance - General Fund Costs 1,499,178 % Funded by General Fund 76.2% Total Staffing 2.93 PROGRAM OVERVIEW Blackberry Farm provides the community with recreational space to swim, picnic, and enjoy the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes/creek tours to school groups, nature programs, and is the location for the Community Garden program and non-profit groups such as Grassroots Ecology, Santa Clara Valley Audubon Society, UCCE Master Gardeners, and Rolling Hills 4-H Club. The Creekside Park building provides community members with facility space which can be used for a variety of activities. The Monta Vista Recreation Center is home to a diverse array of recreational activities including gymnastics classes and preschool. SERVICE OBJECTIVES Blackberry Farm Picnic Grounds and Pools: • Provide the community with two recreational pools for drop-in use. • Offer a Junior Lifeguard course for teens, ages 12-15. Engage and provide the community with annual 4th of July events. • Partner with the Audubon Society to provide Wildlife & Harvest Day at Blackberry Farm. Increase residential usage of the facility. • Implement Park Ranger led activities such as interpretive walks, star-gazing events, and a Stevens Creek Corridor volunteer program. McClellan Ranch Preserve: • Continue to offer drop-in visitor hours at the Environmental Education Center and Blacksmith Shop on Saturdays, Sundays and some school holidays. During summer months offer extended drop-in hours on Friday evenings. • Develop park management internship opportunities in partnership with the West Valley Community College Park Management Program. • Partner with SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Nerds for Nature, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs. • Expand programming opportunities for teens. 303 334 Creekside Park Building: •Rent facility for non-profit board meetings, birthday parties, school group picnics, and other similar activities. •Provide contractual and staff-run classes and camps. •Provide storage space for Farmer’s market Monta Vista Recreation Center: •Provide gymnastics classes via Twisters Sports Center. •Offer department run pre-school program. •Provide contractual and staff-run classes and camps. •Make space available for co-sponsored clubs and rentals. PROPOSED BUDGET It is recommended that a budget of $1,968,178 be approved for the Park Facilities Budget. This represents an increase of $84,827 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the City applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15.This budget includes $68,000 to continue a relationship with Grassroots Ecology at the McClellan Ranch. This partnership results in 36 volunteer habitat restoration workdays, monthly water quality monitoring of Stevens Creek, and support for approximately 50 educational programs for students and community groups while maintaining the restoration of the meadow area. This budget projects $469,000 in Park Facility Revenue of which $120,000 can be attributed to the reallocation of the Blue Pheasant Rental into this account. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Funding Source Description Acterra Habitat Enhancement $68,000 General Fund Habitat restoration of Steven's Creek at McClellan Ranch Total $68,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 304 335 Sports, Safety and Outdoor Recreation - Park Facilities 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - 20,336 20,336 Total Expenditures - - 1,883,351 1,968,178 Fund Balance - - - - General Fund Costs $ - $ (9,650) $ 1,534,351 $ 1,499,178 STAFFING Total current authorized positions – 2.83 The staffing reallocation of 0.10 Recreation Coordinator better reflects staff time spent in this program. Total recommended positions – 2.93 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property -9,650 99,000 219,000 Intergovernmental Revenue --- - Charges for Services --250,000 250,000 Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues -9,650 349,000 469,000 Expenditures Employee Compensation - - 664,404 623,665 Employee Benefits - - 102,190 128,654 Materials - - 134,664 141,214 Contract Services - - 31,550 31,550 Cost Allocation - - 815,707 954,759 Capital Outlay - - 80,500 - Special Projects - - 34,000 68,000 305 336 SPORTS, SAFETY & OUTDOOR RECREATION – ADMINISTRATION Budget Unit 100-63-615 Budget at a Glance Total Revenues - Total Expenditures 243,820 Fund Balance - General Fund Costs 243,820 % Funded by General Fund 100.0% Total Staffing 0.95 PROGRAM OVERVIEW This budget supports all facets of the Sports, Safety, and Outdoor Recreation Division. Provides for the supervision and operation of the Cupertino Sports Center and Blackberry Farm Golf Course as enterprise facilities. In addition, provides for the supervision and operation of Blackberry Farm picnic area and swimming pools, McClellan Ranch Preserve, Monta Vista Recreation Center and Creekside Park building. The Sports, Safety, and Outdoor Recreation Division includes a diverse offerings of recreation programs for all ages including sports leagues, camps/classes, nature programs, volunteer opportunities, drop-in activities, and special events. Aquatics programs, golf, and specialty classes as offered seasonally. SERVICE OBJECTIVES •Efficiently manage the Cupertino Sports Center, Blackberry Farm Golf Course, Blackberry Farm picnic sites and swimming pools, McClellan Ranch Preserve, Monta Vista Recreation Center, Creekside park building, nine school sites and various City fields. •Increase City staff’s involvement in disaster preparedness through training, community awareness, and collaboration with local agencies. •Consolidate all park facilities and staff within the Stevens Creek Corridor into one division in order to enhance customer service and experience for park visitors. •Oversee marketing, budget preparations, and programming plans for all locations. PROPOSED BUDGET It is recommended that a budget of $243,820 be approved for the Administration Budget. This represents a decrease of $32,900 from the FY 2016-17 Final Adopted Budget. Decreases are primarily due to changes in how the City applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 306 337 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Administration 2015 Category 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - 273 273 Total Expenditures 66,686 59,110 276,720 243,820 Fund Balance - - - - General Fund Costs $ 66,686 $ (135,426) $ 276,720 $ 243,820 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.95 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property -194,537 - - Intergovernmental Revenue --- - Charges for Services --- - Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues -194,537 - - Expenditures Employee Compensation 41,896 32,867 108,089 101,931 Employee Benefits 17,492 19,272 51,990 47,714 Materials 914 507 6,955 6,755 Contract Services -81 4,400 - Cost Allocation 6,384 6,384 105,013 87,147 Capital Outlay - - - - Special Projects - - - - 307 338 SPORTS, SAFETY & OUTDOOR RECREATION – BLACKBERRY FARM GOLF COURSE Budget Unit 560-63-616 Budget at a Glance Total Revenues 403,000 Total Expenditures 708,461 Fund Balance (5,461) General Fund Costs 300,000 % Funded by General Fund 42.3% Total Staffing 1.10 PROGRAM OVERVIEW Blackberry Farm Golf Course provides a nine-hole golf facility and open space to the community that serves all ages. SERVICE OBJECTIVES • Increase the golfer base through community college classes, junior golf camps, private golf instruction, and marketing such as Groupon and Golf Now. • Provide a concession where our customers can get their golfing accessories and golf instruction. PROPOSED BUDGET It is recommended that a budget of $708,461 be approved for the Blackberry Farm Golf Course Budget. This represents an increase of $21,833 from the FY 2016-17 Final Adopted Budget. Increases are related to contract services to cover a 3% increase for Professional Turf Management and the Golf Pro ($12,000) as well as for tree care ($25,000). In addition, a proposed increase in the budget for materials is due to a projected increase in water service rates of 8%. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 308 339 Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency 13,052 2,750 27,653 27,653 Total Expenditures 553,184 576,176 686,628 708,461 Fund Balance (439,532) (99,811) 43,301 (5,461) General Fund Costs $ - $ 262,008 $ 326,929 $ 300,000 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 14,650 22,000 22,000 Intergovernmental Revenue - - - - Charges for Services 113,652 199,707 381,000 381,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 113,652 214,357 403,000 403,000 Expenditures Employee Compensation 136,064 116,011 144,388 145,924 Employee Benefits 35,281 32,574 47,072 46,214 Materials 60,670 64,471 87,235 101,015 Contract Services 239,500 258,604 268,200 305,472 Cost Allocation 68,617 84,462 86,080 82,183 Capital Outlay - - - - Special Projects - 17,304 26,000 - 309 340 SPORTS, SAFETY & OUTDOOR RECREATION – CREEKSIDE PARK YOUTH SPORT Budget Unit 100-63-618 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety and Outdoor Recreation – Park Facilities as part of the department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 310 341 Sports, Safety and Outdoor Recreation - Creekside Park Youth Sport 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 8,039 3,831 - - Fund Balance - - - - General Fund Costs $ (2,914) $ (6,769) $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 10,953 10,600 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 10,953 10,600 - - Expenditures Employee Compensation 2,950 3,396 - - Employee Benefits 83 141 - - Materials 5 295 - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 5,000 - - - 311 342 SPORTS, SAFETY & OUTDOOR RECREATION – OUTDOOR RECREATION Budget Unit 580-63-620 Budget at a Glance Total Revenues 1,038,500 Total Expenditures 1,451,700 Fund Balance (413,200) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.63 PROGRAM OVERVIEW A wide range of sports, fitness, and outdoor activities are offered for youth and adults. SERVICE OBJECTIVES • Operate a summer Red Cross learn-to-swim program for infants, children, teens, and adults. • Run spring, summer, and fall adult softball leagues. • Provide sports, dance, fitness, and wellness classes for youth, teens, and adults. • Offer a 5K, community walk, and kid's fun run in the spring. • Manage user group field rentals under the CUSD/City JUA. • Partner with the SCC Sheriff’s Department for the 2017 Hero’s 5K Run. • Increase nature and environmental classes for teen and adult demographics. • Provide an afternoon summer nature program to provide all-day camp options for families. PROPOSED BUDGET It is recommended that a budget of $1,451,700 be approved for the Outdoor Recreation Budget. This represents an increase of $177,664 from the FY 2016-17 Final Adopted Budget. The increase is largely due to an internal reallocation of staffing within the department and negotiated employee compensation increases based on Council-approved labor contracts. A fitness/aquatics coordinator was reallocated from Recreation & Education to more accurately reflect duties performed. The BBF Golf Course Recreation Coordinator is now overseeing the adult softball program so 0.10 of his salary was reallocated to this account. An additional 0.12 of the sports/fields Recreation Coordinator's salary was reallocated to this account to more accurately reflect duties performed. 312 343 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Outdoor Recreation 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - 13,080 13,080 Total Expenditures 1,026,532 1,101,007 1,274,036 1,451,700 Fund Balance (1,026,532) (66,428) (235,536) (413,200) General Fund Costs $ - $ 133,512 $ - $ - STAFFING Total current authorized positions – 1.40 A staffing reallocation of 1.23 Recreation Coordinators to this program is proposed to better reflect staff time spent in this program. Total recommended positions – 2.63 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 183,000 183,000 Intergovernmental Revenue - - - - Charges for Services - 901,067 855,500 855,500 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 901,067 1,038,500 1,038,500 Expenditures Employee Compensation 198,333 185,014 267,387 388,966 Employee Benefits 53,208 48,189 53,962 113,583 Materials 66,710 78,161 104,887 90,387 Contract Services 500,998 515,273 651,988 652,188 Cost Allocation 200,619 274,369 182,732 193,496 Capital Outlay - - - - Special Projects 6,663 - - - 313 344 SPORTS, SAFETY & OUTDOOR RECREATION – SPORTS CENTER OPERATIONS Budget Unit 570-63-621 Budget at a Glance Total Revenues 2,286,200 Total Expenditures 2,448,037 Fund Balance (61,837) General Fund Costs 100,000 % Funded by General Fund 4.1% Total Staffing 2.22 PROGRAM OVERVIEW The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, child care, a teen center, a wide assortment of fitness classes and racquet sports. In addition, it houses our City contracted tennis, table tennis, and badminton programs. SERVICE OBJECTIVES • Increase memberships, participation in fitness classes, and contractual camps. • Market all programs through social media, the brochure, new signage on Stevens Creek, and the city website. • Collaborate with Public Works to ensure successful implementation of Capital Improvement Projects. • Explore new program offerings each quarter. • Offer special classes for International Yoga Day and the annual Open House. PROPOSED BUDGET It is recommended that a budget of $2,448,037 be approved for the Sports Center Operations Budget. This represents an increase of $118,799 from the FY 2016-17 Final Adopted Budget. This budget increases material costs by $40,000 due to reallocation of 20% of the department’s brochure printing costs ($25,000) to the Sports Center and a reallocation from fixed assets to small tools and equipment ($15,000) to pay for fitness equipment replacement. Part time staffing and employee benefits increased by $56,055, primarily a result of salary increases and staffing for an additional week of summer camp. 314 345 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Sports Center Operations 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - 6,708 131,751 131,751 Total Expenditures 1,983,717 1,905,160 2,329,238 2,448,037 Fund Balance (1,983,717) 884,363 87,941 (61,837) General Fund Costs $ - $ 657,732 $ 130,979 $ 100,000 STAFFING Total current authorized positions – 2.20 A staffing reallocation of .02 Recreation Coordinator to this program is proposed to better reflect staff time spent in this program. Total recommended positions – 2.22 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 1,257 1,200 1,200 Intergovernmental Revenue - - - - Charges for Services - 2,130,534 2,285,000 2,285,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 2,131,791 2,286,200 2,286,200 Expenditures Employee Compensation 237,051 234,492 288,104 352,461 Employee Benefits 60,524 60,739 72,511 91,226 Materials 50,542 31,114 46,284 86,600 Contract Services 1,364,477 1,422,146 1,606,100 1,606,100 Cost Allocation 132,260 132,581 169,488 179,899 Capital Outlay - 5,848 - - Special Projects 138,862 11,532 15,000 - 315 346 SPORTS, SAFETY & OUTDOOR RECREATION – DISASTER PREPAREDNESS Budget Unit 100-63-633 Budget at a Glance Total Revenues 10,500 Total Expenditures 356,231 Fund Balance - General Fund Costs 345,731 % Funded by General Fund 97.1% Total Staffing 1.10 PROGRAM OVERVIEW The mission of the Office of Emergency Services is to lead and direct the City in prevention, preparation, mitigation, response, and recovery from all hazards, incidents, and events. SERVICE OBJECTIVES • Develop and implement the goals and objectives of Cupertino's Office of Emergency Services. • Maintain the City’s Emergency Operations Center (EOC) in a perpetual state of operational readiness. • Support Citizen Corps, Cupertino Amateur Radio Emergency Service (CARES), Medical Reserve Corps (MRC) and Community Emergency Response Team (CERT). • Prepare, test and revise emergency response and recovery policies, plans and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS). • Coordinate training of City staff in personal preparedness, SEMS/NIMS, and EOC functions. • Maintain effective liaison with local, state and national emergency management organizations and/or allied disaster preparedness and response agencies. • Complete second phase of ARK Net system. PROPOSED BUDGET It is recommended that a budget of $356,231 be approved for the Disaster Preparedness Budget. This represents an increase of $259,601 from the FY 2016-17 Final Adopted Budget. The increase is related to the proposed creation of an Office of Emergency Services(OES) with dedicated personnel and financial resources, which would support the goals and objectives in the City’s General Plan, and better leverage existing Santa Clara County Fire Department 316 347 emergency management resources made available to the City. In the past, Santa Clara County Fire funded 1.0 Emergency Coordinator to support the City of Cupertino but eliminated that support in early 2010. As a result, the only ongoing emergency preparedness program was education and training of our volunteer Citizen Corps. Establishing a Cupertino Office of Emergency Services would fill one of the City’s essential roles, protecting the health and safety of the public. It may save the City money in the long- run as recent studies indicate that for every $1 spent in disaster preparedness, government saves an average of $4 in response and recovery, in addition to FEMA support that will be lent to properly-prepared municipalities. With a strong OES, general preparedness will be integrated into daily decision-making, thus promoting our response capabilities from the ground up. Not only will we engage the full roster of employees, but the entire Cupertino community as well. Residents, businesses, schools, and religious institutions in Cupertino will benefit immensely from an organized, structured OES that will promote collaboration and unity within the City, while empowering community members to be self-sufficient. Our goal is to become the example other cities look to when establishing or revamping their Offices of Emergency Services. The proposed OES Coordinator would focus on enhancing community resilience through development of the following program areas: Plans/Grants/MOUs, Training & Exercises, Departmental Coordination, Regional Coordination, Community Engagement & Education, and EOC Readiness. Establishment of this office is a FY 2017-18 City work plan objective. The majority of the increased budget ($258,573) is for employee compensation and benefits which funds 1.0 new full time OES Coordinator and allows for both temporary reallocation of existing staff and additional part time support for the program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 317 348 Sports, Safety and Outdoor Recreation - Disaster Preparedness 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - 1,808 1,808 Total Expenditures - - 96,630 356,231 Fund Balance - - - - General Fund Costs $ - $ - $ 86,130 $ 345,731 STAFFING Total current authorized positions – 0.00 Changes is staffing account for the addition of 1.0 Emergency Services Coordinator and 0.10 Facility Attendant. Total recommended positions – 1.10 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 10,500 10,500 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 10,500 10,500 Expenditures Employee Compensation - - 36,050 212,564 Employee Benefits - - - 82,059 Materials - - 25,193 33,488 Contract Services - - 2,000 5,000 Cost Allocation - - 13,054 21,312 Capital Outlay - - - - Special Projects - - 18,525 - 318 349 SPORTS, SAFETY & OUTDOOR RECREATION – MONTA VISTA RECREATION CENTER Budget Unit 100-63-637 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety, and Outdoor Recreation – Park Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 319 350 Sports, Safety and Outdoor Recreation - Monta Vista Recreation Center 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 6,880 5,018 - - Fund Balance - - - - General Fund Costs $ 6,880 $ (17,722) $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 22,740 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 22,740 - - Expenditures Employee Compensation 2,276 2,141 - - Employee Benefits 62 84 - - Materials 117 2,793 - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 4,425 - - - 320 351 SENIOR PROGRAMS - SENIOR ADULT SUPERVISION Budget Unit 100-64-622 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Administration as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-608. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 321 352 Senior Programs - Senior Adult Supervision 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 585,569 610,297 - - Fund Balance - - - - General Fund Costs $ 435,848 $ 605,504 $ - $ - STAFFING Total current authorized positions – 1.00 Total recommended positions – 0.00 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 280 1,160 - - Intergovernmental Revenue - - - - Charges for Services 149,441 3,634 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 149,721 4,794 - - Expenditures Employee Compensation 360,950 377,893 - - Employee Benefits 156,388 164,475 - - Materials 16,574 16,194 - - Contract Services 200 278 - - Cost Allocation 51,456 51,456 - - Capital Outlay - - - - Special Projects - - - - 322 353 SENIOR PROGRAMS – YOUTH, TEEN AND SENIOR ADULT RECREATION Budget Unit 100-64-623 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 323 354 Senior Programs - Youth, Teen and Senior Adult Recreation 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 114,638 202,716 - - Fund Balance - - - - General Fund Costs $ 112,012 $ 193,879 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 2,627 8,837 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 2,627 8,837 - - Expenditures Employee Compensation 66,024 117,381 - - Employee Benefits 27,581 49,147 - - Materials 4,964 9,826 - - Contract Services 1,357 3,994 - - Cost Allocation 14,712 22,368 - - Capital Outlay - - - - Special Projects - - - - 324 355 SENIOR PROGRAMS - SENIOR ADULT RECREATION Budget Unit 100-64-624 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 325 356 Senior Programs - Senior Adult Recreation 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 909,014 829,810 - - Fund Balance - - - - General Fund Costs $ 431,097 $ 193,902 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 475,126 635,835 - - Fines and Forfeitures - - - - Miscellaneous Revenue 2,792 73 - - Interdepartmental Revenue - - - - Total Revenues 477,918 635,908 - - Expenditures Employee Compensation 181,255 199,129 - - Employee Benefits 58,275 58,177 - - Materials 543,988 454,755 - - Contract Services 52,629 71,308 - - Cost Allocation 46,440 46,440 - - Capital Outlay - - - - Special Projects 26,428 - - - 326 357 SENIOR PROGRAMS - FACILITIES Budget Unit 100-64-630 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 327 358 Senior Programs - Facilities Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 33,842 2,582 - - Fund Balance - - - - General Fund Costs $ (74,821) $ (113,372) $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 108,663 115,954 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 108,663 115,954 - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 7,896 2,582 - - Contract Services 25,946 - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 328 359 COMMUNITY SERVICES – COMMUNITY OUTREACH AND NEIGHBORHOOD WATCH Budget Unit 100-65-632 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Community Outreach and Neighborhood Watch as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-632. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 329 360 Community Services - Community Outreach and Neighborhood Watch 2018 Category 2015 2016 2017 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 113,123 116,005 - - Fund Balance - - - - General Fund Costs $ 113,123 $ 116,005 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 64,998 62,983 - - Employee Benefits 26,786 28,345 - - Materials 9,105 7,648 - - Contract Services 4,242 9,037 - - Cost Allocation 7,992 7,992 - - Capital Outlay - - - - Special Projects - - - - 330 361 COMMUNITY SERVICES - DISASTER PREPAREDNESS Budget Unit 100-65-633 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was added to the Sports, Safety, and Outdoor Recreation – Disaster Preparedness as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-633. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 331 362 Community Services - Disaster Preparedness 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 50,895 71,599 - - Fund Balance - - - - General Fund Costs $ 39,787 $ 63,854 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 3,500 (1,387) - - Charges for Services 7,608 9,132 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 11,108 7,745 - - Expenditures Employee Compensation 32,786 31,577 - - Employee Benefits 953 863 - - Materials 5,756 35,536 - - Contract Services -138 - - Cost Allocation --- - Capital Outlay --- - Special Projects 11,400 3,484 -- 332 363 COMMUNITY SERVICES - NEIGHBORHOOD WATCH Budget Unit 100-65-635 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Community Outreach and Neighborhood Watch as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-632. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 333 364 Community Services - Neighborhood Watch 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 32,027 29,730 - - Fund Balance - - - - General Fund Costs $ 32,027 $ 29,730 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 26,812 26,056 - - Employee Benefits 774 713 - - Materials 4,143 2,882 - - Contract Services 297 79 - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 334 365 COMMUNITY SERVICES - LIBRARY SERVICES Budget Unit 100-65-636 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Community Services – Library Services as part of a department reorganization. A complete discussion of the program can be found under Budget Unit 100-60-636. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 335 366 Community Services - Library Services Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures 394,009 408,888 - - Fund Balance - - - - General Fund Costs $ 394,009 $ 408,888 $ - $ - STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 5,502 - - - Contract Services 388,507 408,888 - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 336 367 Planning and Community Development Planning & Community Development Planning Housing Services Building 368 337 369 PLANNING AND COMMUNITY DEVELOPMENT Budget Unit 2018 Proposed Planning & Community Development $ 345,677 100-70-700 Administration 345,677 Planning $ 3,395,284 100-71-701 Current Planning 2,151,008 100-71-702 Mid and Long Term Planning 725,588 100-71-704 Annexations 10,141 100-71-705 Economic Development 508,547 Housing Services $ 9,073,046 260-72-707 CDBG General Administration 88,814 260-72-709 Affordable Housing 284,484 260-72-710 Public Service Grants 47,188 265-72-711 BMR Housing 8,610,724 100-72-712 Human Service Grants 41,836 Building $ 3,736,495 100-73-713 General Building 791,962 100-73-714 Building Plan Review 1,283,854 100-73-715 Building Code Enforcement 1,349,597 100-73-718 Municipal Code Enforcement 311,082 Total $ 16,550,502 338 370 DEPARTMENT SUMMARY Planning and Community Development 2018 Fund Balance (1,114,084) (853,978) 10,920,846 (7,716,620) General Fund Costs $ 8,858,038 $ (3,696,759) $ 3,346,023 $ 1,385,792 PROPOSED BUDGET It is recommended that a budget of $16,550,502 be approved for the Planning and Community Development Budget. This represents an increase of $1,770,156 from the FY 2016-17 Final Adopted Budget. Overall, there were $5,950,832 in expense increases for program accounts, compared to $4,180,676 in expense decreases. The most significant expense increase in the Community Development budget is the $4,500,000 increase in the Special Projects account for the Below Market Rate Housing program. Increases in salary and benefits are due to reclassifications, promotions and negotiated increases to salary and benefits. Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Budget Revenues Taxes - - 15,113,279 1,000,000 Licenses and Permits 674,917 3,051,462 2,475,000 2,121,000 Use of Money and Property - - - - Intergovernmental Revenue - - 314,590 314,590 Charges for Services (726,767) 11,231,682 4,452,300 4,005,000 Fines and Forfeitures - - - - Miscellaneous Revenue 6,419 613,461 - 7,500 Interdepartmental Revenue - - - - Total Revenues (45,431) 14,896,605 22,355,169 7,448,090 Expenditures Employee Compensation 2,457,586 2,611,412 3,073,142 3,481,608 Employee Benefits 926,864 1,003,679 1,188,909 1,420,103 Materials 922,727 764,944 781,089 771,912 Contract Services 434,357 1,240,920 831,556 668,151 Cost Allocation 431,856 481,860 1,942,249 1,926,627 Capital Outlay - - - - Special Projects 4,746,037 5,951,008 6,856,300 8,175,000 Appropriations for Contingency 7,264 - 107,101 107,101 Total Expenditures 9,926,690 12,053,824 14,780,346 16,550,502 339 371 PROPOSED EXPENDITURES FY 2017-18 $345,677 (2%) $3,395,284 (21%) $9,073,046 (55%) $3,736,495 (23%) Housing Services Building Planning Planning & Community Development 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 9.9 12.1 14.8 16.6 340 372 City of Cupertino FY17/18 Budget Performance Measures Community Development Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and support the values of education, innovation and collaboration. Efficient planning and building services and enhanced customer service. Enabled by… Effective code enforcement services. Enabled by… Enabled by… Enabled by… So that… Cupertino is a thriving City to live, work, learn and play. Affordable and Below Market Rate Housing programs and public service grants. Enabled by… Proactive Economic Development programs to support local business. Enabled by… Enabled by… GOAL: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertino’s community-wide quality of life. Measure Ongoing Target Department cost recovery 96% Website Updates Completed on Schedule 100% Planning application reviews completed 5 days before 30 day deadline 50% Building permit applications reviewed over-the- counter (OTC) 80% Building permit application reviews completed within 15 business days 90% Building Inspections Requested Online 75% Average number of days to initiate investigation of code complaints <7 Code enforcement cases resolved without issuance of citations 80% Landlord-tenant counseling and dispute resolution cases provided 100 per year Below market rate rental and purchase vacancies filled 15 per year, given availability Housing resources and referrals provided 400 per year Economic Development Business Buzz Readers 700 in FY 17-18 Economic Development Business Workshops & Events 12 per year 341 373 PLANNING & COMMUNITY DEVELOPMENT - ADMINISTRATION Budget Unit 100-70-700 Budget at a Glance Total Revenues - Total Expenditures 345,677 Fund Balance - General Fund Costs 345,677 % Funded by General Fund 100.0% Total Staffing 0.55 PROGRAM OVERVIEW The Community Development Administration program manages general office and oversight functions for the Community Development Department. SERVICE OBJECTIVES •Coordinate and direct general office affairs related to community development functions. •Manage professional and administrative staff. •Prepare and implement the department budget. •Coordinate as necessary with other departments in the City. •Review and evaluate City and department goals and objectives. PROPOSED BUDGET It is recommended that a budget of $345,677 be approved for the Administration Budget. This represents an increase of $105,132 from the FY 2016-17 Final Adopted Budget. The increase is attributed primarily to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 342 374 Planning & Community Development - Administration 2015 Category 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - 3,505 3,505 Total Expenditures 221,885 231,040 240,545 345,677 Fund Balance - - - - General Fund Costs $ 221,885 $ 231,040 $ 240,545 $ 345,677 STAFFING Total current authorized positions – 0.55 There are no changes to the current level of staffing. Total recommended positions – 0.55 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 147,221 150,060 91,358 99,243 Employee Benefits 50,123 53,687 34,131 38,749 Materials 12,359 14,572 15,755 26,450 Contract Services 1,562 2,100 30,219 31,144 Cost Allocation 10,620 10,620 65,577 146,586 Capital Outlay - - - - Special Projects - - - - 343 375 PLANNING - CURRENT PLANNING Budget Unit 100-71-701 Budget at a Glance Total Revenues 2,795,000 Total Expenditures 2,151,008 Fund Balance - General Fund Costs (643,992) % Funded by General Fund 0.0% Total Staffing 8.13 PROGRAM OVERVIEW The current planning program serves to review projects and implement City ordinances and the General Plan goals and objectives through the permitting process. SERVICE OBJECTIVES •Maintain a high level of customer service. •Provide assistance at the public counter, over the telephone, or via email. •Implement the City's General Plan and Zoning Ordinance. •Evaluate Planning applications for consistency with City ordinance, General Plan goals and applicable State and Federal regulations. •Coordinate internal review of Planning applications with other City departments. •Conduct environmental review of projects in compliance with California Environmental Quality Act (CEQA) and applicable regional, State and Federal regulations. •Provide technical analysis and recommendations to the Council, Planning Commission and Design Review Committee. •Administer the review of projects including finalizing building permits related to Planning requirements. PROPOSED BUDGET It is recommended that a budget of $2,151,008 be approved for the Current Planning Budget. This represents a decrease of $2,514,935 from the FY 2016-17 Final Adopted Budget. The decrease is attributed primarily to a conservative estimate in revenues and expenditures from development. Changes to cost allocation and contract services methods also resulted in decreases. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 344 376 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Planning - Current Planning Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 6,642 - 24,356 24,356 Total Expenditures 1,847,892 1,634,558 4,665,943 2,151,008 Fund Balance - - - - General Fund Costs $ 5,173,935 $ (4,083,029) $ 1,623,643 $ (643,992) STAFFING Total current authorized positions – 8.63 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 8.13 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services (3,332,463) 5,610,192 3,042,300 2,795,000 Fines and Forfeitures - - - - Miscellaneous Revenue 6,419 107,395 - - Interdepartmental Revenue - - - - Total Revenues (3,326,044) 5,717,587 3,042,300 2,795,000 Expenditures Employee Compensation 660,094 620,399 941,579 1,057,462 Employee Benefits 223,512 228,977 346,161 410,435 Materials 14,882 16,774 32,730 41,830 Contract Services 29,886 58,346 212,548 15,098 Cost Allocation 105,528 114,708 901,769 601,827 Capital Outlay - - - - Special Projects 807,347 595,353 2,206,800 - 345 377 PLANNING - MID AND LONG TERM PLANNING Budget Unit 100-71-702 Budget at a Glance Total Revenues 1,057,500 Total Expenditures 725,588 Fund Balance - General Fund Costs (331,912) % Funded by General Fund 0.0% Total Staffing 2.50 PROGRAM OVERVIEW The Mid and Long Term Planning program assists the community in preparing, reviewing and amending documents including the General Plan, Specific Plans, Conceptual Plans, and the Municipal Code, including the Zoning Ordinance. Additionally, the program anticipates and evaluates trends, and develops strategies and plans to help the City address change. SERVICE OBJECTIVES •Review and amend the City's General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance, Specific, Conceptual and Master Plans. •Ensure that City processes and regulations are in compliance with State and Federal regulations. •Review and implement policies in the General Plan, Housing Element, Zoning Ordinance, Specific, Conceptual and Master Plans. •Coordinate with various regional, State and Federal agencies on projects. •Facilitate the planning and implementation of the City Councils annual community development goals and objectives. PROPOSED BUDGET It is recommended that a budget of $725,588 be approved for the Mid and Long Term Planning Budget. This represents a decrease of $99,970 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributable to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The decrease in special projects is due to the costs and scope of projects in the current year being less than in the prior year. Funds for uncompleted special projects will be carried over from FY 2016-17. 346 378 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Planning - Mid and Long Term Planning Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - 3,976 3,976 Total Expenditures 1,096,867 1,220,946 825,558 725,588 Fund Balance - - - - General Fund Costs $ 1,096,867 $ 1,220,946 $ 825,558 $ (331,912) STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 2.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 1,050,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - 7,500 Interdepartmental Revenue - - - - Total Revenues - - - 1,057,500 Expenditures Employee Compensation 229,362 239,185 300,821 325,830 Employee Benefits 81,612 90,909 115,921 133,055 Materials 6,340 4,576 8,435 8,110 Contract Services 6,018 238,141 51,800 103,350 Cost Allocation 39,876 39,876 194,605 151,267 Capital Outlay - - - - Special Projects 733,659 608,259 150,000 - 347 379 PLANNING - ANNEXATIONS Budget Unit 100-71-704 Budget at a Glance Total Revenues - Total Expenditures 10,141 Fund Balance - General Fund Costs 10,141 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Annexations program was created in FY 2014-15 to account for annexations of property from outside city limits. SERVICE OBJECTIVES •Identify and process annexations PROPOSED BUDGET It is recommended that a budget of $10,141 be approved for the Annexations Budget. This represents a decrease of $696 from the FY 2016-17 Final Adopted Budget. Dedicated funds set aside for the Lawrence Mitty annexation will be carried over from FY 2016-17 to FY 2016-17. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 348 380 Planning - Annexations Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - 10,000 10,000 Total Expenditures - - 10,837 10,141 Fund Balance - - - - General Fund Costs $ - $ - $ 10,837 $ 10,141 STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - 837 141 Capital Outlay - - - - Special Projects - - - - 349 381 PLANNING - ECONOMIC DEVELOPMENT Budget Unit 100-71-705 Budget at a Glance Total Revenues - Total Expenditures 508,547 Fund Balance - General Fund Costs 508,547 % Funded by General Fund 100.0% Total Staffing 1.00 PROGRAM OVERVIEW The Economic Development program specifically targets business retention, expansion, and attraction with a focus on small business development. The Economic Development program was transferred to the City Manager Department in Fiscal Year 2013-14, but was transferred back to the Community Development Department in FY 16-17 to allow for greater alignment and collaboration with relevant citywide planning and development activities. SERVICE OBJECTIVES • Provide assistance and support to businesses to enable job creation, new business formation, private investment, and industry evolution. • Conduct outreach to existing small businesses to create strong working relationships. • Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects. • Partner with local business associations and agencies to create a strong and cohesive network offering business assistance. • Provide the public with current data and information easily accessible online or in printed format. • Assist with policy formation to align with business and community goals. PROPOSED BUDGET It is recommended that a budget of $508,547 be approved for the Economic Development Budget. This represents an increase of $385,265 from the FY 2016-17 Final Adopted Budget. The increase is primarily attributable to more accurately budgeting staff compensation and benefits, as well as a proposed budget of $175,000 for the implementation of priority strategies from the Economic Development Strategic Plan. The proposed budget also includes additional funds for Small Business Saturday, printing informational materials, and $5,000 for one letter mailing and one postcard mailing to all business license holders in the City to notify them of annual Minimum Wage increases. 350 382 Council adopted the Minimum Wage Ordinance on October 4, 2016. The ordinance became effective on January 1, 2017. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Economic Development Strategic Plan Implementation $175,000 General Fund The Cupertino City Council adopted the 2016 Economic Development Strategic Plan to ensure the continued economic prosperity of the City. Recommendations include facilitating the development of office space for small and mid- size businesses, improving pedestrian, cyclist and transit connectivity, upgrading retail centers, meeting hospitality need, and expanding marketing. Total $175,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 351 383 Planning - Economic Development Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 11,852 11,852 Total Expenditures 652 215,934 123,282 508,547 Fund Balance - - - - General Fund Costs $ 652 $ 186,330 $ 123,282 $ 508,547 STAFFING Total current authorized positions – 1.00 There are no changes to the current level of staffing. Total recommended positions – 1.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 29,604 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 29,604 - - Expenditures Employee Compensation 517 74,722 61,800 150,693 Employee Benefits 135 22,257 2,135 63,082 Materials - 35,862 45,150 30,650 Contract Services - 66,822 - 49,000 Cost Allocation - 16,272 2,345 28,270 Capital Outlay - - - - Special Projects - - - 175,000 352 384 HOUSING SERVICES - CDBG GENERAL ADMINISTRATION Budget Unit 260-72-707 Budget at a Glance Total Revenues 62,918 Total Expenditures 88,814 Fund Balance (25,896) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.53 PROGRAM OVERVIEW The General Administration of the Community Development Block Grant (CDBG) federal entitlement program consists of the overall program administration costs, including staff time and employee benefits. The CDBG program is a federal entitlement program which serves low and very-low income Cupertino residents. SERVICE OBJECTIVES • Prepare and submit an Annual Plan yearly to the Department of Housing and Urban Development (HUD). • Prepare and submit CAPER on annual basis to HUD. • Prepare and submit to HUD a Consolidated Plan every 5-7 years. • Meet quarterly with Santa Clara County CDBG Coordinators. • Conduct two public hearings per year to allocate CDBG funding. PROPOSED BUDGET It is recommended that a budget of $88,814 be approved for the CDBG General Administration Budget. This represents an increase of $25,046 from the FY 2016-17 Final Adopted Budget. The proposed budget covers staff time and benefits to administer CDBG grants and is determined by a percentage of total CDBG funding. The increase is due to increases in staff allocation. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 353 385 Housing Services - CDBG General Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 61,564 56,323 63,768 88,814 Fund Balance (61,564) (56,323) (850) (25,896) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.43 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.53 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 62,918 62,918 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 62,918 62,918 Expenditures Employee Compensation 43,213 39,957 44,820 54,531 Employee Benefits 18,018 16,071 18,948 29,215 Materials - - - - Contract Services 334 295 - - Cost Allocation - - - 5,068 Capital Outlay - - - - Special Projects - - - - 354 386 HOUSING SERVICES - AFFORDABLE HOUSING Budget Unit 260-72-709 Budget at a Glance Total Revenues 204,484 Total Expenditures 284,484 Fund Balance (80,000) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW This portion of the CDBG program encompasses grants and loans to non-profit developers and agencies to purchase land and units for affordable housing. SERVICE OBJECTIVES • Issue RFPs on an annual basis for affordable housing development projects. • Make funding recommendations to Housing Commission and City Council. • Coordinate entitlement process with the Planning Division for affordable development projects. • Monitor project progress of grantees through construction phase. • Coordinate CEQA/NEPA process for all affordable developments. • Review quarterly reports from developers and enter data into HUD IDIS program. • Coordinate preparation of all grant and loan agreements, Deeds of Trust, Promissory Notes and Regulatory Agreements. PROPOSED BUDGET It is recommended that a budget of $284,484 be approved for the Affordable Housing Budget. This represents a decrease of $0 from the FY 2016-17 Final Adopted Budget. The recommended budget is determined by federal CDBG funding. This budget is funded from $204,484 in grant revenue and $80,000 in fund balance. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 355 387 Housing Services - Affordable Housing Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 532,077 366,928 284,484 284,484 Fund Balance (532,077) (366,928) (80,000) (80,000) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 204,484 204,484 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 204,484 204,484 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 532,077 366,928 284,484 284,484 Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 356 388 HOUSING SERVICES - PUBLIC SERVICE GRANTS Budget Unit 260-72-710 Budget at a Glance Total Revenues 47,188 Total Expenditures 47,188 Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW Fifteen percent of the City of Cupertino’s CDBG entitlement is reserved for grants to nonprofit agencies serving low and very low income Cupertino residents. The agencies provide services such as food assistance, job training, emergency housing, legal assistance, etc. SERVICE OBJECTIVES • On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each sub-recipient awarded funding through this program. • On a bi-annual basis, issue RFP for grants, review grant applications, and make funding recommendations. • Make presentation to City Council on funding recommendations. • On an annual basis, prepare grant agreement or amend grant agreement for each grantee. PROPOSED BUDGET It is recommended that a budget of $47,188 be approved for the Public Service Grants Budget. This represents a decrease of $0 from the FY 2016-17 Final Adopted Budget. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 357 389 Housing Services - Public Service Grants Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 48,141 45,982 47,188 47,188 Fund Balance (48,141) (45,982) - - General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 47,188 47,188 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 47,188 47,188 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 48,141 45,982 47,188 47,188 Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 358 390 HOUSING SERVICES - BMR HOUSING Budget Unit 265-72-711 Budget at a Glance Total Revenues 1,000,000 Total Expenditures 8,610,724 Fund Balance (7,610,724) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.27 PROGRAM OVERVIEW This program covers administration of the Below Market Rate (BMR) Housing program. SERVICE OBJECTIVES •Contract with BMR Housing administrator on an annual basis. •Prepare and monitor agreement for services between the City of Cupertino and administrator. •Review quarterly reports submitted by administrator. •Process quarterly reimbursement requests from administrator. •Provide technical assistance to administrator in the administration of the BMR program. •Review lot book reports prepared by independent contractor for each of the ownership BMR units in the BMR program. •Review and maintain “Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units.” •Review and maintain Inclusionary Housing Program Manual. •MidPeninsula below market rate (BMR) housing project. PROPOSED BUDGET It is recommended that a budget of $8,610,724 be approved for the BMR Housing Budget. This represents an increase of $4,499,141 from the FY 2016-17 Final Adopted Budget. The proposed increase is attributed primarily to the request for $8,000,000 for Below Market Rate Affordable Housing Fund capital and housing projects, compared to the $3,500,000 budgeted in FY 2016-17. The proposed budget also includes legal consultation and maintains funding levels for grants. 359 391 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Below Market Rate Affordable Housing Fund Notice of Funding Availability $8,000,000 3% interest over 30 year loan term. All outstanding interest and principal will be due in full and payable on or by the maturity date BMH Housing Fund BMR AHF funds must be used for eligible housing projects that will serve low and/or moderate-income households located within the City of Cupertino jurisdiction limits. The City may award and appropriate funds to one or more eligible projects. Project Requirements: BMR AHF housing project funds will not be granted or issued as forgivable loans. The City invites eligible non-profit and for profit Development Entities (DEs) to submit proposals for eligible funding activities which include, but are not limited to: • Land acquisition • New construction • Acquisition and/or rehabilitation of buildings for permanent affordability • Substantial rehabilitation Project Affordability Requirements: BMR AHF affordable rental and/or ownership housing proposals must meet the City BMR requirements and offer 99 years of affordability. An affordable regulatory agreement will be recorded against the property to ensure affordability. Total $8,000,000 360 392 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Housing Services - BMR Housing Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 472,301 384,745 4,111,583 8,610,724 Fund Balance (472,301) (384,745) 11,001,696 (7,610,724) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.37 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.27 Budget Revenues Taxes - - 15,113,279 1,000,000 Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 15,113,279 1,000,000 Expenditures Employee Compensation 32,004 34,382 41,566 28,779 Employee Benefits 12,539 13,522 16,047 14,883 Materials 269,911 239,411 281,070 227,580 Contract Services 41,357 96,279 272,900 336,900 Cost Allocation - 1,152 - 2,582 Capital Outlay - - - - Special Projects 116,491 - 3,500,000 8,000,000 361 393 HOUSING SERVICES - HUMAN SERVICE GRANTS Budget Unit 100-72-712 Budget at a Glance Total Revenues - Total Expenditures 41,836 Fund Balance - General Fund Costs 41,836 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The City of Cupertino sets aside $40,000 from its General Fund for non-profit agencies providing services to Cupertino low and very-low income. SERVICE OBJECTIVES •On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each sub-recipient of this program. •On a bi-annual basis, issue RFP for grants, review grant applications, and make funding recommendations. •Present funding recommendations to City Council. •On an annual basis, prepare or amend grant agreement for each grantee. PROPOSED BUDGET It is recommended that a budget of $41,836 be approved for the Human Service Grants Budget. This represents a decrease of $74 from the FY 2016-17 Final Adopted Budget. The recommended budget maintains $40,000 in grant funding for services to low income Cupertino residents. The decrease is due to changes in the cost allocation program. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 362 394 Housing Services - Human Service Grants 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 40,000 39,882 41,910 41,836 Fund Balance - - - - General Fund Costs $ 40,000 $ 39,882 $ 41,910 $ 41,836 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - 40,000 Contract Services 40,000 39,882 40,000 - Cost Allocation - - 1,910 1,836 Capital Outlay - - - - Special Projects - - - - 363 395 BUILDING - GENERAL BUILDING Budget Unit 100-73-713 Budget at a Glance Total Revenues 721,000 Total Expenditures 791,962 Fund Balance - General Fund Costs 70,962 % Funded by General Fund 9.0% Total Staffing 2.70 PROGRAM OVERVIEW The General Building program protects residents of Cupertino by enforcing standards to safeguard life, health, safety and welfare of residents, workers, and visitors to Cupertino through effective administration and enforcement of adopted codes and ordinances, which regulate the design, construction, use, occupancy, location and maintenance of all buildings and structures. SERVICE OBJECTIVES •Provide efficient and friendly service that will assist customers with their building permit goals and objectives; continue to streamline the workflow process to provide efficient and friendly customer service. •Work proactively to enhance the public interface and information systems. •Continue efforts to create a more effective records management system and land use data system using Geographic Information System (GIS). •Increase staff knowledge through in-house training, meetings and seminars PROPOSED BUDGET It is recommended that a budget of $791,962 be approved for the General Building Budget. This represents an increase of $33,017 from the FY 2016-17 Final Adopted Budget. The increase is primarily attributed to changes in how the city applied these charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. There is a decrease in special projects charges due to the fact that the budget for special projects, such as digitizing historical building records, are anticipated to be completed. 364 396 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Building - General Building Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 2,976 2,976 Total Expenditures 540,000 611,345 758,945 791,962 Fund Balance - - - - General Fund Costs $ 111,246 $ (1,367,858) $ 37,945 $ 70,962 STAFFING Total current authorized positions – 2.75 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 2.70 Budget Revenues Taxes - - - - Licenses and Permits 428,753 1,978,792 721,000 721,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 286 - - Fines and Forfeitures - - - - Miscellaneous Revenue - 125 - - Interdepartmental Revenue - - - - Total Revenues 428,753 1,979,203 721,000 721,000 Expenditures Employee Compensation 275,438 299,039 338,810 375,719 Employee Benefits 110,045 114,572 130,443 145,524 Materials 14,405 16,649 17,692 24,895 Contract Services 19,323 35,302 7,886 6,736 Cost Allocation 84,960 70,224 193,138 236,112 Capital Outlay - - - - Special Projects 35,828 75,559 68,000 - 365 397 BUILDING - BUILDING PLAN REVIEW Budget Unit 100-73-714 Budget at a Glance Total Revenues 335,000 Total Expenditures 1,283,854 Fund Balance - General Fund Costs 948,854 % Funded by General Fund 73.9% Total Staffing 5.90 PROGRAM OVERVIEW The Building Plan Review program is responsible for the timely and accurate review and approval of plans and specifications for all residential, commercial and industrial permit applications for buildings and structures to ensure the proposed design meets or exceeds the minimum life safety, plumbing, mechanical, electrical, accessibility, energy and structural safety standards of all governing codes. SERVICE OBJECTIVES •Provide a streamlined building plan review system that will ensure plans comply with all applicable state and local codes and ordinances. •Continue to streamline the internal application processing system and permit review process. •Confer with design professionals on project application and pre-application meetings. •Provide general code information for property owners, design professionals, developers, contractors and the general public. •Assist building inspectors in difficult or unusual code interpretation as it applies to various buildings and structures. •Assist in training of building inspectors and permit technicians in conducting residential and minor commercial plan review. PROPOSED BUDGET It is recommended that a budget of $1,283,854 be approved for the Building Plan Review Budget. This represents a decrease of $200,435 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributed to carrying over special projects and contract services, and more accurately anticipating material expenses. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 366 398 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Building - Building Plan Review Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 41,663 41,663 Total Expenditures 1,442,548 1,950,512 1,484,289 1,283,854 Fund Balance - - - - General Fund Costs $ (511,429) $ 786,586 $ 74,289 $ 948,854 STAFFING Total current authorized positions – 5.40 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 5.90 Budget Revenues Taxes - - - - Licenses and Permits (5,500) - - 200,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 1,959,477 1,064,615 1,410,000 135,000 Fines and Forfeitures - - - - Miscellaneous Revenue - 99,311 - - Interdepartmental Revenue - - - - Total Revenues 1,953,977 1,163,926 1,410,000 335,000 Expenditures Employee Compensation 389,113 510,584 560,105 631,006 Employee Benefits 156,137 196,911 228,532 269,478 Materials 4,417 8,960 14,230 10,475 Contract Services 118,200 136,128 160,767 9,167 Cost Allocation 54,312 54,312 231,492 322,065 Capital Outlay - - - - Special Projects 720,369 1,043,616 247,500 - 367 399 BUILDING - BUILDING CODE ENFORCEMENT Budget Unit 100-73-715 Budget at a Glance Total Revenues 1,225,000 Total Expenditures 1,349,597 Fund Balance - General Fund Costs 124,597 % Funded by General Fund 9.2% Total Staffing 5.25 PROGRAM OVERVIEW The Building Inspection program is responsible for the construction inspection of all new and existing buildings and structures for conformity with approved plans and permits, and for compliance with state and local building code requirements. The program also responds to emergency situations and complaints of unsafe structures, work without permits, and prepares Notices of Violation as necessary. Unabated cases are referred to the Code Enforcement Division for further action. SERVICE OBJECTIVES • Build and maintain a positive working relationship with co-workers, other city employees and the general public using principles of quality customer service. • Build and maintain a partnership with property owners, developers and contractors to help our customers meet their building occupancy goals. • Perform building inspections within 48 hours of receiving the request. • Consistently and accurately document non-complying code issues to ensure proper and safe installation of routine and complex building systems. • Ensure that minimum building code safety requirements are met in all phases of construction for structural, electrical, plumbing, mechanical and accessibility installations. • Educate community members about life and safety inspection issues as they occur before and during the construction process. • Work with owners, developers and contractors to implement principles of green building as required in the CALGreen Building Code and Cupertino green building requirements. PROPOSED BUDGET It is recommended that a budget of $1,349,597 be approved for the Building Code Enforcement Budget. This represents a decrease of $496,243 from the FY 2016-17 Final Adopted Budget. 368 400 The decrease is primarily attributed to the fact that special projects are expected to be completed. Increase in contract services reflects an increase in credit card fees. This covers credit card fees for all transactions for Public Works, Planning and all Building divisions. The recommended budget allocates more money to pay these fees and explore mobile payment options to improve customer service and convenience. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Building - Building Code Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency 622 - 7,464 7,464 Total Expenditures 3,326,227 5,046,460 1,845,840 1,349,597 Fund Balance - - - - General Fund Costs $ 2,441,083 $ (959,824) $ 91,840 $ 124,597 Budget Revenues Taxes - - - - Licenses and Permits 238,925 1,072,670 1,754,000 1,200,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 646,219 4,526,986 - 25,000 Fines and Forfeitures - - - - Miscellaneous Revenue - 406,630 - - Interdepartmental Revenue - - - - Total Revenues 885,145 6,006,285 1,754,000 1,225,000 Expenditures Employee Compensation 525,460 535,388 570,342 628,356 Employee Benefits 211,444 221,719 246,537 259,949 Materials 11,953 13,584 24,936 22,500 Contract Services 172,981 537,990 49,906 109,456 Cost Allocation 71,424 109,560 262,655 321,872 Capital Outlay - - - - Special Projects 2,332,343 3,628,220 684,000 - 369 401 STAFFING Total current authorized positions – 5.85 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 5.25 370 402 BUILDING - MUNICIPAL CODE ENFORCEMENT Budget Unit 100-73-718 Budget at a Glance Total Revenues - Total Expenditures 311,082 Fund Balance - General Fund Costs 311,082 % Funded by General Fund 100.0% Total Staffing 1.25 PROGRAM OVERVIEW The Community Development Code Enforcement Program provides for the enforcement of various provisions of the municipal code relating to nonconforming land use and building code compliance. These activities include building without permits, unpermitted removal of protected trees, nonconforming accessory structures, various use permit violations, private residential fence height/setback violations, and nonconforming signs. Assistance is provided to Planning and Building Division staff in the resolution of different code violations and land use concerns, which are contrary to the municipal code. SERVICE OBJECTIVES •Respond to citizen, City department, or outside agency referrals within 48 hours. •Provide services with an emphasis on community education and customer service. •Enforce the codes in a fair, equitable, and objective manner. PROPOSED BUDGET It is recommended that a budget of $311,082 be approved for the Municipal Code Enforcement Budget. This represents an increase of $34,908 from the FY 2016-17 Final Adopted Budget. This increase is primarily attributed to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 371 403 Building - Municipal Code Enforcement Category 2015 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - 1,309 1,309 Total Expenditures 296,537 249,168 276,174 311,082 Fund Balance - - - - General Fund Costs $ 283,799 $ 249,168 $ 276,174 $ 311,082 STAFFING Total current authorized positions – 1.25 There are no changes to the current level of staffing. Total recommended positions – 1.25 Budget Revenues Taxes - - - - Licenses and Permits 12,738 - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 12,738 - - - Expenditures Employee Compensation 155,164 107,697 121,941 129,989 Employee Benefits 63,299 45,053 50,054 55,733 Materials 8,241 1,647 9,419 7,750 Contract Services 4,697 29,636 5,530 7,300 Cost Allocation 65,136 65,136 87,921 109,001 Capital Outlay - - - - Special Projects - - - - 372 404 Public Works Administration Environmental Programs Developmental Services Service Center Grounds Streets Trees and Right of Way Facilities and Fleet Transportation Fixed Asset Acquisition 405 Director of Public Works Assistant Director of Public Works Environmental Programs Manager Enviromental Programs Assistant (2) Environmental Compliance Technician Environmental Specialist Utility & Efficiency Analyst 2-year limited term Service Center Superintendent Streets Supervisor Administrative Assistant Service Center Facilities & Fleet Supervisor Grounds Supervisor Asset Management Technician Trees & ROW Supervisor Capital Improvement Program Manager Public Works Project Manager (2) Development Services Senior Civil Engineer Associate Civil Engineer- Development Public Works Inspector Senior Engineering Technician Management Analyst Administrative Assistant City Hall Transportation Senior Civil Engineer Traffic Signal Technician (2) Associate Civil Engineer- Transportation Associate Civil Engineer 2-year limited term Safe Routes to School Community Coordinator 373 406 PUBLIC WORKS Budget Unit 2018 Proposed Administration $ 766,715 100-80-800 Public Works Administration 766,715 Environmental Programs $ 4,031,482 520-81-801 Resource Recovery 3,269,762 230-81-802 Non Point Source 761,720 Developmental Services $ 2,972,145 100-82-804 Plan Review 2,117,716 100-82-806 CIP Administration 854,429 Service Center $ 1,804,912 100-83-807 Service Center Administration 1,804,912 Grounds $ 4,166,680 100-84-808 McClellan Ranch Park 82,847 100-84-809 Memorial Park 747,097 100-84-812 School Site Maintenance 996,892 100-84-813 Neighborhood Parks 1,554,798 100-84-814 Sport Fields Jollyman, Creekside 593,604 100-84-815 Civic Center Ground Maintenance 191,442 Streets $ 11,153,664 100-85-818 Storm Drain Maintenance 449,950 270-85-820 Sidewalk Curb and Gutter 1,085,525 270-85-821 Street Pavement Maintenance 6,744,384 270-85-822 Street Sign Marking 831,990 100-85-848 Street Lighting 605,360 630-85-849 Equipment Maintenance 1,251,239 100-85-850 Environmental Materials 185,216 Trees and Right of Way $ 3,146,213 100-86-824 Overpasses and Medians 1,453,793 100-86-825 Street Tree Maintenance 1,251,142 100-86-826 Weekend Work Program 441,278 374 407 Facilities and Fleet $ 3,811,690 100-87-827 City Hall 629,738 100-87-828 Library 334,605 100-87-829 Service Center 314,654 100-87-830 Quinlan Center 504,647 100-87-831 Senior Center 248,657 100-87-832 McClellan Ranch 146,444 100-87-833 Monta Vista Community Center 150,687 100-87-834 Wilson Park 67,491 100-87-835 Portal Park 58,766 570-87-836 Sports Center 484,623 100-87-837 Creekside Park 85,913 100-87-838 Community Hall 267,259 100-87-839 Teen Center 47,033 100-87-840 Park Bathrooms 154,965 100-87-841 Blackberry Farm Facilities Maintenance 298,208 100-87-852 Franco Traffic Operations Center 18,000 Transportation $ 1,839,518 100-88-844 Traffic Engineering 979,024 100-88-845 Traffic Signal Maintenance 713,733 100-88-846 Safe Routes 2 School 146,761 Non Departmental $ 1,029,200 210-90-978 Minor Storm Drain Improvement - 630-90-985 Fixed Assets Acquisition 1,029,200 Total $ 34,722,219 375 408 Final Budget Fund Balance (7,467,949) (6,913,651) (9,067,140) (4,220,221) General Fund Costs $ 13,085,066 $ 18,581,662 $ 20,821,164 $ 21,410,764 PROPOSED BUDGET It is recommended that a budget of $34,722,219 be approved for the Public Works Budget. This represents a decrease of $516,842 from the FY 2016-17 Final Adopted Budget. 2018 2015 2016 2017 DEPARTMENT SUMMARY Public Works Category Actual Actual Proposed Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 138,921 177,122 140,700 236,700 Intergovernmental Revenue 294,079 - - 1,816,000 Charges for Services 9,884,936 5,853,628 4,588,057 6,821,074 Fines and Forfeitures 2,724 6,387 502,000 6,000 Miscellaneous Revenue 19,148 167,843 120,000 211,460 Interdepartmental Revenue - - - - Total Revenues 10,339,808 6,204,979 5,350,757 9,091,234 Expenditures Employee Compensation 6,180,282 6,638,218 7,373,774 7,944,977 Employee Benefits 2,813,617 3,096,342 3,507,566 3,721,114 Materials 2,626,250 2,689,509 3,004,602 3,558,012 Contract Services 3,987,371 4,436,018 5,350,615 5,273,301 Cost Allocation 2,765,505 2,667,888 4,762,210 3,470,186 Capital Outlay 280,163 76,197 190,000 85,000 Special Projects 12,239,635 12,096,121 10,630,314 10,248,669 Appropriations for Contingency - - 419,980 420,960 Total Expenditures 30,892,822 31,700,292 35,239,061 34,722,219 376 409 PROPOSED EXPENDITURES FY 2017-2018 $1,804,912 (5%) $1,839,518 (5%) $2,972,145 (9%) $3,146,213 (9%) $3,811,690 (11%) $11,153,664 (32%) $4,166,680 (12%) Streets Grounds Environmental Programs Facilities and Fleet Trees and Right of Way Developmental Services Transportation Service Center Citywide - Non Departmental Administration $4,031,482 (12%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 30.9 31.7 35.2 34.7 $766,715 (2%) $1,029,200 (3%) 377 410 City of Cupertino FY17/18 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaborati on. So that… So that… So that… So that… So that… So that… CAPITAL PROJECT DELIVERY GOAL: Deliver capital projects on time and within budget. DEVELOPMENT SERVICES GOAL: Provide timely review and permitting of privately completed improvements within the public right of way. Measure Ongoing Target Respond to complete plan submittals or applications within two (2) weeks 90% Respond to public inquiries at the Public Works counter in City Hall within 15 minutes. 95% Measure Ongoing Target Projects are on budget 80% Projects are on time 80% Residents and businesses are assured their community is being improved by efficient use of taxes and fees. Customers expect quality reviews and permitting on a defined schedule. Public Works Department reviews improvements within the public right of way. Projects are constructed to an approved standard by a well-trained staff. with a customer focus Projects are utilized by the community. City funds capital improvement projects. 378 411 City of Cupertino FY17/18 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaborati on. So that… DEPENDABLE INFRASTRUCTURE GOAL: Timely maintain levels of service to meet community and environment requirements at optimal life-cycle costs. Measure Ongoing Target Pavement condition index (PCI) > or equal to 82* 82 Respond to reported issues within one (1) business day: Storm drain system Street markings & signs Sidewalk and pathway Playground equipment 100% 100% 100% 100% Respond to reported issues within two (2) business days: Remove graffiti Streetlight outages 100% 100% Respond within one (1) hour on any reported safety issue regarding traffic signals 100% The City consistently funds infrastructure maintenance and safety improvement programs. So that… Infrastructure indicates good condition; safety programs are effective. So that… Cupertino has well maintained infrastructure and programs that meets the needs of the community. 379 412 City of Cupertino FY17/18 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaborati on. So that… So that… So that… So that… So that… ENVIRONMENT GOAL: Protect our natural environment for current and future generations . Measure Ongoing Target Respond to reports of actual or potential discharge the same business day 80% Percent of businesses in compliance during annual proactive inspections 75% Tons of waste entering landfill (does not include self-haul or material to landfills other than Newby Island) =< 27,000 Diversion Rates rate By employment1: By population1: Commercial only2: 75% 75% 60% Number of all business and multifamily accounts separating organics out of 496 50% Number of outreach site visits, workshops, events and activities to inform residents and businesses 150 % of street, median, and park trees maintained according to th Urban Forest Workplan3 100% Number of trees planted compared to number of trees removed 110% All new vehicle purchases are to be hybrid and/or electric only models 90% 1 CalRecycle has a 12 month lag in reporting. Data is for calendar year 2016. 2 Does not include business donations, back haul, or other source reduction, etc. 3 Urban Forest Workplan Updated November 2016 City is responsible for a comprehensive storm water pollution prevention program. Potential pollutants are stopped before entering the storm drain system. City implements solid waste collection services that encourage diversion of waste from landfills. City is responsible for the maintenance and enhancement of the urban forest. Cupertino’s urban forest is resilient, healthy and safe. Vehicles purchased have the least environmental impact possible. Diversion of solid waste from landfill is maximized, compost is produced for community use, recyclable material is sold to help offset collection costs and methane gas emissions at landfills are reduced. So that… Current and future residents enjoy a healthy, sustainable environment. So that… 380 413 ADMINISTRATION – PUBLIC WORKS ADMINISTRATION Budget Unit 100-80-800 Budget at a Glance Total Revenues - Total Expenditures 766,715 Fund Balance - General Fund Costs 766,715 % Funded by General Fund 100.0% Total Staffing 3.25 PROGRAM OVERVIEW The Public Works Department is comprised of the following eight divisions: •Development Services (including inspection services) •Capital Improvement Program •Administration •Environmental •Programs •Transportation •Facilities and Fleet •Trees and Right-of-Way •Grounds •Streets SERVICE OBJECTIVES •Provide capital project delivery, development plan check, permitting and inspection, solid waste and recycling services, storm water quality compliance, and public works maintenance services in a responsive and efficient manner by continuously adapting programs and resources to meet the community’s expectations. •Provide response within 24 hours to the community on complaints and requests for services. Plan and program maintenance of the City’s public facilities and infrastructure. •Program and deliver Capital Improvement Projects in a timely and cost-efficient manner. Work with operating departments and the community to ensure projects meet expectations. •Collaborate with Community Development to efficiently deliver predictable, responsive and efficient development services. •Represent the City on county and regional issues such as congestion management, and mobility and transit planning. 381 414 •Manage and adapt traffic operations to efficiently move traffic and protect neighborhoods. •Oversee and manage stormwater, solid waste and recycling programs. PROPOSED BUDGET It is recommended that a budget of $766,715 be approved for the Administration Budget. This represents a decrease of $765,136 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting an increase for two part-time Office Assistant positions for records conversion. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 382 415 Public Works Administration - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,673 1,673 Total Expenditures 573,428 738,804 1,531,851 766,715 Fund Balance - - - - General Fund Costs $ 573,428 $ 738,804 $ 1,265,613 $ 766,715 STAFFING Total current authorized positions – 3.25 There are no changes to the current level of staffing. Total recommended positions – 3.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 266,238 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 266,238 - Expenditures Employee Compensation 357,831 390,476 422,641 496,848 Employee Benefits 144,116 158,765 170,796 177,553 Materials 13,131 14,438 17,839 18,839 Contract Services 521 2,297 2,000 2,000 Cost Allocation 57,828 57,828 801,902 69,802 Capital Outlay - - - - Special Projects -115,000 115,000 - 383 416 ENVIRONMENTAL PROGRAMS - RESOURCE RECOVERY Budget Unit 520-81-801 Budget at a Glance Total Revenues 2,246,000 Total Expenditures 3,269,762 Fund Balance (1,023,762) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 4.30 PROGRAM OVERVIEW The Resource Recovery program manages the City’s garbage and recycling franchised hauler contract and provides garbage and recycling customer service for residents and business owners; develops and implements programs and policy to comply with AB 939 source reduction and recycling mandates; manages the City’s state-permitted residential household hazardous waste (HHW) door-to-door collection and disposal service; oversees the free compost giveaway at Stevens Creek Quarry and the associated property lease and trucking agreement for the compost site; and represents the City on countywide committees. The public education and outreach programs led by this division include visits to businesses and apartment complexes to provide recycling instruction, kitchen containers and visual materials; presentations at events and schools and employee training for businesses on-site as needed. The program coordinates many complimentary activities with the Sustainability program in the Office of the City Manager. SERVICE OBJECTIVES •Meet State AB 939 requirements to divert a minimum of 50% of Citywide waste from landfill and achieve the State (AB 341) goal of 75% diversion by 2020. •Help businesses implement the City’s Mandatory Organics Recycling ordinance (6.24.037) which ensures compliance with AB 1826. •Assist businesses and multi-family properties (garbage generators of 4 cubic yards or more per week) with preparations to comply with mandatory organics recycling by July 1, 2018. •Provide landlords and property owners with support and educational materials for their tenants. •Visit the management of each multi-family complex to encourage participation in a knock and talk campaign whereby City staff distribute free kitchen pails and tips to help residents separate kitchen food waste prior to taking it to a central garbage and recycling area. •Provide contract oversight and customer service for garbage and recycling collection, yard waste processing, composting and household hazardous waste collection. •Manage community events such as the citywide Garage Sale and the spring and 384 417 summer free compost give-away for residents. •Assist CUSD and high school teachers and students with student recycling and composting projects related to teachers’ curriculum and the City’s environmental initiatives. PROPOSED BUDGET It is recommended that a budget of $3,269,762 be approved for the Resource Recovery Budget. This represents an increase of $72,298 from the FY 2016-17 Final Adopted Budget. This program is requesting an increase for a 0.5 FTE environmental programs intern, materials for direct outreach items for the organics roll-out to multi-family homes and telephone and data plan expenses for devices supported. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 385 418 Environmental Programs - Resource Recovery 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 2,548,461 2,997,198 3,197,464 3,269,762 Fund Balance (1,769,833) (482,262) (3,197,464) (1,023,762) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 4.35 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 4.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 25,000 Intergovernmental Revenue - - - 15,000 Charges for Services 778,628 2,514,936 -2,150,000 Fines and Forfeitures - - -- Miscellaneous Revenue - - - 56,000 Interdepartmental Revenue - - -- Total Revenues 778,628 2,514,936 -2,246,000 Expenditures Employee Compensation 364,001 391,163 433,953 470,408 Employee Benefits 108,174 133,047 184,838 208,450 Materials 14,664 23,280 21,760 23,410 Contract Services 1,982,445 2,368,232 2,401,000 2,401,000 Cost Allocation 79,177 81,476 155,913 166,494 Capital Outlay - - - - Special Projects - - - - 386 419 ENVIRONMENTAL PROGRAMS - NON POINT SOURCE Budget Unit 230-81-802 Budget at a Glance Total Revenues 386,000 Total Expenditures 761,720 Fund Balance (291,598) General Fund Costs 84,122 % Funded by General Fund 11.0% Total Staffing 1.97 PROGRAM OVERVIEW The Non-Point Source program manages the City’s compliance with its State-mandated Municipal Regional Stormwater NPDES Permit (MRP 2.0, reissued with changes effective January 1, 2016); provides program and policy development and implementation of state-mandated activities including complaint response and enforcement programs; conducts annual interdepartmental staff training, scheduled business and construction site inspections and review of private development plans to ensure compliance with low impact development (LID); and new Green Infrastructure Plan development requirements. The program is responsible for calculating storm drain fees annually to submit to the County for collection on property tax bills, writing an annual report to the Regional Water Quality Control Board to verify and document the City’s compliance with Clean Water Act mandates; and engaging and educating the public via articles in the Cupertino Scene, webpage development, visits to businesses and presentations at local schools, De Anza College and community events. Public participation events include two or more annual volunteer creek cleanup days, a water quality monitoring day at Blackberry Farm, Earth Day and various countywide collaborative events. Implementation and annual progress assessment of the City’s eight-year litter reduction plan (approved by Council in January 2014) are among the requirements of the City’s Non-Point Source program. SERVICE OBJECTIVES •Oversee the City’s compliance with the Municipal Regional Stormwater Permit (MRP 2.0) with regard to water pollution prevention, erosion control, conserving water •as a resource (e.g. infiltration rather than runoff), and low impact development (LID) via the City's permit application process and conditions of approval. •Coordinate urban runoff pollution and erosion prevention activities with other departments divisions and private businesses. •Mandated activities include: catch basin cleaning; postconstruction oversight of permanent stormwater treatment measures installed at private new and redeveloped sites; implementation of, and annual progress assessments for the eight-year litter reduction plan; oversight of construction best management practices during private and public construction; inspection of grease-generating and wet-waste food facilities and other businesses to prevent water polluting discharges; complaint response and 387 420 investigation to protect water quality; and education of staff and local businesses on best management practices for outdoor storage and activities. •Represent the City on county and regional committees to prevent creek and San Francisco Bay pollution, erosion and illegal dumping. PROPOSED BUDGET It is recommended that a budget of $761,720 be approved for the Non Point Source Budget. This represents an increase of $90,107 from the FY 2016-17 Final Adopted Budget. This increases in salary and benefits are due to staffing reallocation among department budgets to more accurately reflect the work performed. The increase in special projects is described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Storm Water Rate Study $13,000 $13,000 General Fund City Council Work Program Item Total $13,000 $13,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 388 421 Environmental Programs - Non Point Source 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 19,610 19,610 Total Expenditures 456,935 497,048 671,613 761,720 Fund Balance (454,111) (361,985) (40,934) (291,598) General Fund Costs $ - $ 128,676 $ 128,679 $ 84,122 STAFFING Total current authorized positions – 1.87 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.97 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 100 - - 380,000 Fines and Forfeitures 2,724 6,387 502,000 6,000 Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 2,824 6,387 502,000 386,000 Expenditures Employee Compensation 144,101 164,321 196,130 225,172 Employee Benefits 60,092 72,062 86,691 135,524 Materials 3,885 6,119 8,027 8,027 Contract Services 195,842 201,567 292,500 307,000 Cost Allocation 53,015 52,980 68,655 66,387 Capital Outlay - - - - Special Projects - - - - 389 422 DEVELOPMENTAL SERVICES - PLAN REVIEW Budget Unit 100-82-804 Budget at a Glance Total Revenues 1,374,529 Total Expenditures 2,117,716 Fund Balance - General Fund Costs 743,187 % Funded by General Fund 35.1% Total Staffing 4.50 PROGRAM OVERVIEW The Development Services Division is comprised of two areas: •Development Services - reviews plans for private developments and utility encroachments to ensure conformance with City standards and policies. •Inspection Services - ensures compliance with City standards and approved plans on all public and private developments, and utility projects. SERVICE OBJECTIVES •Ensure that private development projects provide necessary supporting infrastructure, and that potential impacts on the community are mitigated. •Place safety of the general public, City employees and construction workers as the highest priority on construction sites. •Inspect utility encroachment permits for work within the City right-of-way and return streets and sidewalks to City standards. •Ensure compliance with stormwater permit and prevent runoff from polluting nearby watersheds. Work closely with the Environmental Programs Division to continue inspecting jobsites before, during and after each rain event and conduct annual inspections of all Post Construction Treatments and Stormwater Pollution Prevention Plan (SWPPP) compliance. •Respond to public inquiries or complaints in a timely manner. •Provide aid and information to other City Divisions and Departments, including Community Development, Building, Capital Improvements, City Attorney’s Office, Service Center and Recreation and Community Services, as needed to facilitate private developments and public infrastructure projects. 390 423 PROPOSED BUDGET It is recommended that a budget of $2,117,716 be approved for the Plan Review Budget. This represents an increase of $1,105,492 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in salary and benefits are due to the reallocation of the Associate Civil Engineer position to be included in this program. The increase special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Wireless Facilities Master Plan $100,000 $100,000 General Fund City Council Work Program Item Apple 2 Phase 2 Public Works Inspections $943,069 $943,069 Pass through revenues* Apple 2 Phase 2 Total $1,043,069 $1,043,069 * Cost recovered The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 391 424 Developmental Services - Plan Review Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 5,284 5,284 Total Expenditures 1,867,742 2,085,742 1,012,224 2,117,716 Fund Balance - - - - General Fund Costs $ 679,687 $ (89,815) $ (197,776) $ 743,187 STAFFING Total current authorized positions – 4.60 The position currently classified as a Senior Civil Engineer has grown in scope, breadth of responsibilities, organizational hierarchy, and subject matter specificity (transportation). The proposed Transportation Manager classification is similar to classifications in other cities in the county, and much more closely captures the current and near-future duties and responsibilities of the position. The scope of this position has grown to include an active and growing Safe Routes to School Program, a significantly increased emphasis to manage and implement the Bicycle Transportation Plan, the Pedestrian Transportation Plan, and the ADA Accessibility Transition Plan. This position also serves as the City’s ADA Coordinator and liaison to the Bicycle and Pedestrian Commission. With the proposed budget for 2017-18, this Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 1,188,055 2,046,228 1,090,000 1,233,069 Fines and Forfeitures - - - - Miscellaneous Revenue -129,330 120,000 141,460 Interdepartmental Revenue --- - Total Revenues 1,188,055 2,175,557 1,210,000 1,374,529 Expenditures Employee Compensation 492,876 514,173 512,928 566,226 Employee Benefits 210,885 235,705 245,073 247,636 Materials 13,724 14,342 25,918 13,768 Contract Services 40,490 102,565 61,000 62,000 Cost Allocation 55,608 60,408 162,021 179,733 Capital Outlay - - - - Special Projects 1,054,160 1,158,550 -1,043,069 392 425 position in proposed to also supervise a Transportation Planner that will focus on transit issues, including school and senior bus and ride-share programs, as well as corporate bus issues and transit funding programs through the VTA’s Measure B program. Organizationally, this position formerly reported to the Assistant Director of Public Works, however for the past four years has reported directly to the Director. Total recommended positions – 4.50 393 426 DEVELOPMENTAL SERVICES - CIP ADMINISTRATION Budget Unit 100-82-806 Budget at a Glance Total Revenues - Total Expenditures 854,429 Fund Balance - General Fund Costs 854,429 % Funded by General Fund 100.0% Total Staffing 3.00 PROGRAM OVERVIEW The Capital Improvement Program (CIP) provides design and construction administration for all capital improvement projects including streets, storm drainage, buildings, parks, and other public facilities. SERVICE OBJECTIVES •Ensure that all public improvements are designed and constructed in accordance with community expectations and City standards. •Provide quarterly CIP status reports to Council and the community. •Place safety of the general public, City employees and workers as the highest priority in the delivery of capital projects. •Respond to public inquiries or complaints in a timely manner. PROPOSED BUDGET It is recommended that a budget of $854,429 be approved for the CIP Administration Budget. This represents a decrease of $320,892 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The decrease in contract services is attributed to reallocating budget for preliminary planning and design to the Capital Improvement Program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 394 427 Developmental Services - CIP Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 18,031 18,031 Total Expenditures 548,835 766,779 1,175,321 854,429 Fund Balance - - - - General Fund Costs $ 548,835 $ 760,029 $ 1,175,321 $ 854,429 STAFFING Total current authorized positions – 3.00 There are no changes to the current level of staffing. Total recommended positions – 3.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue -6,750 - - Interdepartmental Revenue --- - Total Revenues -6,750 - - Expenditures Employee Compensation 337,302 383,109 452,764 476,833 Employee Benefits 114,293 131,209 142,053 155,321 Materials 6,564 8,365 12,500 13,300 Contract Services 57,328 199,300 203,000 103,000 Cost Allocation 33,348 44,796 306,973 87,944 Capital Outlay - - - - Special Projects - - 40,000 - 395 428 SERVICE CENTER - SERVICE CENTER ADMINISTRATION Budget Unit 100-83-807 Budget at a Glance Total Revenues 69,000 Total Expenditures 1,804,912 Fund Balance - General Fund Costs 1,735,912 % Funded by General Fund 96.2% Total Staffing 3.05 PROGRAM OVERVIEW This program manages Public Works maintenance operations that include the major divisions of streets, grounds, trees, medians, facilities and fleet, as well as the minor divisions of signs/markings, storm drain, sidewalk, curb and gutter, overpasses and storm water; provides administrative support for personnel timesheets, general training prioritization and assignment of service calls; provides oversight of various contracted services including street sweeping, janitorial and crossing guard in addition to the weekend work furlough program; and collaborates with Public Works Engineering for asset improvements beyond routine maintenance. SERVICE OBJECTIVES •Create a positive environment that fosters efficiency and innovation for service center employees. •Ensure proper documentation and inventory for trees, sidewalk repair, striping and legends, street signs, vehicle and equipment, streetlights and storm water pollution. •Maintain records of all complaints and requests for services by tracking responses through computer programs and written service request forms. •Maintain productivity units of measure for key tasks performed. •Support Public Works Engineering in the collection of field data, review of improvement drawings and development of capital improvement projects. •Timely manage completion of employee performance reviews, as well as provide timely progressive discipline per City policy when necessary. •Maintain, lead and implement all elements of the Injury and Illness Prevention Program. •Maintain positive, accountable relations with employee bargaining groups. 396 429 PROPOSED BUDGET It is recommended that a budget of $1,804,912 be approved for the Service Center Administration Budget. This represents an increase of $144,585 from the FY 2016-17 Final Adopted Budget. The increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. In addition, this program is requesting an increase in contract services for special projects described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description City Facilities Building Assessment $200,000 $200,000 General Fund City Council Work Program Item Office Improvements $70,000 $70,000 General Fund City-wide work area improvements Total $270,000 $270,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 397 430 Service Center - Service Center Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 23,340 23,340 Total Expenditures 867,146 816,665 1,660,327 1,804,912 Fund Balance - - - - General Fund Costs $ 854,246 $ 785,812 $ 1,660,327 $ 1,735,912 STAFFING Total current authorized positions – 4.70 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.05 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 12,900 30,853 -69,000 Intergovernmental Revenue - - -- Charges for Services - - -- Fines and Forfeitures - - -- Miscellaneous Revenue - - -- Interdepartmental Revenue - - -- Total Revenues 12,900 30,853 -69,000 Expenditures Employee Compensation 287,015 319,502 442,389 406,163 Employee Benefits 123,428 128,424 172,253 168,973 Materials 59,738 56,236 75,745 74,845 Contract Services 141,136 161,961 217,500 217,500 Cost Allocation 200,196 150,276 554,100 644,091 Capital Outlay 55,633 - - - Special Projects -266 175,000 270,000 398 431 GROUNDS - MCCLELLAN RANCH PARK Budget Unit 100-84-808 Budget at a Glance Total Revenues - Total Expenditures 82,847 Fund Balance - General Fund Costs 82,847 % Funded by General Fund 100.0% Total Staffing 0.30 PROGRAM OVERVIEW McClellan Ranch Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. SERVICE OBJECTIVES •The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. •Provide daily general clean up, trash removal, and graffiti removal. •Provide twice annually the mowing of fire breaks per Fire Marshal request in a manner in which wildlife is least impacted. •Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. •Provide logistical support to the Recreation and Community Services Department for all of the City’s special events. PROPOSED BUDGET It is recommended that a budget of $82,847 be approved for the McClellan Ranch Park Budget. This represents an increase of $17,307 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in general supplies and materials for water costs to reflect actual usage and rate increases. The increase in special projects are described in the table below. 399 432 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Fence Replacement $12,000 $12,000 General Fund Fence replacement Total $12,000 $12,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 400 433 Grounds - McClellan Ranch Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,586 1,586 Total Expenditures 59,830 56,875 65,540 82,847 Fund Balance - - - - General Fund Costs $ 59,830 $ 56,875 $ 65,540 $ 82,847 STAFFING Total current authorized positions – 0.30 There are no changes to the current level of staffing. Total recommended positions – 0.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 25,725 23,472 24,956 28,466 Employee Benefits 11,786 11,499 13,173 15,262 Materials 13,007 12,038 13,597 16,577 Contract Services 5,975 6,530 8,000 8,000 Cost Allocation 3,336 3,336 4,228 956 Capital Outlay - - - - Special Projects - - - 12,000 401 434 GROUNDS - MEMORIAL PARK Budget Unit 100-84-809 Budget at a Glance Total Revenues 14,000 Total Expenditures 747,097 Fund Balance - General Fund Costs 733,097 % Funded by General Fund 98.1% Total Staffing 3.80 PROGRAM OVERVIEW Memorial Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Memorial Park is the largest and most utilized park in Cupertino. SERVICE OBJECTIVES The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. •Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. •Provide weekly maintenance that may include mowing and edging of turf areas, spraying of pesticides, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance. •Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs. •Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications, playground woodchip replenishing and preparation of athletic fields for seasonal use. •Maintain all playgrounds in accordance with California playground safety requirements. •Minimize the negative effects of waterfowl to park patrons. •Reduce water consumption wherever practicable. •Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. •Provide logistical support to the Recreation and Community Development Department for all the City’s special events. •Oversight of contracted tree trimming and fence repairs. 402 435 PROPOSED BUDGET It is recommended that a budget of $747,097 be approved for the Memorial Park Budget. This represents an increase of $168,464 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in salary and benefits due to the reallocation of staff and overtime, general supplies for engineering chip for playgrounds and general services for goose abatement and tree work. The decrease in materials is attributed to the pond shut off and therefore no water is needed to service to the ponds. The increase in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description Cement work $50,000 $50,000 General Fund Ramp for lift, mow band, tennis court swale Tennis court light upgrade $85,000 $71,000 $14,000 General Fund Rebate Replace lights for 6 tennis courts with LED Total $135,000 $135,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 403 436 Grounds - Memorial Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 14,096 14,096 Total Expenditures 564,027 492,515 578,633 747,097 Fund Balance - - - - General Fund Costs $ 564,027 $ 492,515 $ 578,633 $ 733,097 STAFFING Total current authorized positions – 3.05 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - 14,000 Interdepartmental Revenue - - - - Total Revenues - - - 14,000 Expenditures Employee Compensation 210,661 201,483 215,798 238,386 Employee Benefits 104,212 98,722 120,422 126,360 Materials 130,184 134,821 152,791 166,231 Contract Services 37,526 7,821 32,550 37,550 Cost Allocation 62,328 49,668 42,976 29,474 Capital Outlay - - - 85,000 Special Projects 19,116 - - 50,000 404 437 GROUNDS - SCHOOL SITE MAINTENANCE Budget Unit 100-84-812 Budget at a Glance Total Revenues 135,000 Total Expenditures 996,892 Fund Balance - General Fund Costs 861,892 % Funded by General Fund 86.5% Total Staffing 4.10 PROGRAM OVERVIEW Under a joint use agreement with the Cupertino Union School District, nine athletic fields and landscape areas, constituting approximately 52 acres, are managed by the Grounds Division of the Public Works Department. These sites include Hyde and Kennedy Middle Schools, Collins, Eaton, Lincoln, Regnart, Faria, Stevens Creek and Garden Gate Elementary Schools. SERVICE OBJECTIVES The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas / athletic fields in the Bay Area. •Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. •Provide weekly maintenance that may include mowing and edging of turf areas, spraying of pesticides and other maintenance. •Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs. •Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing athletic fields for seasonal use. •Maintain school sites for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. •Reduce water consumption wherever practicable. •Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. •Provide logistical support to the Park and Recreation Department for all the City’s special events. PROPOSED BUDGET It is recommended that a budget of $996,892 be approved for the School Site Maintenance Budget. This represents an increase of $227,520 from the FY 2016-17 Final Adopted Budget. 405 438 This program is requesting increases in overtime, materials for field maintenance, and general services for gopher abatement and tree work. This budget includes an increase for water costs due to properly attributing school field irrigation to this budget and to cover rate increases. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Concrete work at Faria School $25,000 $25,000 General Fund Repair raised/cracked cement in dugout- trip hazard Water Supply at Collins School $50,000 $50,000 General Fund Replace water supply equipment Total $75,000 $75,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 406 439 Grounds - School Site Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 11,816 11,816 Total Expenditures 659,063 711,075 769,372 996,892 Fund Balance - - - - General Fund Costs $ 659,063 $ 711,075 $ 769,372 $ 861,892 STAFFING Total current authorized positions – 4.30 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 4.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - 135,000 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 135,000 Expenditures Employee Compensation 250,959 275,904 294,883 319,050 Employee Benefits 131,476 144,726 160,746 170,335 Materials 116,855 149,970 145,890 314,458 Contract Services 13,266 8,087 15,500 20,500 Cost Allocation 146,508 122,388 60,537 85,733 Capital Outlay - - - - Special Projects -10,000 80,000 75,000 407 440 GROUNDS - NEIGHBORHOOD PARKS Budget Unit 100-84-813 Budget at a Glance Total Revenues - Total Expenditures 1,554,798 Fund Balance - General Fund Costs 1,554,798 % Funded by General Fund 100.0% Total Staffing 7.80 PROGRAM OVERVIEW Neighborhood Parks include 14 of the 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Neighborhood park sites include Linda Vista, Mary Ave. Dog Park, Monta Vista, Portal, Somerset, Varian, Wilson, Three Oaks, Hoover, Canyon Oak (Little Rancho), Franco Park, Sterling/Barnhart, Oak Valley and Blackberry Farms. SERVICE OBJECTIVES The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. •Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. •Provide weekly maintenance that may include mowing and edging of turf areas, spraying of pesticides, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance. •Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs. •Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications, playground woodchip replenishing and prepare athletic fields for seasonal use. •Maintain all playgrounds in accordance to California playground safety requirements. •Reduce water consumption wherever practicable. •Utilize Weekend Work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. •Provide logistical support to the Recreation and Community Services Department for all the City’s special events. 408 441 PROPOSED BUDGET It is recommended that a budget of $1,554,798 be approved for the Neighborhood Parks Budget. This represents a decrease of $5,235 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in overtime and general supplies due to the purchase of engineering chip. The decrease in general services is due to the costs and scope of project in the current year being less than the prior year. Special projects are described in the following table. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Monta Vista concrete work $35,000 $35,000 General Fund Repair raised/cracked cement by playground - trip hazard Portal Park concrete work $50,000 $50,000 General Fund Repair raised/cracked cement - trip hazard Sport Center Fence $25,000 $25,000 General Fund Replace gates and restretch fencing Total $110,000 $110,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 409 442 Grounds - Neighborhood Parks Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 28,720 28,720 Total Expenditures 1,515,713 1,460,938 1,560,033 1,554,798 Fund Balance - - - - General Fund Costs $ 1,515,713 $ 1,459,184 $ 1,560,033 $ 1,554,798 STAFFING Total current authorized positions – 8.20 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 7.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue -1,755 - - Interdepartmental Revenue --- - Total Revenues -1,755 - - Expenditures Employee Compensation 548,775 540,786 562,946 577,040 Employee Benefits 279,558 296,827 324,927 304,154 Materials 271,060 294,425 295,900 357,671 Contract Services 164,860 130,361 157,000 72,000 Cost Allocation 251,460 198,540 115,540 105,213 Capital Outlay - - - - Special Projects - - 75,000 110,000 410 443 GROUNDS - SPORT FIELDS JOLLYMAN, CREEKSIDE Budget Unit 100-84-814 Budget at a Glance Total Revenues - Total Expenditures 593,604 Fund Balance - General Fund Costs 593,604 % Funded by General Fund 100.0% Total Staffing 2.70 PROGRAM OVERVIEW The sport fields at Jollyman and Creekside parks are among the 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Sport fields at these two parks are heavily used and enjoyed by the community. SERVICE OBJECTIVES The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas / sports fields in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas, spraying of pesticides, programmed play structure inspections and other maintenance. • Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing sport fields for seasonal use. • Maintain sport fields for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. • Maintain all playgrounds in accordance to California playground safety requirements. • Reduce water consumption wherever practicable. • Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. • Provide logistical support to the Recreation and Community Services Department for all the City’s special events. PROPOSED BUDGET It is recommended that a budget of $593,604 be approved for the Sport Fields Jollyman, 411 444 Creekside Budget. This represents an increase of $79,023 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in overtime, general supplies, and materials for water costs to better reflect actual expenditures. This recommended budget also includes increases for general services for tree work and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Cement pad at Creekside Park $28,000 $28,000 General Fund Base for ARK emergency supply shed/container Total $28,000 $28,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 412 445 Grounds - Sport Fields Jollyman, Creekside 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 11,918 11,918 Total Expenditures 598,282 587,088 514,581 593,604 Fund Balance - - - - General Fund Costs $ 598,282 $ 587,088 $ 514,581 $ 593,604 STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 2.70 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 193,123 197,408 195,263 213,745 Employee Benefits 96,102 103,371 111,806 107,631 Materials 132,286 159,866 142,709 174,238 Contract Services 1,475 12,774 12,000 16,000 Cost Allocation 84,468 71,292 40,885 42,072 Capital Outlay - - - - Special Projects 90,828 42,378 -28,000 413 446 GROUNDS - CIVIC CENTER GROUND MAINTENANCE Budget Unit 100-84-815 Budget at a Glance Total Revenues 175,467 Total Expenditures 191,442 Fund Balance - General Fund Costs 15,975 % Funded by General Fund 8.3% Total Staffing 0.90 PROGRAM OVERVIEW The Civic Center grounds are one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Due to the close proximity to City Hall, Community Hall and the Library, the Civic Center grounds are well utilized. Civic Center maintenance includes the adjacent Library Field. SERVICE OBJECTIVES The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. •Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. •Provide weekly maintenance that may include mowing and edging of turf areas, spraying of pesticides and general maintenance. •Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs. •Provide semi-annual maintenance that may include replacement of planting material and pre -emergent applications. •Maintain Library Field for recreational activities including soccer, cricket and a variety of other sports. •Reduce water consumption wherever practicable. •Provide logistical support to all City Departments for special events. PROPOSED BUDGET It is recommended that a budget of $191,442 be approved for the Civic Center Ground Maintenance Budget. This represents a decrease of $335,246 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 414 447 This program is requesting increases in overtime, general supplies to plant trees in the back of Community Hall and materials to cover anticipated water costs. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Grounds - Civic Center Ground Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 2,860 2,860 Total Expenditures 155,002 160,573 526,688 191,442 Fund Balance - - - - General Fund Costs $ 155,002 $ 160,573 $ 343,703 $ 15,975 STAFFING Total current authorized positions – 1.00 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.90 Budget Revenues - - - - - - - - - - - - - - - - - - 182,985 175,467 - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - - - 182,985 175,467 Total Revenues Expenditures 68,954 74,304 75,908 82,966 34,015 39,124 41,675 46,850 31,549 31,089 34,298 48,760 - - 3,000 3,000 20,484 16,056 368,947 7,006 - - - - - - - - 415 448 STREETS - STORM DRAIN MAINTENANCE Budget Unit 100-85-818 Budget at a Glance Total Revenues 1,700 Total Expenditures 449,950 Fund Balance - General Fund Costs 448,250 % Funded by General Fund 99.6% Total Staffing 1.20 PROGRAM OVERVIEW Maintenance of storm drain system to provide the efficient flow of storm water and to comply with storm water pollution prevention requirements. SERVICE OBJECTIVES •Provide effective and timely inspection and maintenance of the storm drain system including inlet and outfall structures, 2,216 storm drain inlets and collection system. •Provide annual cleaning and inspection of all inlets. PROPOSED BUDGET It is recommended that a budget of $449,950 be approved for the Storm Drain Maintenance Budget. This represents a decrease of $12,441 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for one part-time staff, overtime and telephone and data services for devices supported. The decrease for general services is attributed to completion of special projects. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 416 449 Streets - Storm Drain Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 4,080 4,080 Total Expenditures 198,002 303,568 462,391 449,950 Fund Balance - - - - General Fund Costs $ 198,002 $ 303,568 $ 462,391 $ 448,250 STAFFING Total current authorized positions – 1.40 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 1,700 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 1,700 Expenditures Employee Compensation 87,418 112,993 131,373 121,029 Employee Benefits 34,889 46,263 55,319 50,051 Materials 6,629 7,441 15,260 16,260 Contract Services 54,618 122,423 225,000 225,000 Cost Allocation 14,448 14,448 31,359 33,530 Capital Outlay - - - - Special Projects - - - - 417 450 STREETS - SIDEWALK CURB AND GUTTER Budget Unit 270-85-820 Budget at a Glance Total Revenues 210,800 Total Expenditures 1,085,525 Fund Balance (24,725) General Fund Costs 850,000 % Funded by General Fund 78.3% Total Staffing 1.30 PROGRAM OVERVIEW Maintain sidewalks, curb and gutter to a standard that is functional and improves accessibility and minimizes liability. Optimize the use of available funds by coordinating with other improvement projects. SERVICE OBJECTIVES Timely maintain concrete improvements in response to citizen complaints and coordinate with programmed asphalt improvements. PROPOSED BUDGET It is recommended that a budget of $1,085,525 be approved for the Sidewalk Curb and Gutter Budget. This represents an increase of $83,593 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in overtime, telephone and data services to support budgeted devices and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Annual Curb, Gutter Sidewalk Project $850,000 $850,000 General Fund Annual Curb, Gutter, Sidewalk Maintenance Total $850,000 $850,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 418 451 Streets - Sidewalk Curb and Gutter Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 270 270 Total Expenditures 1,151,135 992,176 1,001,932 1,085,525 Fund Balance (660,275) (992,176) (201,932) (24,725) General Fund Costs $ - $ - $ 800,000 $ 850,000 STAFFING Total current authorized positions – 0.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 1.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 1,200 Intergovernmental Revenue - - - 209,600 Charges for Services 490,860 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 490,860 - - 210,800 Expenditures Employee Compensation 64,395 69,900 67,576 104,240 Employee Benefits 31,590 34,970 35,922 59,175 Materials 3,455 4,935 3,729 3,729 Contract Services 269 - - - Cost Allocation 51,090 66,816 44,435 68,111 Capital Outlay - - - - Special Projects 1,000,336 815,555 850,000 850,000 419 452 STREETS - STREET PAVEMENT MAINTENANCE Budget Unit 270-85-821 Budget at a Glance Total Revenues 1,328,100 Total Expenditures 6,744,384 Fund Balance 583,716 General Fund Costs 6,000,000 % Funded by General Fund 89.0% Total Staffing 3.35 PROGRAM OVERVIEW This program maintains streets to a standard that balances preventative maintenance with stop gap measures while minimizing liability. SERVICE OBJECTIVES •Perform preventative maintenance activities of fog seal and crack fill. •Perform stop gap maintenance of arterial, collector and residential streets. •Oversee and manage contracted pavement maintenance projects. PROPOSED BUDGET It is recommended that a budget of $6,744,384 be approved for the Street Pavement Maintenance Budget. This represents a decrease of $530,783 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to the decrease in special projects. The budget for the annual asphalt project has decreased due to more area being completed each year. This program is requesting increases in overtime, general supplies to purchase pedestrian barricades, telephone and data services to support budgeted devices and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Annual Asphalt Project $6,000,000 $6,000,000 General Fund City Council Work Program Item Total $6,000,000 $6,000,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Proposed Budget for the current 420 453 and prior fiscal years: Streets - Street Pavement Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 11,560 11,560 Total Expenditures 10,281,775 8,756,565 7,275,167 6,744,384 Fund Balance (2,546,056) (2,754,856) (2,275,167) 583,716 General Fund Costs $ - $ 6,000,000 $ 5,000,000 $ 6,000,000 STAFFING Total current authorized positions – 3.65 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.35 Budget Revenues - - - - - - - - - - - - 294,079 - - 1,324,000 7,422,492 - - 4,100 - - - - 19,148 1,709 - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - 7,735,719 1,709 -1,328,100Total Revenues Expenditures 217,204 254,714 289,405 254,727 109,078 126,995 137,473 134,377 35,818 46,648 50,880 62,080 90,649 8,916 136,000 136,000 95,362 89,364 149,849 145,640 - - - - 9,733,664 8,229,926 6,500,000 6,000,000 421 454 STREETS - STREET SIGN MARKING Budget Unit 270-85-822 Budget at a Glance Total Revenues 133,200 Total Expenditures 831,990 Fund Balance (698,790) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 3.50 PROGRAM OVERVIEW This program maintains street regulatory and informational signs, street striping, markings and legends, as well as removes graffiti within street right-of-way in a timely manner. SERVICE OBJECTIVES •Respond to regulatory and informational sign issues in a timely manner. •Coordinate and respond to work orders from the Traffic Engineer. •Maintain street sign and traffic marking assets in compliance with the Manual of Uniform Traffic Control Devices. •Remove graffiti in a timely manner. PROPOSED BUDGET It is recommended that a budget of $831,990 be approved for the Street Sign Marking Budget. This represents an increase of $169,631 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting increases in overtime for festival support, telephone and data services to support budgeted devices and a special project request described in table below. 422 455 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Lamination Table $22,000 $22,000 General Fund Upgrade lamination equipment to more efficient model. Total $22,000 $22,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 423 456 Streets - Street Sign Marking Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 8,131 8,131 Total Expenditures 721,333 762,709 662,359 831,990 Fund Balance (721,333) (762,709) (662,359) (698,790) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 3.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 800 Intergovernmental Revenue - - - 132,400 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 133,200 Expenditures Employee Compensation 258,174 273,014 287,082 269,284 Employee Benefits 130,344 138,601 147,426 138,319 Materials 94,303 102,840 86,228 109,228 Contract Services 1,896 4,870 17,000 17,000 Cost Allocation 236,616 243,384 116,492 268,028 Capital Outlay - - - - Special Projects - - - 22,000 424 457 STREETS - STREET LIGHTING Budget Unit 100-85-848 Budget at a Glance Total Revenues - Total Expenditures 605,360 Fund Balance - General Fund Costs 605,360 % Funded by General Fund 100.0% Total Staffing 0.95 PROGRAM OVERVIEW Maintain city owned streetlights (2,950), parking lot lights and park lighting. SERVICE OBJECTIVES •Respond to outages in a timely manner. •Conserve electricity through the conversion of older less efficient light technology to current and tested technologies. •Replace direct buried wiring with wiring in conduits as failures occur. PROPOSED BUDGET It is recommended that a budget of $605,360 be approved for the Street Lighting Budget. This represents an increase of $54,702 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting an increase in telephone and data services to support budgeted devices. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description City Hall parking lot light upgrade $48,000 $48,000 General Fund Upgrade parking lot lights to LED Street pole replacements $70,000 $70,000 General Fund Replace poles too close to equipment and trees Total $118,000 $118,000 425 458 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Streets - Street Lighting Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 20,199 20,199 Total Expenditures 319,647 422,620 550,658 605,360 Fund Balance - - - - General Fund Costs $ 319,647 $ 422,620 $ 550,658 $ 605,360 STAFFING Total current authorized positions – 0.35 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.95 Budget Revenues - - - - - - - - - - - - - - - - - - - - - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - - - - - Total Revenues Expenditures 26,743 29,014 39,069 92,841 12,864 14,907 15,485 44,907 227,734 218,774 242,146 256,476 2,235 19,928 50,500 50,500 21,792 12,108 19,259 22,437 - - - - 28,279 127,890 164,000 118,000 426 459 STREETS - EQUIPMENT MAINTENANCE Budget Unit 630-85-849 Budget at a Glance Total Revenues - Total Expenditures 1,251,239 Fund Balance (1,251,239) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 3.00 PROGRAM OVERVIEW The Fleet Division maintains all fleet equipment, including small power equipment. Equipment includes vehicles (102), rolling stock (55), trailers (19), riding mowers (12), and all power equipment (234). The division also manages above ground fuel storage tank at Service Center. SERVICE OBJECTIVES •Maintain all city vehicles and equipment to reduce operating costs and increase safety. •Fabricate, weld and repair equipment that includes vehicles, apparatus, structures, facilities for function and safety. •Develop specifications and bid per City policy the purchases of trucks, tractors and other significant equipment. •Maintain surplus vehicles and other equipment per City policy. •Ensure all vehicles conform to State of California emission regulations. •Maintain / inspect above ground fuel tanks as required. •Maintain accurate inventory of fleet/equipment assets. •Maintain a safe and clean working environment be approved for the equipment mechanics and welding. PROPOSED BUDGET It is recommended that a budget of $1,251,239 be approved for the Equipment Maintenance Budget. This represents a decrease of $143,956 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting increases for one part-time staff, overtime based on FY 16-17 427 460 actuals, and training for new staff. The program is requesting an increase in materials for a scanner purchase and deferred maintenance. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 428 461 Streets - Equipment Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 32,219 32,219 Total Expenditures 919,606 1,136,608 1,395,195 1,251,239 Fund Balance (919,606) (1,136,608) (1,395,195) (1,251,239) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 3.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 147,322 174,354 272,448 275,327 Employee Benefits 79,310 89,303 120,799 121,280 Materials 230,531 252,632 294,366 323,639 Contract Services 93,096 125,268 136,500 140,000 Cost Allocation 327,715 470,242 455,363 358,774 Capital Outlay - - - - Special Projects 41,632 24,809 83,500 - 429 462 FACILITIES AND FLEET - ENVIRONMENTAL MATERIALS Budget Unit 100-85-850 Budget at a Glance Total Revenues - Total Expenditures 185,216 Fund Balance - General Fund Costs 185,216 % Funded by General Fund 100.0% Total Staffing 0.65 PROGRAM OVERVIEW This program manages Service Center solid waste disposal, Service Center safety inspections, handling/disposal/reporting of City generated hazardous waste and materials – including waste that may be illegally deposited upon the right-of-way. Provide street cleaning for unforeseen events such as debris from trucks or other sources. SERVICE OBJECTIVES •Coordinate disposal of solid waste collection. •Adhere to the requirements of hazardous waste/materials storage, handling and reporting. •Comply with Fire Marshal safety inspection requirements for Service Center facilities. •Inspect and maintain below ground fuel tanks as required. •Clean up traffic debris that may become deposited on streets while reducing traffic hazards. PROPOSED BUDGET It is recommended that a budget of $185,216 be approved for the Environmental Materials Budget. This represents an increase of $57,535 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for overtime, Hazmat Material disposal, telephone and data services to support budgeted devices and Hazmat reporting training for staff. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 430 463 Facilities and Fleet - Environmental Materials 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 3,009 3,009 Total Expenditures 112,286 126,918 127,681 185,216 Fund Balance - - - - General Fund Costs $ 112,286 $ 126,918 $ 127,681 $ 185,216 STAFFING Total current authorized positions – 0.55 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.65 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 28,787 46,032 43,718 52,920 Employee Benefits 14,448 20,306 20,934 28,170 Materials 22,699 24,545 34,220 44,480 Contract Services 4,029 4,474 3,814 4,500 Cost Allocation 42,324 31,560 21,986 52,137 Capital Outlay - - - - Special Projects - - - - 431 464 TREES AND RIGHT OF WAY - OVERPASSES AND MEDIANS Budget Unit 100-86-824 Budget at a Glance Total Revenues - Total Expenditures 1,453,793 Fund Balance - General Fund Costs 1,453,793 % Funded by General Fund 100.0% Total Staffing 6.30 PROGRAM OVERVIEW The Overpasses and Medians program maintains 31.54 developed areas of median island hardscapes and softscapes as well as 21.69 undeveloped acres of city right-of-way and the landscaped are of the Don Burnett Bridge. SERVICE OBJECTIVES •Maintain and improve median islands, landscape strips,trails, landscaped roadsides and public right-of-ways. •Maintain and improve water efficient programming of irrigation systems. •Meet all Department of Pesticide Regulation requirements for weed and pest control. •Timely pruning of plant material to promote plant health, maximize aesthetics and to reduce future maintenance requirements. Plant and care for new plant stock to help ensure future plant health and reduce future maintenance requirements. Conserve water through planting of appropriate plant stock. PROPOSED BUDGET It is recommended that a budget of $1,453,793 be approved for the Overpasses and Medians Budget. This represents an increase of $87,905 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting increases for overtime and general services for janitorial contract minimum wage adjustment, bus stop maintenance and dirt haul-off on Stevens Creek Boulevard. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 432 465 Trees and Right of Way - Overpasses and Medians 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 26,643 26,643 Total Expenditures 1,367,935 1,150,779 1,365,888 1,453,793 Fund Balance - - - - General Fund Costs $ 1,367,935 $ 1,127,672 $ 1,365,888 $ 1,453,793 STAFFING Total current authorized positions – 6.30 There are no changes to the current level of staffing. Total recommended positions – 6.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 23,107 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 23,107 - - Expenditures Employee Compensation 539,485 472,409 453,243 492,530 Employee Benefits 291,714 248,076 243,919 249,277 Materials 289,907 233,581 310,800 353,920 Contract Services 29,737 14,841 33,000 83,000 Cost Allocation 217,092 181,872 298,283 248,423 Capital Outlay - - - - Special Projects - - - - 433 466 TREES AND RIGHT OF WAY - STREET TREE MAINTENANCE Budget Unit 100-86-825 Budget at a Glance Total Revenues 10,000 Total Expenditures 1,251,142 Fund Balance - General Fund Costs 1,241,142 % Funded by General Fund 99.2% Total Staffing 7.40 PROGRAM OVERVIEW The Trees Division maintains the safety, health and appearance of approximately 14,000 Street and Right-of-Way trees, as well as promotes disease free trees to enhance the City’s urban forest. SERVICE OBJECTIVES •Proactively perform the activities of trimming, spraying, staking, pest management and other tree health related functions. •Respond to citizen requests to perform the trimming or other tree health related services in a timely manner. •Remove diseased and damaged trees as needed. •Plant replacement trees for trees removed due to disease and damage. •Continue activities to maintain standing as a Tree City USA program. •Update the annual forestry work plan to document our urban forest and to establish goals and objectives be approved for the care and planting of trees. •Affix and maintain tree identification badges on all City-owned and maintained street trees. •Provide educational flyers to all residents with street trees adjacent to their property. •Oversees stump grinding contracts. PROPOSED BUDGET It is recommended that a budget of $1,251,142 be approved for the Street Tree Maintenance Budget. This represents an increase of $303,412 from the FY 2016-17 Final Adopted Budget. This increase is partially due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. 434 467 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Tree survey and inventory updates $70,000 $30,000 $40,000 General Fund Possible ABAG Grant Tree survey and inventory updates Total $70,000 $70,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: This program is requesting increases for overtime, general supplies for annual pesticide treatment and telephone and data services to support budgeted devices. The increase in special projects are described in the table below. 435 468 Trees and Right of Way - Street Tree Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 8,800 8,800 Total Expenditures 851,373 919,200 947,730 1,251,142 Fund Balance - - - - General Fund Costs $ 846,572 $ 913,320 $ 947,730 $ 1,241,142 STAFFING Total current authorized positions – 7.40 There are no changes proposed to the current level of staffing. Total recommended positions – 7.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 4,801 5,880 -10,000 Fines and Forfeitures - - -- Miscellaneous Revenue - - -- Interdepartmental Revenue - - -- Total Revenues 4,801 5,880 -10,000 Expenditures Employee Compensation 308,658 388,394 463,685 510,300 Employee Benefits 145,784 195,900 267,037 265,583 Materials 52,434 57,596 53,400 123,000 Contract Services 47,127 23,673 20,000 20,000 Cost Allocation 273,468 244,584 104,808 253,459 Capital Outlay 7,000 3,000 - - Special Projects 16,902 6,053 30,000 70,000 436 469 TREES AND RIGHT OF WAY - WEEKEND WORK PROGRAM Budget Unit 100-86-826 Budget at a Glance Total Revenues - Total Expenditures 441,278 Fund Balance - General Fund Costs 441,278 % Funded by General Fund 100.0% Total Staffing 2.70 PROGRAM OVERVIEW The Weekend Work Program supplements existing Service Center staffing with individuals in a sentencing alternative program. Participants of the program perform manual labor type duties. The work performed by this program reduces the number of full time maintenance workers required. SERVICE OBJECTIVES •Efficiently administer and schedule the Weekend Work Program for a variety of nonskilled activities, including trash pick-up, weed control, right-of-way maintenance and sand bag filling. •Offset manual work currently performed by skilled labor so as to increase overall productivity at the Service Center. PROPOSED BUDGET It is recommended that a budget of $441,278 be approved for the Weekend Work Program Budget. This represents a decrease of $14,804 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to an adjustment of overtime based on FY 16-17 actuals. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 437 470 Trees and Right of Way - Weekend Work Program 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 780 780 Total Expenditures 376,961 399,971 456,082 441,278 Fund Balance - - - - General Fund Costs $ 376,961 $ 399,971 $ 456,082 $ 441,278 STAFFING Total current authorized positions – 2.70 There are no changes to the current level of staffing. Total recommended positions – 2.70 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 221,012 217,292 260,349 249,050 Employee Benefits 101,863 109,488 109,333 103,848 Materials 11,126 9,674 10,760 10,760 Contract Services - - - - Cost Allocation 42,960 63,516 74,860 76,840 Capital Outlay - - - - Special Projects - - - - 438 471 FACILITIES AND FLEET - CITY HALL Budget Unit 100-87-827 Budget at a Glance Total Revenues 382,657 Total Expenditures 629,738 Fund Balance - General Fund Costs 247,081 % Funded by General Fund 39.2% Total Staffing 1.00 PROGRAM OVERVIEW Maintain City Hall building to ensure efficient operations, employee satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment for the public and city employees. •Respond to requests made by City Hall staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $629,738 be approved for the City Hall Budget. This represents an increase of $34,706 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting an increase for new employee training. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 439 472 Special Project Appropriations Revenue Funding Source Description AC in IT Lab $55,000 $55,000 General Fund AC in IT Lab HVAC in Video Room $25,000 $25,000 General Fund HVAC in Video Room Paint handrails $ 5,000 $ 5,000 General Fund Paint handrails Total $85,000 $85,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 440 473 Facilities and Fleet - City Hall Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 26,960 26,960 Total Expenditures 471,698 530,859 595,032 629,738 Fund Balance - - - - General Fund Costs $ 471,698 $ 530,859 $ (58,190) $ 247,081 STAFFING Total current authorized positions – 1.00 There are no changes to the current level of staffing. Total recommended positions – 1.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 653,222 382,657 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 653,222 382,657 Expenditures Employee Compensation 91,605 91,678 88,320 92,691 Employee Benefits 43,319 45,063 45,855 47,282 Materials 160,235 186,787 207,820 216,670 Contract Services 145,646 182,624 154,000 157,000 Cost Allocation 28,128 23,472 58,577 34,135 Capital Outlay 2,765 1,235 - - Special Projects - - 13,500 55,000 441 474 FACILITIES AND FLEET - LIBRARY Budget Unit 100-87-828 Budget at a Glance Total Revenues 293,621 Total Expenditures 334,605 Fund Balance - General Fund Costs 40,984 % Funded by General Fund 12.2% Total Staffing 0.80 PROGRAM OVERVIEW Maintain Library building to ensure public and employee satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and county employees. •Timely response to requests made by County staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $334,605 be approved for the Library Budget. This represents a decrease of $288,230 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The decrease in special projects is due to the costs and scope of project in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 442 475 Special Projects Appropriations Revenue Funding Source Description Window Replacements $10,000 $10,000 General Fund Window Replacements Mirror Replacements $ 7,000 $ 7,000 General Fund Mirror Replacements Granite Floor Polish $ 6,000 $ 6,000 General Fund Granite Floor Polish Total $23,000 $23,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 443 476 Facilities and Fleet - Library Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 12,727 12,727 Total Expenditures 317,345 138,349 622,835 334,605 Fund Balance - - - - General Fund Costs $ 239,220 $ (10,620) $ (104,324) $ 40,984 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total recommended positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 78,125 146,269 140,700 140,700 Intergovernmental Revenue - - - - Charges for Services -2,700 586,459 152,921 Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues 78,125 148,969 727,159 293,621 Expenditures Employee Compensation 71,973 57,107 56,742 63,430 Employee Benefits 34,692 32,229 32,078 34,551 Materials 6,290 12,307 14,356 14,356 Contract Services 162,674 5,965 175,000 175,000 Cost Allocation 12,972 12,972 263,432 11,541 Capital Outlay 4,049 - - - Special Projects 24,695 17,770 68,500 23,000 444 477 FACILITIES AND FLEET - SERVICE CENTER Budget Unit 100-87-829 Budget at a Glance Total Revenues 429,314 Total Expenditures 314,654 Fund Balance - General Fund Costs (114,660) % Funded by General Fund 0.0% Total Staffing 0.70 PROGRAM OVERVIEW This program maintains the Service Center buildings to ensure employee satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely response to requests made by Service Center staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $314,654 be approved for the Service Center Budget. This represents a decrease of $20,913 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to the cost and scope of special projects this year being less than in the prior year. Staffing costs have also decreased due to the reallocation of existing staff. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Replace locker room floor $15,000 $15,000 General Fund Replace locker room floor Total $15,000 $15,000 445 478 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Facilities and Fleet - Service Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 9,113 9,113 Total Expenditures 261,308 388,404 335,567 314,654 Fund Balance - - - - General Fund Costs $ 261,308 $ 388,404 $ (129,614) $ (114,660) STAFFING Total current authorized positions – 0.80 Staff time is being reallocate to better reflect actual time spent in this program. Total recommended positions – 0.70 Budget Revenues - - - - - - - - - - - - - - - - - - 465,181 429,314 - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - - - 465,181 429,314 Total Revenues Expenditures 54,710 58,748 61,081 58,102 27,283 31,788 33,971 30,932 65,009 52,383 86,780 98,215 28,296 31,522 40,000 40,000 76,584 63,624 65,008 63,292 9,425 6,100 - - -144,239 39,614 15,000 446 479 FACILITIES AND FLEET - QUINLAN CENTER Budget Unit 100-87-830 Budget at a Glance Total Revenues 228,304 Total Expenditures 504,647 Fund Balance - General Fund Costs 276,343 % Funded by General Fund 54.8% Total Staffing 0.80 PROGRAM OVERVIEW This program maintains Quinlan Community Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Parks & Recreation Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $504,647 be approved for the Quinlan Center Budget. This represents an increase of $56,009 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to requested increases in special projects described in the table below. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 447 480 Special Projects Appropriations Revenue Funding Source Description Replace skylight $45,000 $45,000 General Fund Replace skylight New laminate floor $45,000 $45,000 General Fund Replace laminate floor Paint offices $25,000 $25,000 General Fund Repainting Social Room lights $25,000 $25,000 General Fund Upgrade to LED Total $140,000 $140,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 448 481 Facilities and Fleet - Quinlan Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 17,237 17,237 Total Expenditures 380,072 361,901 448,638 504,647 Fund Balance - - - - General Fund Costs $ 380,072 $ 361,901 $ 220,334 $ 276,343 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total recommended positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 228,304 228,304 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 228,304 228,304 Expenditures Employee Compensation 55,895 61,616 62,120 64,479 Employee Benefits 26,257 31,274 32,057 31,176 Materials 126,029 130,898 135,722 142,962 Contract Services 95,110 96,777 100,000 100,000 Cost Allocation 10,980 10,872 19,502 8,793 Capital Outlay 65,801 - - - Special Projects -30,464 82,000 140,000 449 482 FACILITIES AND FLEET - SENIOR CENTER Budget Unit 100-87-831 Budget at a Glance Total Revenues 241,641 Total Expenditures 248,657 Fund Balance - General Fund Costs 7,016 % Funded by General Fund 2.8% Total Staffing 0.80 PROGRAM OVERVIEW Maintain Senior Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely response to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $248,657 be approved for the Senior Center Budget. This represents a decrease of $108,781 from the FY 2016-17 Final Adopted Budget. This decrease is partially due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 450 483 Special Projects Appropriations Revenue Funding Source Description Shelving in work room $10,000 $10,000 General Fund Add shelving in work room for storage Power to trash enclosure $ 6,000 $ 6,000 General Fund Power to charge golf cart and lighting Upgrade panic buttons & emergency lights $ 5,000 $ 5,000 General Fund Upgrade to match standard for city facilities Resurface dance floor $ 5,000 $ 5,000 General Fund Maintenance to prolong life of floor Total $26,000 $26,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 451 484 Facilities and Fleet - Senior Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 8,782 8,782 Total Expenditures 236,059 214,515 357,438 248,657 Fund Balance - - - - General Fund Costs $ 236,059 $ 214,515 $ 111,343 $ 7,016 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total recommended positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 246,095 241,641 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 246,095 241,641 Expenditures Employee Compensation 56,165 57,197 57,574 58,731 Employee Benefits 28,033 29,359 30,286 32,192 Materials 52,266 54,039 57,635 61,040 Contract Services 56,217 55,048 60,000 60,000 Cost Allocation 9,888 9,888 39,661 1,912 Capital Outlay 33,490 3,938 - - Special Projects -5,046 103,500 26,000 452 485 FACILITIES AND FLEET - MCCLELLAN RANCH Budget Unit 100-87-832 Budget at a Glance Total Revenues - Total Expenditures 146,444 Fund Balance - General Fund Costs 146,444 % Funded by General Fund 100.0% Total Staffing 0.60 PROGRAM OVERVIEW This program maintains McClellan Ranch buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $146,444 be approved for the McClellan Ranch Budget. This represents an increase of $11,590 from the FY 2016-17 Final Adopted Budget. This program is requesting an increase for overtime and special projects. The increases to special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description 4H roof repair $10,000 $10,000 General Fund Roof repair 4H barn lights $ 8,000 $ 8,000 General Fund Upgrade to LED Total $18,000 $18,000 The following table details revenue, total expenditures, changes in fund balance and General 453 486 Fund costs by category for the two prior fiscal years, and the Proposed Budget for the current and prior fiscal years: Facilities and Fleet - McClellan Ranch Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 3,600 3,600 Total Expenditures 85,271 121,116 134,854 146,444 Fund Balance - - - - General Fund Costs $ 54,691 $ 121,116 $ 134,854 $ 146,444 STAFFING Total current authorized positions – 0.60 There are no changes to the current level of staffing. Total recommended positions – 0.60 Budget Revenues - - - - - - - - 30,580 - - - - - - - - - - - - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - 30,580 - - - Total Revenues Expenditures 35,531 43,541 43,882 47,945 17,031 21,454 21,764 24,296 16,386 12,762 19,676 20,867 7,022 30,501 26,000 26,000 5,448 5,448 8,432 5,736 - - - - 3,853 7,410 11,500 18,000 454 487 FACILITIES AND FLEET - MONTA VISTA COMMUNITY CENTER Budget Unit 100-87-833 Budget at a Glance Total Revenues 151,450 Total Expenditures 150,687 Fund Balance - General Fund Costs (763) % Funded by General Fund 0.0% Total Staffing 0.40 PROGRAM OVERVIEW This program maintains Monta Vista Community Center and adjacent buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $150,687 be approved for the Monta Vista Community Center Budget. This represents a decrease of $2,510 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 455 488 Special Projects Appropriations Revenue Funding Source Description New VCT composite floor in karate room $25,000 $25,000 General Fund Floor replacement Total $25,000 $25,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 456 489 Facilities and Fleet - Monta Vista Community Center 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 5,040 5,040 Total Expenditures 104,077 117,527 153,197 150,687 Fund Balance - - - - General Fund Costs $ 104,077 $ 117,527 $ 1,747 $ (763) STAFFING Total current authorized positions – 0.40 There are no changes to the current level of staffing. Total recommended positions – 0.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 151,450 151,450 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 151,450 151,450 Expenditures Employee Compensation 32,824 32,121 31,769 34,502 Employee Benefits 15,174 16,886 17,169 17,318 Materials 24,689 24,796 29,120 30,959 Contract Services 22,823 31,236 35,000 35,000 Cost Allocation 5,448 5,448 23,099 2,868 Capital Outlay 3,120 7,040 - - Special Projects - - 12,000 25,000 457 490 FACILITIES AND FLEET - WILSON PARK Budget Unit 100-87-834 Budget at a Glance Total Revenues - Total Expenditures 67,491 Fund Balance - General Fund Costs 67,491 % Funded by General Fund 100.0% Total Staffing 0.20 PROGRAM OVERVIEW This program maintains Wilson Park pottery building to ensure efficient operations, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $67,491 be approved for the Wilson Park Budget. This represents a decrease of $1,746 from the FY 2016-17 Final Adopted Budget. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 458 491 Special Projects Appropriations Revenue Funding Source Description Snack Shack upgrades $8,000 $8,000 General Fund LED lights and restrooms Total $8,000 $8,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 459 492 Facilities and Fleet - Wilson Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,796 1,796 Total Expenditures 51,446 64,199 69,237 67,491 Fund Balance - - - - General Fund Costs $ 51,446 $ 64,199 $ 69,237 $ 67,491 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total recommended positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 15,027 18,104 16,984 17,831 Employee Benefits 7,320 8,768 8,893 10,168 Materials 10,367 11,533 13,050 13,959 Contract Services 15,505 22,565 10,000 10,000 Cost Allocation 3,228 3,228 2,814 5,737 Capital Outlay - - - - Special Projects - - 15,700 8,000 460 493 FACILITIES AND FLEET - PORTAL PARK Budget Unit 100-87-835 Budget at a Glance Total Revenues - Total Expenditures 58,766 Fund Balance - General Fund Costs 58,766 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW This program maintains Portal Park building to ensure user efficient operations, satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $58,766 be approved for the Portal Park Budget. This represents an increase of $9,879 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for telephone and data service increase to support devices budgeted and special projects. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 461 494 Special Projects Appropriations Revenue Funding Source Description Back patio ramp & door removal $30,000 $30,000 General Fund Back patio ramp & door removal Total $30,000 $30,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 462 495 Facilities and Fleet - Portal Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,134 1,134 Total Expenditures 27,570 22,713 48,887 58,766 Fund Balance - - - - General Fund Costs $ 27,570 $ 22,713 $ 48,887 $ 58,766 STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total recommended positions – 0.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 8,651 8,887 8,242 8,815 Employee Benefits 4,077 4,336 4,449 5,084 Materials 5,149 4,424 6,391 7,613 Contract Services 7,581 2,955 8,251 8,251 Cost Allocation 2,112 2,112 1,420 2,869 Capital Outlay - - - - Special Projects - - 19,000 25,000 463 496 FACILITIES AND FLEET - SPORTS CENTER Budget Unit 570-87-836 Budget at a Glance Total Revenues - Total Expenditures 484,623 Fund Balance (484,623) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.70 PROGRAM OVERVIEW This program maintains Sport Center facilities to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $484,623 be approved for the Sports Center Budget. This represents an increase of $89,459 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to the requested special projects described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 464 497 Special Projects Appropriations Revenue Funding Source Description Replace front counter $25,000 $25,000 General Fund Replace front counter Replace restroom floors $30,000 $30,000 General Fund Replace restroom floors Upgrade building lights to LED $15,000 $15,000 General Fund Upgrade building lights to LED New AC Unit $25,000 $25,000 General Fund New AC Unit Total $95,000 $95,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 465 498 Facilities and Fleet - Sports Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 15,536 15,536 Total Expenditures 285,781 394,048 395,164 484,623 Fund Balance (285,781) (394,048) 2,911 (484,623) General Fund Costs $ - $ - $ 398,075 $ - STAFFING Total current authorized positions – 0.75 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions – 0.70 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 62,220 65,935 63,446 63,612 Employee Benefits 26,021 27,338 31,638 34,254 Materials 104,456 101,913 135,360 145,167 Contract Services 42,166 52,493 60,000 60,000 Cost Allocation 94,426 100,543 51,184 71,054 Capital Outlay 14,380 - - - Special Projects (57,887) 45,826 38,000 95,000 466 499 FACILITIES AND FLEET - CREEKSIDE PARK Budget Unit 100-87-837 Budget at a Glance Total Revenues 81,781 Total Expenditures 85,913 Fund Balance - General Fund Costs 4,132 % Funded by General Fund 4.8% Total Staffing 0.20 PROGRAM OVERVIEW This program maintains Creekside Park building to ensure efficient operations, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $85,913 be approved for the Creekside Park Budget. This represents an increase of $18,128 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to the requested special projects described in the table below. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. 467 500 Special Projects Appropriations Revenue Funding Source Description Plumbing upgrades $12,000 $12,000 General Fund Plumbing upgrades Window replacement $ 8,000 $ 8,000 General Fund Window replacement Upgrade lights to LED $ 8,000 $ 8,000 General Fund Upgrade lights to LED Total $28,000 $28,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 468 501 Facilities and Fleet - Creekside Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,759 1,759 Total Expenditures 47,661 64,481 67,785 85,913 Fund Balance - - - - General Fund Costs $ 47,661 $ 64,481 $ (13,996) $ 4,132 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total recommended positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 81,781 81,781 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 81,781 81,781 Expenditures Employee Compensation 16,609 17,574 17,348 19,509 Employee Benefits 7,752 8,784 8,723 10,022 Materials 10,251 9,688 12,665 13,755 Contract Services 5,559 10,483 10,000 10,000 Cost Allocation 3,336 3,336 12,290 2,868 Capital Outlay 4,154 2,743 - - Special Projects -11,874 5,000 28,000 469 502 FACILITIES AND FLEET - COMMUNITY HALL Budget Unit 100-87-838 Budget at a Glance Total Revenues 250,130 Total Expenditures 267,259 Fund Balance - General Fund Costs 17,129 % Funded by General Fund 6.4% Total Staffing 0.50 PROGRAM OVERVIEW This program maintains Community Hall and interactive fountain to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by City Hall staff. •Manage and responsibly coordinate work completed by contractors. •Ensure water quality and functionality of interactive fountain. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $267,259 be approved for the Community Hall Budget. This represents a decrease of $44,463 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting increases for overtime, general services contract for water quality testing and analysis for Civic Center Fountains, and special projects. The increases in special projects are described in the table below. 470 503 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description New AC unit by video rack $25,000 $25,000 General Fund New AC unit by video rack New counters in restrooms $10,000 $10,000 General fund New counters in restrooms Placeholder for fountains $10,000 $10,000 General Fund Placeholder for fountains Total $45,000 $45,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 471 504 Facilities and Fleet - Community Hall Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 6,080 6,080 Total Expenditures 123,725 126,424 311,722 267,259 Fund Balance - - - - General Fund Costs $ 106,409 $ 126,424 $ 61,592 $ 17,129 STAFFING Total current authorized positions – 0.50 There are no changes to the current level of staffing. Total recommended positions – 0.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 17,316 - - - Intergovernmental Revenue - - - - Charges for Services - - 250,130 250,130 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 17,316 -250,130 250,130 Expenditures Employee Compensation 34,317 35,133 33,897 36,837 Employee Benefits 17,534 19,576 19,775 20,717 Materials 43,839 41,646 54,950 59,800 Contract Services 22,479 23,102 75,000 95,000 Cost Allocation 5,556 5,556 7,020 3,825 Capital Outlay - - 115,000 - Special Projects -1,410 -45,000 472 505 FACILITIES AND FLEET - TEEN CENTER Budget Unit 100-87-839 Budget at a Glance Total Revenues 97,866 Total Expenditures 47,033 Fund Balance - General Fund Costs (50,833) % Funded by General Fund 0.0% Total Staffing 0.10 PROGRAM OVERVIEW This program maintains Teen Center area below the Sports Center to ensure efficient operations, employee satisfaction, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment be approved for the public and employees. •Timely respond to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $47,033 be approved for the Teen Center Budget. This represents an increase of $3,484 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting an increase for the special project described in the table below. 473 506 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Repaint interior $5,000 $5,000 General Funds Repaint interior Total $5,000 $5,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 474 507 Facilities and Fleet - Teen Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 1,619 1,619 Total Expenditures 27,623 46,748 43,549 47,033 Fund Balance - - - - General Fund Costs $ 27,623 $ 46,748 $ 3,262 $ (50,833) STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total recommended positions – 0.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 40,287 97,866 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 40,287 97,866 Expenditures Employee Compensation 7,124 8,887 8,442 9,015 Employee Benefits 3,568 4,319 4,449 5,084 Materials 6,210 11,513 8,957 9,446 Contract Services 9,606 20,914 14,000 14,000 Cost Allocation 1,116 1,116 6,082 2,869 Capital Outlay - - - - Special Projects - - - 5,000 475 508 FACILITIES AND FLEET - PARK BATHROOMS Budget Unit 100-87-840 Budget at a Glance Total Revenues - Total Expenditures 154,965 Fund Balance - General Fund Costs 154,965 % Funded by General Fund 100.0% Total Staffing 0.20 PROGRAM OVERVIEW This program maintains park restrooms to ensure efficient operations, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for clean and functioning restrooms at various park locations. •Timely response to requests made by the users of the park. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $154,965 be approved for the Park Bathrooms Budget. This represents a decrease of $2,968 from the FY 2016-17 Final Adopted Budget. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. 476 509 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description New roof at Linda Vista $4,000 $4,000 General Fund New roof at Linda Vista Restroom sink at Linda Vista $6,000 $6,000 General Fund Restroom sink at Linda Vista Skylights at Wilson $5,000 $5,000 General Fund Skylights at Wilson Paint at Memorial Park $5,400 $5,400 General Fund Paint at Memorial Park Total $20,400 $20,400 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 477 510 Facilities and Fleet - Park Bathrooms Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 8,000 8,000 Total Expenditures 79,276 63,889 157,933 154,965 Fund Balance - - - - General Fund Costs $ 79,276 $ 63,889 $ 157,933 $ 154,965 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total recommended positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation 518 14,108 14,527 16,290 Employee Benefits 48 6,402 6,394 8,283 Materials 8,094 18,743 25,080 25,080 Contract Services 64,041 22,637 75,000 75,000 Cost Allocation - - 2,932 1,912 Capital Outlay 6,000 2,000 - - Special Projects 575 - 26,000 20,400 478 511 FACILITIES AND FLEET – BLACKBERRY FARM FACILITIES MAINTENANCE Budget Unit 100-87-841 Budget at a Glance Total Revenues 568,674 Total Expenditures 298,208 Fund Balance - General Fund Costs (270,466) % Funded by General Fund 0.0% Total Staffing 0.90 PROGRAM OVERVIEW This program maintains Blackberry Farm buildings and facilities to ensure efficient operations, employee satisfaction, user satisfactions and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment for the public and employees. •Timely response to requests made by Recreation and Community Services Department staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET It is recommended that a budget of $298,208 be approved for the Blackberry Farm Facilities Maintenance Budget. This represents an increase of $426 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting an increase for overtime and special projects. The increases in special projects are described in the table below. 479 512 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description Trail restroom upgrades $10,000 $10,000 General Fund Add power source & replace roof Cafe upgrades $15,000 $15,000 General Fund Health department compliance Total $25,000 $25,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 480 513 Facilities and Fleet - Blackberry Farm Facilities Maintenance 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - 11,315 11,315 Total Expenditures 341,187 303,273 297,782 298,208 Fund Balance - - - - General Fund Costs $ 341,187 $ 303,273 $ (48,143) $ (270,466) STAFFING Total current authorized positions – 0.90 There are no changes to the current level of staffing. Total recommended positions – 0.90 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 345,925 568,674 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 345,925 568,674 Expenditures Employee Compensation 26,464 52,402 51,601 64,595 Employee Benefits 12,347 27,040 26,345 37,810 Materials 160,608 100,054 89,297 95,882 Contract Services 21,418 63,569 55,000 55,000 Cost Allocation 2,220 2,220 52,724 8,606 Capital Outlay 71,368 - - - Special Projects 46,762 57,988 11,500 25,000 481 514 FACILITIES AND FLEET - FRANCO TRAFFIC OPERATIONS CENTER Budget Unit 100-87-852 Budget at a Glance Total Revenues - Total Expenditures 18,000 Fund Balance - General Fund Costs 18,000 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This program maintains the Traffic Operations Center on Franco Court to ensure efficient operations, user satisfaction and community pride. SERVICE OBJECTIVES •Provide for a safe, clean and productive working environment for city employees. •Respond to requests made by Traffic Operations Center staff. •Manage and responsibly coordinate work completed by contractors. •Perform improvements that responsibly conserve the resources of water, electricity and gas. PROPOSED BUDGET This program is requesting building maintenance and upgrades for Franco Traffic Operations Center. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 482 515 Facilities and Fleet - Franco Traffic Operations Center 2015 Category 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - - Total Expenditures - - - 18,000 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 18,000 STAFFING There is no staffing associated with this budget. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - 18,000 483 516 TRANSPORTATION - TRAFFIC ENGINEERING Budget Unit 100-88-844 Budget at a Glance Total Revenues 282,000 Total Expenditures 979,024 Fund Balance - General Fund Costs 697,024 % Funded by General Fund 71.2% Total Staffing 3.50 PROGRAM OVERVIEW The Transportation Division oversees traffic operations, traffic studies, transportation planning, and transportation capital improvements to safely and efficiently manage vehicular, bicycle and pedestrian traffic within the City’s street and trail network. This includes responding to citizen requests and concerns regarding traffic issues, developing plans for the installation of traffic signals, traffic signs, and pavement markings, and developing design standards. The Division assists in the preparation of the General Plan, street plan lines and the capital improvement program related to street improvements. Division staff are active on Santa Clara Valley Transportation Authority (VTA) subcommittees and working groups and keeps abreast regarding current developments in the field as well as grant funding opportunities for large projects. The Transportation Division also participates in the review of private development proposals to identify potential traffic impacts and to require necessary mitigations to maintain levels of service and safe and efficient traffic operations. SERVICE OBJECTIVES •Ensure the efficiency and safety of the street system for all modes of travel through continual observation of traffic patterns, traffic signals and other traffic control devices. •Review traffic collision reports, traffic flow patterns, and neighborhood traffic issues and respond as needed. •Cooperate with neighboring jurisdictions on regional issues that affect both traffic safety and traffic efficiency at City boundaries. •Continue training personnel in traffic engineering by encouraging attendance at classes and seminars. •Develop partnerships and coordinate with schools, school districts, and parents on Safe Routes to School Program. PROPOSED BUDGET It is recommended that a budget of $979,024 be approved for the Traffic Engineering Budget. 484 517 This represents a decrease of $779,377 from the FY 2016-17 Final Adopted Budget. This program is requesting an increase in overtime, telephone and data plan based on devices supported and conference and training for new staff. The decrease in special projects is due to the costs and scope of projects in current year being less than the prior year. To support the 2017 Work Program, a new 3-year limited term Senior Transportation/Mobility Planner position is requested to act as a transportation planner who will focus on transit issues, including school and senior bus and ride-share programs, corporate bus issues and transit funding programs through the VTA’s Measure B program. In addition, it is recommended that the position currently classified as a Senior Civil Engineer be reclassified to Transportation Manager as the position has grown in scope, breadth of responsibilities, organizational hierarchy, and subject matter specificity (transportation). The proposed Transportation Manager classification is similar to classifications in other cities in the county, and much more closely captures the current and near-future duties and responsibilities of the position. The scope of this position has grown to include an active and growing Safe Routes to School Program, a significantly increased program to manage and implement the Bicycle Transportation Plan, the Pedestrian Transportation Plan and the ADA Accessibility Transition Plan. This position also serves as the City’s ADA Coordinator and liaison to the Bicycle and Pedestrian Commission. This position formerly reported to the Assistant Director of Public Works, however for the past four years has reported directly to the Director of Public Works. With the proposed budget for 2017-18, this position is proposed to also supervise the requested Transportation/Mobility Planner. These increases are partially offset due to a reorganization which moved the Safe Routes to School budget, including the Safe Routes to School Coordinator, to program 846. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 485 518 Transportation - Traffic Engineering Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 14,453 13,653 Total Expenditures 472,445 1,797,024 1,758,401 979,024 Fund Balance - - - - General Fund Costs $ 472,445 $ 566,563 $ 1,758,401 $ 697,024 STAFFING Total current authorized positions – 3.40 Staff time is being reallocated to better reflect actual time spent in this program. To support the 2017 Work Program, a new 3-year limited term Senior Transportation/Mobility Planner position is requested. The Safe Routes to School Coordinator was moved to program 846. Total recommended positions – 3.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services -1,230,461 -282,000 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -1,230,461 -282,000 Expenditures Employee Compensation 227,700 297,999 416,555 462,698 Employee Benefits 90,095 114,510 164,030 183,851 Materials 4,092 8,512 5,230 9,655 Contract Services 112,777 153,013 225,500 216,700 Cost Allocation 25,320 22,991 82,633 92,467 Capital Outlay - - - - Special Projects 12,461 1,200,000 850,000 - 486 519 TRANSPORTATION - TRAFFIC SIGNAL MAINTENANCE Budget Unit 100-88-845 Budget at a Glance Total Revenues - Total Expenditures 713,733 Fund Balance - General Fund Costs 713,733 % Funded by General Fund 100.0% Total Staffing 2.00 PROGRAM OVERVIEW The Traffic Signal Maintenance Division oversees the operation and maintenance of the City’s 56 traffic signals, including eight traffic signals owned by the State of California. The Division also maintains the traffic signal communication infrastructure, such as the fiber optic network and the traffic operation center hub. SERVICE OBJECTIVES •Ensure the continuous and safe operation of the City’s traffic signal system on a continuous 24-hour basis with full-time and on-call staff, which is accomplished by regularly performing preventative maintenance, diagnosing malfunctions and repairs, investigating citizen complaints, replacing or upgrading obsolete hardware, inspecting the work of contractors, responding to knockdowns and power outages, and adjusting signal timing parameters. •Continue training, maintaining proficiency of traffic signal technicians and on-call staff by encouraging attendance at classes and seminars. PROPOSED BUDGET It is recommended that a budget of $713,733 be approved for the Traffic Signal Maintenance Budget. This represents an increase of $78,423 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 15. This program is requesting increases for standby pay and overtime to better account for actual expenditures. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 487 520 Transportation - Traffic Signal Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - 20,204 20,204 Total Expenditures 754,809 545,100 635,310 713,733 Fund Balance - - - - General Fund Costs $ 754,809 $ 514,784 $ 635,310 $ 713,733 STAFFING Total current authorized positions – 2.00 There are no changes to the current level of staffing. Total recommended positions – 2.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services -30,316 - - Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues -30,316 - - Expenditures Employee Compensation 202,429 202,968 202,737 215,420 Employee Benefits 83,047 88,927 91,590 92,563 Materials 40,999 43,855 53,750 56,690 Contract Services 202,011 104,728 201,000 201,000 Cost Allocation 108,120 68,124 66,029 127,856 Capital Outlay - - - - Special Projects 118,203 36,499 -- 488 521 TRANSPORTATION - SAFE ROUTES 2 SCHOOL Budget Unit 100-88-846 Budget at a Glance Total Revenues - Total Expenditures 146,761 Fund Balance - General Fund Costs 146,761 % Funded by General Fund 100.0% Total Staffing 1.00 PROGRAM OVERVIEW Safe Routes 2 School seeks to engage local schools, school districts, parent organizations, community groups, and the Santa Clara County Sheriff’s Office in the mission of reducing Singular Occupancy Vehicle (SOV) travel to and from school in order to reduce carbon emission and car traffic, and increase student safety. The program seeks to achieve these objectives through education, encouragement, enforcement, and engineering infrastructure changes in and around Cupertino schools. SERVICE OBJECTIVES Help to improve the health and well-being of children by increasing the number of students who walk or bike to school.Develop partnerships with school administrators, staff, parents, and childrenEncourage and empower more students and families to walk, bike, carpool, and take alternative transit to schoolAdjust signage and infrastructure surrounding Cupertino schools to facilitate a safer environment for bicycle and pedestrian travelEducate students and families about the benefits of walking and bicycling to school; health, environmental protection, academic improvements, community building, etc.Minimize gaps in communication between City, School Districts, and Schools and collaborate on efforts to increase student safety PROPOSED BUDGET Safe Routes 2 School budget moved from Budget Unit 100-88-844 to Budget Unit 100-88-846. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 489 522 Transportation - Safe Routes 2 School Category 2015 2016 2017 2018 Proposed Budget Appropriations for Contingency - - - 1,780 Total Expenditures - - - 146,761 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 146,761 STAFFING Total current authorized positions – 0.00 The Safe Routes 2 School program coordinator position was moved from Budget Unit 100-88-844 to Budget Unit 100-88-846. Total recommended positions – 1.00 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - 86,924 Employee Benefits - - - 36,495 Materials - - - 2,200 Contract Services - - - 9,800 Cost Allocation - - - 9,562 Capital Outlay - - - - Special Projects - - - - 490 523 NON DEPARTMENTAL – MINOR STORM DRAIN IMPROVEMENT Budget Unit 210-90-978 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW This program provides funding for drainage repairs as needed in various locations. SERVICE OBJECTIVES Provide storm drain repairs throughout the City on an annual basis. PROPOSED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 491 524 Non Departmental - Minor Storm Drain Improvement 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - - - Total Expenditures 4,898 50,141 75,000 - Fund Balance (4,898) (21,841) (75,000) - General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue -28,300 - - Interdepartmental Revenue --- - Total Revenues -28,300 - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 1,920 - - - Cost Allocation - - - - Capital Outlay 2,978 50,141 75,000 - Special Projects - - - - 492 525 NON DEPARTMENTAL - FIXED ASSETS ACQUISITION Budget Unit 630-90-985 Budget at a Glance Total Revenues - Total Expenditures 1,029,200 Fund Balance (1,029,200) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW This program purchases equipment having a value greater than $5,000 and expected life of more than one year. Equipment users are charged for the use of these assets through a depreciation schedule. Equipment used by Special Revenue and Enterprise funds are charged to the respective funds. SERVICE OBJECTIVES •Obtain quality equipment through competitive bidding. •Purchase energy efficient vehicles whenever practical. •Purchase quiet, ergonomic and environmentally friendly equipment whenever practical. PROPOSED BUDGET It is recommended that a budget of $1,029,200 be approved for the Fixed Assets Acquisition Budget. This represents a decrease of $192,800 from the FY 2016-17 Final Adopted Budget. The decrease is attributed to replacement of several vehicles in past fiscal years. Replacement vehicles and equipment are described in the table below. 493 526 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the proposed new special projects for the fiscal year. Replacement Vehicles/Equipment Cost Replace #99 EOC box truck $185,000 Replace #66 TROW chipper truck $125,000 Replace #10 dump truck $ 70,000 Replace #86 Facilities utility bed truck $ 52,000 Replace #35 Grounds utility bed truck $ 48,000 Replace #40 Grounds utility bed truck $ 48,000 Replace #93 Elmwood van $ 45,000 Replace #88 Pool car $ 35,000 Replace #65 Ranger pickup truck $ 35,000 Replace #51 Building Inspector vehicle $ 35,000 Replace #5 pool van $ 33,000 Recreation & Community Services Rock Wall Truck $ 40,000 Total Replacement Vehicle $751,000 Equipment Replace chipper $ 85,000 Replace portable generator $ 74,000 Replace 2 gator field rakes $ 50,000 Tilt bed trailer for Bobcat tractor $ 15,000 Replace walker mower with Toro mower $ 20,000 Ride on spreader $ 10,000 Portable air compressor $ 20,000 72" box sweeper attachment for Bobcat $ 4,200 Total Equipment $278,200 Grand Total $1,029,200 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 494 527 2015 Category Non Departmental - Fixed Assets Acquisition 2016 2017 2018 Proposed Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 106,056 7,167 1,222,000 1,029,200 Fund Balance (106,056) (7,167) (1,222,000) (1,029,200) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 106,056 7,167 1,222,000 1,029,200 495 528 Non Departmental Transfers Out Debt Service Employee Housing Assistance 529 NON-DEPARTMENTAL Budget Unit 2018 Proposed Non Departmental $ 31,119,272 100-90-001 Transfers Out 27,941,734 365-90-500 Public Facilities Corporation 3,167,538 100-90-502 Employee Housing Assistance 10,000 Total $ 31,119,272 496 530 DEPARTMENT SUMMARY Non-Departmental Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 43,346,514 21,927,237 25,303,911 31,119,272 Fund Balance -(5,549,993) (9,165,000) (12,184,000) General Fund Costs $ 43,346,514 $ 16,377,244 $ 16,138,911 $ 18,935,272 PROPOSED BUDGET It is recommended that a budget of $31,119,272 be approved for the Non-Departmental Budget. This represents an increase of $5,815,361 from the FY 2017-18 Final Adopted Budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 8,018 7,419 10,000 10,000 Contract Services - - - - Cost Allocation 43,338,496 21,919,818 25,293,111 31,109,272 Capital Outlay - - - - Special Projects - - - - 497 531 PROPOSED EXPENDITURES FY 2017-18 Non Departmental $31,119,272 (100%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Proposed 43.3 21.9 25.3 31.1 498 532 NON DEPARTMENTAL - TRANSFERS OUT Budget Unit 100-90-001, 429-90-001 Budget at a Glance Total Revenues - Total Expenditures 27,941,734 Fund Balance (12,184,000) General Fund Costs 15,757,734 % Funded by General Fund 56.4% Total Staffing - PROGRAM OVERVIEW Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. PROPOSED BUDGET It is recommended that a budget of $27,941,734 be approved for the Transfers Out Budget. This represents an increase of $5,815,361 from the FY 2016-17 Final Adopted Budget. The increase is attributed primarily to new capital projects and a $2 million transfer of cash from the Capital Reserve to the General fund to fund a CalPERS assigned reserve. The transfers for FY 2017-18 are as follows: 499 533 Transfer Out from General Fund Description Amount Special Revenue Pavement, Sidewalk, Curb and Gutter Maintenance $7,134,122 Debt Service Annual Debt Payment $3,167,538 Enterprise General Fund subsidy of several Recreation Enterprise Funds $400,000 Internal Service General Fund Subsidy of Government Channel, City Website, GIS and Compensated Absence Funding $5,056,074 Total General Fund Transfers Out $15,757,734 Transfer Out from the Capital Reserve General CalPERS Reserve $2,000,000 Special Revenue Fund Capital Improvement Projects $5,638,000 Capital Fund Capital Improvement Projects $4,546,000 Total Capital Reserve Transfers Out $12,184,000 Total All Funds Transfers Out $27,941,734 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 500 534 Non Departmental – Transfers Out 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Proposed Appropriations for Contingency - - - - Total Expenditures 40,163,276 18,749,953 22,126,373 27,941,734 Fund Balance -(5,549,993) (9,165,000) (12,184,000) General Fund Costs $ 40,163,276 $ 13,199,960 $ 12,961,373 $ 15,757,734 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation 40,163,276 18,749,953 22,126,373 27,941,734 Capital Outlay - - - - Special Projects - - - - 501 535 NON DEPARTMENTAL DEBT SERVICE – PUBLIC FACILITIES CORPORATION Budget Unit 365-90-500 Budget at a Glance Total Revenues - Total Expenditures 3,167,538 Fund Balance - General Fund Costs 3,167,538 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Debt Service Program provides for the payment of principal and interest and associated administrative costs incurred with the issuance of debt instruments for the City’s Public Facilities Corporation. The budget funds the Corporation’s annual payment of principal and interest on the City Hall/Library, Wilson/Memorial Open Space and Library Certificates of Participation (COP) that will be paid off by the year 2030. SERVICE OBJECTIVES The majority of the borrowings occurred in early 1990 to acquire additional park real estate and expand community facilities. A breakdown of the capital acquisitions follows: • Increased 90 acres of park real estate to 190 acres, a 111% increase • Increased 26,031 sq ft of recreation building space to 84,460 sq ft, a 224% increase • Specific purchases included: o Blackberry Farm - $18 million, voter approved debt; o Creekside Park - $12 million voter approved debt; o Sports Center - $8 million; o Quinlan Community Center, including park real estate - $6.1 million; o Wilson Park and improvements - $5.6 million; o Jollyman Park development - $1 million; o City Hall renovation/improvements - $1.7 million; o Library renovation/improvements - $1.7 million; o New library/community center - $10 million. 502 536 In May 2012, the Corporation refinanced its $44 million in outstanding debt to lower the interest rate and save approximately $350,000 per year in debt payments. Total Annual Payment Principal Interest Lease Lease Date Component Component Payment Payment 12/15/12 687,643.15 687,643.15 6/15/13 1,920,000.00 567,778.75 2,487,778.75 3,175,421.90 12/15/13 564,418.75 564,418.75 6/15/14 2,040,000.00 564,418.75 2,604,418.75 3,168,837.50 12/15/14 559,318.75 559,318.75 6/15/15 2,055,000.00 559,318.75 2,614,318.75 3,173,637.50 12/15/15 538,768.75 538,768.75 6/15/16 2,090,000.00 538,768.75 2,628,768.75 3,167,537.50 12/15/16 517,868.75 517,868.75 6/15/17 2,135,000.00 517,868.75 2,652,868.75 3,170,737.50 12/15/17 496,518.75 496,518.75 6/15/18 2,180,000.00 496,518.75 2,676,518.75 3,173,037.50 12/15/18 474,718.75 474,718.75 6/15/19 2,220,000.00 474,718.75 2,694,718.75 3,169,437.50 12/15/19 441,418.75 441,418.75 6/15/20 2,290,000.00 441,418.75 2,731,418.75 3,172,837.50 12/15/20 407,068.75 407,068.75 6/15/21 2,355,000.00 407,068.75 2,762,068.75 3,169,137.50 12/15/21 371,743.75 371,743.75 6/15/22 2,425,000.00 371,743.75 2,796,743.75 3,168,487.50 12/15/22 335,368.75 335,368.75 6/15/23 2,500,000.00 335,368.75 2,835,368.75 3,170,737.50 12/15/23 297,868.75 297,868.75 6/15/24 2,575,000.00 297,868.75 2,872,868.75 3,170,737.50 12/15/24 259,243.75 259,243.75 6/15/25 2,655,000.00 259,243.75 2,914,243.75 3,173,487.50 12/15/25 219,418.75 219,418.75 6/15/26 2,730,000.00 219,418.75 2,949,418.75 3,168,837.50 12/15/26 178,468.75 178,468.75 6/15/27 2,815,000.00 178,468.75 2,993,468.75 3,171,937.50 12/15/27 136,243.75 136,243.75 6/15/28 2,900,000.00 136,243.75 3,036,243.75 3,172,487.50 12/15/28 92,743.75 92,743.75 6/15/29 2,985,000.00 92,743.75 3,077,743.75 3,170,487.50 12/15/29 47,968.75 47,968.75 6/15/30 3,070,000.00 47,968.75 3,117,968.75 3,165,937.50 Total 43,940,000.00 13,133,759.40 57,073,759.40 57,073,759.40 SCHEDULE OF LEASE PAYMENTS 503 537 PROPOSED BUDGET It is recommended that a budget of $3,167,538 be approved for the Public Facilities Corporation Budget. This budget is unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: Non Departmental Debt Service - Public Facilities Corporation 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - - - Total Expenditures 3,175,138 3,169,038 3,167,538 3,167,538 Fund Balance - - - - General Fund Costs $ 3,175,138 $ 3,169,038 $ 3,167,538 $ 3,167,538 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation 3,175,138 3,169,038 3,167,538 3,167,538 Capital Outlay - - - - Special Projects - - - - 504 538 NON DEPARTMENTAL - EMPLOYEE HOUSING ASSISTANCE Budget Unit 100-90-502 Budget at a Glance Total Revenues - Total Expenditures 10,000 Fund Balance - General Fund Costs 10,000 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The recruitment and hiring of top quality department heads is essential to the efficient operation of the City. Housing costs in Silicon Valley tend to act as a disincentive to persons relocating to the area, and therefore, as an obstacle to the recruitment, hiring, and retention of such top quality personnel. To assist in this end, the Council adopted the housing assistance program for department heads. SERVICE OBJECTIVES The housing assistance program for department heads provides housing loans for their primary residence at interest rates indexed with the 11th District cost of funds with an optional deferred interest feature for the first five years. There is assistance with half of the closing costs. The City may assist in the purchase by acquiring up to thirty percent of the equity share in the residence. PROPOSED BUDGET It is recommended that a budget of $10,000 be approved for the Employee Housing Assistance Budget. This budget is unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year: 505 539 Non Departmental - Employee Housing Assistance 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Proposed Appropriations for Contingency - - - - Total Expenditures 8,100 8,246 10,000 10,000 Fund Balance - - - - General Fund Costs $ 8,100 $ 8,246 $ 10,000 $ 10,000 STAFFING There is no staffing associated with this budget. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 8,018 7,419 10,000 10,000 Contract Services - - - - Cost Allocation 82 827 - - Capital Outlay - - - - Special Projects - - - - 506 540 Personnel Schedules 541 Column1 FY12 FY13 FY14 FY15 FY16 FY17 Change FY18 CITY COUNCIL/COMMISSIONS City Council 0.50 0.50 0.50 0.50 0.45 0.30 5.55 5.85 Sister Cities 0.00 0.00 0.00 0.10 0.05 0.05 0.05 0.10 Fine Arts Commission 0.10 0.10 0.10 0.15 0.15 0.15 0.00 0.15 Technology, Information & Communications Commission 0.10 0.10 0.10 0.10 0.10 0.10 (0.10)0.00 Parks and Recreation Commission 0.10 0.10 0.10 0.05 0.10 0.10 0.00 0.10 Teen Commission 0.15 0.15 0.25 0.25 0.25 0.30 0.00 0.30 Housing Commission 0.05 0.05 0.05 0.15 0.15 0.15 0.00 0.15 Library Commission 0.02 0.07 0.05 0.05 0.05 0.05 0.00 0.05 Sustainability Commission 0.00 0.00 0.00 0.00 0.00 0.10 0.00 0.10 Planning Commission 0.45 0.45 0.42 0.30 0.30 0.25 0.00 0.25 1.47 1.52 1.57 1.55 1.60 1.55 5.50 7.05 ADMINISTRATION City Clerk 0.00 0.00 3.60 3.60 3.00 3.00 0.40 3.40 City Manager 1.55 1.40 2.55 2.55 3.30 3.02 0.35 3.37 Community Outreach 0.50 0.75 0.00 0.00 0.00 0.00 0.00 0.00 Economic Development 0.00 0.00 1.00 1.00 0.00 0.00 0.00 0.00 Public Affairs 0.00 0.00 0.00 0.00 0.00 0.00 1.90 Sustainability 0.00 0.00 0.60 0.60 1.55 1.55 0.25 1.80 Legal Services 3.00 2.90 3.00 3.00 3.00 3.00 1.00 4.00 5.05 5.05 10.75 10.75 10.85 10.57 3.90 14.47 INNOVATION & TECHNOLOGY Administration 1.60 1.60 1.80 1.80 1.15 2.45 (1.60)0.85 Cupertino Scene 0.35 0.35 0.35 0.35 0.35 0.30 (0.30)0.00 Video (formally Government Channel)3.20 3.20 3.15 3.15 2.95 3.40 (0.15)3.25 Applications (formally City Website)1.00 0.95 0.95 0.95 0.95 0.80 2.40 3.20 GIS 0.00 0.00 0.00 0.00 2.00 2.30 0.35 2.65 Infrastructure (formally Information Technology)0.00 0.00 4.00 4.00 4.00 4.70 -0.15 4.55 6.15 6.10 10.25 10.25 11.40 13.95 0.55 14.50 ADMINISTRATIVE SERVICES Administration 1.98 1.93 2.70 1.80 2.50 2.50 0.30 2.80 Accounting 4.50 4.33 4.50 5.60 5.20 5.75 (0.35)5.40 Business Licensing 0.50 0.50 0.50 0.50 1.10 0.55 0.05 0.60 City Clerk 2.90 2.90 0.00 0.00 0.00 0.00 0.00 0.00 Duplicating and Printing 0.60 0.60 0.00 0.00 0.00 0.00 0.00 0.00 Human Resources 3.50 3.50 2.95 3.75 3.15 3.15 (0.30)2.85 Insurance Administration 0.50 0.50 0.35 0.35 0.35 0.35 0.00 0.35 Code Enforcement 4.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 Information Technology 4.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 22.48 22.26 11.00 12.00 12.30 12.30 -0.30 12.00 RECREATION AND COMMUNITY SERVICES 0.00 Administration 2.00 2.00 2.05 3.05 2.95 2.85 0.05 2.90 Business and Community Services 9.60 9.60 9.80 9.85 8.85 9.55 1.30 10.85 Recreation and Education 4.88 4.88 4.58 4.53 5.58 11.85 (1.15)10.70 Sports, Safety and Outdoor Recreation 6.00 6.00 6.05 6.00 6.00 8.83 2.10 10.93 Senior Center/Stevens Creek Trail/Blue Pheasant 7.30 7.05 7.00 7.10 8.10 0.00 0.00 0.00 Community Outreach 0.00 0.00 0.00 0.75 0.70 0.00 0.00 0.00 29.78 29.53 29.48 31.28 32.18 33.08 2.30 35.38 COMMUNITY DEVELOPMENT Administration 1.41 1.39 1.41 0.90 0.90 0.55 0.00 0.55 Planning 7.79 7.89 8.84 9.10 8.60 10.63 0.00 10.63 Housing Services 0.83 0.68 0.68 0.80 0.80 0.80 0.00 0.80 Building 11.90 11.90 12.25 12.25 13.30 13.95 (0.10)13.85 Economic Development/RDA Successor Agency 1.50 2.04 0.00 0.00 1.00 1.00 0.00 1.00 Muni/Building Code Enforcement 0.00 0.00 1.65 1.75 2.70 1.25 0.00 1.25 23.43 23.90 24.83 24.80 27.30 28.18 -0.10 28.08 PUBLIC WORKS Administration 3.25 3.25 10.15 3.25 3.25 3.25 0.00 3.25 Environmental Programs 3.17 3.17 3.67 4.17 6.22 6.22 0.05 6.27 PERSONNEL SUMMARY by Division and Department 507 542 Column1 FY12 FY13 FY14 FY15 FY16 FY17 Change FY18 PERSONNEL SUMMARY by Division and Department Development Services 6.72 6.82 0.00 7.40 7.40 7.40 0.10 7.50 Service Center 2.00 2.00 2.00 2.30 2.70 3.70 (0.65)3.05 Grounds 19.70 18.95 18.75 19.75 19.75 19.75 (0.15)19.60 Streets 10.25 11.25 13.15 13.10 13.65 13.65 0.30 13.95 Trees and Right of Way 16.90 16.80 15.40 16.40 16.40 16.40 0.00 16.40 Facilities and Fleet 7.35 7.20 7.15 7.15 8.15 8.15 (0.15)8.00 Transportation 4.25 4.15 3.85 3.60 4.60 5.60 0.90 6.50 73.59 73.59 74.12 77.12 82.12 84.12 0.40 84.52 LAW ENFORCEMENT Code Enforcement 0.00 0.00 2.00 2.00 2.00 2.00 0.00 2.00 0.00 0.00 2.00 2.00 2.00 2.00 0.00 2.00 Total Benefitted Positions 161.95 161.95 164.00 169.75 179.75 185.75 12.25 198.00 508 543 C I P FY 2018 Capital Improvement Program Proposed FY 2018 Planned FY 2019-2022 PUBLIC WORKS DEPARTMENT Timm Borden, Director CITY HALL 10300 TORRE AVENUE ~ CUPERTINO, CA 95014-3266 (408) 777-3354 ~ FAX (408) 777-3333 544 City of Cupertino Page 2 of 142 FY 2017-2018 CIP Budget - PROPOSED Table of Contents Introduction ........................................................................................................................................ 6 Completed Projects .......................................................................................................................... 10 Current and Proposed CIP Projects ....................................................................................................... 14 Priority 1 Projects ................................................................................................................................ 15 2016 Bike Plan Implementation ...................................................................................................... 16 ADA Improvements ........................................................................................................................ 18 Bicycle and Pedestrian Facility Improvements ............................................................................ 20 Bikeway Enhancements and Wayfinding Plan ............................................................................ 22 City Bridge Maintenance Repairs .................................................................................................. 24 Citywide Parks and Recreation Master Plan ................................................................................ 26 Fiber Network Expansion to Service Center ................................................................................ 28 Inclusive Play Area - Planning ....................................................................................................... 30 Lawrence-Mitty Park ....................................................................................................................... 32 McClellan Ranch – Community Garden Improvements – Conceptual Planning & Design . 34 McClellan Ranch – Construct Trash Enclosure ............................................................................ 36 McClellan Ranch West Parking Lot Improvement ..................................................................... 38 McClellan Road Sidewalk Improvements – Phase 2 ................................................................... 40 Outfall Repair & Slope Stabilization - Regnart Rd. ..................................................................... 42 Recreation Facilities Monument Signs .......................................................................................... 44 Retaining Wall Repair – Cordova Road ........................................................................................ 46 Retaining Wall Replacement – Regnart Road .............................................................................. 48 Senior Center Repairs ...................................................................................................................... 50 Service Center Shed No. 3 Improvements .................................................................................... 52 Stevens Creek Corridor Park Chain Master Plan – McClellan to Stevens Creek Blvd. ......... 54 Storm Drain Improvements – Foothill Blvd./Cupertino Rd. ..................................................... 56 Storm Drain Master Plan Update .................................................................................................. 58 Street Median Irrigation & Plant Replacement ............................................................................ 60 Tennis Court Resurfacing – Various Parks ................................................................................... 62 545 City of Cupertino Page 3 of 142 FY 2017-2018 CIP Budget - PROPOSED Priority 2 Projects ................................................................................................................................ 64 McClellan Rd. Sidewalk Installation – Rose Blossom Dr. to Hwy 85 Overcrossing .............. 66 Senior Center Walkway Replacement ........................................................................................... 68 Sidewalk Improvements – Orange & Byrne ................................................................................. 70 Priority 3 Projects ................................................................................................................................ 72 Capital Project Support ................................................................................................................... 74 CIP Preliminary Planning & Design.............................................................................................. 76 International Cricket Ground - Feasibility Study ........................................................................ 78 Memorial Park Master Plan & Parking Study ............................................................................. 80 Sports Center – Upgrades ............................................................................................................... 82 Stevens Creek Bank Repair – South of SCB – Conceptual Design ............................................ 84 Stocklmeir House – New Sewer Lateral ....................................................................................... 86 Storm Drain Improvements - Byrne Ave. & Stevens Creek Blvd. ............................................ 88 Street Light Installation – Annual Infill ........................................................................................ 90 Street Light Installation – Randy Ln. & Larry Wy. ...................................................................... 92 Traffic Signal: Foothill/I-280 SB Off-ramp .................................................................................... 94 Priority 4 Projects ................................................................................................................................ 96 Jollyman Park Pathway Installation .............................................................................................. 98 Linda Vista Park - Renovation Master Plan ............................................................................... 100 Memorial Park Phase 1 – Design ................................................................................................. 102 Memorial Park Phase 1 - Construction ....................................................................................... 104 Monta Vista Park - Renovation Master Plan .............................................................................. 106 Portal Park – Renovation Master Plan ........................................................................................ 108 Storm Drain Improvements - Homestead Road ........................................................................ 110 Wilson Park - Renovation Master Plan ....................................................................................... 112 Development In-Lieu Contributions............................................................................................. 114 De Anza Blvd./McClellan/Pacifica Signal Modification ........................................................... 116 Monument Gate Way Signs (4) .................................................................................................... 118 Stevens Creek Blvd. and Bandley Signal and Median Improvements ................................... 122 Unfunded CIP Projects .................................................................................................................... 124 546 City of Cupertino Page 4 of 142 FY 2017-2018 CIP Budget - PROPOSED Blackberry Farm - Golf Course Renovation ............................................................................... 126 Blackberry Farm – Play Area Improvements ............................................................................. 127 Blackberry Farm – Splash Pad ...................................................................................................... 128 Civic Center Master Plan Implementation ................................................................................. 129 Implement Storm Drain Master Plan Priorities ......................................................................... 130 Jollyman Park Irrigation Upgrade ............................................................................................... 131 McClellan Ranch – Barn Renovation ........................................................................................... 132 McClellan Ranch – Community Garden Improvements Construction .................................. 133 McClellan Ranch Preserve Stevens Creek Access ..................................................................... 134 Memorial Park – Tennis Court Restroom Replacement ........................................................... 135 Monta Vista Park –Play Areas ...................................................................................................... 136 Portal Park Phase 1 – Design & Construction ............................................................................ 137 Service Center - Replacement Administration Building with EOC ........................................ 138 Stevens Creek Trail Bridge over UPRR ....................................................................................... 139 Stocklmeir Legacy Farm – Phase 1 Improvement ..................................................................... 140 Wilson Park Phase 1 – Design & Construction .......................................................................... 141 Appendix: Five-Year CIP Summary .............................................................................................. 142 547 City of Cupertino Page 5 of 142 FY 2017-2018 CIP Budget - PROPOSED 548 Introduction May 1, 2017 Honorable Mayor and members of the City Council: Subject: Fiscal Year 2016/17 CIP Status Report and Fiscal Year 2017/18 CIP Proposal I am pleased to provide you the following comprehensive document that includes descriptions and the status of currently budgeted projects as well as proposed projects in the categories described below. Project scopes, budgets, and schedules are shown for all incomplete but previously budgeted projects. Please note that the Estimated Project Cost for each project reflects all of the anticipated costs to deliver the project. Newly Proposed Projects New projects proposed within the five-year CIP are as follows: Recreation and Community Services Facilities  Inclusive Play Area – Planning  International Cricket Ground – Feasibility Study  Jollyman Park - Pathway Installation  Linda Vista Park - Renovation Master Plan  Senior Center Repairs  Senior Center - Walkway Replacement Storm Drainage  Outfall Repair & Slope Stabilization-Regnart Rd. Transportation Facilities  Street Light Installation – Annual Infill  McClellan Road Sidewalk Installation (Rose Blossom-Hwy 85)  Street Light Installation – Randy Ln. & Larry Wy. Development In-Lieu Contributions The Development In-Lieu Contributions section creates a vehicle for the Council and the public to track these contributions received from development. The contributions are typically “fair- share” contributions towards a larger project. The projects are therefore on-hold until the funding gap is closed by other contributing developments or by augmentations with City funds. 549 Unfunded Projects Although these projects are not proposed for funding at this time, through a community, City Council, or staff proposal, they are tracked in this budget document. FY 2017 CIP Accomplishments Notable accomplishments in FY2016-17 include the following: Completion of the following projects:  Blacksmith Shop Forge Restoration  City Hall Turf Reduction  DeAnza Blvd. Monument Sign  Pasadena Avenue Public Improvements (between Granada and Olive)  Pedestrian Master Plan  Quinlan Community Center Fire Alarm Control Panel Replacement  Service Center New Administration Building Feasibility Study  Sidewalk Renovation on Stevens Creek Blvd. (from Stelling to De Anza)  Sport Center Tennis Court Resurfacing (18 Courts)  Monument Gateway Signs (De Anza at Bollinger, Development In Lieu Contribution) Projects that have met significant progress milestones include:  Fiber Network Extension to the Service Center: complete through Construction Documents phase;  McClellan Ranch West Parking Lot Improvement: complete through Design Development phase;  McClellan Rd. Sidewalk Improvement – Phase 2: design completed and resident/owner outreach in progress;  Recreation Facilities Monument Signs – Construction Documents phase started  Retaining Wall Repair-Cordova Rd. and Retaining Wall Replacement-Regnart Rd.: complete through Construction Documents phase;  Service Center Shed No. 3 Improvement: complete through Construction Documents phase;  Storm Drain Improvements – Foothill Blvd. & Cupertino Rd.: Construction started; Two projects that were included in FY 2017 CIP are recommended for defunding and to be moved to the Unfunded list, as they are subject to the outcome of the Stevens Creek Corridor Park Chain Master Plan:  Blackberry Golf Course Renovations - $1,043,000  Blackberry Farm – Splash Pad - $70,000 Following are the project description and budget sheets for the five-year CIP budget plan. The estimated project costs shown are inclusive of all anticipated direct and indirect costs, including 550 551 City of Cupertino Page 9 of 142 FY 2017-2018 CIP Budget - PROPOSED 552 City of Cupertino Page 10 of 142 FY 2017-2018 CIP Budget - PROPOSED Completed Projects Completed Projects FY2012 Projects completed by June 30, 2012 Description Description 2011-12 Annual Curb, Gutter & Sidewalk Repairs & ADA Ramps 2011-12 Annual Pavement Management 2011-12 Annual Minor Storm Drain Improvements Blackberry Farm Infrastructure Upgrade Civic Center Master Plan Framework Electric Vehicle Charging Station Linda Vista Pond Improvements – Study McClellan Ranch/Simms Master Plan Update McClellan Ranch 4H Sanitary Connection Permanente Creek Safe Routed to School – Garden Gate Stocklmeir Orchard Irrigation Various Minor Intersection Traffic Signal Battery Backup System Various Park Path and Parking Lot Repairs & Resurfacing – Phase 1 Completed Projects FY2013 Projects completed by June 30, 2013 Description Description Emergency Van Upgrades McClellan Ranch Repairs & Painting McClellan Road Sidewalk Study Traffic Management Studies – 3 Intersections Various Park Path and Parking Lot Repairs & Resurfacing – Phase 2 Various Trail Resurfacing at School Sports Fields – Phase 1 Various Trail Resurfacing at School Sports Fields – Phase 2 Wilson Park Irrigation System Renovation Completed Projects FY2014 Projects completed by June 30, 2014 Description Description McClellan Ranch – Historic Structures Assessment McClellan Ranch – Barn Evaluation & Renovation Plan Mary Avenue Dog Park McClellan Ranch Preserve Signage Program Senior Center – Various Improvements Phase 1 Solar Assessment – Public Building Sports Center – Various Improvements Various Park Path Repairs – Phase 3 Stevens Creek Corridor Park Phase 2 Various Trail Resurfacing at School Sports Fields – Phase 3 Various Traffic Signal/Intersection Modifications 553 City of Cupertino Page 11 of 142 FY 2017-2018 CIP Budget - PROPOSED Completed Projects FY2015 Projects completed by June 30, 2015 Description Description Accessibility Transition Plan Update Bicycle and Pedestrian Facility Improvements Calabazas Creek (Bollinger Rd.) Outfall Repair Install Speed Bumps – Vista and Lazaneo Dr Mary Avenue Pedestrian & Streetscape Improvements McClellan Ranch Environmental Education Center, Blacksmith Shop, Shelter, Solar & Restroom Upgrades McClellan Road Sidewalk Improvements – Phase 1 Priority Green Bike Lane Improvements Public Building Solar Installation – Service Center Quinlan Community Center Fiber Installation Quinlan Center Interior Upgrades Sports Center Tennis Court Retaining Wall Replacement Completed Projects FY2016 Projects completed by June 30, 2016 Description Description Bicycle and Pedestrian Facility Improvements Bicycle Transportation Plan Update Bubb Road (Elm Ct.) Storm Drain Imprvmts. Civic Center Master Plan Civic Center-Parking Structure-Conceptual Design Fiber Network Expansion for Signal Interconnect Homestead Road Concrete Sidewalk Project McClellan Ranch - Pedestrian, Parking, Landscape Improvements McClellan Ranch West - Simm's House Removal Monta Vista Storm Drain System Quinlan Community Center - Cupertino Rm Lighting Replacement Senior Center - Exercise Room Wood Floor Replacement Senior Center - Mary Avenue Landscaping Service Center - Parking Lot Modification Sport Center-Sport Court (Tennis Court Resurfacing) Stevens Creek Blvd. at Perimeter Rd. Turn Pocket Extension 554 City of Cupertino Page 12 of 142 FY 2017-2018 CIP Budget - PROPOSED Completed Projects FY2017 Projects completed by June 30, 2017 Description Description Blacksmith Shop Forge Restoration City Hall – Turf Reduction DeAnza Monument Sign Pasadena Ave. Public Improvements (Between Granada & Olive) Pedestrian Master Plan Quinlan Community Center – Fire Alarm Control Panel Upgrade Service Center-New Admin. Bldg. Feasibility Study Sidewalk Renovation – Stevens Creek Blvd. – Stelling to DeAnza Sports Center – Resurface Tennis Courts (18 courts) 555 City of Cupertino Page 13 of 142 FY 2017-2018 CIP Budget - PROPOSED 556 City of Cupertino Page 14 of 142 FY 2017-2018 CIP Budget - PROPOSED Current and Proposed CIP Projects 557 City of Cupertino Page 15 of 142 FY 2017-2018 CIP Budget - PROPOSED Priority 1 Projects 558 City of Cupertino Page 16 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 2016 Bike Plan Implementation Budget Unit 420-99-036 Priority: 1 CIP Category: A – Public Safety Location: Various Locations Estimated Project Costs: $3,000,000 DESCRIPTION Design and construct high priority improvements of the 2016 Bicycle Transportation Plan. PROJECT JUSTIFICATION The Bicycle Transportation Plan Update was completed in FY2015/16. The Plan identifies improvement needed and priorities to enhance and promote safer bicycle transportation in the City. Upon its approval by City Council, implementing the recommended improvements is the next step. STATUS Consultant hired to assist with developing concepts for Class III and Class IV bike lanes identified in Bike Plan. Final feasibility study for Class IV bike lanes anticipated April, 2017, with engineering design immediately following. Public outreach for and design of Class III bike boulevards anticipated Spring through Summer 2017. RFP for Union Pacific Trail and I-280 trail is being developed. 559 City of Cupertino Page 17 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 900,000$ 600,000$ 300,000$ Construction 2,100,000$ 1,400,000 700,000 Total Project Expenditures 3,000,000$ 2,000,000$ 1,000,000$ -$ -$ -$ -$ Funding Sources City – General Fund 3,000,000$ 2,000,000$ 1,000,000$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 3,000,000$ 2,000,000$ 1,000,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ Approximately $250,000 in Development In-lieu funds are applicable to this project. 560 City of Cupertino Page 18 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 ADA Improvements Budget Unit 420-99-007 Priority: 1 CIP Category: A – Public Safety Location: Various Locations Estimated Project Costs: $545,000 ($75,000 annually) DESCRIPTION Implement ADA improvements annually. PROJECT JUSTIFICATION An update of the City’s ADA Transition Plan was completed in April 2015. The plan identifies improvements needed and priorities to achieve compliance with ADA in public buildings, parks, and the public right of way. STATUS A project at Jollyman and Varian Parks will implement walkway improvements summer/fall 2017. A project at the City Hall site will improve curb ramps. 561 City of Cupertino Page 19 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 180,000$ 50,000$ 30,000$ 25,000$ 25,000$ 25,000$ 25,000$ Construction 365,000$ 100,000 65,000 50,000 50,000 50,000 50,000 Total Project Expenditures 545,000$ 150,000$ 95,000$ 75,000$ 75,000$ 75,000$ 75,000$ Funding Sources City – General Fund 545,000$ 150,000$ 95,000$ 75,000$ 75,000$ 75,000$ 75,000$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 545,000$ 150,000$ 95,000$ 75,000$ 75,000$ 75,000$ 75,000$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 562 City of Cupertino Page 20 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Bicycle and Pedestrian Facility Improvements Budget Unit 270-90-962 Priority: 1 CIP Category: A – Public Safety Location: City Wide Estimated Project Costs: $1,206,000 DESCRIPTION Implement the Bicycle Transportation Plan and other bicycle network-related facility improvements. PROJECT JUSTIFICATION In 2011 the City Council approved and adopted the Cupertino Bicycle Transportation Plan, which recommended improvements to 17 proposed bikeways throughout the City. In February of 2015, Council approved an update to Plan that included many short-term, achievable projects. STATUS Approximately 80% of improvements funded in 2015 Bicycle Plan Update have been completed. Remaining items have either been rolled into the 2016 Bike Plan or will be incorporated into the Parks Master Plan. 563 City of Cupertino Page 21 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 395,000$ 395,000$ -$ -$ -$ -$ Construction 811,000$ 811,000 - - - - Total Project Expenditures 1,206,000$ 1,206,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 1,206,000$ 1,206,000$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 1,206,000$ 1,206,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ Funding Sources City – General Fund -$ -$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 564 City of Cupertino Page 22 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Bikeway Enhancements and Wayfinding Plan Budget Unit 420-99-037 Priority: 1 CIP Category: A – Public Safety Location: City Wide Estimated Project Costs: $60,000 DESCRIPTION Develop a plan that identifies and prioritizes key City locations where bicycle wayfinding signage, bicycle parking – both short-term and long-term – and Bike Share Program Depots would be beneficial and most impactful. The plan will also provide a design standard for signage. Available grant funding that may be applied towards these improvements will be identified as part of this effort. PROJECT JUSTIFICATION Upon approval of the 2016 Bicycle Transportation Plan Update, further development of implementation strategies, specific locations, priorities, and design standards for bicycle facility enhancements will be the next step toward implementation of the 2016 recommendations. STATUS Request for Proposals advertised in March, 2017. Plan development expected to begin May, 2017. 565 City of Cupertino Page 23 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 60,000$ 60,000$ -$ -$ -$ -$ C onstruction -$ - - - - - - Total Project Expenditures 60,000$ 60,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 60,000$ 60,000$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 60,000$ 60,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 566 City of Cupertino Page 24 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 City Bridge Maintenance Repairs Budget Unit 270-90-960 Priority: 1 CIP Category: B – Preventative Maintenance Locations: Stevens Creek Blvd., Homestead Rd. and McClellan Rd. at Stevens Creek Stevens Creek Blvd., Miller Ave. and Tantau Ave. at Calabazas Creek Estimated Project Costs: $700,000 DESCRIPTION Design and construct bridge repairs recommended in the Caltrans report along with additional improvements to prolong the useful life of the bridges. PROJECT JUSTIFICATION The City of Cupertino owns and maintains a total of seven vehicular bridges. Caltrans inspects these bridges and prepares a biennial report detailing the recommended repairs. Six of the seven bridges require rehabilitation. The required minor rehabilitation includes the repairs as recommended in the Caltrans Bridge Report as well as additional work to prolong the life and use of the bridges. Approximately 88% of the project costs are eligible for Federal reimbursement through Caltrans’ Bridge Preventive Maintenance Program (BPMP). STATUS The project has been programmed into the Bridge Preventive Maintenance Program administered by Caltrans and the City expects to be reimbursed for up to $571,151 for this project. The authorization to proceed with the Preliminary Engineering work and NEPA Certification was received in May 2016. The project design phase is underway. 567 City of Cupertino Page 25 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 210,000$ 210,000$ -$ -$ -$ -$ Construction 490,000$ 490,000 - - - - Total Project Expenditures 700,000$ 700,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax 700,000$ 700,000 - - - - - Other – Grants -$ - - - - - - Total Project Funding 700,000$ 700,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 568 City of Cupertino Page 26 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Citywide Parks and Recreation Master Plan Budget Unit 420-99-045 Priority: 1 CIP Category: C - Enhancement Location: City Parks Estimated Project Costs: $500,000 DESCRIPTION Prepare a long-range, city-wide park and recreation system master plan. The planning process will include an evaluation of the recreation services, a needs assessment, and substantial outreach to the community. The master plan will provide guidance regarding recreation services needs as well as future renovations and capital needs for recreation facilities, including parks and open space. The plan will provide guidance and recommendations on how to meet the future demand for recreation services and programming, operations, and establish priorities for facility improvements and acquisitions. PROJECT JUSTIFICATION A comprehensive needs assessment and plan for recreation services will inform future capital improvements and operations for those services. STATUS Per City Council authorization in January 2017, a consultant services has been executed with Moore Iacofano Goltsman and services are underway. In March site tours were conducted and a schedule was presented to the Parks and Recreation Commission. Next steps include formation of an advisory group, presentation of community input to date, and development of a vision and goals for the master plan. 569 City of Cupertino Page 27 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 500,000$ 500,000$ -$ -$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 500,000$ 500,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 500,000$ 500,000$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 500,000$ 500,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 570 City of Cupertino Page 28 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Fiber Network Expansion to Service Center Budget Unit 420-99-038 Priority: 1 CIP Category: A – Public Safety Location: Mary Ave. between Stevens Creek Blvd. and the Service Center Estimated Project Costs: $350,000 DESCRIPTION Design for and install fiber optic cable along Mary Avenue between the intersection of Stevens Creek Boulevard and Mary Avenue and the City of Cupertino Service Center. PROJECT JUSTIFICATION The Service Center currently has no direct communication and network connection to City Hall. A direct digital link between the two facilities would improve communication for city operations. STATUS Design phase is in progress . 571 City of Cupertino Page 29 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 105,000$ 105,000$ -$ -$ -$ -$ Construction 245,000$ 245,000 - - - - Total Project Expenditures 350,000$ 350,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 350,000$ 350,000$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 350,000$ 350,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 572 City of Cupertino Page 30 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Inclusive Play Area - Planning Budget Unit 420-99-051 Priority: 1 CIP Category: A – Grant Opportunities Location: TBD Estimated Project Costs: $30,000 DESCRIPTION This funding will be used to explore key project components such as suitable partnerships, siting considerations, cost data, and grant opportunities. An Inclusive Play Area will be addressed included in Citywide Parks, Open Space & Recreation Master Plan. PROJECT JUSTIFICATION Cupertino does not currently have an Inclusive Play area (the nearest ones are in Palo Alto and San Jose). Santa Clara County approved one-time matching funding of $10M countywide for such facilities on Feb. 28, 2017. First round grant applications are anticipated this fall. This project will promote the city’s eligibility for grant funding for such a facility. STATUS Initiate project in the summer 2017. 573 City of Cupertino Page 31 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 30,000$ 30,000$ -$ -$ -$ -$ Construction -$ - - - - Total Project Expenditures 30,000$ -$ 30,000$ -$ -$ -$ -$ Funding Sources City – General Fund 30,000$ -$ 30,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 30,000$ -$ 30,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 574 City of Cupertino Page 32 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Lawrence-Mitty Park Budget Unit 280-99-009 Priority: 1 CIP Category: C - Enhancement Location: Lawrence Expressway and Mitty Estimated Project Costs: $8,270,994 DESCRIPTION Develop a neighborhood park on several acres of land adjacent to Saratoga Creek, near the intersection of Lawrence Expressway and Mitty, which is currently owned by the County and within the City of San Jose. Acquire the land, annex the land, design and construct the park. PROJECT JUSTIFICATION The City is under-served for neighborhood parks to meet the level of service goal of the City’s General Plan. The east side of the City is particularly under-served. STATUS Initiated the project in the fall of FY 2015-16. Discussions with property owner, Santa Clara Co., are underway and continue. Preliminary site investigation and land appraisal completed. Community tour of site and survey conducted in April 2017. 575 City of Cupertino Page 33 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 8,270,994$ 8,270,994$ -$ -$ -$ -$ -$ Construction -$ - - - - - Total Project Expenditures 8,270,994$ 8,270,994$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees 8,270,994$ 8,270,994 - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 8,270,994$ 8,270,994$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ TBD TBD TBD TBD TBD Other Operating Costs -$ - TBD TBD TBD TBD TBD Total Operating Expenditures -$ -$ TBD TBD TBD TBD TBD Funding Sources City – General Fund -$ -$ TBD TBD TBD TBD TBD Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 576 City of Cupertino Page 34 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 McClellan Ranch – Community Garden Improvements – Conceptual Planning & Design Budget Unit 420-99-004 Priority: 1 CIP Category: B – Preventative Maintenance Location: McClellan Ranch Preserve Estimated Project Costs: $100,000 DESCRIPTION Prepare a feasibility analysis and preliminary/conceptual design to develop a plan and strategy for improvement of the community garden. The process will include input from the gardener community. Considerations will include plot layout, garden paths and accessibility to and within the garden, perimeter fencing and irrigation distribution system. PROJECT JUSTIFICATION The existing fence around the community garden is failing in many places and is unreliable as a secure enclosure. The impact of rodents on the garden produce is pervasive and persistent. The garden irrigation system is maintenance intensive and insufficient to meet the needs of the garden. The existing garden plot sizing is variable; the garden should be reconfigured for regular plot sizes. STATUS Project initiated in spring 2017. 577 City of Cupertino Page 35 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 100,000$ 30,000$ 70,000$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 100,000$ 30,000$ 70,000$ -$ -$ -$ -$ Funding Sources City – General Fund 100,000$ 30,000$ 70,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 100,000$ 30,000$ 70,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 578 City of Cupertino Page 36 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 McClellan Ranch – Construct Trash Enclosure Budget Unit 420-99-003 Priority: 1 CIP Category: C - Enhancement Location: McClellan Ranch Preserve by 4h Estimated Project Costs: $154,000 DESCRIPTION Install a wood fence structure with gates on 3 sides of the existing trash and debris boxes. This would include a concrete pad for the boxes. PROJECT JUSTIFICATION Currently the trash containers are in the open, visible from McClellan Road, and attract illegal dumping. Screening the trash containers will help discourage illegal dumping at McClellan Ranch Preserve. STATUS Initiated project in the spring of 2017. Design phase underway. 579 City of Cupertino Page 37 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 50,000$ 50,000$ -$ -$ -$ Construction 104,000$ 104,000 - - - - - Total Project Expenditures 154,000$ 154,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 154,000$ 154,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 154,000$ 154,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance 950$ -$ -$ 200$ 250$ 250$ 250$ Other Operating Costs -$ - - - - - - Total Operating Expenditures 950$ -$ -$ 200$ 250$ 250$ 250$ Funding Sources City – General Fund 950$ -$ -$ 200$ 250$ 250$ 250$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 950$ -$ -$ 200$ 250$ 250$ 250$ 580 City of Cupertino Page 38 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 McClellan Ranch West Parking Lot Improvement Budget Unit 420-99-030 Priority: 1 CIP Category: C - Enhancement Location: McClellan Ranch West Estimated Project Costs: $950,000 DESCRIPTION Design and construct a new “green” meadow-style parking lot that is compatible with the creek environment at McClellan Ranch West, which will be designed to have minimal impact to the site. PROJECT JUSTIFICATION The McClellan Ranch West site has been used informally for staff and overflow parking without a suitable, stable surface, and which is not available for use during wet weather due to mud. The opening of the Environmental Education Center in 2015 has increased the parking demand at McClellan Ranch Preserve. The removal of the Simms house on the McClellan Ranch West site advances the option to provide the additional parking that is needed by providing a suitable parking surface. STATUS Design development is complete. The design process identified additional elements recommended for occasional night use and all-weather/season use, and for efficient maintenance and management of the proposed parking lot. Additional funding in FY 2017/18 will be required to advance the project to construction. 581 City of Cupertino Page 39 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 300,000$ 120,000$ 180,000$ -$ -$ -$ -$ Construction 650,000$ 280,000 370,000 - - - - Total Project Expenditures 950,000$ 400,000$ 550,000$ -$ -$ -$ -$ Funding Sources City – General Fund 950,000$ 400,000$ 550,000$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 950,000$ 400,000$ 550,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ 500$ 500$ 500$ 500$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ 500$ 500$ 500$ 500$ Funding Sources City – General Fund -$ -$ -$ 500$ 500$ 500$ 500$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ 500$ 500$ 500$ 500$ 582 City of Cupertino Page 40 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 McClellan Road Sidewalk Improvements – Phase 2 Budget Unit 270-90-976 Priority: 1 CIP Category: C - Enhancement Location: McClellan Rd. between Orange and San Leandro Avenues Estimated Project Costs: $2,035,000 DESCRIPTION Design and construct sidewalk improvements along McClellan Road between Orange Avenue and San Leandro Avenue PROJECT JUSTIFICATION In 2013, staff completed a feasibility study for the installation of sidewalks along McClellan Road between Orange Avenue and San Leandro Avenue. McClellan Road has a high volume of pedestrian traffic due to the close proximity of Lincoln Elementary School, Kennedy Middle School and Monta Vista High School, and there are large segments of McClellan Road which currently lack sidewalks. Phase 1 of this project, which installs sidewalks along the less challenging segments, is currently being implemented. Phase 2 will install sidewalks along the remaining segments, which involve challenges such as acquiring right-of-way, relocation of utilities, etc., and will be implemented over a two-year period. STATUS Design and engineering phase of project is underway. Class IV (separated) bike lane to be included in certain locations. A neighborhood meeting was held on Feb. 15, 2017, and discussions with abutting property owners have begun. 583 City of Cupertino Page 41 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 1,400,000$ 1,400,000$ -$ -$ -$ -$ -$ Construction 635,000$ 635,000 - - - - Total Project Expenditures 2,035,000$ 2,035,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax 2,035,000$ 2,035,000 - - - - - Other – Grants -$ - - - - - - Total Project Funding 2,035,000$ 2,035,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ - - - - - - Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 584 City of Cupertino Page 42 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Outfall Repair & Slope Stabilization - Regnart Rd. Budget Unit 420-99-055 Priority: 1 CIP Category: A – Public Safety Location: Regnart Road Estimated Project Costs: $400,000 DESCRIPTION Design and construct outfall repairs and slope stabilization along Regnart Rd. PROJECT JUSTIFICATION Regnart Creek runs along the east side of Regnart Rd. Erosion damage due to the winter 2017 storms necessitates complete repairs to existing outfall and to stabilize adjacent slope from further erosion. STATUS Initiate project in the summer 2017. 585 City of Cupertino Page 43 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 120,000$ 120,000$ -$ -$ -$ -$ Construction 280,000$ - 280,000 - - - Total Project Expenditures 400,000$ -$ 400,000$ -$ -$ -$ -$ Funding Sources City – General Fund 400,000$ -$ 400,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 400,000$ -$ 400,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 586 City of Cupertino Page 44 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Recreation Facilities Monument Signs Budget Unit 420-99-031 Priority: 1 CIP Category: C - Enhancement Location: Various Estimated Project Costs: $385,000 DESCRIPTION Design and construct new monument signs with lighting at the following locations: McClellan Ranch Preserve McClellan Ranch West Blackberry Farm Memorial Park Sports Center PROJECT JUSTIFICATION The McClellan Ranch Preserve and Stevens Creek Corridor Signage Program was approved by Council in December 2014. The Signage Program prescribes a standardized and consistent look and feel for all signage along Stevens Creek. The Signage Program provides a signage convention that can be applied to other recreation facilities in the city. The existing monument signs at several city facilities are outdated, worn, and in need of repair. This project will install new monument signs at five city facilities consistent with the Signage Program. STATUS Initiated the project in the spring of FY 2016-17. Design and development of bid documents is underway. 587 City of Cupertino Page 45 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 115,000$ 115,000$ -$ -$ -$ Construction 270,000$ 270,000 - - - - Total Project Expenditures 385,000$ 385,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 385,000$ 385,000$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 385,000$ 385,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 588 City of Cupertino Page 46 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2016-2017 Retaining Wall Repair – Cordova Road Budget Unit 420-99-040 Priority: 1 CIP Category: B – Preventative Maintenance Location: West side of Cordova Road, north of San Juan Road Estimated Project Costs: $350,000 DESCRIPTION Design and construct a project to replace the wood planks in the existing retaining wall. PROJECT JUSTIFICATION There is an existing wall along Cordova Rd. that retains soil adjacent to private property. Some of the wood planks in the existing retaining wall have failed while most others have a pronounced bow, indicating that the surcharge is pushing the existing wall to its design limits and the risk of failure is high. STATUS Initiated the project in 3rd quarter of FY 2016-17. Design and engineering underway. Anticipate summer 2017 construction. 589 City of Cupertino Page 47 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 105,000$ 105,000$ -$ -$ -$ -$ Construction 245,000$ 245,000 - - - - Total Project Expenditures 350,000$ 350,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 350,000$ 350,000$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 350,000$ 350,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 590 City of Cupertino Page 48 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Retaining Wall Replacement – Regnart Road Budget Unit 420-99-041 Priority: 1 CIP Category: B - Preventative Maintenance Location: West side of Regnart Road, south of Regnart Canyon Drive Estimated Project Costs: $450,000 DESCRIPTION Design and construct a new retaining wall to replace existing, including new surface and subsurface drainage facilities. PROJECT JUSTIFICATION Portions of an existing wood retaining wall that is adjacent to the roadway are rotting and beginning to fail. Since Regnart Road is the only means of public vehicular access beyond this point, failure of the wall could obstruct access to the residential properties. STATUS Initiated the project in 3rd quarter of FY 2016-17. Design and engineering underway. Anticipate summer 2017 construction. 591 City of Cupertino Page 49 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 135,000$ 135,000$ -$ -$ -$ -$ Construction 315,000$ 315,000 - - - - Total Project Expenditures 450,000$ 450,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 450,000$ 450,000$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 450,000$ 450,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 592 City of Cupertino Page 50 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Senior Center Repairs Budget Unit 420-99-059 Priority: 1 CIP Category: A – Public Safety & C – Preventative Maintenance Location: Senior Center Estimated Project Costs: $200,000 DESCRIPTION Design and construct repairs to the kitchen in-floor drains and to replace the ballroom acoustical panels; evaluate the roof condition and potential solutions to persistent rodent nesting. PROJECT JUSTIFICATION The building was constructed in 2000. Code change s require that the in-floor drains be modified. The acoustical panels in the ballroom are showing wear and tear and need to be replaced to keep the facility looking and functioning well. The impacts of rodent nesting in the building roof is causing damage and distress to building users. STATUS Initiate project in the summer 2017. 593 City of Cupertino Page 51 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 60,000$ 60,000$ -$ -$ -$ -$ Construction 140,000$ - 140,000 - - - Total Project Expenditures 200,000$ -$ 200,000$ -$ -$ -$ -$ Funding Sources City – General Fund 200,000$ -$ 200,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 200,000$ -$ 200,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 594 City of Cupertino Page 52 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Service Center Shed No. 3 Improvements Budget Unit 420-99-034 Priority: 1 CIP Category: A – Regulatory Mandate Location: Service Center Estimated Project Costs: $500,000 DESCRIPTION Design and construct a replacement for the existing Shed 3 to accommodate the landscape material and organic waste storage requirements, including durable walls and canopy. PROJECT JUSTIFICATION Currently, loose landscape materials and waste are stored at the Service Center in outdoor material storage bays at Shed No. 3. The area of the bays is covered with a metal canopy to prevent moisture intrusion in the materials and as a stormwater protection. As part of the City’s increasing waste diversion efforts, it now collects different types of organics from its sites to recycle, including food scraps. To support this program, there needs to be a sufficient number of storage bays at the Service Center to store the organic waste and keep the waste streams separate and covered until they can be collected by the City’s recycling hauler. The existing material bays need to be reconfigured to accommodate the increasing demand for separate storage bays. STATUS Initiated the project in the summer of FY 2016-17; anticipate construction in fall 2017. 595 City of Cupertino Page 53 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 100,000$ 100,000$ -$ -$ -$ -$ Construction 400,000$ - 400,000 - - - Total Project Expenditures 500,000$ 100,000$ 400,000$ -$ -$ -$ -$ Funding Sources City – General Fund 500,000$ 100,000$ 400,000$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 500,000$ 100,000$ 400,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 596 City of Cupertino Page 54 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Stevens Creek Corridor Park Chain Master Plan – McClellan to Stevens Creek Blvd. Budget Unit 420-90-898 Priority: 1 CIP Category: C – Enhancement Location: Stevens Creek Corridor Estimated Project Costs: $535,000 DESCRIPTION Study the various uses of public lands along Stevens Creek for optimal public use and operation. Properties to be included are McClellan Ranch Preserve, McClellan Ranch West, Blackberry Farm, Blackberry Farm Golf Course, Nathan Hall Tank House, and the Stocklmeir site. PROJECT JUSTIFICATION Reconcile the various plans for the different City properties into a comprehensive plan to inform future development and operations. STATUS A draft preferred alternative concept for the master plan was presented at a Council study session April 5, 2016. This project is on hold pending progress on the Citywide Parks and Recreation Master Plan to allow community-wide considerations to be addressed. 597 City of Cupertino Page 55 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 535,000$ 535,000$ -$ -$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 535,000$ 535,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 535,000$ 535,000$ - - - - -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 535,000$ 535,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 598 City of Cupertino Page 56 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Storm Drain Improvements – Foothill Blvd./Cupertino Rd. Budget Unit 210-99-042 Priority: 1 CIP Category: A – Public Safety Location: Cupertino Rd. and Foothill Blvd. Estimated Project Costs: $ 1,900,000 DESCRIPTION Design and construct a parallel system to the existing storm system to provide additional capacity. PROJECT JUSTIFICATION Alleviate local flooding and provide adequate downstream capacity. An existing section of storm line that drains Cupertino Rd., which crosses by easement over private property, is prone to flooding. Increasing the flow capacity of the storm drainage system by adding a supplemental main on Cupertino Rd. and Foothill Blvd., will reduce the potential for flooding. This project will be Priority No. 1 in the updated Storm Drain Master Plan (SDMP). STATUS Initiated the project in summer of FY 2016-17. Design is complete. Subject to the completion of PG&E utility relocations in April/May 2017, the project will be under construction summer 2017. 599 City of Cupertino Page 57 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 570,000$ 570,000$ -$ -$ -$ -$ Construction 1,330,000$ 1,330,000 - - - - Total Project Expenditures 1,900,000$ 1,900,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees 1,900,000 1,900,000 - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - Other – Grants - - - - - - - Total Project Funding 1,900,000$ 1,900,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 600 City of Cupertino Page 58 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Storm Drain Master Plan Update Budget Unit 210-90-980 Priority: 1 CIP Category: B – Preventative Maintenance Location: Citywide Estimated Project Costs: $380,000 DESCRIPTION Prepare a master plan for the City’s storm drainage system which will identify areas for improvement to bring the current system into compliance with current laws and regulations, and current land use and proposed future land use. PROJECT JUSTIFICATION The storm drain master plan has not been updated since March 1993. With changes in State laws governing storm water and land use changes it is necessary to update the storm drain master plan to determine system deficiencies and track changes to the storm drain system. The updated SDMP will provide guidance for programming future CIP storm drain improvement projects. STATUS The initial phase of the project began in December 2015 to gather information about the existing system. The next phase will analyze the existing system data and identify the areas and segments of the system that require upgrades. 601 City of Cupertino Page 59 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 380,000$ 380,000$ -$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 380,000$ 380,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees 380,000$ 380,000 - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 380,000$ 380,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 602 City of Cupertino Page 60 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Street Median Irrigation & Plant Replacement Budget Unit 270-90-961 Priority: 1 CIP Category: B – Preventative Maintenance Location: Various Locations Estimated Project Costs: $1,410,000 DESCRIPTION Design and construct replacement irrigation and plantings of street medians. PROJECT JUSTIFICATION Cupertino has many mounded median islands which are difficult to irrigate efficiently. Since the installation of many of the City’s planted median islands, the approach to grading, planting, and maintaining them has changed as the desire to conserve resources has increased. Over that same time, irrigation products and systems have also improved efficiency. In addition, landscape plantings need to be replaced as they age out over time. Projects to renovate the median islands will refresh the plantings and improve the efficiency in the use of water and labor to maintain the systems. STATUS Consultant has completed the master plan for the renovation of median islands on De Anza Boulevard. Design for initial phase to renovate the De Anza median islands between Bollinger Rd. and Rodrigues Ave. to begin spring/summer 2017. Anticipate construction spring 2018. 603 City of Cupertino Page 61 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 441,000$ 216,000$ 225,000$ -$ -$ -$ -$ Construction 969,000$ 444,000 525,000 - - - - Total Project Expenditures 1,410,000$ 660,000$ 750,000$ -$ -$ -$ -$ Funding Sources City – General Fund -$ - - - -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax 1,410,000$ 660,000 750,000 - - - - Other – Grants -$ - - - - - - Total Project Funding 1,410,000$ 660,000$ 750,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance (72,000)$ (4,000)$ (8,000)$ (12,000)$ (16,000)$ (16,000)$ (16,000)$ Other Operating Costs (18,000)$ (1,000) (2,000) (3,000) (4,000) (4,000) (4,000) Total Operating Expenditures (90,000)$ (5,000)$ (10,000)$ (15,000)$ (20,000)$ (20,000)$ (20,000)$ Funding Sources City – General Fund (90,000)$ (5,000)$ (10,000)$ (15,000)$ (20,000)$ (20,000)$ (20,000)$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding (90,000)$ (5,000)$ (10,000)$ (15,000)$ (20,000)$ (20,000)$ (20,000)$ 604 City of Cupertino Page 62 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Tennis Court Resurfacing – Various Parks Budget Unit 420-99-015 Priority: 1 CIP Category: C - Enhancement Location: Memorial Park, Varian Park and Monta Vista Park Estimated Project Costs: $1,103,000 DESCRIPTION Over successive years, design and construct the resurfacing of the tennis courts at Memorial Park, Varian Park and Monta Vista Park. PROJECT JUSTIFICATION The tennis courts a three park locations in the City provide active recreation to residents and they are well used. In order to maintain the quality of play the courts must be resurfaced periodically. STATUS Initiated design for Memorial Park in winter of FY 2016-17. Contract awarded 3/21/17 for spring construction. Propose combining Varian and Monta Vista courts into a single project for FY 2017-18 construction. 605 City of Cupertino Page 63 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 340,000$ 190,000$ 150,000$ -$ -$ Construction 763,000$ 398,000 365,000 - - Total Project Expenditures 1,103,000$ 588,000$ 515,000$ -$ -$ -$ -$ Funding Sources City – General Fund 1,103,000$ 588,000$ 515,000$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 1,103,000$ 588,000$ 515,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 606 City of Cupertino Page 64 of 142 FY 2017-2018 CIP Budget - PROPOSED Priority 2 Projects 607 City of Cupertino Page 65 of 142 FY 2017-2018 CIP Budget - PROPOSED 608 City of Cupertino Page 66 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 McClellan Rd. Sidewalk Installation – Rose Blossom Dr. to Hwy 85 Overcrossing Budget Unit 420-99-057 Priority: 2 CIP Category: C - Enhancement Location: McClellan Rd. – Rose Blossom to Hwy 85 Overcrossing Estimated Project Costs: $430,000 DESCRIPTION Design and construct approximately 650 LF of sidewalk on the north side of McClellan between 85 and Rose Blossom. PROJECT JUSTIFICATION There is a sidewalk gap on the north side of McClellan Rd. between Rose Blossom and the Hwy 85 overcrossing, an active pedestrian area that is well used by students and other residents. Installing a sidewalk in this location will provide continuous access to and from local schools including De Anza College. STATUS Initiate project 2nd quarter of FY 2017-18. 609 City of Cupertino Page 67 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 130,000$ 130,000$ -$ -$ Construction 300,000$ 300,000 - - Total Project Expenditures 430,000$ -$ 430,000$ -$ -$ -$ -$ Funding Sources City – General Fund 430,000$ 430,000$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 430,000$ -$ 430,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 610 City of Cupertino Page 68 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Senior Center Walkway Replacement Budget Unit 420-99-054 Priority: 2 CIP Category: C – Enhancement Location: Senior Center Estimated Project Costs: $64,000 DESCRIPTION Design and construct a replacement walkway from the parking lot to the front door. The pavers will be replaced with a material that provides a more consistent surface texture. PROJECT JUSTIFICATION The building was constructed in 2000 and the walkway to the main door from the parking lot was installed using pavers with concrete bands. Some wheelchair and walker users find the variable surface of the pavers to be difficult to move across. Providing a smoother path of travel from the parking lot to the door will improve access. STATUS Initiate project in FY 2017-18. 611 City of Cupertino Page 69 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 20,000$ 20,000$ -$ -$ -$ -$ Construction 44,000$ - 44,000 - - - Total Project Expenditures 64,000$ -$ 64,000$ -$ -$ -$ -$ Funding Sources City – General Fund 64,000$ -$ 64,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 64,000$ -$ 64,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 612 City of Cupertino Page 70 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Sidewalk Improvements – Orange & Byrne Budget Unit 270-90-958 Priority: 2 CIP Category: C - Enhancement Location: Orange & Byrne Estimated Project Costs: $3,888,000 DESCRIPTION Acquire right-of-way as needed, design, and construct new sidewalks. PROJECT JUSTIFICATION The Monta Vista neighborhood was annexed to the City without having standard right-of-way improvements, including sidewalks. Adding sidewalks to the neighborhood will improve pedestrian safety. STATUS Initiated the project in spring of FY 2016-17. Land survey and other information gathering is underway. 613 City of Cupertino Page 71 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Ye ars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 620,000$ 500,000$ 120,000$ -$ -$ Construction 3,268,000$ 3,268,000 - - Total Project Expenditures 3,888,000$ 500,000$ 3,388,000$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax 3,888,000$ 500,000 3,388,000 - - - - Other – Grants -$ - - - - - - Total Project Funding 3,888,000$ 500,000$ 3,388,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ Approximately $34,495 of Development In-Lieu funding is applicable this project. 614 City of Cupertino Page 72 of 142 FY 2017-2018 CIP Budget - PROPOSED Priority 3 Projects 615 City of Cupertino Page 73 of 142 FY 2017-2018 CIP Budget - PROPOSED 616 City of Cupertino Page 74 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Capital Project Support Budget Unit 420-99-048 Priority: 3 CIP Category: Not applicable Location: Various Estimated Project Costs: $50,000 DESCRIPTION Funding for exceptional or unusual services that may occasionally be required in support of capital projects, so that such expenses may be accounted for and assigned to the project requiring the specific services. PROJECT JUSTIFICATION Budgeted capital projects that are in progress occasionally face unexpected management responses that require additional effort by staff or with contract resources. Examples of this are unusual legal or permit/regulatory issues. An annual appropriation will support timely responses to such needs and also allow the expenditures to be assigned to the specific projects. STATUS Use on an as needed basis. 617 City of Cupertino Page 75 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 50,000$ 50,000$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 50,000$ -$ 50,000$ -$ -$ -$ -$ Funding Sources City – General Fund 50,000$ 50,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 50,000$ -$ 50,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 618 City of Cupertino Page 76 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 CIP Preliminary Planning & Design Budget Unit 420-99-049 Priority: 3 CIP Category: Not applicable Location: Various Estimated Project Costs: $125,000 DESCRIPTION Funding for preliminary planning, engineering and design services that are determined to be needed subsequent to the adoption of the CIP Budget. This action will provide the means for the acquisition of resources to respond to CIP initiatives in a timely way. PROJECT JUSTIFICATION Funding within the CIP operating budget for General Contract Services has been the source of funding for mid-year additions to the CIP project work program for planning. Such project focused expenditures could not later be assigned to the specific capital project for tracking. Shifting funding from the operating budget to the CIP for preliminary planning and design will provide resources for mid-year CIP initiatives. STATUS Used on an as needed basis. 619 City of Cupertino Page 77 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 125,000$ 125,000$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 125,000$ -$ 125,000$ -$ -$ -$ -$ Funding Sources City – General Fund 125,000$ 125,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 125,000$ -$ 125,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 620 City of Cupertino Page 78 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2016-2017 International Cricket Ground - Feasibility Study Budget Unit 420-99-049 Priority: 3 CIP Category: C – Enhancement Location: To be determined Estimated Project Costs: $20,000 DESCRIPTION Prepare a feasibility study for an international cricket ground. PROJECT JUSTIFICATION While the sport of cricket has been increasing in popularity in the US and in San Francisco bay area, there is currently no dedicated field for play in Cupertino, including to meet the requirements for adult international play. A feasibility study to assess the demand, possible locations for an international scale field, and the estimated costs for such an improvement, will provide base information for a future improvement project. STATUS Initiate project in FY 2017-18. 621 City of Cupertino Page 79 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 20,000$ 20,000$ -$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 20,000$ -$ 20,000$ -$ -$ -$ -$ Funding Sources City – General Fund 20,000$ 20,000$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 20,000$ -$ 20,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 622 City of Cupertino Page 80 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Memorial Park Master Plan & Parking Study Budget Unit 420-99-005 Priority: 3 CIP Category: C - Enhancement Location: Memorial Park Estimated Project Costs: $150,000 DESCRIPTION Develop a master plan for the renovation Memorial Park and evaluate the parking needs for Memorial Park, Senior Center, Sports Center and the Quinlan Community Center. The project may result in a future renovation project. PROJECT JUSTIFICATION A process to obtain community input and consensus will assist in formulating plans to renovate portions of the park including parking requirements and upgrades for surrounding facilities. STATUS Project schedule is subject to the outcome of the Citywide Parks and Recreation System Master Plan. 623 City of Cupertino Page 81 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 150,000$ 150,000$ -$ -$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 150,000$ 150,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 150,000$ 150,000$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 150,000$ 150,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 624 City of Cupertino Page 82 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Sports Center – Upgrades Budget Unit 420-99-017 Priority: 3 CIP Category: B – Resource and Cost Efficiencies Location: Sports Center Estimated Project Costs: $760,000 DESCRIPTION Design and implement the following, as prioritized, as available funding permits: 1) replace fixtures lighting the east courts with new LED fixtures; 2) install an electronic messaging sign at the corner of Stevens Creek Blvd. & Stelling Rd.; 3) other miscellaneous improvements. PROJECT JUSTIFICATION Various improvements to the facility will improve user experience and attract new users. Conversion of the east court lights to LED is a top priority along with installing an electronic monument sign. The last major upgrades to the building were in 2004 and the facility is in need of some minor upgrades, due to wear-&-tear and weathering. STATUS Initiate project in FY 2017-18. 625 City of Cupertino Page 83 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 228,000$ 228,000$ -$ -$ -$ -$ Construction 532,000$ 532,000 - - - - Total Project Expenditures 760,000$ 760,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 760,000$ 760,000$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 760,000$ 760,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance 6,500$ -$ 1,000$ 1,000$ 1,500$ 1,500$ 1,500$ Other Operating Costs -$ - - - - - - Total Operating Expenditures 6,500$ -$ 1,000$ 1,000$ 1,500$ 1,500$ 1,500$ Funding Sources City – General Fund 6,500$ -$ 1,000$ 1,000$ 1,500$ 1,500$ 1,500$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 6,500$ -$ 1,000$ 1,000$ 1,500$ 1,500$ 1,500$ 626 City of Cupertino Page 84 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Stevens Creek Bank Repair – South of SCB – Conceptual Design Budget Unit 420-99-014 Priority: 3 CIP Category: C - Enhancement Location: Stevens Creek South of Stevens Creek Boulevard Estimated Project Costs: $100,000 DESCRIPTION Prepare a conceptual design for repairs to creek banks that will protect property from further erosion and stabilize the bank, and is compatible with existing goals and requirements for the creek corridor. PROJECT JUSTIFICATION In 2014, the City purchased a residential parcel (Blesch) on Stevens Creek Boulevard that lies between the Stocklmeir site and the Blackberry Farm Golf Course. The creek channel upstream of this parcel has been widened and restored. However this parcel, which is in the active floodway and subject to bank erosion, remains to be stabilized and restored. This parcel is targeted for improvements relating to the park and recreation purposes of the Stevens Creek Corridor. Its bank should be stabilized before such improvements move forward in order to protect the City’s investment. A conceptual plan for improvement of the bank and channel will make the implementation of the project more eligible and attractive for potential grant funding. STATUS Initiate project in FY 2017-18. 627 City of Cupertino Page 85 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 100,000$ -$ 100,000$ -$ -$ -$ Construction -$ - - - - - Total Project Expenditures 100,000$ -$ 100,000$ -$ -$ -$ -$ Funding Sources City – General Fund 100,000$ -$ 100,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 100,000$ -$ 100,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 628 City of Cupertino Page 86 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Stocklmeir House – New Sewer Lateral Budget Unit 420-99-035 Priority: 3 CIP Category: B – Preventative Maintenance Location: Stocklmeir Property Estimated Project Costs: $50,000 DESCRIPTION Install a new sewer lateral to connect the Stocklmeir House to the City’s sanitary sewer main. PROJECT JUSTIFICATION Alternative uses for the Stocklmeir house are being considered, including for office space. In order to occupy the building various improvements will be necessary, including replacement of the sanitary sewer line serving the house. This is the first step towards renovating this house and making it suitable for future non-residential use and occupancy. The project will not be initiated until the new use of the building is identified and approved by Council. STATUS Project initiation is subject to Council approval of an agreement for the improvement and use of the building. 629 City of Cupertino Page 87 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction -$ -$ -$ -$ -$ -$ -$ Construction 50,000$ 50,000 - - - - Total Project Expenditures 50,000$ 50,000$ -$ -$ -$ -$ -$ Funding Sources City – General Fund 50,000$ 50,000$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 50,000$ 50,000$ -$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 630 City of Cupertino Page 88 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Storm Drain Improvements - Byrne Ave. & Stevens Creek Blvd. Budget Unit 210-99-060 Priority: 3 CIP Category: A – Public Safety Location: Stevens Creek Blvd. from Stevens Creek to Byrne Ave.; Byrne Ave. from Stevens Creek Blvd. to Granada Ave. and from Almaden Ave. to San Fernando Ave. Estimated Project Costs: $1,500,000 DESCRIPTION Design and construct new storm mains at the designated locations to increase the capacity of the downstream portion of the system and allow the newer upstream portion of the system to connect to it. PROJECT JUSTIFICATION The storm drain system along Byrne Ave. is currently split into two separate systems, an upper and a lower. The recently completed Monta Vista Storm Drain Project is the upper section, collecting storm water from the Monta Vista neighborhood and conveying it off the streets. This split was created to stay within the capacity limits of the existing downstream section. In order to maximize the capacity of the recently installed section, the existing downstream portion must be upgraded or supplemented. Increasing the capacity of the existing downstream system on Byrne Ave. will allow the upper and lower systems to be connected thereby reducing the storm water flow that is currently diverted to the Blackberry Farm Golf Course. STATUS Initiate the project in FY 2017-18. 631 City of Cupertino Page 89 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 450,000$ -$ 450,000$ -$ -$ -$ Construction 1,050,000$ - 1,050,000 - - - Total Project Expenditures 1,500,000$ -$ 1,500,000$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees 1,500,000$ - 1,500,000 - - - - Enterprise Funds - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding 1,500,000$ -$ 1,500,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 632 City of Cupertino Page 90 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Street Light Installation – Annual Infill Budget Unit 420-99-056 Priority: 3 CIP Category: C - Enhancement Location: Various Estimated Project Costs: $150,000; $30,000 annually DESCRIPTION Design and install street lights on an as needed basis. PROJECT JUSTIFICATION There are areas of the city where street light spacing is insufficient to meet current standards for illumination. Several locations are identified annually for infill with one or two lights. An annual appropriation will allow these deficiencies to be readily addressed. STATUS Performed as needed. 633 City of Cupertino Page 91 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 5,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ Construction 145,000$ - 29,000 29,000 29,000 29,000 29,000 Total Project Expenditures 150,000$ -$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ Funding Sources City – General Fund 150,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 150,000$ -$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs 3,800$ - - 360 740 1,140 1,560 Total Operating Expenditures 3,800$ -$ -$ 360$ 740$ 1,140$ 1,560$ Funding Sources City – General Fund 3,800$ -$ -$ 360$ 740$ 1,140$ 1,560$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 3,800$ -$ -$ 360$ 740$ 1,140$ 1,560$ 634 City of Cupertino Page 92 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Street Light Installation – Randy Ln. & Larry Wy. Budget Unit 420-99-058 Priority: 3 CIP Category: A – Public Safety Location: Randy Ln. & Larry Wy. Estimated Project Costs: $367,000 DESCRIPTION Design and install street light installations to fill gaps in street light coverage. PROJECT JUSTIFICATION Larry Way and Randy Lane both have gaps in street light coverage that exceed the City’s street light spacing policy. Both streets have been designated semi-rural, which has resulted in a waiver of sidewalk installation, causing pedestrians to walk in the street. Additionally, Lawson Middle School is located immediately south of these streets with the associated student pedestrianism. Residents have requested additional lighting along these streets, and Public Works Staff finds that the additional lighting is warranted. This project will fill gaps in street light coverage along these streets in order to enhance safety. STATUS Initiate project in FY 2017-18. 635 City of Cupertino Page 93 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 110,000$ -$ 110,000$ -$ -$ -$ -$ Construction 257,000$ - 257,000 - - - Total Project Expenditures 367,000$ -$ 367,000$ -$ -$ -$ -$ Funding Sources City – General Fund 367,000$ -$ 367,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - Total Project Funding 367,000$ -$ 367,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs 3,512$ - - 840 865 890 917 Total Operating Expenditures 3,512$ -$ -$ 840$ 865$ 890$ 917$ Funding Sources City – General Fund 3,512$ -$ -$ 840$ 865$ 890$ 917$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 3,512$ -$ -$ 840$ 865$ 890$ 917$ 636 City of Cupertino Page 94 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Traffic Signal: Foothill/I-280 SB Off-ramp Budget Unit 420-99-028 Priority: 3 CIP Category: A – Grant Location: Foothill Blvd. / I-280 Estimated Project Costs: $100,000 DESCRIPTION Match funding for the design and installation of a new traffic signal at the intersection of Foothill Expressway and the Interstate 280 southbound off-ramp. PROJECT JUSTIFICATION The County of Santa Clara Roads and Airports Department has identified a new traffic signal at the intersection of Foothill Expressway and the Interstate 280 southbound off-ramp as a project in their draft Expressway Plan 2040. A local match of 20% is required in order to place the project within their Tier 1 category, from which the first round of projects will be funded. STATUS Transmit funding when required by the County of Santa Clara. 637 City of Cupertino Page 95 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction -$ -$ -$ -$ -$ -$ -$ Construction 100,000$ - 100,000 - - - Total Project Expenditures 100,000$ -$ 100,000$ -$ -$ -$ -$ Funding Sources City – General Fund 100,000$ -$ 100,000$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - Total Project Funding 100,000$ -$ 100,000$ -$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 638 City of Cupertino Page 96 of 142 FY 2017-2018 CIP Budget - PROPOSED Priority 4 Projects 639 City of Cupertino Page 97 of 142 FY 2017-2018 CIP Budget - PROPOSED 640 City of Cupertino Page 98 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Jollyman Park Pathway Installation Budget Unit 420-99-052 Priority: 4 CIP Category: C - Enhancement Location: Jollyman Park Estimated Project Costs: $700,000 DESCRIPTION Design and construct a pathway around the southeastern field at Jollyman Park. PROJECT JUSTIFICATION Currently many visitors to this park walk a circuit around the edges of the southeastern ballfield. Installing a paved path will provide a more stable surface for this activity, greatly increasing the paved walking circuit within the park. STATUS Subject to the outcome of the Citywide Parks and Recreation System Master Plan, initiate design in FY 2018-19 for construction in FY 2019-20. 641 City of Cupertino Page 99 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 200,000$ -$ -$ 200,000$ -$ -$ -$ Construction 500,000$ - - - 500,000 - Total Project Expenditures 700,000$ -$ -$ 200,000$ 500,000$ -$ -$ Funding Sources City – General Fund 700,000$ -$ -$ 200,000$ 500,000$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 700,000$ -$ -$ 200,000$ 500,000$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ TBD TBD Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 642 City of Cupertino Page 100 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Linda Vista Park - Renovation Master Plan Budget Unit 420-99-053 Priority: 4 CIP Category: C - Enhancement Location: Linda Vista Park Estimated Project Costs: $70,000 DESCRIPTION Develop a master plan for renovation of Linda Vista Park. The planning process will include community input. This project may result in a future renovation projects that could range from $ 500,000 to $ 2,000,000, subject to the outcome of the master plan process. PROJECT JUSTIFICATION Linda Vista Park was originally constructed in 1969 and modified in 1986. Areas of the park are underutilized or could be updated or reconsidered for current recreation needs. STATUS Subject to the outcome of the Citywide Parks and Recreation System Master Plan, initiate in FY 2018-19. 643 City of Cupertino Page 101 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 70,000$ -$ -$ 70,000$ -$ -$ -$ Construction -$ - - - - Total Project Expenditures 70,000$ -$ -$ 70,000$ -$ -$ -$ Funding Sources City – General Fund 70,000$ -$ -$ 70,000$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 70,000$ -$ -$ 70,000$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ TBD Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ TBD TBD Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 644 City of Cupertino Page 102 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Memorial Park Phase 1 – Design Budget Unit 420-99-010 Priority: 4 CIP Category: C - Enhancement Location: Memorial Park Estimated Project Costs: $250,000 DESCRIPTION Design and prepare construction documents and cost estimates for park improvements. PROJECT JUSTIFICATION The Memorial Park Master Plan & Parking Study will identify capital improvements for Memorial Park. A conceptual plan for improvement of the park will make the implementation of the project more eligible and attractive for potential grant funding. STATUS Subject to the outcome of the Memorial Park Master Plan & Parking Study, initiate design in FY 2019-20. 645 City of Cupertino Page 103 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 250,000$ -$ -$ 250,000$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 250,000$ -$ -$ -$ 250,000$ -$ -$ Funding Sources City – General Fund 250,000$ -$ -$ 250,000$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 250,000$ -$ -$ -$ 250,000$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 646 City of Cupertino Page 104 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Memorial Park Phase 1 - Construction Budget Unit XXX-XXXX Priority: 4 CIP Category: C - Enhancement Location: Memorial Park Estimated Project Costs: $1,000,000 DESCRIPTION Construct improvements at Memorial Park. PROJECT JUSTIFICATION Subject to the approval of a master plan and final design, construction of improvements will implement the master plan. STATUS Subject to the outcome of the Memorial Park Master Plan & Parking Study, initiate design in FY 2019-20 for construction in FY 2020-21. 647 City of Cupertino Page 105 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction -$ -$ -$ -$ -$ -$ -$ Construction 1,000,000$ - - - 1,000,000 - Total Project Expenditures 1,000,000$ -$ -$ -$ -$ 1,000,000$ -$ Funding Sources City – General Fund 1,000,000$ -$ -$ -$ 1,000,000$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 1,000,000$ -$ -$ -$ -$ 1,000,000$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ TBD Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ TBD TBD Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 648 City of Cupertino Page 106 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Monta Vista Park - Renovation Master Plan Budget Unit 420-99-XXX Priority: 4 CIP Category: C - Enhancement Location: Monta Vista Park Estimated Project Costs: $50,000 DESCRIPTION Develop a master plan for the renovation of Monta Vista Park. The planning process will include community input. This project may result in a future renovation projects that could range from $ 500,000 to $ 2,000,000, subject to the outcome of the master plan process PROJECT JUSTIFICATION Monta Vista Park has some facilities from the original construction in the 1960s that can no longer be used as intended. Areas of the park are underutilized for this reason. A process to obtain community input and consensus will inform future plans to renovate portions of the park. STATUS Subject to the outcome of the Citywide Parks and Recreation System Master Plan, initiate project in FY 2019-20. 649 City of Cupertino Page 107 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 50,000$ -$ -$ 50,000$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 50,000$ -$ -$ -$ 50,000$ -$ -$ Funding Sources City – General Fund 50,000$ -$ -$ 50,000$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 50,000$ -$ -$ -$ 50,000$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 650 City of Cupertino Page 108 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Portal Park – Renovation Master Plan Budget Unit 420-99-006 Priority: 4 CIP Category: C - Enhancement Location: Portal Park Estimated Project Costs: $50,000 DESCRIPTION Develop a master plan for the renovation of Portal Park. Include a community outreach process to inform the plan. This project may result in a future renovation project that could range from $ 500,000 to $ 2,000,000, subject to the outcome of the master plan process. PROJECT JUSTIFICATION Portal Park has some facilities from the original construction in the 1960s that can no longer be used as intended. Areas of the park are underutilized for this reason. A process to obtain community input and consensus will inform future plans to renovate portions of the park. STATUS Subject to the outcome of the Citywide Parks and Recreation System Master Plan, initiate project FY 2018-19. 651 City of Cupertino Page 109 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 50,000$ -$ -$ 50,000$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 50,000$ -$ -$ 50,000$ -$ -$ -$ Funding Sources City – General Fund 50,000$ -$ -$ 50,000$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 50,000$ -$ -$ 50,000$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 652 City of Cupertino Page 110 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Storm Drain Improvements - Homestead Road Budget Unit 270-99-029 Priority: 4 CIP Category: A – Public Safety Location: Homestead Road between Bluejay Dr. and Blaney Ave. Estimated Project Costs: $2,398,000 DESCRIPTION Design and construct a parallel system to the existing storm system to provide additional capacity as identified in the City’s Storm Drainage Master Plan (SDMP). PROJECT JUSTIFICATION Alleviate local flooding and provide adequate downstream capacity for the buildout of the SDMP. This project is Priority No. 2 in the SDMP. STATUS Initiate the project in FY 2018-19. 653 City of Cupertino Page 111 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 719,000$ -$ -$ 719,000$ -$ -$ Construction 1,679,000$ - - 1,679,000 - - Total Project Expenditures 2,398,000$ -$ -$ 2,398,000$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax 2,398,000$ - - 2,398,000 - - - Other – Grants - - - - - - - Total Project Funding 2,398,000$ -$ -$ 2,398,000$ -$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 654 City of Cupertino Page 112 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Wilson Park - Renovation Master Plan Budget Unit 580-90-909 Priority: 4 CIP Category: C - Enhancement Location: Wilson Park Estimated Project Costs: $50,000 DESCRIPTION Develop a master plan for the renovation of the east side of Wilson Park. The planning process will include community input. This project may result in a future renovation projects that could range from $ 500,000 to $ 2,000,000, subject to the outcome of the master plan process. PROJECT JUSTIFICATION Wilson Park has sport fields on the west side of the park and the east side of the park is potentially underutilized. A process to obtain community input and consensus will assist in formulating a plan to renovate portions of the park. STATUS Subject to the outcome of the Citywide Parks and Recreation System Master Plan, initiate project in FY 2019-20. 655 City of Cupertino Page 113 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 50,000$ -$ -$ 50,000$ -$ -$ Construction -$ - - - - - - Total Project Expenditures 50,000$ -$ -$ -$ 50,000$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds 50,000$ - - - 50,000 - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding 50,000$ -$ -$ -$ 50,000$ -$ -$ Funding Not Yet Identified -$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs -$ - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees -$ - - - - - - Storm Drain Fees -$ - - - - - - Enterprise Funds -$ - - - - - - Gas Tax -$ - - - - - - Other – Grants -$ - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 656 City of Cupertino Page 114 of 142 FY 2017-2018 CIP Budget - PROPOSED Development In-Lieu Contributions 657 City of Cupertino Page 115 of 142 FY 2017-2018 CIP Budget - PROPOSED 658 City of Cupertino Page 116 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Development In-Lieu Contributions De Anza Blvd./McClellan/Pacifica Signal Modification Budget Unit XXX-XX-XXX Priority: Development in-Lieu Contributions CIP Category: C – Enhancement Location: DeAnza Blvd./McClellan/Pacifica Intersection Estimated Project Costs: Budgetary Estimate $ 600,000 Fund Balance: $155,989 DESCRIPTION Reconfigure the intersection which may include relocating two signal mast arms and poles, related electrical, concrete and striping work, and the closing of the Pacifica street driveway to the gas station. PROJECT JUSTIFICATION Improve traffic flow and efficiency at this complex intersection. STATUS Project to be initiated upon the accumulation of sufficient Developer contributions or the addition of supplementary City funding. 659 City of Cupertino Page 117 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 200,000$ - - - - - -$ Construction 400,000$ - - - - - - Total Project Expenditures 600,000$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ - - - - - -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants 155,989 - - - - - - Total Project Funding 155,989$ -$ -$ -$ -$ -$ -$ Funding Not Yet Identified 444,011$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ -$ -$ -$ -$ -$ -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 660 City of Cupertino Page 118 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Development In-Lieu Contributions Monument Gate Way Signs (4) Budget Unit XXX-XX-XXX Priority: Development in-Lieu Contributions CIP Category: C – Enhancement Location: Various Locations Estimated Project Costs: Budgetary Estimate $ 67,000 Fund Balance: $25,859 DESCRIPTION Upgrade or replace three existing center island gateway signs, that announce one’s entry into Cupertino, at 1) Stevens Creek Blvd near Tantau, 2) De Anza Blvd near I-280 overcrossing, 3) De Anza Blvd near Bollinger Road, and install a new center island gateway sign at Stevens Creek Blvd near the Oaks shopping center. PROJECT JUSTIFICATION Enhance the identity of the city. STATUS A sign was installed on De Anza Blvd. at Bollinger Rd. in FY 2017. Sign installations at other locations will be initiated upon the accumulation of sufficient Developer contributions or the addition of supplementary City funding. 661 City of Cupertino Page 119 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 22,000$ -$ -$ -$ -$ -$ -$ Construction 45,000 - - - - - - Total Project Expenditures 67,000$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants, Dev. In-Lie 25,859 - - - - - - Total Project Funding 25,859$ -$ -$ -$ -$ -$ -$ Funding Not Yet Identified 41,141$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ 200$ 200$ 200$ 200$ 200$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ 200$ 200$ 200$ 200$ 200$ Funding Sources City – General Fund -$ 200$ 200$ 200$ 200$ 200$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ 200$ 200$ 200$ 200$ 200$ 662 City of Cupertino Page 120 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Development In-Lieu Contributions North Stelling Rd./ I-280 Bridge Pedestrian Lighting & Upgrades Budget Unit XXX-XX-XXX Priority: Development in-Lieu Contributions CIP Category: C – Enhancement Location: North Stelling Rd. at I-280 overcrossing Estimated Project Costs: $50,000 Fund Balance: $48,747 DESCRIPTION Design and construct pedestrian-scaled lighting, paving materials, railings and/or repainting of the pedestrian facilities of the east or west side of the bridge. PROJECT JUSTIFICATION Two developments contributed $25,000 to the City for enhancements to the pedestrian walkway along the east or west side of the N. Stelling Road Bridge that crosses over Interstate 280, which is located south of the project sites. The City had a report prepared to analyze the existing lighting and provide recommendations to complete the project. STATUS Feasibility study completed and evaluating alternative in FY 2016-17. 663 City of Cupertino Page 121 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget P rior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction 17,000$ -$ -$ -$ -$ -$ -$ Construction 33,000 - - - - - - Total Project Expenditures 50,000$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants, Dev. In-Lie 48,747 - - - - - - Total Project Funding 48,747$ -$ -$ -$ -$ -$ -$ Funding Not Yet Identified 1,253$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ 200$ 200$ 300$ 300$ 300$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ 200$ 200$ 300$ 300$ 300$ Funding Sources City – General Fund -$ 200$ 200$ 300$ 300$ 300$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ 200$ 200$ 300$ 300$ 300$ 664 City of Cupertino Page 122 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Development In-Lieu Contributions Stevens Creek Blvd. and Bandley Signal and Median Improvements Budget Unit XXX-XX-XXX Priority: Development in-Lieu Contributions CIP Category: C – Enhancement Location: Stevens Creek Blvd. at Bandley Estimated Project Costs: TBD Fund Balance: $25,202 DESCRIPTION Design and construct improvements to upgrade the traffic signal at Bandley Dr. and Stevens Creek Blvd. (should the need arise due to impacts from the development) and the traffic median on Steven Creek Blvd., east of Bandley Dr. and west of De Anza Blvd. PROJECT JUSTIFICATION The redevelopment of the Cupertino Crossroads property contributed $50,000 to mitigate traffic impacts in the vicinity of the development. Funds were split evenly for traffic signal upgrades and for traffic median upgrades. Traffic median improvements have been completed. STATUS Project to be initiated upon the accumulation of sufficient Developer contributions or the addition of supplementary City funding. 665 City of Cupertino Page 123 of 142 FY 2017-2018 CIP Budget - PROPOSED FISCAL IMPACT The following table outlines the project budget, prior year and projected costs and funding sources for the next five years including any anticipated impacts to the operating budget: Project Expenditures Project Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Pre-Construction TBD -$ -$ -$ -$ -$ -$ Construction TBD - - - - - - Total Project Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants, Dev. In-Lieu 25,202 - - - - - - Total Project Funding 25,202$ -$ -$ -$ -$ -$ -$ Funding Not Yet Identified (25,202)$ -$ -$ -$ -$ -$ -$ New Operating Expenditures Operating Budget Prior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Maintenance -$ - - - - - -$ Other Operating Costs - - - - - - - Total Operating Expenditures -$ -$ -$ -$ -$ -$ -$ Funding Sources City – General Fund -$ -$ -$ -$ -$ -$ -$ Park Dedication Fees - - - - - - - Storm Drain Fees - - - - - - - Enterprise Funds - - - - - - - Gas Tax - - - - - - - Other – Grants - - - - - - - Total Project Funding -$ -$ -$ -$ -$ -$ -$ 666 City of Cupertino Page 124 of 142 FY 2017-2018 CIP Budget - PROPOSED Unfunded CIP Projects 667 City of Cupertino Page 125 of 142 FY 2017-2018 CIP Budget - PROPOSED 668 City of Cupertino Page 126 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Blackberry Farm - Golf Course Renovation Priority: Unfunded CIP Category: B – Preventive Maintenance Location: Blackberry Farm Golf Course Estimated Project Costs: TBD DESCRIPTION Initiate preliminary design effort to completely reconfigure and rebuild the existing golf course per the recommendations made by the National Golf Foundation, Inc. in their report dated December 2015. At a minimum, replace the existing irrigation system with a modern, water- efficient system and repair the two existing ponds. Pursue reactivating the existing well at Blackberry Farm and provide connections to allow use of well water to fill the ponds. PROJECT JUSTIFICATION The current irrigation system, installed in the 1960s, is functionally outdated and failing due to age, which results in an excessive use of water and labor to maintain the system. The increasing retail cost of water exacerbates the operational inefficiency. Existing ponds no longer hold water. 669 City of Cupertino Page 127 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Blackberry Farm – Play Area Improvements Priority: Unfunded CIP Category: C - Enhancement Location: Blackberry Farm Picnic Area Estimated Project Costs: $540,000 - Budgetary Estimate (Escalated to FY15/16) DESCRIPTION Remove existing tan bark and replace with new resilient surfacing and install 3 par course type exercise stations. PROJECT JUSTIFICATION The Captain Stevens play area could be enhanced by adding a more reliable and stable resilient play surface beneath the play equipment and by adding exercise stations adjacent to the play area that would provide for a multi-generational activity. 670 City of Cupertino Page 128 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Blackberry Farm – Splash Pad Priority: Unfunded CIP Category: C – Enhancement Location: Blackberry Farm Estimated Project Costs: $690,000 DESCRIPTION Design and construct a splash pad of approximately 2000 square feet. PROJECT JUSTIFICATION Blackberry Farm currently provides aquatic amenities for children and adults, but doesn’t have an element to serve very young children and toddlers. Adding an element that will serve the youngest family members will enhance the attraction of the facility for families with children of various ages. 671 City of Cupertino Page 129 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Civic Center Master Plan Implementation Priority: Unfunded CIP Category: C - Enhancement Location: Civic Center Estimated Project Costs: TBD DESCRIPTION Implement approved Civic Center Master Plan. PROJECT JUSTIFICATION Council approved the Civic Center Master Plan in July 2015. No further action to implement the approved plan has be taken. The current City Hall is inefficiently laid out to accommodate the growing functional requirements and staff, and the building is structurally deficient and has numerous systems deficiencies that make it prone to system shutdowns or malfunctions. The Library has limited space to host its growing event programming. The Community Hall is used by the Library to host many of the events that cannot be accommodated in the library building, and greatly dominates the use of the Community Hall. Expansion of the Library will require additional parking at the civic center site. 672 City of Cupertino Page 130 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Implement Storm Drain Master Plan Priorities Priority: Unfunded CIP Category: B – Preventative Maintenance Location: Various locations Estimated Project Costs: $2,000,000 DESCRIPTION Design and construct high priority storm drain improvements at locations identified in the updated Storm Drain Master Plan. The goal of the improvements is to minimize the potential for localized flooding of streets and private property. PROJECT JUSTIFICATION Completion of the Storm Drain Master Plan Update is anticipated in 2016, which will identify and prioritize storm drain improvement projects. A project to fund implementation of the initial priorities will be the next step to improve the City’s storm drain system. 673 City of Cupertino Page 131 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Jollyman Park Irrigation Upgrade Priority: Unfunded CIP Category: B – Resource and Cost Efficiencies Location: Jollyman Park Estimated Project Costs: $2,313,000 DESCRIPTION Evaluate and analyze the existing irrigations system at Jollyman Park, followed by design and construction of improvements. PROJECT JUSTIFICATION The irrigation system at Jollyman Park is antiquated and fragile resulting in frequent breaks in water lines and malfunctioning equipment. Broken water lines result in increased use of water and soggy fields that cannot be used. The poor performance of the system also requires increased staff labor to repair and restore the system. Upgrading the system will result in savings of water and staff labor. 674 City of Cupertino Page 132 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded McClellan Ranch – Barn Renovation Priority: Unfunded CIP Category: C - Enhancement Location: McClellan Ranch Preserve Estimated Project Costs: $1,580,000 - Budgetary Estimate (Escalated to FY15/16) DESCRIPTION Design and construct improvements to renovate the barn into an educational and public space. PROJECT JUSTIFICATION In 2012, an update to the 1993 master plan for the McClellan Ranch was completed, which lays out priorities for implementing programs and the related improvements at the park. In the FY 2013 budget, Council approved funding for the barn to be evaluated historically and structurally and for a conceptual renovation plan to be developed to meet the goals for the barn as listed in the master plan. The outcome of this project produced a conceptual renovation plan for the barn to be used for education and as an agricultural exhibit space open to the public. 675 City of Cupertino Page 133 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded McClellan Ranch – Community Garden Improvements Construction Priority: Unfunded CIP Category: B – Preventative Maintenance Location: McClellan Ranch Preserve Estimated Project Costs: TBD DESCRIPTION Prepare construction documents for improvement of the existing community garden, including plot layout, garden paths and accessibility to and within the garden, perimeter fencing and irrigation distribution system. Bid and construct the improvements. PROJECT JUSTIFICATION Implement the approved McClellan Ranch Community Garden Improvements – Conceptual Design. See the McClellan Ranch – Community Garden Improvements – Conceptual Planning and Design project sheet. 676 City of Cupertino Page 134 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded McClellan Ranch Preserve Stevens Creek Access Priority: Unfunded CIP Category: C - Enhancement Location: McClellan Ranch Preserve Estimated Project Costs: TBD DESCRIPTION Design and construct an accessible access to the creek. PROJECT JUSTIFICATION Design and construct an accessible access to the creek along Stevens Creek in McClellan Ranch Preserve to be able to offer as a learning experience. 677 City of Cupertino Page 135 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Memorial Park – Tennis Court Restroom Replacement Priority: Unfunded CIP Category: C- Enhancement Location: Memorial Park by Tennis Courts Estimated Project Costs: $488,000 DESCRIPTION Evaluate options for providing a restroom in the vicinity of the tennis courts, by modification of the existing or replacement. Design and construct the restroom improvements. PROJECT JUSTIFICATION The public restroom near the Memorial Park Tennis Courts needs upgrading for improved performance and to improve accessibility 678 City of Cupertino Page 136 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Monta Vista Park –Play Areas Priority: Unfunded CIP Category: C - Enhancement Location: Monta Vista Park Estimated Project Costs: $1,334,000 DESCRIPTION In the general location of the existing play area, design and construct two play areas – one for school-age children and a fenced-enclosed pre-school play area that can be used by neighborhood families and by the pre-school program at Monta Vista Recreation Center. PROJECT JUSTIFICATION Currently there is a single general access play area to serve all childhood ages at Monta Vista Park. The Pre-School program at Monta Vista Recreation Center uses the play area for their students. The existing play area has not been upgraded since the City acquired the property. The pre-school program and neighborhood families would benefit by having separate age- appropriate play areas for pre-schoolers and older children. 679 City of Cupertino Page 137 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Portal Park Phase 1 – Design & Construction Priority: Unfunded CIP Category: C – Enhancement Location: Portal Park Estimated Project Costs: $825,000 DESCRIPTION Prepare conceptual design documents for implementing the improvements proposed in the master plan. PROJECT JUSTIFICATION Subject to the outcome of the Portal Park-Renovation Master Plan, a conceptual design for the implementation of the master plan may attract grant funding from external sources. A conceptual plan for improvement of the park will make the implementation of the project more eligible and attractive for potential grant funding. 680 City of Cupertino Page 138 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Unfunded Service Center - Replacement Administration Building with EOC Priority: Unfunded CIP Category: A – Regulatory Mandate Location: Service Center Estimated Project Costs: $15,000,000 DESCRIPTION Design and construction of a new administration building with an EOC. PROJECT JUSTIFICATION The current Service Center Administration building, built in the late 1970’s, is inadequate for meeting current staffing levels. The City does not have an Emergency Operations Center (EOC) to manage emergency responses, which would largely be implemented from the Service Center. A new administration building will provide adequate, efficient office, meeting, and training space for city staff and an EOC, in a structurally compliant building. A feasibility study completed in spring 2017 provides design options and cost estimates for building a new administration/EOC building at the Service Center. The study proposes a conceptual plan that would accommodate space for some modest future growth of Service Center staffing, as well as allow up to ten staff from the overcrowded City Hall to be relocated to the Service Center. The estimated all-inclusive project cost for the proposed conceptual plan is approximately $15 million. 681 City of Cupertino Page 139 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Stevens Creek Trail Bridge over UPRR Priority: Unfunded CIP Category: C - Enhancement Location: Stevens Creek Boulevard West of Foothill Blvd. Estimated Project Costs: $2,860,000 – Budgetary Estimate (Escalated to FY15/16) DESCRIPTION Acquire necessary easement, permits, and agreements, and, design and construct a vehicle/pedestrian/bicycle bridge span over the UPRR right of way, adjacent to Stevens Creek Blvd. and near the Lehigh Cement Plant. PROJECT JUSTIFICATION Provide a connection with the Stevens Creek Trail system and vehicle access to the Snyder- Hammond House. This project is included in the City’s adopted Bicycle Transportation Plan. 682 City of Cupertino Page 140 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Stocklmeir Legacy Farm – Phase 1 Improvement Priority: Unfunded CIP Category: C - Enhancement Location: Stocklmeir Property Estimated Project Costs: $400,000 - Placeholder only – scope details unknown DESCRIPTION Develop a service program and master plan for a legacy farm park, and implement an initial improvement project. PROJECT JUSTIFICATION Transition the former Stocklmeir property to a public park as a “legacy farm”. 683 City of Cupertino Page 141 of 142 FY 2017-2018 CIP Budget - PROPOSED CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2017-2018 Unfunded Wilson Park Phase 1 – Design & Construction Priority: Unfunded CIP Category: C - Enhancement Location: Wilson Park Estimated Project Costs: $825,000 DESCRIPTION Prepare conceptual design documents for implementing the improvements proposed in the master plan. PROJECT JUSTIFICATION Subject to the outcome of the Wilson Park Renovation Master Plan, a conceptual design for the implementation of the master plan may attract grant funding from external sources. A conceptual plan for improvement of the park will make the implementation of the project more eligible and attractive for potential grant funding. 684 City of Cupertino Page 142 of 142 FY 2017-2018 CIP Budget - PROPOSED Appendix: Five-Year CIP Summary 685 Proposed Five‐Year Capital Improvement ProgramFY2018 ‐ FY2022DescriptionTotal BudgetPrior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022CURRENT PROJECTS REQUIRING ADD'L FUNDS & NEW PROJECTSADMINISTRATION FACILITIESADA Improvements545,000 150,000 95,000 75,000 75,000 75,000 75,000Service Center Shed No. 3 Improvements 500,000 100,000 400,000New ProjectsCapital Project Support 50,00050,000CIP Preliminary Planning & Design 125,000125,000Totals 1,220,000 250,000 670,000 75,000 75,000 75,000 75,000REC & COMM SERVICE FACILITIESMcClellan Ranch - Community Garden Improvements - Conceptual Planning & Design100,000 30,000 70,000MCClellan West Parking Lot Improvement 950,000 400,000 550,000Memorial Park Phase 1 - Construction1,000,0001,000,000Memorial Park Phase 1 - Design250,000 .250,000Monta Vista Park - Renovation Master Plan50,00050,000Portal Park - Renovation Master Plan50,00050,000Stevens Creek Bank Repair - South of SCB - Conceptual Design100,000100,000Tennis Court Resurfacing - Various Parks1,103,000 588,000 515,000Wilson Park - Renovation Master Plan50,00050,000New ProjectsInclusive Play Area - Planning30,00030,000International Cricket Ground - Feasibility Study20,00020,000Jollyman Park Pathway Installation700,000200,000 500,000Linda Vista Park - Renovation Master Plan70,00070,000Senior Center Repairs200,000200,000Senior Center Walkway Replacement64,00064,000Totals 4,737,000 1,018,000 1,549,000 320,000 850,000 1,000,00001 of 3686 Proposed Five‐Year Capital Improvement ProgramFY2018 ‐ FY2022DescriptionTotal BudgetPrior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022STORM DRAINStorm Drain Improvements - Byrne Ave. & Stevens Creek Blvd. 1,500,000 1,500,000Storm Drain Improvements - Homestead Road 2,398,000 2,398,000New ProjectsOutfall Repair & Slope Stabilization - Regnart Rd. 400,000 400,000Totals4,298,000 0 1,900,000 2,398,000 0 0 0TRANSPORTATIONSidewalk Improvements - Orange & Byrne 3,888,000 500,000 3,388,000Traffic Signal: Foothill/I-280 SB Off-ramp100,000100,0002016 Bicycle Plan Implementation3,000,000 2,000,000 1,000,000Street Median Irrigation & Plant Replacement1,410,000 660,000 750,000New ProjectsMcClellan Rd. Sidewalk Installation - Rose Blossom Dr. to Hwy 85 Overcrossing 430,000430,000Street Light Installation - Annual Infill150,00030,000 30,000 30,000 30,000 30,000Street Light Installation - Randy Ln. & Larry Wy.367,000367,000Totals 9,345,000 3,160,000 6,065,000 30,000 30,000 30,000 30,000TOTAL All New Funding 19,600,000 4,428,000 10,184,000 2,823,000 955,000 1,105,000 105,0002 of 3687 Proposed Five‐Year Capital Improvement ProgramFY2018 ‐ FY2022DescriptionTotal BudgetPrior Years FY 2018 FY 2019 FY 2020 FY 2021 FY 2022CURRENT PROJECTS - NO ADDITIONAL FUNDING REQUIREDADMINISTRATION FACILITIESFiber Network Extension to Service Center 350,000 350,000REC & COMM SERVICE FACILITIESCitywide Parks and Recreation Master Plan500,000 500,000Lawrence-Mitty Park8,270,994 8,270,994McClellan Ranch - Construct Trash Enclosure154,000 154,000Memorial Park Master Plan & Parking Study150,000 150,000Recreation Facilities Monument Signs385,000385,000Sports Center - Upgrades 760,000 760,000Stevens Creek Corridor Park Chain Master Plan - McClellan to Stevens Creek Blvd 535,000 535,000Stocklmeir House - New Sewer Lateral 50,000 50,000STORM DRAINStorm Drain Master Plan Update 380,000 380,000Storm Drain Improvements - Foothill Blvd. /Cupertino Rd. 1,900,000 1,900,000TRANSPORTATIONBikeway Enhancements & Wayfinding Plan 60,000 60,000Bicycle and Pedestrian Facility Improvements 1,206,000 1,206,000City Bridge Maintenance Repairs 700,000700,000McClellan Rd. Sidewalk Improvements - Phase 2 2,035,000 2,035,000Retaining Wall Repair - Cordova Rd. 350,000 350,000Retaining Wall Replacement - Regnart Rd.450,000 450,000TOTAL CURRENT PROJECT FUNDING18,235,994 18,235,99400000CAPITAL IMPROVEMENT PROGRAM TOTALS 37,835,994 22,663,994 10,184,000 2,823,000 955,000 1,105,000 105,0003 of 3688 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2595 Name: Status:Type:Closed Session Agenda Ready File created:In control:5/4/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Conference with Legal Counsel-Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9. Name of case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al., Santa Clara County Superior Court Case No. 115CV281214. Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject: Conference with Legal Counsel-Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9. Name of case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al., Santa Clara County Superior Court Case No. 115CV281214. CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™689 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2503 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:3/30/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Proclamation for Public Works Week on May 21-27, 2017 Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Proclamation for Public Works Week on May 21-27, 2017 Present Proclamation CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™690 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2514 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:4/7/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Proclamations recognizing Cupertino Green Businesses for their contribution to the health of our community Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Proclamations recognizing Cupertino Green Businesses for their contribution to the health of our community Present Proclamations CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™691 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2554 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:4/17/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Present certificates and awards for the Cupertino Historical Society's 3rd Annual History Scholarship Award Contest Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Present certificates and awards for the Cupertino Historical Society's 3 rd Annual History Scholarship Award Contest Present certificates and awards for the Cupertino Historical Society's 3 rd Annual History Scholarship Award Contest CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™692 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2584 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:4/27/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Presentation by Cupertino-Hsinchu Sister City Association (CHSCA) regarding its recent Cupertino Student Delegate trip to Hsinchu City, Taiwan Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Presentation by Cupertino-Hsinchu Sister City Association (CHSCA) regarding its recent Cupertino Student Delegate trip to Hsinchu City, Taiwan Receive presentation by Cupertino-Hsinchu Sister City Association (CHSCA) regarding its recent Cupertino Student Delegate trip to Hsinchu City, Taiwan CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™693 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2593 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:5/3/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Commendations and presentations from the 2017 Hackathon Winners Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Commendations and presentations from the 2017 Hackathon Winners Present commendations and accept the presentations from the five winning teams: Volunteer X, Hood Watch, Walk With Me, Connected Carpool, and Charity Channel CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™694 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2048 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/4/2016 City Council On agenda:Final action:5/16/2017 Title:Subject: Approve the May 2 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Approve the May 2 City Council minutes Approve the May 2 City Council minutes CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™695 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, May 2, 2017 REGULAR CITY COUNCIL MEETING ROLL CALL At 6:45 p.m. Mayor Savita Vaidhyanathan called the Regular City Council meeting to order in Cupertino Community Hall Council Chambers, 10350 Torre Avenue. Present: Mayor Savita Vaidhyanathan, Vice Mayor Darcy Paul, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: None. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Proclamation declaring May as National Bike Month Recommended Action: Present Proclamation declaring May as National Bike Month Mayor Vaidhyanathan presented the proclamation to Walk-Bike Cupertino members Larry Dean and Anastacia Novoshilova declaring May as National Bike Month. 2. Subject: Proclamation declaring May as National Foster Care Awareness Month Recommended Action: Present Proclamation declaring May as National Foster Care Awareness Month Mayor Vaidhyanathan presented the proclamation to Santa Clara County Social Services Agency Social Worker Quyen Vu and foster parent Beena Das declaring May as National Foster Care Awareness Month. POSTPONEMENTS - None ORAL COMMUNICATIONS Edward Hirshfield talked about transparency and courage, and Vallco redevelopment. Will Shearin on behalf of Jennifer Shearin, talked about bike improvement funding. 696 City Council MINUTES May 2, 2017 Revathy Nakasimhan, Walk-Bike Cupertino member, talked about bike funding and improvements, and traffic on McClellan Road. Dyathia Ramachandran talked about bike funding improvements and adding a railway path near Kennedy Middle School. Larry Dean, Walk-Bike Cupertino member, talked about bike improvements and funding. Anastacia Novoshilova, Walk-Bike Cupertino member, talked about bike lanes and bike safety near McClellan Road and Bubb Road, and around Apple Campus. Former Mayor Dolly Sandoval talked about Lawrence Mitty Park and her experience with building Sterling Barnhart Park. Ignatius Ding talked about the Smart City Summit and Cupertino Friendship Cities. Andrea Horvath, on behalf of Cleo HOA, talked about a cell antenna application in her community (She distributed written comments). Jean Bedord talked about age-friendly activities and retail models in Cupertino, and Vallco CAC direction (She distributed written comments). Mark Tersini gave his speaking time to Jean Bedord. J.R. Fruin talked about Vallco redevelopment and a Vallco Citizens’ Advisory Committee (CAC) process. Cecelia Attix talked about a Verizon cell antenna permit application proposed on Cleo Avenue (She distributed written comments). Jennifer Griffin talked about changes in eastern Cupertino including Vallco, a proposed Shell gas station, and population runoff from neighboring cities. Jane Facciolla talked about a Verizon cell application proposed on Cleo Avenue. Mike McNutt talked about trash on roadways and streets, including abandoned shopping carts. CONSENT CALENDAR Paul moved and Scharf seconded to approve the items on the Consent Calendar as presented. 697 City Council MINUTES May 2, 2017 Ayes: Vaidhyanathan, Paul, Chang, Scharf, and Sinks. Noes: None. Abstain: None. Absent: None. 3. Subject: Approve the April 18 City Council minutes Recommended Action: Approve the April 18 City Council minutes 4. Subject: Accept Accounts Payable for the period ending March 17, 2017 Recommended Action: Adopt Resolution No. 17-038 accepting Accounts Payable for the period ending March 17, 2017 5. Subject: Accept Accounts Payable for the period ending March 24, 2017 Recommended Action: Adopt Resolution No. 17-039 accepting Accounts Payable for the period ending March 24, 2017 6. Subject: Accept Accounts Payable for the period ending March 31, 2017 Recommended Action: Adopt Resolution No. 17-040 accepting Accounts Payable for the period ending March 31, 2017 7. Subject: Accept Accounts Payable for the period ending April 7, 2017 Recommended Action: Adopt Resolution No. 17-041 accepting Accounts Payable for the period ending April 7, 2017 8. Subject: Adopt a resolution affirming the City’s commitment to being an equitable community Recommended Action: Staff recommends that the City Council adopt Resolution No. 17-045 affirming the City’s commitment to a diverse, supportive, inclusive community and to protecting the constitutional rights of its residents 9. Subject: Letter of Support for State Senate Bill 231 Recommended Action: Direct staff to send a letter of support for Senate Bill 231 (Hertzberg): Stormwater Stewardship from the Mayor, as attached 10. Subject: Declare brush to be a public nuisance and potential fire hazard and set hearing for June 20 for objections to proposed removal Recommended Action: Adopt Resolution No. 17-042 declaring brush to be a public nuisance and potential fire hazard and setting the hearing date for June 20 11. Subject: Amendment to Funding Agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA) for the I-280/Wolfe Road Interchange Improvements Project 698 City Council MINUTES May 2, 2017 Recommended Action: Authorize the City Manager to execute an amendment to an existing agreement with the VTA to identify their respective obligations in regard to the I-280/Wolfe Road Interchange Improvements Project 12. Subject: Application for Alcohol Beverage License for TLT International (dba TLT & Grill), 20371 Stevens Creek Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for TLT International (dba TLT & Grill), 20371 Stevens Creek Boulevard SECOND READING OF ORDINANCES 13. Subject: Second reading of an ordinance amending the Municipal Code to develop an application process for the Single-Story Overlay Zoning Districts in Single- Family residential (R-1) zones (Application No.: MCA-2017-02; Applicant: City of Cupertino; Location: Citywide) Recommended Action: Conduct the second reading and enact Ordinance No. 17-2162: “An Ordinance of the City Council of the City of Cupertino amending Title 19, Zoning, of the Cupertino Municipal Code Chapter 19.12 (Administration), Chapter 19.20 (Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones), and Chapter 19.28 (Single-Family Residential R-1) Zones), to create a Single-Story Overlay District process" Deputy City Clerk Kirsten Squarcia read the title of the ordinance. Sinks moved and Scharf seconded to read Ordinance No. 17-2162 by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes: Vaidhyanathan, Paul, Scharf, and Sinks. Noes: Chang. Abstain: None. Absent: None. Sinks moved and Scharf seconded to enact Ordinance No. 17-2162. Ayes: Vaidhyanathan, Paul, Scharf, and Sinks. Noes: Chang. Abstain: None. Absent: None. 14. Subject: Second reading of an ordinance amending Section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zone on Randy Lane, Larry Way and a portion of Merritt Drive Recommended Action: Conduct the second reading of Ordinance 17-2163: An ordinance of the City Council of the City of Cupertino amending Section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones on Randy Lane, Larry Way and a portion of Merritt Drive, Monday through Friday between 8 a.m. and 4 p.m. 699 City Council MINUTES May 2, 2017 Deputy City Clerk Kirsten Squarcia read the title of the ordinance. Chang moved and Sinks seconded to read Ordinance No. 17-2163 by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes: Vaidhyanathan, Paul, Chang, Scharf, and Sinks. Noes: None. Abstain: None. Absent: None. Chang moved and Sinks seconded to enact Ordinance No. 17-2163. Ayes: Vaidhyanathan, Paul, Chang, Scharf, and Sinks. Noes: None. Abstain: None. Absent: None. PUBLIC HEARINGS 15. Subject: Update on regional drought response, adoption of 2017-18 Regulations Restricting Water Use and authorization of an amendment of the FY16/17 Memorandum of Understanding (MOU) with the Santa Clara Valley Water District (District) for the landscape conversion rebate program Recommended Action: Staff recommends that the City Council take the following actions: 1) Receive staff report on continued regional drought actions; and 2) Adopt Resolution No. 17-043 with 2017-2018 Regulations Restricting Water Use; and 3) Adopt Resolution No. 17-044 authorizing the City Manager to amend the FY16/17 Memorandum of Understanding (MOU) with the District for the landscape conversion rebate program to include the graywater laundry to landscape program and extend the MOU from December 30, 2017 to June 30, 2018. Written communications for this item included a PowerPoint presentation. Assistant Director of Public Works Roger Lee reviewed the staff report. Staff answered questions from Council. Directed staff to look into the simplifying the county pilot rebate program landscape conversion process; and quantify the evaporation and leakage of the Memorial Park ponds in terms of overall City usage; and expanding the Library fountain hours beyond 12 - 6 p.m. and increase hours on weekends, and report in the Items of Interest. Mayor Vaidhyanathan opened the public hearing, there were no speakers, and closed the public hearing. 700 City Council MINUTES May 2, 2017 Chang moved and Sinks seconded to: 1) Receive staff report on continued regional drought actions; and 2) Adopt Resolution No. 17-043 with 2017-2018 Regulations Restricting Water Use; and 3) Adopt Resolution No. 17-044 authorizing the City Manager to amend the FY16/17 Memorandum of Understanding (MOU) with the District for the landscape conversion rebate program to include the graywater laundry to landscape program and extend the MOU from December 30, 2017 to June 30, 2018. The motion carried unanimously. ORDINANCES AND ACTION ITEMS 16. Subject: Discussion and funding for 2017 Independence Day Fireworks Display Recommended Action: Authorize staff to coordinate and implement a fireworks display on July 4th, 2017. This action authorizes the appropriation of an amount not to exceed $100,000 for fireworks, City staff to support the event, and Santa Clara county Sheriff and Fire staff to ensure safe operations. Written communications for this item included a PowerPoint presentation and emails. Director of Recreation and Community Services Jeff Milkes reviewed the staff report. Staff answered questions from Council. The Mayor opened public comment and the following people spoke: Claire Arndel Will Shearin The Mayor closed public comment. Staff answered questions from Council. Paul moved and Sinks seconded to authorize staff to coordinate and implement a fireworks display on July 4th, 2017. This action authorizes the appropriation of an amount not to exceed $100,000 for fireworks, City staff to support the event, and Santa Clara County Sheriff and Fire staff to ensure safe operations. The motion carried with Chang voting no. 701 City Council MINUTES May 2, 2017 REPORTS BY COUNCIL AND STAFF 17. Subject: Annual Report on the Pavement Management Program Recommended Action: Receive the report. No action is required Written communications for this item included a PowerPoint presentation. Assistant Director of Public Works Roger Lee reviewed the staff report via a PowerPoint presentation. Staff answered questions from Council. Council received the report. No action was required. 18. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 9:26 p.m. on Mayor Vaidhyanathan adjourned the meeting. ________________________________ Kirsten Squarcia, Deputy City Clerk 702 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2568 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/24/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Treasurer's Investment Report for Quarter Ending March, 2017 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Investment Portfolio B - Wells Fargo Value Comparion Report QE March 2017 C - Supplemental Portfolio Analysis Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Treasurer's Investment Report for Quarter Ending March, 2017 Accept the Report CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™703 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Treasurer’s Investment Report for Quarter Ending March, 2017 Recommended Action Accept the report Discussion and Fiscal Impact The attached investment portfolio listing, custodian report, and slides comprise the Treasurer’s Investment Report. Together they show the composition of the portfolio; holdings held by the custodian; total portfolio yield in comparison to the Local Agency Investment Fund (LAIF), the 1-year Treasury, and the 2-year Treasury; diversification within the government agency securities; and portfolio compliance with the City’s Investment Policy. For quarter ending March 31, 2017, the market value of the City’s portfolio total $134.4 million which is $3.6 million higher than last quarter. The portfolio’s average yield was 1.02% which is an increase from its 0.89% yield of the previous quarter ending December 31, 2016. The average length to maturity increased from 1.11 to 1.24 years. The LAIF yield increased to 0.76% from last quarter’s yield of 0.68%. LAIF’s balance was $40.8 million which is in compliance with the City Investment Policy and state code. LAIF’s same- or next-day liquidity insures that the City is able to pay its obligations for the next six months and also provides strong liquidity in the short, intermediate, and long-term horizons. Market values on individual securities in the investment portfolio are provided by Wells Fargo Bank Institutional Trust Services using valuations from Interactive Data Pricing and Reference Data, Inc. _____________________________________ Prepared by: Lisa Taitano, Deputy City Treasurer Reviewed by: Kristina Alfaro, City Treasurer Approved by: David Brandt, City Manager Attachments: A – Investment Portfolio B – Wells Fargo Value Comparison Report C – Supplemental Portfolio Analysis 704 City of Cupertino Investment Portfolio March 31, 2017 ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED PURCHASE MATURITY DESCRIPTION RATE YTM COST VALUE VALUE PROFIT/LOSS SECURITIES MATURED 03/18/16 03/02/17 US Treasury Note 0.00% 0.69%- 1,000,000 09/30/14 03/08/17 Agency notes - FHLMC 1.00% 0.84%- 3,000,000 12/31/14 03/10/17 Agency notes - FHLB 0.88% 0.81%- 3,000,000 SECURITIES PURCHASED 03/24/17 12/31/17 US Treasury Note 0.75% 0.95% 2,995,429 3,000,000 2,993,910 (1,519) 01/26/17 10/26/18 Agency notes - FHLB 1.20% 1.20% 3,000,000 3,000,000 2,997,570 (2,430) 02/01/17 02/01/19 Agency notes - FFCB 1.30% 1.30% 3,000,000 3,000,000 2,998,650 (1,350) 03/31/17 03/31/19 US Treasury Note 1.25% 1.25% 1,000,000 1,000,000 999,810 (190) 03/31/17 07/31/19 US Treasury Note 0.88% 1.32% 2,969,063 3,000,000 2,968,230 (833) 03/30/17 09/30/19 US Treasury Note 1.00% 1.42% 1,979,398 2,000,000 1,980,780 1,382 01/19/17 12/10/21 Agency notes - FHLB 2.63% 1.90% 3,096,879 3,000,000 3,084,060 (12,819) CITY PORTFOLIO CASH 03/31/17 Wells Fargo - Workers Comp Checking 20,575 20,575 20,575 03/31/17 Wells Fargo - Regular Checking - - - 03/31/17 Wells Fargo - Repurchase Agreements 0.02% 0.02% 4,752,218 4,752,218 4,752,218 4,772,793 4,772,793 4,772,793 LAIF 03/31/17 LAIF - State Pool 0.76% 0.76%40,807,049 40,807,049 40,807,049 MONEY MARKET FUNDS 03/31/17 Wells Fargo Advantage 100% Treasury 0.21% 0.21%44,687 44,687 44,687 44,687 44,687 44,687 GOVERNMENT AGENCY NOTES 07/07/14 07/07/17 Agency notes - FHLMC 1.00% 1.00% 2,998,577 3,000,000 3,001,380 2,803 10/03/14 09/22/17 Agency notes - FFCB 1.13% 1.12% 3,000,070 3,000,000 3,003,030 2,960 12/31/14 12/18/17 Agency notes - FFCB 1.13% 1.14% 999,923 1,000,000 1,000,560 637 09/30/14 01/12/18 Agency notes - FHLMC 0.75% 1.26% 996,087 1,000,000 997,740 1,653 09/30/14 03/07/18 Agency notes - FHLMC 0.88% 1.32% 995,948 1,000,000 997,740 1,792 03/30/15 03/12/18 Agency notes - FFCB 1.13% 0.95% 2,003,255 2,000,000 2,000,540 (2,715) 03/28/16 03/28/18 Agency notes - FHLB 1.09% 1.09% 2,000,000 2,000,000 1,993,780 (6,220) 04/02/15 04/02/18 Agency notes - FFCB 1.00% 0.98% 3,000,593 3,000,000 2,995,380 (5,213) 05/11/15 05/11/18 Agency notes - FFCB 1.03% 1.08% 1,998,866 2,000,000 1,998,620 (246) 07/23/14 06/08/18 Agency notes - FHLB 1.25% 1.39% 2,995,122 3,000,000 3,002,700 7,578 05/07/15 08/07/18 Agency notes - FHLB 1.05% 1.13% 1,997,829 2,000,000 1,995,440 (2,389) 09/12/16 09/06/18 Agency notes - FFCB 0.93% 0.82% 3,004,712 3,000,000 2,989,530 (15,182) 01/26/17 10/26/18 Agency notes - FHLB 1.20% 1.20% 3,000,000 3,000,000 2,997,570 (2,430) 02/01/17 02/01/19 Agency notes - FFCB 1.30% 1.30% 3,000,000 3,000,000 2,998,650 (1,350) 05/07/15 02/27/19 Agency notes - FNMA 1.68% 1.30% 1,007,048 1,000,000 1,005,950 (1,098) 06/22/16 03/22/19 Agency notes - FHLMC 1.25% 1.25% 3,000,000 3,000,000 2,988,660 (11,340) 11/23/16 05/24/19 Agency notes - FHLMC 1.30% 1.30% 3,000,000 3,000,000 2,987,850 (12,150) 10/16/15 09/13/19 Agency notes - FHLB 2.00% 1.21% 2,037,647 2,000,000 2,023,000 (14,647) 11/23/16 11/18/19 Agency notes - FFCB 1.10% 1.36% 1,986,550 2,000,000 1,978,660 (7,890) 03/30/16 12/30/19 Agency notes - FHLMC 1.50% 1.50% 3,000,000 3,000,000 2,994,720 (5,280) 06/30/16 12/30/19 Agency notes - FHLMC 1.02% 1.02% 3,000,000 3,000,000 2,945,550 (54,450) 05/31/16 05/26/20 Agency notes - FHLMC 1.35% 1.35% 2,000,000 2,000,000 1,965,540 (34,460) 05/26/16 05/26/20 Agency notes - FNMA 1.38% 1.38% 2,000,000 2,000,000 1,968,260 (31,740) 06/30/16 06/30/20 Agency notes - FHLMC 1.50% 1.50% 2,000,000 2,000,000 1,987,500 (12,500) 05/25/16 11/25/20 Agency notes - FNMA 1.50% 1.50% 3,000,000 3,000,000 2,937,240 (62,760) 06/07/16 05/12/21 Agency notes - FNMA 0.90% 1.87% 2,100,000 2,100,000 2,098,341 (1,659) 01/19/17 12/10/21 Agency notes - FHLB 2.63% 1.90% 3,096,879 3,000,000 3,084,060 (12,819) 63,219,106 63,100,000 62,937,991 (281,115) US TREASURY SECURITIES 06/23/14 06/15/17 US Treasury Note 0.88% 0.95% 2,999,558 3,000,000 3,000,480 922 07/23/14 09/30/17 US Treasury Note 0.63% 1.08% 2,993,226 3,000,000 2,995,770 2,544 03/24/17 12/31/17 US Treasury Note 0.75% 0.95% 2,995,429 3,000,000 2,993,910 (1,519) 03/18/16 02/28/18 US Treasury Note 0.75% 0.98% 1,995,895 2,000,000 1,994,380 (1,515) 09/12/16 08/31/18 US Treasury Note 0.75% 0.71% 2,001,125 2,000,000 1,988,600 (12,525) 11/23/16 10/31/18 US Treasury Note 0.75% 1.04% 2,986,340 3,000,000 2,978,910 (7,430) 03/31/17 03/31/19 US Treasury Note 1.25% 1.25% 1,000,000 1,000,000 999,810 (190) 03/31/17 07/31/19 US Treasury Note 0.88% 1.32% 2,969,063 3,000,000 2,968,230 (833) 09/12/16 08/15/19 US Treasury Note 0.75% 0.84% 1,995,937 2,000,000 1,971,800 (24,137) 03/30/17 09/30/19 US Treasury Note 1.00% 1.42% 1,979,398 2,000,000 1,980,780 1,382 05/07/15 04/30/20 US Treasury Note 1.38% 1.54% 1,990,140 2,000,000 1,989,460 (680) 705 City of Cupertino Investment Portfolio March 31, 2017 ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED PURCHASE MATURITY DESCRIPTION RATE YTM COST VALUE VALUE PROFIT/LOSS 25,906,110 26,000,000 25,862,130 (43,980) Total Managed Portfolio 134,749,745 134,724,529 134,424,650 (325,095) Average Yield 1.02% Average Length to Maturity (in years) 1.24 Duration (calculated by USBank)1.77 TRUST PORTFOLIO Institutional MM Account Wells Fargo Bank Secured 0.40% 0.40%48,585 48,585 48,585 BOND RESERVE PORTFOLIO Bond Lease Pymt Acct Goldman Sachs Financial Sq Money Mkt 0.10% 0.10%824 824 824 Bond Reserve Acct Goldman Sachs Financial Sq Money Mkt 0.10% 0.10% 1,595,701 1,595,701 1,595,701 Total Bond Reserve Portfolio 1,596,525 1,596,525 1,596,525 706 WELLS FARGOMarket/Cost Value Comparison Report General ReportingBy Account By Industry Class From Month End With Pricing 03/31/2017CITY OF CUPERTINO 04/11/2017 01:12:08 PM EDTACCOUNT: All Accounts Selected * = Trade or Other Activity Pending Maturity Market Fed Gain/Loss S & P Moody`s Units in EncumbrdAsset IDUnits DateValue Tax Cost Amount % Rating Rating Transition UnitsACCOUNT: 16737400 CITY OF CUPERTINONET CASHNET CASH.0000$.00$.00$.00 .00.0000.00U.S. DOLLARSSUBTOTAL.0000$.00$.00$.00 .00.0000.00CASH SWEEPPROPRIETARY FUNDSVP452000444,686.6600$44,686.66 $44,686.66$.00 .00.0000.00WELLS FARGO 100% TREASURY MONEY MARKET FUND - #008NON-PROPRIETARY FUNDS99299594448,585.4900$48,585.49 $48,585.49$.00 .00.0000.00WFB PUBLIC INSTITUTIONAL BANK DEPOSIT ACCOUNTSUBTOTAL93,272.1500$93,272.15 $93,272.15$.00 .00.0000.00US GOVERNMENTUS TREASURY NOTES AND BONDS9128282B52,000,000.0000 08/15/2019 $1,971,800.00 $1,995,000.00 ($23,200.00) (1.16) N/A AAA.0000.00US TREASURY NOTE DTD 08/15/16 0.750 08/15/20199128282C32,000,000.0000 08/31/2018 $1,988,600.00 $2,001,560.00 ($12,960.00) (.65) N/A AAA.0000.00US TREASURY NOTE DTD 08/31/16 0.750 08/31/2018912828K582,000,000.0000 04/30/2020 $1,989,460.00 $1,984,062.50 $5,397.50 .27 N/A AAA.0000.00US TREASURY NOTE DTD 04/30/15 1.375 04/30/2020912828T833,000,000.0000 10/31/2018 $2,978,910.00 $2,983,320.00 ($4,410.00) (.15) N/A AAA.0000.00US TREASURY NOTE DTD 10/31/16 0.750 10/31/2018912828TH33,000,000.0000 07/31/2019 $2,968,230.00 $2,969,062.50 ($832.50) (.03) N/A AAA.0000.00US TREASURY NOTE DTD 07/31/12 0.875 07/31/2019912828TR12,000,000.0000 09/30/2019 $1,980,780.00 $1,979,375.00 $1,405.00 .07 N/A AAA.0000.00US TREASURY NOTE DTD 10/01/12 1.000 09/30/2019912828TS93,000,000.0000 09/30/2017 $2,995,770.00 $2,956,875.00 $38,895.00 1.32 N/A AAA.0000.00US TREASURY NOTE DTD 10/01/12 0.625 09/30/2017912828UE83,000,000.0000 12/31/2017 $2,993,910.00 $2,995,312.50 ($1,402.50) (.05) N/A AAA.0000.00US TREASURY NOTE DTD 12/31/12 0.750 12/31/2017912828UR92,000,000.0000 02/28/2018 $1,994,380.00 $1,991,250.00 $3,130.00 .16 N/A AAA.0000.00Page 1707 WELLS FARGOMarket/Cost Value Comparison Report General ReportingBy Account By Industry Class From Month End With Pricing 03/31/2017CITY OF CUPERTINO 04/11/2017 01:12:08 PM EDTACCOUNT: All Accounts Selected * = Trade or Other Activity Pending Maturity Market Fed Gain/Loss S & P Moody`s Units in EncumbrdAsset IDUnits DateValue Tax Cost Amount % Rating Rating Transition UnitsUS TREASURY NOTE DTD 02/28/13 0.750 02/28/2018912828W971,000,000.0000 03/31/2019 $999,810.00 $1,000,000.00 ($190.00) (.02) N/A AAA.0000.00US TREASURY NOTE DTD 03/31/17 1.250 03/31/2019912828WP13,000,000.0000 06/15/2017 $3,000,480.00 $2,993,671.88 $6,808.12 .23 N/A AAA.0000.00US TREASURY NOTE DTD 06/16/14 0.875 06/15/2017SUBTOTAL26,000,000.0000$25,862,130.00 $25,849,489.38 $12,640.62 .05.0000.00FEDERAL AGENCYGOVERNMENT AGENCIES3130A57G82,000,000.0000 08/07/2018 $1,995,440.00 $1,994,780.00 $660.00 .03 AA+ AAA.0000.00FED HOME LN BK DTD 05/07/15 1.050 08/07/20183130A7L862,000,000.0000 03/28/2018 $1,993,780.00 $2,000,000.00 ($6,220.00) (.31) AA+ AAA.0000.00FED HOME LN BK DTD 03/28/16 1.090 03/28/20183130AAM473,000,000.0000 10/26/2018 $2,997,570.00 $3,000,000.00 ($2,430.00) (.08) AA+ AAA.0000.00FED HOME LN BK DTD 01/26/17 1.200 10/26/2018313376C943,000,000.0000 12/10/2021 $3,084,060.00 $3,100,890.00 ($16,830.00) (.54) AA+ AAA.0000.00FED HOME LN BK DTD 11/04/11 2.625 12/10/2021313379DT33,000,000.0000 06/08/2018 $3,002,700.00 $2,984,085.00 $18,615.00 .62 AA+ AAA.0000.00FED HOME LN BK DTD 05/04/12 1.250 06/08/2018313383VN82,000,000.0000 09/13/2019 $2,023,000.00 $2,060,000.00 ($37,000.00) (1.80) AA+ AAA.0000.00FED HOME LN BK DTD 08/12/13 2.000 09/13/20193133EDVU33,000,000.0000 09/22/2017 $3,003,030.00 $3,000,435.00 $2,595.00 .09 AA+ AAA.0000.00FED FARM CREDIT BK DTD 09/22/14 1.125 09/22/20173133EEFE51,000,000.0000 12/18/2017 $1,000,560.00 $999,680.00 $880.00 .09 AA+ AAA.0000.00FED FARM CREDIT BK DTD 12/18/14 1.125 12/18/20173133EEJ502,000,000.0000 05/11/2018 $1,998,620.00 $1,996,940.00 $1,680.00 .08 AA+ AAA.0000.00FED FARM CREDIT BK DTD 05/11/15 1.030 05/11/20183133EETE02,000,000.0000 03/12/2018 $2,000,540.00 $2,010,140.00 ($9,600.00) (.48) AA+ AAA.0000.00FED FARM CREDIT BK DTD 03/12/15 1.125 03/12/20183133EEWH93,000,000.0000 04/02/2018 $2,995,380.00 $3,001,770.00 ($6,390.00) (.21) AA+ AAA.0000.00FED FARM CREDIT BK DTD 04/02/15 1.000 04/02/20183133EG5Q43,000,000.0000 02/01/2019 $2,998,650.00 $3,000,000.00 ($1,350.00) (.04) AA+ AAA.0000.00Page 2708 WELLS FARGOMarket/Cost Value Comparison Report General ReportingBy Account By Industry Class From Month End With Pricing 03/31/2017CITY OF CUPERTINO 04/11/2017 01:12:08 PM EDTACCOUNT: All Accounts Selected * = Trade or Other Activity Pending Maturity Market Fed Gain/Loss S & P Moody`s Units in EncumbrdAsset IDUnits DateValue Tax Cost Amount % Rating Rating Transition UnitsFED FARM CREDIT BK DTD 02/01/17 1.300 02/01/20193133EGJ302,000,000.0000 11/18/2019 $1,978,660.00 $1,984,760.00 ($6,100.00) (.31) AA+ AAA.0000.00FED FARM CREDIT BK DTD 11/18/16 1.100 11/18/20193133EGTE53,000,000.0000 09/06/2018 $2,989,530.00 $3,006,510.00 ($16,980.00) (.56) AA+ AAA.0000.00FED FARM CREDIT BK DTD 09/06/16 0.930 09/06/20183134G5AR63,000,000.0000 07/07/2017 $3,001,380.00 $2,999,625.00 $1,755.00 .06 AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE3134G8S833,000,000.0000 12/30/2019 $2,994,720.00 $3,000,000.00 ($5,280.00) (.18) AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE SER 00053134G9G433,000,000.0000 12/30/2019 $2,945,550.00 $3,000,000.00 ($54,450.00) (1.82) AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE3134G9MU83,000,000.0000 05/24/2019 $2,987,850.00 $3,000,000.00 ($12,150.00) (.40) AA+ AAA.0000.00FED HOME LN MTG CORP DTD 05/31/16 1.300 05/24/20193134G9MW42,000,000.0000 05/26/2020 $1,965,540.00 $2,000,000.00 ($34,460.00) (1.72) AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE SER 00003134G9SB43,000,000.0000 03/22/2019 $2,988,660.00 $3,000,000.00 ($11,340.00) (.38) AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE3134G9SK42,000,000.0000 06/30/2020 $1,987,500.00 $2,000,000.00 ($12,500.00) (.62) AA+ AAA.0000.00FED HOME LN MTG CORP MED TERM NOTE SER 00013136FTP371,000,000.0000 02/27/2019 $1,005,950.00 $1,014,055.00 ($8,105.00) (.80) AA+ AAA.0000.00FED NATL MTG ASSN DTD 02/27/12 1.680 02/27/20193136G3MD42,100,000.0000 05/12/2021 $2,098,341.00 $2,100,000.00 ($1,659.00) (.08) AA+ AAA.0000.00FED NATL MTG ASSN DTD 05/12/16 05/12/20213136G3QB42,000,000.0000 05/26/2020 $1,968,260.00 $2,000,000.00 ($31,740.00) (1.59) AA+ AAA.0000.00FED NATL MTG ASSN DTD 05/26/16 1.375 05/26/20203136G3QQ13,000,000.0000 11/25/2020 $2,937,240.00 $3,000,000.00 ($62,760.00) (2.09) N/A N/A.0000.00FED NATL MTG ASSN SER 00023137EADN61,000,000.0000 01/12/2018 $997,740.00 $983,640.00 $14,100.00 1.43 AA+ AAA.0000.00FED HOME LN MTG CORP SER 13137EADP11,000,000.0000 03/07/2018 $997,740.00 $985,100.00 $12,640.00 1.28 AA+ AAA.0000.00FED HOME LN MTG CORP DTD 01/17/13 0.875 03/07/2018Page 3709 WELLS FARGOMarket/Cost Value Comparison Report General ReportingBy Account By Industry Class From Month End With Pricing 03/31/2017CITY OF CUPERTINO 04/11/2017 01:12:08 PM EDTACCOUNT: All Accounts Selected * = Trade or Other Activity Pending Maturity Market Fed Gain/Loss S & P Moody`s Units in EncumbrdAsset IDUnits DateValue Tax Cost Amount % Rating Rating Transition UnitsSUBTOTAL63,100,000.0000$62,937,991.00 $63,222,410.00 ($284,419.00) (.45).0000.00ACCOUNT 16737400 TOTAL 89,193,272.1500$88,893,393.15 $89,165,171.53 ($271,778.38) (.30).0000.00GRAND TOTAL89,193,272.1500$88,893,393.15 $89,165,171.53 ($271,778.38) (.30).0000.00END OF REPORTPage 4710 Treasurer’s Investment Report Quarter Ending March 2017 Audit Committee Meeting May 1, 2017 711 o Total portfolio increased from last quarter by $3.6 million, from $130.8 to $134.4 million o Average maturity increased from 1.11 years to 1.24 o Average yield increased from 0.89% to 1.02% o Duration increased from 1.34 to 1.77 Portfolio Composition LAIF 30.3% Cash 3.5% Money Market 0.03% Agency Notes 46.9% US Treasuries 19.2% 712 Yield Comparison 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2Y Treasury Cupertino LAIF 1Y Treasury 713 Debt issued by federal credit agencies and fully backed by U.S. government guarantee but not its full faith and credit High credit rating - second only to Treasury bonds Maturity periods from 1 month to 15 years Agencies that can issue: •FHLMC - Federal Home Loan Mortgage Association (Freddie Mac) •FHLB - Federal Home Loan Bank •FNMA - Federal National Mortgage Association (Fannie Mae) •FFCB - Federal Farm Credit Bureau Agency Diversification FHLB 23.9% FHLMC 33.2% FNMA 12.8% FFCB 30.0% 714 Policy Compliance City of Cupertino March 31, 2017 Category Standard Comment Treasury Issues No limit Complies US Agencies No limit Complies Medium Term Corporate Bonds 30% with A rating Complies LAIF $50 million Complies Money Market Funds 20% Complies Maximum Maturities Up to 5 years Complies Per Issuer Max 10% (except for Treasuries and Agencies) Complies Bankers Acceptances 180 days & 40% Complies Commercial Paper 270 days & 25% Complies Negotiable Certificates of Deposit 30% Complies Repurchase Agreements 365 days Complies Reverse Repurchase Agreements Prohibited Complies 715 Cash Flow – Coverage The LAIF investment is $40.8 million and yielding 27 basis points lower than the 1-year Treasury bill. The City is able to pay its obligations for the next 6 months and overall liquidity is strong. 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 55,000,000 05/01/1705/08/1705/15/1705/22/1705/29/1706/05/1706/12/1706/19/1706/26/1707/03/1707/10/1707/17/1707/24/1707/31/1708/07/1708/14/1708/21/1708/28/1709/04/1709/11/1709/18/1709/25/1710/02/1710/09/1710/16/1710/23/1710/30/176-Month Liquidity 716 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1835 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/6/2016 City Council On agenda:Final action:5/16/2017 Title:Subject: Designation of appointees to the Association of Bay Area Governments (ABAG) Plan Board of Directors Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Designation of appointees to the Association of Bay Area Governments (ABAG) Plan Board of Directors Adopt Resolution No. 17-046 rescinding Resolution No. 6864 and Appointing Directors to ABAG Plan Corporation on Behalf of the City of Cupertino CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™717 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Revise the designees to ABAG PLAN Corporation Bylaws and the Memorandum of Coverage and designate the following individuals as appointees to the ABAG PLAN Board of Directors: City Attorney; Deputy City Manager; and Director of Administrative Services. Recommended Action Rescind Resolution No. 6864 designating the City Manager Assistant and the Finance Director as designees to the ABAG PLAN Corporation Bylaws and the Memorandum of Coverage. Adopt Resolutions to: (1) Designate the following individuals as appointees to the ABAG PLAN Board of Directors: Description City Manager Assistant and Finance Director are currently appointed to the ABAG PLAN Board of Directors. This was established in 1986. Currently the City Attorney’s Office, City Manager’s Office and Administrative Services Department are responsible for the City’s risk management and therefore recommend designating the City Attorney as the Director, and the Deputy City Manager and Director of Administrative Services as Voting Alternate Directors. Fiscal Impact None Title Designation City Attorney Director Deputy City Manager Voting Alternate Director Director of Administrative Services Voting Alternate Director 718 Prepared by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: David Brandt, City Manager Attachments: A‐ Draft Resolution Rescinding Resolution NO. 6864 and Appointing Directors to ABAG PLAN Corporation on Behalf of the City of Cupertino 719 Date sent to ABAG PLAN: ________ RESOLUTION NO. XX - XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RESCINDING RESOLUTION NO. 6864 AND APPOINTING DIRECTORS TO ABAG PLAN CORPORATION ON BEHALF OF THE CITY OF CUPERTINO WHEREAS, the City of Cupertino has been a charter member of ABAG PLAN Corporation since July 1, 1986; and WHEREAS, ABAG Plan Corporation is now providing the City with liability insurance, property insurance, and employee bonds; and WHEREAS, ABAG PLAN Corporation is a self-funded insurance pool serving public agencies; and WHEREAS, the operations of these programs are governed by a Board of Directors consisting of one representative from each member agency; and WHEREAS, since July 1, 1986, the City of Cupertino designated representatives have been the City Manager Assistant and the Finance Director; and WHEREAS, participation on the Board of Directors has been carried out by City Staff as part of its regular duties and does not result in any remuneration to the employee; and WHEREAS, it is recommended that the City Council revise the designees to ABAG PLAN Corporation Bylaws and the Memorandum of Coverage. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Cupertino rescinds Resolution No. 6864. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the City of Cupertino does hereby designate the following individuals as appointees to the ABAG PLAN Board of Directors: Title Designation City Attorney Director Deputy City Manager Voting Alternate Director Director of Administrative Services Voting Alternate Director BE IT FURTHER RESOLVED that these appointments shall be in accordance with ABAG PLAN Corporation Bylaws and the Memorandum of Coverage. 720 Date sent to ABAG PLAN: ________ PASSED, APPROVED AND ADOPTED this 16th day of May, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk *Signatures also authorize any future changes to the ABAG PLAN Board of Director’s or Alternate assignments may be changed via City/Town Manager’s office via City/Town letterhead. 721 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2313 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/31/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Approve the Third Quarter Financial Report and recommended budget adjustments for Fiscal Year 2016-2017 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - Third Quarter Financial Report C - Performance Measures for each department D - Budget Journal for Proposed Adjustments Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Approve the Third Quarter Financial Report and recommended budget adjustments for Fiscal Year 2016-2017 1. Accept the City Manager’s Third Quarter Financial Report for FY 2016-17 2. Approve the Third Quarter adjustments for FY 2016-17 as described in the Third Quarter Financial Report 3. Adopt Resolution No. 17-047, approving Third Quarter budget adjustments CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™722 1 ADMINISTRATIVE SERVICES CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Approve the Third Quarter Financial Report and recommended budget adjustments for Fiscal Year 2016-2017 Recommended Action 1. Accept the City Manager’s Third Quarter Financial Report for FY 2016-17 2. Approve the Third Quarter adjustments for FY 2016-17 as described in the Third Quarter Financial Report 3. Adopt Resolution No. 17-_____, approving Third Quarter budget adjustments Background On June 6, 2016, the City Council adopted the FY 2016-17 Budget, a $133.2 million spending plan for the City of Cupertino. On November 15, 2016, Council received an update on the City’s spending plan as part of the City Manager’s First Quarter Financial Report, which revised the budget to account for encumbrances and carryover expenditure appropriations from FY 2015-16 of $38,091,854. Council approved $26,892,570 in additional expenditures in the first three quarters of the fiscal year mostly related to Apple Campus 2 contracts, negotiated salary and benefit increases, and a transfer of excess fund balance to the Capital Reserve as per the City’s Reserve and One Time Use Policy. This resulted in an amended budget of $198,216,774. Fund FY 16-17 Final Adopted Carryovers Encumbrances Adjustments Approved in 1st-3rd Quarters FY 16-17 Amended Budget as March 31, 2017 General $77,222,454 $9,832,658 $3,783,570 $25,887,517 $116,726,199 Special Revenue $16,981,094 $15,287,664 $4,123,770 $740,452 $37,132,980 Debt Service $3,167,538 - - - $3,167,538 Capital Projects $15,072,000 $2,089,910 $1,115,890 ($600,212)$17,677,588 Enterprise $10,312,537 $658,872 $67,472 $152,572 $11,191,453 Internal Service $10,476,727 $677,073 $454,975 $712,241 $12,321,016 Total All Funds $133,232,350 $28,546,177 $9,545,677 $26,892,570 $198,216,774 As of Third Quarter, the Amended Budget of $198,216,774 is funded with $191,306,106 in revenue and $6,910,668 in fund balance and one-time funding sources. 723 2 Amended Operating Budget by Fund $198,216,774 General 116,726,199 59% Special Revenue 37,132,980 19% Debt Service 3,167,538 1% Capital Project 17,677,588 9% Enterprise 11,191,453 6% Internal Service 12,321,016 6% The following table outlines the adjustments to the budget since the Mid-Year Financial Report resulting in the total Amended Budget of $198,216,774: ADJUSTMENT DESCRIPTION AMOUNT Amended Budget as of December 31, 2016 181,564,052$ Ash Whitefly Treatment at Rancho Rinconada 62,160.00 Bank Service Charges 20,000.00 City Hall Elevator Repair 9,665.00 Contribution in lieu for Planned Transportation Project 1,187,395.00 Funding for remaining balance of the two BSA positions 67,482.00 Irrigation Controller Settlement 410,000.00 Linda Vista Park Pump Repair and Control Panel Replacement 15,000.00 New Auditor Contract 80,000.00 Purchase and Implementation of Business License Module 50,000.00 Soundwall Damage Reimbursement 20,900.00 TICC Cellular Capacity/Coverage Study 30,000.00 Transfer out excess fund balance to Capital Reserve 15,000,000.00 Transfer Salary Savings to IS to Fund Full Time BSA (720.00) ABAG Grant for Sidewalk Repair 21,104.00 Regnart Road Repair 350,000.00 Close out Completed CIP Projects (785,797.00) Monument Sign Damage Settlement & Repair 25,859.00 Budget for full-time BSA Position in IT/Application 38,930.00 Transfer Salary Savings to IS to Fund Full Time BSA 50,744.00 Total Amended Budget as of March 31, 2017 198,216,774$ 724 3 Discussion The primary focus of the Third Quarter Financial Report is to provide an update on the current status of the City’s budget; the report also reviews current revenue and expenditure patterns to ensure that budgets are on track to end the year in a positive fiscal position and reviews any significant variances in expenditures from the prior fiscal year. General Fund Update Revenue General Fund revenues are at $64.3 million; this represents 61% of budgeted revenue at $105.1 million. Revenues at the third quarter point of the prior three years were between 62% and 66%, placing this year just below the range. General Fund Revenue is on track to meet year end projections and there are no changes recommended to revenue projections. Expenditures General Fund expenditures are at $55 million; this represents 47% of the budgeted appropriations of $116.7 million. Expenditures at the third quarter point of the prior three years were between 70% and 76% of the final actual expenditures, placing this year below the range. This is primarily due to savings in special project and capital outlay costs due to projects not yet complete and salary savings due to vacancies. As part of the Third Quarter Financial Report, budget adjustments in the amount of $483,973 are being requested, of which $295,151 is in projected revenue, resulting in an increase use of fund balance of $188,822 across funds, as reflected in the table below: Fund Department Expenditures Revenue Fund Balance General Fund Law Enforcement 44,000$ 23,000$ 21,000$ Sheriff Pass Thru and Data Ticket Costs General Fund Public Works $ 18,689 $ 18,689 -$ Insurance payment for Senior Center wall accident General Fund Public Works 29,278$ 29,278$ -$ Appropriation of Dev-in-lieu for Neighborhood Cut-Through Traffic & Parking Intrusion Monitoring TOTAL GENERAL FUND 91,967$ 70,967$ 21,000$ Special RevenuePublic Works 19,183$ -$ 19,183$ Curb, Gutter, and Sidewalk Repair Special RevenuePublic Works 224,184$ 224,184$ -$ CDBG ADA Ramp Grant Special RevenuePublic Works 148,639$ -$ 148,639$ Mill and Fill from Saratoga and San Jose TOTAL SPECIAL REVENUE 392,006$ 224,184$ 167,822$ TOTAL ALL FUNDS 483,973$ 295,151$ 188,822$ Recommended Adjustments 725 4 Fund Balance The FY 2016-17 year end projected fund balance for the General Fund is $40.52 million (as shown in the table below). Total projected fund balance is derived by taking actual fund balance as of year-end + (amended budget revenues minus expenses) + (recommended adjustments to revenues minus expenses in this staff report). This projection is slightly lower since the Mid-Year budget due to the projected use of an additional $21,000 in fund balance for the recommended adjustments as part of the third quarter report. Actuals Final Budget First Quarter Mid Year Projections Third Quarter Projections CLASSIFICATION 2015-16 2016-17 2016-17 2016-17 2016-17 Non Spendable 0.94 1.10 1.10 1.10 1.10 Restricted 0.89 0.76 0.76 0.76 0.76 Assigned 20.50 27.50 27.50 32.10 32.10 UnAssigned 29.87 3.69 27.08 6.57 6.55 TOTAL FUND BALANCE 52.19 33.05 56.44 40.54 40.52 Staffing Impacts There are no changes to staffing. Performance Measures Updated performance measures that align with government and private industry best practices have been included in the Third Quarter Financial Report. Staff will continue to provide updates to Council on the performance measures as part of the quarterly budget reports and the proposed and final budgets. Attachment C represents the status of the performance measures as of the third quarter. Conclusion The Third Quarter Financial Report shows that the City is well positioned to end the year within the Amended Budget. The adjustments at third quarter total $483,973 and mostly account for sheriff costs, an insurance payment, development-in-lieu, concrete repair, and an ADA ramp grant. Prepared by: Karen Bernard-Guerin, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: David Brandt, City Manager 726 5 Attachments: A - Draft Resolution B - Third Quarter Financial Report for Fiscal Year 2016-17 C - Performance Measures for each department D – Budget Journal for Proposed Adjustments 727 RESOLUTION NO. 17- Attachment A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2016-17 BY RATIFYING THE ADEQUACY OF ESTIMATED AMENDED REVENUES TO THE GENERAL AND SPECIAL FUNDS TO COVER AMENDED APPROPRIATED MONIES AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS, the City Manager has submitted his estimates of amended anticipated revenues, has determined that estimated amended revenues are adequate to cover amended appropriations, and has recommended the allocation of monies for specified program activities NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby ratify that the attached anticipated amended resources are to be received in the General and Special Funds listed in the attachment during fiscal year 2016-17 and that such resources are sufficient to cover the attached amended appropriations. BE IT FURTHER RESOLVED that there is appropriated from the General and special funds the sum of money set forth as amended expenditures for those funds, to be used for the purposes as expressed and estimated in the report before the City Council. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of May 2017, by the following vote: 728 Page 2 Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor City of Cupertino 729 Expenditure Adjustment by Fund Fund Expenditure Amount General $91,967 Special Revenue $392,006 TOTAL EXPENDITURE ADJUSTMENTS ALL FUNDS $483,973 730 THIRD QUARTER REPORT The following is the Third Quarter Financial Report for the period of July 2016 -March 2017 for the 2016-2017 Fiscal Year. It has been prepared to inform the City Council, City leadership and the public of the City’s financial status at the third quarter point of this fiscal year. The report provides revenue and expenditure summaries and recommends adjustments to City budget needed since the adoption of the Final Budget in June 2016. BACKGROUND On June 6, 2016, the City Council adopted the FY 2016-17 Budget, a $133.2 million spending plan for the City of Cupertino. On November 15, 2016, Council received an update on the City’s spending plan as part of the City Manager’s First Quarter Financial Report, which revised the budget to account for encumbrances and carryover expenditure appropriations from FY 2015-16 of $38,091,854. Council approved $26,892,570 in additional expenditures in the first three quarters of the fiscal year mostly related to Apple Campus 2 contracts, negotiated salary and benefit increases, and a transfer of excess fund balan ce to the Capital Reserve as per the City’s Reserve and One Time Use Policy. This resulted in an amended budget of $198,216,774. FY 2016-17 Proposed Budget thru the Third Quarter | Amended Budget FY 2016-17 | Flow of Funds Chart (in Millions) General Fund Revenue, Expenditures and Fund Balance 9 Month Actuals Amended Budget Year End Actuals 9 Month Actuals Amended Budget Year End Actuals 9 Month Actuals Amended Budget Year End Actuals 9 Month Actuals Final Budget Amended Budget FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 Revenue $49.0 $95.9 $73.9 $66.2 $88.4 $83.5 $48.5 $68.2 $77.9 $64.3 $79.0 $105.1 Expenditures $48.7 $78.8 $64.4 $63.3 $98.8 $86.2 $45.4 $85.4 $65.0 $55.0 $77.2 $116.7 Fund Balance $0.3 $17.1 $9.5 $2.9 $(10.4)$(2.7)$3.1 $(17.1)$12.9 $9.2 $1.8 $(11.6) $(40.0) $(20.0) $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 In Millions GENERAL FUND UPDATE 731 Actuals Final Budget First Quarter Mid Year Projections Third Quarter Projections CLASSIFICATION 2015-16 2016-17 2016-17 2016-17 2016-17 Non Spendable 0.94 1.10 1.10 1.10 1.10 Restricted 0.89 0.76 0.76 0.76 0.76 Assigned 20.50 27.50 27.50 32.10 32.10 UnAssigned 29.87 3.69 27.08 6.57 6.55 TOTAL FUND BALANCE 52.19 33.05 56.44 40.54 40.52 General Fund Revenue and Expenditure Trends RECOMMENDED THIRD QUARTER ADJUSTMENTS BY FUND SUMMARY The Third Quarter Financial Report shows the City is well positioned to end the year within the Amended Budget. The majority of adjustments at third quarter total $483,973 and mostly account for sheriff costs, an insurance payment, development-in-lieu, concrete repair, and a ADA ramp grant. Lastly, we encourage you to go to www.cupertino.org/opengov a great site that puts the power of the City’s financial data in your hands. This site allows you take actual historical revenues and expenditures and current year budget data and create several different graphical representations. You can even share your charts on social media or with friends and colleagues via email. GENERAL FUND UPDATE (continued) Are General Fund Revenues and Expenditures on Trend? As of March 31, 2017, General Fund expenditures are $55 million; this represents 47% of the budgeted appropriations. Expenditures at the third quarter point of the prior three years were between 70% and 76% of the final actual expenditures, placing this year below the range. This is due to large special projects that have yet to be completed, salary savings due to vacancies and the timing of costs related to contracts. General Fund revenues are at $64.3 million; this represents 61% of the budgeted revenue. Revenues at the third quarter point of the prior three years were between 62% and 66%, placing this year below the range. General Fund Classification of Fund Balance 79%76% 62% 70% 61% 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Revenue Expenditures High Low FY 16-17 Fund Department Expenditures Revenue Fund Balance General Fund Law Enforcement 44,000$ 23,000$ 21,000$ Sheriff Pass Thru and Data Ticket Costs General Fund Public Works $ 18,689 $ 18,689 -$ Insurance payment for Senior Center wall accident General Fund Public Works 29,278$ 29,278$ -$ Appropriation of Dev-in-lieu for Neighborhood Cut-Through Traffic & Parking Intrusion Monitoring TOTAL GENERAL FUND 91,967$ 70,967$ 21,000$ Special RevenuePublic Works 19,183$ -$ 19,183$ Curb, Gutter, and Sidewalk Repair Special RevenuePublic Works 224,184$ 224,184$ -$ CDBG ADA Ramp Grant Special RevenuePublic Works 148,639$ -$ 148,639$ Mill and Fill from Saratoga and San Jose TOTAL SPECIAL REVENUE 392,006$ 224,184$ 167,822$ TOTAL ALL FUNDS 483,973$ 295,151$ 188,822$ Recommended Adjustments 732 City of Cupertino FY16/17 Budget Performance Measures Department: Administrative Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Citizens can enjoy high quality of services that meet community priorities. So that… So that… So that… Finance GOAL: Financial Stability – Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. 1 “Minimum balance in General Fund (% budgeted appropriations, excluding transfers out)” was revised for clarity. Mission Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target General fund balance as a % of budgeted appropriations1 53% 39% 35% 35% 35% Credit Rating AA+ AA+ AA+ AA+ AA+ Funding allocated to high priority services (Public Works, Community Development, Law Enforcement) 60% 62% 55% 63% 63% Actual revenue vs. budget (within x% budget) 84% 66% 52% 10% 10% Actual expenditures (% below budget) 83% 70% 57% 5% 5% The City is financially responsible. The City can invest in Community priorities. 733 City of Cupertino FY16/17 Budget Performance Measures Department: Administrative Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… Enabled by … Human Resources GOAL: To create a thriving organization with meaningful careers in public service. Mission Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target # of Worker’s Compensation Cases 6 9 10 0 0 Total recordable Injury Rate YTD 2.93% 4.2 4.7 0% 0% % absenteeism (% of total annual work hours) 3% 3% 2% 2% 2% % turnover rate 2% 4% 6% 1% 1% % Employee satisfaction FY 17-18 FY 17-18 FY 17-18 100% 100% % Employee participation in wellness activities 39% 51% 62% 75% 75% Average # of applications received per recruitment 53 69.9 66.9 50 50 Recruitment timeline - # days from hiring request to offer letter N/A N/A N/A 60 days 60 days # of Worker’s using the Telework program 15 16 16 17 17 Utilization of Full-service employee portal N/A N/A N/A 100% 100% The City can ensure a safe working environment for all employees. An agency that builds a flexible and productive work arrangement. The City attracts and retains a talented workforce. The agency supports a professional and engaged workforce offering diverse and quality community services. 734 City of Cupertino FY17/18 Budget Performance Measures City Clerk Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Online information and updated records that can be easily accessed in a timely manner. Response to records requests to comply with State law of 10 days. Enabled by… Enabled by… All can fully participate in local government to achieve the community & organizational goals. So that… GOAL: Streamline information processing for Council, staff and community members for compliance with State requirements and facilitate independent and transparent access to public information. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target City Council minutes for regular meetings presented for Council approval by the following regular meeting 100% 100% 100% 90% 100% Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document 100% 100% 100% 90% 100% Public Record Act requests responded to by the Statutory deadline date 100% 100% 100% 100% 100% 735 City of Cupertino FY16/17 Budget Performance Measures Community Development Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Online building & planning information and records that can be easily accessed. Enhanced customer service to increase counter efficiency and expand online services. Enabled by… Enabled by… Cupertino is a thriving City to live, work, learn and play. So that… GOAL: Review and guide development activity to ensure compliance with relevant codes and policies and alignment with community values to promote and enhance Cupertino’s communitywide quality of life. 1 Tracking method not yet established. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Department cost recovery 58% 97% 91% 96% 96% Disclosable digital records can be researched online 17% 24% 29% 20% 100% Building permit applications issued over-the-counter (OTC) 47% 34% 50% 70% 80% Submitted building permit applications reviewed within 10 business days; 15 business days for major projects1 N/A N/A N/A 100% 100% Building inspections performed within one business day 45% 41% 48% 80% 90% Planning application review complete in 30 days 100% 100% 95% 100% 100% Project applicants sent survey at project approval/final 100% 100% 100% 100% 100% 736 City of Cupertino FY16/17 Budget Performance Measures Department: Information Technology Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Enabled by… Integrated information services enable customers’ access to the tools and information they need, when and where they need it. So that… GOAL: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement. Measure FY17 Q1 Jul-Sep FY17 Mid- Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target GIS: Open Data site visits per month 120 210 175 130 140 GIS: Number of annual requests (map, data, Web applications, Cityworks, schema, other) completed 60 121 305 335 400 GIS: Property Information site visits per month 40 103 210 180 200 GIS: Number of Cityworks assets and users deployed 18 18 30 20 26 IT Customer satisfaction % rating of 4 or 5 out of 5 100% 100% 97% 90% 90% Video: % of scheduled projects that were completed on time as scheduled 90% 100% 95% 95% 95% Video: % of outside requests able to perform * 95% 95% 95% 95% Applications: % of citywide-enterprise application project management performed on time and on budget 95% 95% 95% 95% 95% * New metric. Did not track requests turned down. Tracking started 2nd Quarter FY17. Tools and services leverage existing, emerging and innovative technologies to enhance, improve, and streamline business and communications processes. 737 City of Cupertino FY16/17 Budget Performance Measures LAW ENFORCEMENT Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. All members of the community are safe, informed, empowered and supported. Enabled by … So that … GOAL: Maintain a safe environment to live, work, learn and play. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target % monitor adequate response time for emergency calls  Priority 1  Priority 2  Priority 3 5.25 8.02 17.28 5.07 8.00 15.79 4.44 7.81 14.85 3.67 6.56 11.75 5 mins 9 mins 20mins % Education programs maintain minimum attendance  Teen Academy  Citizen Academy N/A N/A 85% 55% 85% 80% 83% 83% 80% 80% A Sheriff’s Office that is responsive and engaging. 738 City of Cupertino FY16/17 Budget Performance Measures Public Affairs Division Mission statement: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Residents have access to timely, engaging, and important information. Enabled by… So that… GOAL: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts 16,057 17,470 18,877 16,650 10% annual increase Social media engagement: average number of engagements (reactions, comments, shares) per post on City Hall Facebook account 8 11 12 10 10% annual increase Access Cupertino: Average response time to customers organization- wide (days) 1.92 2 1.33 2 Respond within 2 days Leveraging the communication skills, knowledge, and experience of employees while also utilizing existing and emerging technologies to enhance, improve, and streamline the communication process. 739 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… CAPITAL PROJECT DELIVERY GOAL: Deliver capital projects on time and within budget. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Meet published commitments to Council and community 100% 100% 100% 90% 90% Projects are on budget 100% 100% 100% 80% 80% Projects are on time 100% 100% 94% 80% 80% Residents and businesses are assured their community is being improved by efficient use of taxes and fees. Projects are utilized by the community. City funds capital improvement projects. 740 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… DEVELOPMENT SERVICES GOAL: Provide timely review and permitting of privately completed improvements within the public right of way. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Review and permit private development in a consistent manner in accordance with applicable codes, standards and policies 100% 100% 100% 100% 100% Respond to complete plan submittals or applications within two (2) weeks 98% 99% 99% 90% 90% Respond to public inquiries at the Public Works counter in City Hall within 15 minutes. 100% 99% 100% 95% 95% Customers expect quality reviews and permitting on a defined schedule. Public Works Department reviews improvements within the public right of way. Projects are constructed to an approved standard by a well-trained staff. with a customer focus 741 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… DEPENDABLE INFRASTRUCTURE GOAL: Timely maintain levels of service to meet community and environment requirements at optimal life-cycle costs. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Pavement condition index (PCI) > or equal to 82* 74 78 78 80 82 Respond to reported storm drain system deficiencies with one (1) business day None Reported 100% 100% 100% 100% Remove known graffiti on City property within two (2) business days 100% 100% 100% 100% 100% Respond within one (1) business day on any reported unsafe condition of street pavement markings & signs 100% 100% 100% 100% 100% Respond within one (1) hour on any reported safety issue regarding traffic signals 100% 100% 100% 100% 100% Respond to reported streetlight outages within two (2) business days 100% 100% 100% 100% 100% Respond & mitigate sidewalk and pathway deficiencies within one (1) business day 85% 100% 95% 100% 100% Resolve any reported unsafe playground equipment issue within one (1) business day 100% 100% 100% 100% 100% The City consistently funds infrastructure maintenance and safety improvement programs. So that… Infrastructure indicates good condition; safety programs are effective. So that… Cupertino has well maintained infrastructure and programs that meets the needs of the community. 742 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… ENVIRONMENT GOAL: Protect our natural environment for current and future generations . Measure FY17 Q1 Jul-Sep FY17 Mid- Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Compliance with municipal regional permit requirements 100% 100% 100% 100% 100% Respond to reports of actual or potential discharge within one (1) business day 97% 98% 97% 95% 95% Percent of businesses in compliance during annual proactive inspections 100% 100% 91% 75% 75% City is responsible for a comprehensive storm water pollution prevention program. Current and future residents enjoy healthy creeks and a cleaner San Francisco Bay. Potential pollutants are stopped before entering the storm drain system. 743 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… ENVIRONMENT GOAL: Protect our natural environment and conserve resources for current and future generations. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target Tons of waste entering landfill (does not include self-haul or material to landfills other than Newby Island) ~ 7033 12,017 23,170 (includes 8772 tons of C&D waste. Varies with new developm ent) =< 28,000 =< 27,000 Enforce applicable City ordinance and franchise agreement requirements 100% 100% 100% 100% 100% CalRecycle diversion rate1 By employment: By population: N/A N/A N/A N/A N/A N/A 75% 75% 75% 75% Commercial diversion rate (does not include business donations, back haul, or other source reduction, etc.) 45% 46% 50% 50% 60% Number of all business and multifamily accounts separating organics out of 496 24% (118 accounts) 24% (119 accounts) 25% (123 accounts) 26% 50% Number of outreach site visits, workshops, events and activities to inform residents and businesses 25 70 90 150 150 1 CalRecycle has a 12 month lag in reporting. Data is for calendar year 2015. Diversion of solid waste from landfill is maximized, compost is produced for community use, recyclable material is sold to help offset collection costs and methane gas emissions at landfills are reduced. Current and future residents of Cupertino enjoy a healthy, sustainable environment. City implements solid waste collection services that encourage diversion of waste from landfills. 744 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… So that… ENVIRONMENT GOAL: Protect and expand the City’s urban canopy as visible and tangible commitment to Cupertino’s environment. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoin g Target Enforce applicable City ordinance and keep current annual urban forest work plan 100% 100%1 100% 100% 100% % of street, median, and park trees maintained on schedule annually 17% 81%2 176% 100% 100% Number of trees planted compared to number of trees removed 30% 148%3 115% 100% 110% Current and future residents enjoy all of the benefits provided by a healthy urban forest. 1 Urban Forest Workplan updated 11/2016. 2 3984 trees maintained out of 2267 scheduled for maintenance in FY17 3 61 trees removed, 72 trees planted City is responsible for the maintenance and enhancement of the urban forest. Cupertino’s urban forest is resilient, healthy and safe. 745 City of Cupertino FY16/17 Budget Performance Measures Public Works Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. So that… So that… So that… So that… ENVIRONMENT GOAL: Invest in technologies that “lead by example” and encourage others to take environmental action through their own purchasing decisions. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target 1 Proven hybrid/electric options were not available for the types of vehicles purchased. 2 Proven hybrid/electric options were not available for the types of vehicles purchased. All new vehicle purchases are to be hybrid and/or electric only models 0%1 0%2 0% 90% 90% When combustion vehicles are purchased, vehicle selection is to be determined by fuel efficiency, idle efficiency and emissions 100% 100% 100% 90% 90% The City purchases and maintains vehicle fleet for delivery of services. Cupertino invests in technologies that expand new and emerging markets that support our shared environment. Vehicles purchased have the least environmental impact possible. 746 City of Cupertino FY16/17 Budget Performance Measures Department: Recreation and Community Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Enabled by… Enabled by… So that… GOAL: Create a positive, healthy and connected community. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17Q Q3 Jul-Mar FY17 Target Ongoing Target % Recreation and Community Services Department customers surveyed who rate services as good or excellent 89% 95% 95% 80% 80% % programs maintain minimum registration 75% 68% 71% 80% 80% % Department’s total cost recovery for all (direct and indirect) costs 75% 56% 53% 40% 40% # of new programs or events offered 45 77 93 50 50 % change in participants -5% 3% -4% +1% +1% City investment in quality recreation and community programs. Improved business processes to improve customer experience Cupertino has an exceptional system of parks & services that align with community values. 747 City of Cupertino FY16/17 Budget Performance Measures Sustainability Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. An agency implementing Council and community sustainability goals to effectively safeguard shared resources. Engaged community partners and volunteers supporting CAP implementation. Enabled by… Enabled by… Cupertino is a healthy, resilient, environmentally -vibrant City for current and future residents to live, work, learn and play. So that… GOAL: Implement Cupertino’s Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings across municipal operations and community partners. 1 Greenhouse gas inventory is currently in progress based on 2015 data. This measure will be updated when complete. Measure FY17 Q1 Jul-Sep FY17 Mid-Year Jul-Dec FY17 Q3 Jul-Mar FY17 Target Ongoing Target % community- wide emissions reduced from baseline of 307,288 MT CO2e/yr N/A1 N/A1 N/A1 GHG Inventory Update 15% reductio n by 2020 (355,610 MT CO2e/yr) Initiate and implement all Climate Action Plan near-term measures x% initiated x% complete or ongoing 100% 45% 100% 45% 100% 45% 100% 70% 100% 100% Increase the total number of Certified Green Businesses through the city’s GreenBiz program to improve efficiency and conserve resources 59 59 60 62 100 748 Date GL Amount Description 5/16/2017 100-20-200 700-705 44,000$ Sheriff Pass Thru and Data Ticket Costs 5/16/2017 100-87-831 700-702 18,689$ Insurance payment for Senior Center wall accident 5/16/2017 100-88-844 750-011 29,278$ Dev-in-lieu Neigh. cut-thru Traffic & Parking Intrusion Monitoring Total General Fund 91,967$ 5/16/2017 270-85-820 900-922 19,183$ Curb Gutter Sidewalk Repair 5/16/2017 270-85-821 900-921 224,184$ CDBG ADA Ramp Grant 5/16/2017 270-85-821 900-921 148,639$ Mill & Fill from Saratoga and San Jose Total Special Revenue 392,006$ Grand Total 483,973$ 749 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2632 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:5/10/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Establishment of Friendship City Relationships Sponsors: Indexes: Code sections: Attachments:Staff Report A - Beijing Friendship City Application B – Guangzhou Friendship City Application C – Guiyang Friendship City Application D – Huizhou Friendship City Application E – Xuzhou Friendship City Application Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Establishment of Friendship City Relationships Review and consider five (5) applications establishing Friendship City relationships with Beijing, People’s Republic of China; Guangzhou, People’s Republic of China; Guiyang, People’s Republic of China; Huizhou, People’s Republic of China; and Xuzhou, People’s Republic of China. CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™750 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Establishment of Friendship City Relationships Recommended Action Review and consider five (5) applications establishing Friendship City relationships with Beijing, People’s Republic of China; Guangzhou, People’s Republic of China; Guiyang, People’s Republic of China; Huizhou, People’s Republic of China; and Xuzhou, People’s Republic of China. Background At its September 6, 2016 meeting, Council approved amendments to the City’s Policies and Guidelines on Sister Cities to include a designation for Friendship City relationships. Following this action, staff created an application and made it available to interested parties. To date, the City Council has established seventeen (17) Friendship City relationships. Description The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Friendship City partnerships can be an effective method in fostering increased global cooperation and communication between the City of Cupertino and international municipalities. As such, the City welcomes friendly relationships with cities from around the world. Staff has received five (5) new applications from Friendship City groups representing:  Beijing, People’s Republic of China  Guangzhou, People’s Republic of China  Guiyang, People’s Republic of China  Huizhou, People’s Republic of China  Xuzhou, People’s Republic of China If the applications are approved by Council, the Mayor would sign the agreements establishing Friendship City Designations between the City and the international municipalities. The agreements would expire in two years unless renewed. 751 Sustainability Impact To the extent that encouraging Friendship City relationships leads to additional international travel and delegation visits, there will be an increase in transportation- related greenhouse gas emissions. Fiscal Impact The policy establishes Friendship Cities differently from Sister Cities. Friendship Cities are not eligible for City funding. Any direct financial obligation from the City for Friendship Cities would be limited to providing promotional items not to exceed $15 per delegate. Indirectly, each international delegation visit uses approximately 20 hours of staff effort, which equates to about $1,500 of staff time per visit. _____________________________________ Prepared by: Brian Babcock, Public Information Officer Reviewed by: David Brandt, City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Beijing Friendship City Application B – Guangzhou Friendship City Application C – Guiyang Friendship City Application D – Huizhou Friendship City Application E – Xuzhou Friendship City Application 752 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations” and will be subject to all guidelines therein. 753 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: ________________________________________________________________________ 2. Today’s date: __________________________ 3. Name of person requesting relationship:______________________________________________ Title: _________________________________________________________________________________ Affiliation: ____________________________________________________________________________ Address: ______________________________________________________________________________ Email: ________________________________________________________________________________ Phone: ________________________________________________________________________________ 4. City of Cupertino Sponsor: __________________________________________________________ 5. Friendship City Elected Official Sponsor: ____________________________________________________ 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 754 RATIONALE: 7. Establishing a relationship with Beijing City will help Cupertino City elevate its position internationally. Beijing is the capital of People’s Republic of China. It has abundant of cultural resources Beijing City has growing pain of traffic congestion. It has a lot of experiences dealing with traffic problems. Cupertino can learn more from Beijing about traffic congestion issues. The Zhong Guan Chun high tech center is located inside Beijing City. Beijing is well versed with high technology. Both cities can benefit from the connection and exchange of ideas in high tech area. 8. RESOURCES: The Cuperitno-Beijing Friendship City Association will actively pursue fund raising activities for hosting the major events. The Association will ask community members to participate. Many residents have already shown great interests in this endeavor. No funding will be asked from City of Cupertino. 755 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Tianhe District, Guangzhou City, Guangdong Province, People’s Republic of China Cupertino-Guangzhou Friendship City Inc. 2. Today’s date: May 10, 2017 3. Name of person requesting relationship: Ann Woo Title: President Affiliation: Chinese Performing Arts of America Address: 22997 Standing Oak Court, Cupertino, CA 95014 (since 1982) Email: annwoo@comcast.net Phone: Home phone: 408-973-8280 Business phone: 408-973-8276 Cell phone: 408-202-3520 4. City of Cupertino Sponsor: Council member Barry Chang 5. Friendship City Elected Official Sponsor: Vice Chief HUANG, Kaixuan 6. RATIONALE: Guangzhou City is one of the four direct jurisdiction cities in China. And Guangdong Province has the most GDP in China. Establishing a relationship with Guangzhou City will help both cities. It has many l resources Guangzhou City has traffic issue. It is the center of southern region in China. Both cities can benefit from each other. 7. RESOURCES: The Cuperitno-Guangzhou Friendship City Inc. will actively pursue fund raising activities for hosting the major events with City of Cupertino like G-50 Global Smart City Summit , etc. . The Incorporation will fundraise through community events. We will not ask for funding from City of Cupertino. 8. PROFILE: 756 Tianhe District (Simplified: 天河区; Traditional: 天河區; Cantonese: Tīnhó keui; Mandarin: Tiānhé qū) is one of the eleven districts ofGuangzhou in the province of Guangdong. In Chinese, the name Tianhe literally means "a river in the sky/heavens", which is also a Chinese name for the Milky Way. It is bordered by Yuexiu District on the west, Baiyun District on the north and Huangpu District on the east. Haizhu District is on its south, though they are separated by the Pearl River. Tianhe became a district in the 1980s as the city expanded its size. Back then, it was east of Dongshan District (which was merged into Yuexiu in 2005) and it was more suburban like if not rural like. Even though a majority of colleges and universities in the city were located in the district, the rest of the district was mostly composed of rice fields.[citation needed] Symbolic landmarks of Guangzhou located in Tianhe District are: Citic Plaza (simplified chinese: 中信大厦; traditional chinese: 中信大廈),Guangzhou International Finance Center (simplified chinese: 广州国际金融中心，西塔; traditional chinese: 廣州國際金融中 心，西塔),Guangzhou Opera House (simplified chinese: 广州大剧院; traditional chinese: 廣州大劇院); and Guangdong Museum (simplified chinese: 广东博物馆; traditional chinese: 廣東博物館), etc. A lot of good colleges and universities are also located in Tianhe District, such as: South China University of Technology (simplified chinese: 华 南理工大学; traditional chinese: 華南理工大學), Jinan University (simplified chinese: 暨南 大学; traditional chinese: 暨南大學), South China Normal University (simplified chinese: 华南师范大学; traditional chinese: 華南師範大學), and South China Agricultural University (simplified chinese: 华南农业大学; traditional chinese: 華南農業大學), etc. The 6th and 9th of The National Games of the People's Republic of China, and the 2010 Asian Games were also held in Tianhe District, Guangzhou. 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages 757 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Guiyang City, Guizhou Province, People’s Republic of China Cupertino-Guiyang Friendship City Association. 2. Today’s date: May 10, 2017 3. Name of person requesting relationship: Ramble Lan Title: President Affiliation: North America Blockchain Association Address: 1601 McCarthy Blvd., Milpitas, CA 95035 Phone: 1331-120-6986 Email: bo.lnablockchain@gmail.com 4. City of Cupertino Sponsor: Former Mayor / Council member Barry Chang 5. Friendship City Elected Official Sponsor: Mayor Liu Wenxin 6. RATIONALE: Guiyang City has many famous scenery places nearby, such as: Yellow Fruit Tree Waterfall. The tourism business is very good for Guiyang City. Since it was designated as Big Data Center for China, it started to develop high tech business rapidly. They would like to engage with Cupertino. There are many educational and cultural exchanges that both cities can engage. 7. RESOURCES: The Association will raise fund for the future activities such as: Photos show of the Yellow Fruit Tree Waterfall and many other beautiful scenery places, G-50 Global Smart City Summit event and Tell the story of your city events. They will raise fund through their network with the resident in the area and will not seek funding from City of Cupertino. 8. PROFILE: Guiyang is the capital of Guizhou province of Southwest China. It is located in the center of the province, situated on the east of theYunnan–Guizhou Plateau, and on the north bank of the Nanming River, a branch of the Wu River. The city has an elevation of about 1,100 meters (3,600 ft). It has an area of 8,034 square kilometers (3,102 sq mi).[1] During the 2010 census, its population was 4,324,561, out of whom 3,037,159 lived in the 7 urban districts 9. ADDITIONAL INFORMATION: Chinese government designates Guiyang city is the center for big data in China. 758 759 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION 1. Name and Country of the proposed Friendship City: Huizhou City, Guangdong Province, People’s Republic of China 2. Friendship City Committee: Cupertino-Huizhou Friendship City Association 2. Today’s date: May 10, 2017 3. Name of person requesting relationship: Irene Peiyue Yin Title: President Affiliation: Cupertino – Huizhou Friendship City Association Address: 10290 Westboro Ct., San Jose, CA 95127 Phone: 1510-846-2646 Email: yinpeiyue@gmail.com 4.City of Cupertino Sponsor: Former Mayor / Council member Barry Chan 5. Huizhou City Mayor: GAOYAN CHEN 陈高燕 6. RATIONALE: Huizhou is adjacent to Shenzhen City. It is growing rapidly. There are many high tech companies move into the city due to the high expenses in Shenzhen for housing and commercial land price. Huizhou eventually will connect with Shenzhen and Hong Kong. The city is paying much of the attention to keep the environment in a very nice and attractive point. In the mean time, the government is focusing on high tech development. They would like to learn more from Cupertino. Cupertino can benefit from the tourist business and other businesses. 7. RESOURCES: The Association will raise fund for the future activities with City of Cupertino like: G-50 Global Smart City Summit event and Tell the story to the world about your city events. We will raise fund through our network with the resident in the area and will not ask for funding from City of Cupertino. 8. PROFILE: Huìzhōu (Chinese: 惠州) is a city in southeast Guangdong Province, China. Huizhou borders the provincial capital of Guangzhou to the west, Shaoguan to the north, Heyuan to the northeast, Shanwei to the east, Shenzhen and Dongguan to the southwest, and Daya 760 Bay of theSouth China Sea to the south. The city has about 4.6 million inhabitants and is administered as a prefecture-level city. Development Zones[edit]  Daya Bay Economic and Technological Development Zone (DBETDZ) Huizhou Dayawan Economic and Technological Development Zone was approved by the State Council in 1993. It had an initial area of 9.98 km2 (3.85 sq mi), and in 2006, the State Council expanded the zone to 23.6 km2 (9.1 sq mi) in 3 phases. Industries encouraged in the zone include Automobile Production/Assembly, Chemical Production and Processing, Electronics Assembly & Manufacturing and others.[2]  Huizhou Export Processing Zone Huizhou Export Processing Zone was approved by Guangdong Provincial Government as a subzone of DBETDZ in June, 2005. The planned area was 3 km2 (1.2 sq mi). The zone was considered suitable for companies focusing on electronics, auto parts, textiles and chemicals.[3]  Huizhou Zhongkai High-tech Industrial Development Zone Huizhou Zhongkai High-tech Industrial Development Zone is connected with Shenzhen, Guangzhou and Dongguan by Huizhou-Shenzhen Highway, Guangzhou-Huizhou Highway and Dongguan-Huizhou Highway. Beijing-Kowloon Railway and Huizhou- Aotou Railway also run through the zone, linking it with Beijing, Hong Kong, and other cities along the railway. Shenzhen Bao'an International Airport is within one-and-a-half hour's drive from the zone. Huizhou Zhongkai HIDZ has established electronics, information technology and optical-, mechanical- and electronic-integration as its major industries. It also encourages investment in new materials, telecommunications, and other high-tech industries. The zone is one of the National Electronic Information Industry Bases and National Video and Audio Products Parks in China. The zone has attracted many large multinational companies. Major investors include Sony, SPG, Futaba, Coca-Cola, LG and Siemens. 9. ADDITIONAL INFORMATION: None. 761 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Xuzhou City, Jiangsu Province, People’s Republic of China Cupertino-Xuzhou Friendship City Association. 2. Today’s date: May 10, 2017 3. Name of person requesting relationship: Betty Yuan Title: CEO Affiliation: Northern California Chinese Culture-Athletics Federation Address: 2090 Warm Springs Court. Suite 256, Fremont, CA 94539 Phone: 1(415)309-1769 Email: bettyuan2000@gmail.com 4. City of Cupertino Sponsor: Council member Barry Chang 5. Friendship City Elected Official Sponsor: Vice Mayor Xu, Donghai 6. RATIONALE: In old Chinese history, Xuzhou City is one of the most important cities that every dynasty wants to have control over. It has many high speed rail lines run through the city. Cupertino city can learn from Xuzhou about traffic issue. Xuzhou City just started its high tech industry park. They are eager to learn from Cupertino’s experience. There are many cultural exchanges that will benefit both sides. 7. RESOURCES: The Association has many connections with Cupertino residents. We will raise fund for G-50 Global Smart City Summit event and Cultural Silicon Valley’s “Tell the story of your city” event. The Association will bring Chinese traditional performing art to Cupertino area in the future. We will fundraise through our connections and efforts andwill not seek any fund from City of Cupertino. 8. PROFILE: Xuzhou, known as Pengcheng in ancient times, is a major city in and the fourth largest prefecture-level city of Jiangsu Province, China. Its population was 8,577,225 at the 2010 census whom 2,623,066 lived in the built-up (or metro) area made of Quanshan, Gulou, Yunlongand Tongshan districts.[1] It is known for its role as a transportation hub in northwestern Jiangsu, as it has expressways and railway links connecting directly to the provinces of Henan and Shandong, the neighboring port city of Lianyungang, as well as the economic hub of Shanghai City. 762 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages Xuzhou city just sponsored a grand opening of Chinese painter, Mr. Duan Zhao Nan art center in Xuzhou. Chinese Painter, Mr. Duan has an artist studio on S. De Anza Blvd. He lives in the area. Betty Yuan CEO, Northern California Chinese Culture-Athletic Federation 5-10-17 763 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2550 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/14/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Award a Contract to Hello Housing to administer the City’s Below Market Rate (BMR) Housing Program funded through the City’s BMR Affordable Housing Fund (AHF) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - RFQ BMR Housing Program Administration C - Hello Housing Proposal D - Housing Commission Resolution 17-01 Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Award a Contract to Hello Housing to administer the City’s Below Market Rate (BMR) Housing Program funded through the City’s BMR Affordable Housing Fund (AHF) 1. Adopt Resolution No. 17-048; recommending approval of the FY 2017-18 consultant for Below Market Rate (BMR) Program Administration to City Council for final adoption CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™764 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Selection of consultant for the City’s Below Market Rate (BMR) Housing Program funded through the City’s BMR Affordable Housing Fund (AHF). Recommended Action That the City Council: 1. Adopt Resolution No. 17-XX; recommending approval of the FY 2017-18 consultant for Below Market Rate (BMR) Program Administration to City Council for final adoption. Discussion BMR Housing Mitigation Program The City of Cupertino generates affordable housing units through its BMR Housing Mitigation Program. BMR for-sale units are made available to median- and moderate- income households. BMR rental units are typically made available to low- and very low-income households. The City’s Housing Mitigation Program was adopted in 1992. The ordinance requires developers to provide a specified number of affordable owner occupied units. Rental units were required prior to the Palmer decision, and some new affordable rentals have been required through development agreements. The units are managed in accordance with the BMR Administration Manual. These units are subject to deed restrictions which ensure that the units remain affordable for the longest possible period of time, either for 99 years or based on funding requirements or specific development agreements. Since the adoption of this ordinance, the City has secured 259 total BMR units, of which 121 units are for-sale units and 142 are rental units. BMR Program Administration The City has overall responsibility for the BMR Program, however the administration has been contracted out to another agency with specific expertise in the area. The consultant contract is funded through the BMR Affordable Housing Fund (AHF). Typical consultant duties include program outreach, waitlist management, resale/refinance coordination, and annual program monitoring. 765 2 The City has contracted with West Valley Community Services for BMR Program Administration services for 23 years. In January 2017, the City issued a Request for Qualifications (RFQ) inviting qualified consultants to provide proposals to administer the City’s BMR Program for the upcoming fiscal year (FY) 2017-18 to address the needs of an evolving BMR Housing Program. In order to ensure that the City’s program remains innovative and follows best practices, staff determined it was appropriate to pursue an RFQ. In February 2017, the City received proposals from Hello Housing, HouseKeys, Palo Alto Housing, and West Valley Community Services and conducted interviews of all four consultants. The interview panel consisted of two City staff, the Chair and Vice Chair of the Housing Commission, and a Senior Housing Planner from a neighboring City. Agencies were reviewed on their experience working with a variety of City BMR programs, best practices, and capacity to accommodate the needs of the Cupertino community. The interview panel selected Hello Housing as the lead consultant after reviewing proposals and conducting interviews. Established in 2009, Hello Housing is a 501(c)3 public benefit corporation led by a Board of Directors. In January 2013, Hello Housing was one of the ten organizations nationwide awarded multi-year funding from the White House Social Innovation Fund and the Ford Foundation to build its capacity to professionally manage BMR programs using national best practices. In April 2016, Hello Housing became an affiliate of MidPen Housing, a well-respected nonprofit housing organization serving the 10-county Bay Area. Their current portfolio includes 863 for-sale homes and will grow to manage 646 rental units by the end of 2017. They have expressed a commitment to providing adequate staffing to meet the needs of the contract agency. Highlights of the Hello Housing proposal include an extensive documentation and record keeping system, significant relevant experience, established best practices, and a proven track record in monitoring and foreclosure prevention. Some examples of current contracts include the cities of Concord, Livermore, Menlo Park, Novato, and the Town of Los Gatos. Housing Commission Review At its April 13, 2017 meeting, the Housing Commission adopted Resolution No. 17-01 on 3-0 vote (Chu and Kapil absent) recommending that the City Council adopt the selection of the Consultant for the BMR Program Administration. Fiscal Impact BMR AHF funding allocations will be reviewed by Housing Commission and recommended to the City Council in the June 2017 timeframe. 766 3 Prepared by: Kerri Heusler, Senior Housing Planner Reviewed by: Benjamin Fu, Assistant Community Development Director Approved for Submission by: David Brandt, City Manager Attachments: A - Draft Resolution B- RFQ BMR Program Administration C- Hello Housing Proposal D- Housing Commission Resolution No. 17-01 767 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RECOMMENDING APPROVAL OF THE 2017-18 CONSULTANT FOR THE BMR HOUSING PROGRAM ADMINISTRATION Adopt Resolution No. 17-; recommending approval of the fiscal year (FY) 2017-18 consultant for Below Market Rate (BMR) Program Administration to City Council for final adoption. WHEREAS, the City of Cupertino generates affordable housing units through its BMR Housing Mitigation Program, wherein BMR for-sale units are typically made available to median and moderate-income households, and BMR rental units are typically made available to low and very low-income households; and WHEREAS, the City’s Housing Mitigation Program was adopted in 1992 by ordinance that requires developers to provide a specified number of affordable owner occupied units and the units are managed in accordance with the BMR Administration Manual; and WHEREAS, the City has overall responsibility for the BMR Program although the administration has been contracted out to another agency with specific expertise in the area; and WHEREAS, in January 2017, the City issued a Request for Qualifications (RFQ) inviting qualified consultants to provide proposals to administer the City’s BMR Program; and WHEREAS, in February 2017, the City received four proposals and conducted interviews; and WHEREAS, the interview panel selected Hello Housing as the lead consultant after reviewing proposals and conducting interviews; and WHEREAS, the Housing Commission held a public hearing on April 13, 2017 and recommended that the City Council approve the selection of Hello Housing as the FY 2017-18 BMR Program Administrator; BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby selects Hello Housing as the FY 2017-18 BMR Program Administrator; and PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of May, 2017 by the following vote: 768 2 Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _______________________ __________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor City of Cupertino 769 1 City of Cupertino Request for Qualifications Below Market Rate Housing Program Administration The City of Cupertino (the “City”) is seeking a qualified consultant (the “Consultant”) to provide services to administer the City’s Below Market Rate (BMR) Housing Program. The City of Cupertino has a population of approximately 60,572 residents and approximately 20,752 housing units. Quality schools and closeness to high-tech jobs make Cupertino a desirable Silicon Valley address for a highly educated and culturally diverse population. The City generates affordable housing units through its Housing Mitigation Program (Below Market Rate program or BMR). BMR for-sale units are made available to median and moderate-income households. BMR rental units are made available to low and very low-income households. The City’s Housing Mitigation Program was adopted in 1992. The ordinance requires developers to provide a specified number of affordable owner occupied units. Rental units were required prior to the Palmer decision, and some new affordable rentals have been required through development agreements. The units are managed in accordance with City Council adopted guidelines, which are available for view on the City’s website (http://www.cupertino.org/index.aspx?page=301). These units are subject to deed restrictions which ensure that the units remain affordable for the longest possible period of time, either in perpetuity or for 99 years. Since the adoption of this ordinance, the City has secured 259 total BMR units, of which 121 units are for-sale units and 138 are rental units. In accordance with all applicable Federal, State, and local laws, the contract for BMR Program services will include, but is not limited to the following: Administration Services • Consultant will be the primary contact for the BMR Program and will handle all inquiries and correspondence from applicants, current BMR homeowners and renters, and property managers in buildings with units restricted under the BMR Program. • Consultant will advertise the BMR Program, as needed, to solicit buyers and renters for available units and to establish a waiting list. • Consultant will maintain a waiting list of qualified buyers and renters in accordance with the BMR Program guidelines. Maintenance of the waiting list includes reviewing required annual applications to remain on the waiting list, conducting an annual lottery for new applicants, and sorting all applicants into the appropriate priority point level within the waiting list. • Consultant will utilize the City’s procedures, ordinance(s), resolution(s), and guidelines in the implementation of the BMR Program. 770 2 • Consultant will develop a report form in conjunction with the City representative and submit quarterly activity reports. • Consultant will provide suggestions to the City for potential modifications to the City’s application process, procedures, and/or guidelines to ensure effective operation of the BMR Program. • Consultant will maintain marketing content for the BMR Program, including flyers, website, and other material as needed. • When requested by the City, Consultant will advise and assist City staff on matters related to the BMR Program. • As necessary, Consultant will provide access to translation in other languages. BMR Purchase Program Services • Consultant will manage the entire sale process from advertising of available units to completing the closing on the BMR unit. • Consultant will prepare the sales schedule for City approval. Consultant will then send notice of unit availability, sales price, location, and unit size to applicants at the top of the appropriate section of the waiting list with a deadline for submittal of their applications. • Upon receipt of one or more applications for the purchase of a unit, Consultant will ensure that each application is complete, verify eligibility, and confirm priority points. Consultant will rank the applications according to criteria in the City’s written guidelines and coordinate approval with the City. • Consultant will be available to answer any questions regarding the BMR Program and will help facilitate escrow closing. Consultant will also facilitate recordation of the resale restrictions, requests for notice of default, subordination agreements, and any other applicable documents with the title company prior to close of escrow. • Consultant will maintain a list of local lenders interested in providing loans to qualified BMR Program applicants. • Consultant will inspect prospective sales units, hold at least one “open house” for prospective buyers, assist buyers with locating financing, coordinate appraisal, property and termite inspections, prepare disclosure statements, open and close escrows all in accordance with accepted real estate practices, and coordinate close of escrow to meet program deadlines (90 days in most cases). • Consultant will provide or arrange Home Buyer education consistent with U.S. Department of Housing and Urban Development (HUD) standards. • Consultant will monitor BMR units annually to confirm program compliance and investigate and manage potential defaults. • Consultant will review and process requests for refinancing of BMR homes and junior loans in accordance with BMR Program guidelines. 771 3 BMR Rental Program Services • Consultant will manage entire rental process including advertising of available units. • Consultant will provide the property owner / manager of projects containing City BMR units with the most current income and rent guidelines upon issuance by HUD each year. • Consultant will monitor BMR unit rents annually to ensure compliance with the required affordable rent levels under the BMR Program. • Consultant will advise the property owner / manager regarding their compliance with the BMR Program. • Consultant will verify the eligibility of prospective tenants qualified by the property manager. • Consultant will manage the entire recertification process annually to ensure renters maintain BMR Program eligibility. In the event that a renter no longer qualifies for the City’s BMR Program, consultant will work with the property manager to terminate the tenant’s BMR Program participation after the applicable appeal period has lapsed and to qualify a new applicant for that BMR unit. Conflict of Interest Consultant warrants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of the described in this Request for Qualifications, and that it will not employ any person having such an interest. Consultant agrees to advise the City immediately if any conflict arises. Consultant further understands that it and its staff members must abide by all applicable statues, rules, and regulations regarding conflicts of interest, including the Political Reform Act, Government Code Section 1090, and implementing regulations, including Title 2, Division 6, Section 18700 of the California Code of Regulations, and following. Submittal Content Copies of your qualifications should be submitted in triplicate to the Community Development Department, and must be received by Monday, February 27, 2017 by 5:00 PM. The following should be included in the proposal: A. Entity 1. Identification of the Consultant, with names, positions, addresses, telephone numbers and e-mail addresses of key team members. 2. Intended role of each partner / staff member in the organization who will be involved in the implementation of the BMR Program and the key person in the organizational structure responsible for BMR Program management and operations. Please note area of responsibility and anticipated tasks. B. Experience 772 4 1. General description of previous housing programs administered 2. Role of agency / firm and staff in such programs 3. Discussion of program successes, including unique challenges of programs 4. Example of past programs costs 5. At least 2 client or agency references for Consultant’s experience with relevant programs C. Other Materials 1. Application – Complete Proposal Application (Attached as Exhibit A) 2. Narrative – Provide a narrative of 200 words or less explaining the Consultant’s qualifications and experience, and how it meets the RFQ goals and objectives. 3. Implementation Plan – Provide a brief summary of the Consultant’s Implementation Plan for provision of the services required. 4. Schedule of Fees – Summarize the compensation requested and provide a schedule of fees (fixed and transactional). Evaluation Criteria 1. Emphasis will be placed on the directly relevant qualifications and capacity of the Consultant to administer the City’s BMR Program. Submittals will be evaluated based upon the following criteria: Ability to meet RFQ goals and objectives. What objectives are met? Does the agency / firm have the necessary experience? How much experience and with what agencies or organizations? What is the experience level of the staff? Is there a conflict of interest? 2. Program Service Delivery: What services are being offered? Where are the services being offered? Who is providing the services? Which staff members? Is the staff multi-lingual? If so, which languages? What is the Consultant’s homebuyer training experience? What is the Consultant’s loan servicing experience? 773 5 What is the Consultant’s monitoring experience? What is the number of units managed? What is the Consultant’s refinance experience? What is the Consultant’s default resolution experience? What is the Consultant’s foreclosure experience? Is the Consultant a lender? 3. Costs: Is the proposal detailed and are costs / fees clearly outlined? Is there a fixed fee for basic services? Is there a fee per transaction / sale? What are the typical annual program costs anticipated? What percentages of costs / fees are tied to salary? What percentages of costs / fees are tied to services? Are the costs / fees financially sustainable? Submittal Deadline for Proposals Proposals must be delivered to the City of Cupertino no later than 5:00 PM on Monday, February 27, 2017. Contact Information Proposal responses or questions regarding this RFQ may be addressed to: Kerri Heusler, Senior Housing Planner City of Cupertino Community Development Department 10300 Torre Avenue Cupertino, CA 95014 Phone: 408-777-3251 Email: kerrih@cupertino.org 774 6 EXHIBIT A Proposal Application Organization Name Address Organization Contact / Title Telephone # Email Title of Program Total Annual Cost of Program BMR Units Currently Administered Jurisdiction(s) served? Signature of Authorized Official: _______________________________________ Date: __________________ 775 776 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802 803 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 RESOLUTION NO. 17-01 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING APPROVAL OF THE 2017-18 CONSULTANT FOR THE BMR HOUSING PROGRAM ADMINISTRATION Adopt Resolution No. 17-01; recommending approval of the 2017-18 consultant for Below Market Rate (BMR) Program Administration to City Council for final adoption. WHEREAS, the City of Cupertino generates affordable housing units through its BMR Housing Mitigation Program, wherein BMR for-sale units are made available to median and moderate-income households, and BMR rental units are made available to low and very low- income households; and WHEREAS, the City’s Housing Mitigation Program was adopted in 1992 by ordinance that requires developers to provide a specified number of affordable owner occupied units and the units are managed in accordance with City Council adopted guidelines; and WHEREAS, the City has overall responsibility for the BMR Program although the administration may be contracted out to another agency; and WHEREAS, in January 2017, the City issued a Request for Qualifications (RFQ) inviting qualified consultants to provide proposals to administer the City’s BMR Program; and WHEREAS, in February 2017, the City received four proposals and conducted interviews; and WHEREAS, the interview panel selected Hello Housing as the lead consultant after reviewing proposals and conducting interviews. BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino hereby recommends approval of the selection of Hello Housing as the fiscal year 2017-18 BMR Program Administrator to City Council for final adoption; and PASSED AND ADOPTED at a regular meeting of the Housing Commission of the City of Cupertino this 13th day of April, 2017 by the following vote: 838 Resolution No. 17-01 Page 2 Vote Members of the Housing Commission AYES: Chair Daruwalla, Commissioners Zhao, Bose NOES: none ABSENT: Vice Chair Chu, Commissioner Kapil ABSTAIN: none ATTEST: APPROVED: Kerri Heusler Nina Daruwalla Senior Planner, Housing Chair, Housing Commission 839 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2588 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:5/2/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Community-centered process on a plan for Vallco Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Community-centered process on a plan for Vallco That the City Council: 1. Provide direction regarding the initial phase of a community-centered process on a plan for Vallco; and 2. Approve an increase to the Fiscal Year 2016-17 Planning and Community Development- Mid to Long Range program budget of $25,000 for the first phase CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™840 DEPARTMENT OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Community-centered process on a plan for Vallco. Recommended Action That the City Council: 1. Provide direction regarding the initial phase of a community-centered process on a plan for Vallco; and 2. Approve an increase to the Fiscal Year 2016-17 Planning and Community Development- Mid to Long Range program budget of $25,000 for the first phase. Background At the March 7, 2017 study session on the FY2017-2018 work program, the City Council discussed moving forward with a community-centered process on developing a Specific Plan for the Vallco Shopping District Special Area. The discussion included ideas to ensure a consistent and informed process for the plan, which would be consistent with the City’s Housing Element and would be viable for the land owner to develop. Council directed staff to return with options for a process and budget. At the April 2, 2017 Council meeting, at which the FY 2017-18 work program was approved, the Council heard public input and had a discussion on a variety of issues related to the Vallco Specific Plan including cost, timing of the project, and using a phased approach. Council directed staff to propose a phased approach in the development of the Specific Plan. Discussion Staff reviewed the type of community engagement conducted in a number of cities including Mountain View, Palo Alto, Los Altos, Los Gatos, Campbell, San Jose, San Mateo, Morgan Hill, Gilroy and Walnut Creek. Each city used a variety of outreach strategies to invite community participation and input. While the combination of 841 strategies for specific projects were varied, they all included some combination of the following:  Educational or speaker-series on topics of community interest  Community and online visioning charrettes/workshops  Open Houses  Advisory Committees As an initial phase of the project, the recommendation is to begin with a speaker series. Speaker series are informational events that feature experts in the field who can provide information on key topics of interest to the community. They are extremely helpful in providing information on facts related to current and future trends, best practices that are being developed and examples/case studies in communities. Topics of interest for the Vallco project would include the following:  Trends in shopping and entertainment, and the revitalization of malls  Housing/affordable housing and how they can be successfully integrated into shopping/entertainment districts.  Traffic, mobility and infrastructure – best practices employed in communities to reduce traffic and increase mobility for citizens. Schedule The speaker series would begin in the summer and end in early fall 2017. An outline of options for subsequent phases for Council discussion and authorization can be presented after completion of the first phase. CEQA The proposed speaker series is not a “project” within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. Sustainability Impact None. Fiscal Impact It is estimated that the cost of a three-part speaker series and advertising will cost approximately $25,000. Accordingly, the recommendation is to increase the FY 2016-17 budget by that amount. 842 _________________ Prepared by: Piu Ghosh, Principal Planner Aarti Shrivastava, Assistant City Manager Reviewed by: David Brandt, City Manager 843 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2501 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/30/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Three Small Cell License Agreements with 1) Crown Castle Ng West, LLC; 2) Mobilitie, LLC: and 3) GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. Sponsors: Indexes: Code sections: Attachments:Staff Report A - Small Cell License Agreement - Mobilitie, LLC B - Small Cell License Agreement - Crown Castle Ng West, LLC C - Small Cell License Agreement - GTE Mobilnet of California Limited Partnership, d/b/a Verizon D - Exhibit of preferred Small Cell Pole Replacement Design Concepts Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Three Small Cell License Agreements with 1) Crown Castle Ng West, LLC; 2) Mobilitie, LLC: and 3) GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. Authorize the City Manager to enter into Small Cell License Agreements with Crown Castle Ng West, LLC; Mobilitie, LLC; and GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™844 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Three Small Cell License Agreements with 1) Crown Castle Ng West, LLC; 2) Mobilitie, LLC; and 3) GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless. Recommended Action Authorize the City Manager to enter into Small Cell License Agreements with Crown Castle Ng West, LLC; Mobilitie, LLC; and GTE Mobilnet of California Limited Partnership, d/b/a/ Verizon Wireless. Discussion Small Cell Facilities are wireless telecommunication devices that consist of radio receivers, antennas and other associated power and electronics equipment, with a defined maximum size (volume) for all equipment. Small Cell Facilities produce considerably less emissions than typical macro-cell towers, and help to mitigate and manage the use of the wireless frequency spectrum, ensuring residents, public safety officers and visitors have adequate cellular coverage. Small cell facilities are the industry solution to address the growing demand for wireless services. The City and a few carriers have been in discussions for more than a year to enter into a Small Cell License Agreement to allow the placement of Small Cells on City street light poles. The carriers are of two types. The first type are carriers that act as leasing agents for other communications providers and do not actually utilize the Small Cells themselves, but typically rent them out to AT&T Small Cells, T-Mobile Small Cells, Verizon Small Cells or others. Both Crown Castle and Mobilitie are essentially leasing agents. The second carrier type are communications providers, of which Verizon Small Cells is one, as well as T-Mobile Small Cells and AT&T Small Cells. These carrier types will place their own equipment on the city’s light poles. Public Works has coordinated with other cities in and around the county to reach an agreed set of terms that all cities within the county, with the exception of San Jose, will consider using as basic terms for Small Cell Licenses. The agreements with Crown Castle, Mobilitie and Verizon follow the basic terms established by this staff working group. The terms that were reached with the companies are as follows: 845 Term: Three (3) - five (5) year terms for a total of fifteen (15) years. Fifteen years also happens to be the current term of the Verizon Cell Tower Lease for the Civic Center. Rent: The rent has been set at $1500 per pole per year. This amount is increased at a 3% annual rate each year. This rate is more than that of the City of Palo Alto (Palo Alto rent is approximately $250 per pole per year) and less than the rate paid to the City of San Jose, which has much greater population density than Cupertino (the City of San Jose’s rate is based upon wattage and is approximately $2500 per year). Rent Adjustment: The rent is adjusted annually. In addition, every five years the rent is adjusted to reflect the highest rent paid by the carrier within the County of Santa Clara with the exception of San Jose. Cupertino’s rate will equal or exceed the rate of any other City in the County with the exception of San Jose at the start of this License. Every five years the City will have an opportunity to catch up to the market rate if the carrier pays any other City, including the County of Santa Clara a higher rate. Again, the exception is that San Jose is carved out due to its unique circumstances. Thus, Cupertino’s rate will again become equal to the highest to any paid within the County. Aesthetic Control: The City Engineer retains full control over the design of Small Cells. Thus, the City Engineer will be able to ensure that the aesthetic impact of these Small Cells is minimized. The current intent is to not allow battery back-ups for the Small Cells due to the large size of the batteries. Although this will minimize Small Cell availability during an emergency it will reduce unsightly batteries on poles or new street furniture in the public rights of way. All agreements being presented have provided a design for these facilities that staff believes is aesthetically suitable. Placement Control: The City Engineer will retain full discretion on which poles may be used for Small Cells. The hope is that over time, co-location could occur, reducing the need for additional antennas on multiple poles. The carriers may replace City poles at their own expense following City Engineer approval of the design of the replacement pole. The City Engineer has approved at least one design for each carrier and those designs are attached to the agreement. There are currently a number of actions, resolutions and bills being considered and discussed by Federal and State Officials (FCC Docket WT 16-421, SB-649, ACR-62) that aim to minimize or remove a City’s ability to regulate aesthetics, placement and permitting for small cell facilities which, in effect, grant wireless service providers permission to place facilities on any locally owned utility poles, streetlights, and other 846 suitable facilities located within the public right-of-way and in other local public places such as parks, hospitals and public buildings. These proposed License Agreements for small cell facilities on street lights poles will help the City to retain some control over the design, placement and aesthetics of small cell facilities. Without the License Agreements, service providers have only the option to install small cell facilities on PG&E poles. Current designs for facilities on PG&E poles are more challenging to disguise, and the City has less authority over the designs for these facilities, and there will be fewer alternatives for locating the facilities. Limiting service providers to use only PG&E owned poles could prove to the Federal and State legislatures that cities are not capable of streamlining deployment of small cell facilities, and thus hasten the need to enact legislation that removes all discretion from cities. The three License Agreements are similar and follow the same basic terms, but the language in the agreement is different, as they were negotiated separately between the City’s attorney and the attorney for the carriers. The Verizon agreement appears quite a bit different than the other two because the agreement was based on a form that Verizon had created, whereas Mobilitie and Crown Castle are based on a form that the City created. Nonetheless the substantive terms in all three Licenses are nearly identical. Environmental Impact Installation of small cell facilities on existing street light poles is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15302 and 15303 of the Guidelines for CEQA. CEQA Guidelines Section 15302 allows for replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Likewise, the replacement light standard would serve the same purpose as the existing field light standard. Additionally, CEQA Guidelines Section 15303 allows for the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. The proposed antennas to be mounted on replacement poles would qualify as minor modifications to an existing pole. 847 Fiscal Impact The initial fiscal impact of these licenses will be minimal if the assumption is made that 10 poles will be utilized by each carrier the total revenue to the City will be $45,000 per year. However it is anticipated that this is the first step in a significant deployment so the sums should increase over time. Sustainability Impact No sustainability impact. _____________________________________ Prepared by: Chad Mosley, City Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A- Small Cell License Agreement between the City of Cupertino and Mobilitie, LLC B- Small Cell License Agreement between the City of Cupertino and Crown Castle Ng West, LLC C- Small Cell License Agreement between the City of Cupertino and GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless D- Exhibit of preferred Small Cell Pole Replacement Design Concepts 848 849 850 851 852 853 854 855 856 857 858 859 860 861 862 863 864 865 866 867 868 869 870 871 872 873 0 0.25 0.5 Mile ¯ 7 Active Primary MM Site Areas Service Layer Credits: Sources: Esri, HERE, DeLorme, USGS, Cupertino City Legend Site Area 874 875 X.XX 14.00 24.00 FINISH GRADE 4'-1" TBD 30'-0" 35'-5" 2" GROUT POLE TOP CONCEALMENT, UE RELAY, CCI ANTENNA EXTENSION POLE: TO COMPLY WITH CALTRANS TYPE 15 STANDARD POLE REQUIREMENTS. MODFIED TO ACCOMMODATE PEDESTAL BASE AND STRUCTURAL REQUIREMENTS FOR ANTENNA. PEDESTAL HOUSING, AIRSPAN RADIO, AC DISCONNECT FOUNDATION(BY OTHERS) DECORATIVE TRANSITION TBD PART NUMBER DESCRIPTION 008508-000 ASSY, POLE, CUPERTINO DCBAABCD234567887654321DO NOTSCALE DWGPROPRIETARY INFORMATIONApd:DIMENSIONS ARE IN INCHESConsultant: X.X ± 0.050 X.XX ± 0.020X.XXX ± 0.010X ±1° X.X ± 0.5°±1/16"Description:Date:Rev:Sheet Title:Drawing Number:NEW RELEASE SDR04/04/17POLE, CUPERTINO, PROPOSAL008508PRDate:Ckd By:Date:Drawn By:SDR04/04/1704/04/17TEBDECIMALANGLEFRACTIONA© 2017 ConcealFab Corp - All Rights ReservedUSE, REPRODUCTION, OR DISCLOSUREIS SUBJECT TO RESTRICTIONS SET FORTHIN NON-DISCLOSURE AGREEMENTS ANDPERTINENT CONTRACTUAL DOCUMENTS.3525 NORTH CASCADE AVENUECOLORADO SPRINGS, CO 80907PH: 719-599-3400 FX: 719-599-00571Sheet:1 OF 1Sheet Scale:1:40CB04/11/1704/10/17SDRSDREXTENSION POLE SHOWN AS TAPEREDUPDATED NOTE FOR EXTENSION POLEDIMENSIONS AND TOLERANCES PER ASME Y14.5-2009Sheet Size:BDENOTES CRITICAL TO FUNCTION DIMENSION876 / 008502OR-A 008502OR-A 04/12/17 New Steel Pole S De Anza Blvd & Pacifica Dr Cupertino, CA 95014 2 Small Cell Existing Right of Way 1 of 3 008502OR-A 008502OR-A S. De Anza Blvd & Pacifica Dr. Cupertino, CA 95014 New Steel Pole 37.316368/ -122.032121 877 878 879 880 881 882 883 884 885 886 887 888 889 890 891 892 893 894 895 896 897 898 899 900 901 902 903 904 905 906 907 908 909 910 911 912 913 914 915 916 917 918 919 920 921 922 923 924 925 926 927 928 929 930 931 932 933 934 935 936 937 Map of Verizon Proposed Steel Pole Locations - Cupertino 938 939 PROPOSED NOTICE SIGNAGE PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK EXISTING STEEL LIGHT POLE ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD 1'-21 4" DIA.±2'-0"NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF CHARLES EQUIPMENT CABINET AND GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE PROPOSED RRU UNIT, TYP. OF (2) TOTAL (CONCEALED IN PROPOSED POLE BASE) PROPOSED DECORATIVE POLE BASE PROPOSED WIRELESS ("SMART") POWER METER & DISCONNECT TO BE LOCATED WITHIN DECORATIVE BASE PROPOSED NOTICE SIGNAGE PROPOSED RRU UNIT, TYP. OF (2) TOTAL (CONCEALED IN PROPOSED POLE BASE) PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT EXISTING STREET 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF CHARLES EQUIPMENT CABINET AND GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 1'-21 4" DIA.±2'-0"EXISTING STEEL LIGHT POLE PROPOSED CONCRETE SLAB PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE PROPOSED WIRELESS ("SMART") POWER METER & DISCONNECT TO BE LOCATED WITHIN DECORATIVE BASE SK-9 DECORATIVE BASE RRUS, WIRELESS METER ELEVATIONS 1/2"=1'-0" SCALE: 1'2'4'1/2"=1'-0" SCALE: 1'2'4'VERIZON WIRELESSCUPERTINOODAS STREET LIGHT PROJECTSHEET TITLE SHEET NUMBER THESE PLANS ARE INSTRUMENTS OF SERVICE AND ARE FOR THE CLIENT'S USE SOLELY WITH RESPECT TO THIS PROJECT. THESE PLANS SHALL NOT BE ALTERED, MODIFIED OR REPRODUCED IN PART OR IN WHOLE WITHOUT PRIOR WRITTEN CONSENT. THESE PLANS ARE FORMATTED TO BE FULL-SIZE AT ARCH D 24"X36". COPYRIGHT 2016 JAMES VACCARO ARCHITECT, INC.. REV DATE ISSUE 1 4/12/2016 PRELIMINARY FOR REVIEW CLIENT MODUS, INC. 240 STOCKTON STREET, 3RD FLOOR SAN FRANCISCO, CA 94108 2785 MITCHELL DRIVE, SUITE 9 WALNUT CREEK, CA 94598 VERIZON WIRELESS CONSULTANTS PRELIMINARY NOT FOR CONSTRUCTION 2 4/15/2016 PRELIMINARY FOR REVIEW 3 4/19/2016 PRELIMINARY FOR REVIEW 4 4/28/2016 PRELIMINARY FOR REVIEW 411 DONDEE WAY, UNIT C PACIFICA I CA I 94044 415.608.3670 PHONE I 415.963.4471 FAX INFO@JVARCHITECT.COM WWW.JVARCHITECT.COM JAMES VACCARO ARCHITECT ,INC . 5 8/1/2016 PRELIMINARY FOR REVIEW 6 5/8/2017 CONCEPTUAL ELEVATION REV. PER CLIENT COMMENTS PROPOSED SIDE ELEVATION PROPOSED FRONT ELEVATION2 1 940 ERICSSON ERICSSON 16"CLR.PROPOSED NOTICE SIGNAGE PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 0'-0" EXISTING GRADE EXISTING SIDEWALK EXISTING STEEL LIGHT POLE NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 5. CONCEALED POWER METER LOCATION CONTINGENT UPON APPROVAL FROM UTILITY PROVIDER. PROPOSED RRU UNIT, TYP. OF (2) TOTAL PROPOSED CABLE SHROUD, TYP. 15'-3" A.G.L. TOP OF PROPOSED RRU UNIT 18'-6" A.G.L. TOP OF PROPOSED RRU UNIT 16'-7" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT 13'-4" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD 1'-21 4" DIA.±2'-0"±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE PROPOSED POWER METER CONCEALED IN DECORATIVE POLE BASE (PENDING APPROVAL FROM UTILITY PROVIDER) PROPOSED DECORATIVE POLE BASE16"CLR.PROPOSED NOTICE SIGNAGE PROPOSED RRU UNIT, TYP. OF (2) TOTAL PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 15'-3" A.G.L. TOP OF PROPOSED RRU UNIT EXISTING STREET 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK PROPOSED CABLE SHROUD, TYP. 18'-6" A.G.L. TOP OF PROPOSED RRU UNIT 16'-7" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 5. CONCEALED POWER METER LOCATION CONTINGENT UPON APPROVAL FROM UTILITY PROVIDER. 1'-21 4" DIA.±2'-0"EXISTING STEEL LIGHT POLE PROPOSED POWER METER CONCEALED IN DECORATIVE POLE BASE (PENDING APPROVAL FROM UTILITY PROVIDER) 13'-4" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT PROPOSED DECORATIVE POLE BASE ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE SK-10 1/2"=1'-0" SCALE: 1'2'4'1/2"=1'-0" SCALE: 1'2'4'VERIZON WIRELESSCUPERTINOODAS STREET LIGHT PROJECTSHEET TITLE SHEET NUMBER THESE PLANS ARE INSTRUMENTS OF SERVICE AND ARE FOR THE CLIENT'S USE SOLELY WITH RESPECT TO THIS PROJECT. THESE PLANS SHALL NOT BE ALTERED, MODIFIED OR REPRODUCED IN PART OR IN WHOLE WITHOUT PRIOR WRITTEN CONSENT. THESE PLANS ARE FORMATTED TO BE FULL-SIZE AT ARCH D 24"X36". COPYRIGHT 2016 JAMES VACCARO ARCHITECT, INC.. REV DATE ISSUE 1 4/12/2016 PRELIMINARY FOR REVIEW CLIENT MODUS, INC. 240 STOCKTON STREET, 3RD FLOOR SAN FRANCISCO, CA 94108 2785 MITCHELL DRIVE, SUITE 9 WALNUT CREEK, CA 94598 VERIZON WIRELESS CONSULTANTS PRELIMINARY NOT FOR CONSTRUCTION 2 4/15/2016 PRELIMINARY FOR REVIEW 3 4/19/2016 PRELIMINARY FOR REVIEW 4 4/28/2016 PRELIMINARY FOR REVIEW 411 DONDEE WAY, UNIT C PACIFICA I CA I 94044 415.608.3670 PHONE I 415.963.4471 FAX INFO@JVARCHITECT.COM WWW.JVARCHITECT.COM JAMES VACCARO ARCHITECT ,INC . 5 8/1/2016 PRELIMINARY FOR REVIEW 6 5/8/2017 CONCEPTUAL ELEVATION REV. PER CLIENT COMMENTS STACKED RRU, DECORATIVE BASE METER ELEVATIONS PROPOSED SIDE ELEVATION PROPOSED FRONT ELEVATION2 1 941 14.00 24.00 FINISH GRADE 4'-1" TBD 30'-0" 35'-5" 2" GROUT POLE TOP CONCEALMENT, UE RELAY, CCI ANTENNA EXTENSION POLE: TO COMPLY WITH CALTRANS TYPE 15 STANDARD POLE REQUIREMENTS. MODFIED TO ACCOMMODATE PEDESTAL BASE AND STRUCTURAL REQUIREMENTS FOR ANTENNA. PEDESTAL HOUSING, AIRSPAN RADIO, AC DISCONNECT FOUNDATION(BY OTHERS) DECORATIVE TRANSITION TBD 942 2'-6" 8'-0" 17" SQR. x 512"REMOVEABLEBASE SHROUD ANTENNA(BY OTHERS) TAPERED SKIRTANTENNA MOUNT DETAIL GRADE LEVEL (T.O. SIDEWALK) 0'-0" T.O. EQUIP. CABINET & B.O. BASE SHROUD 4'-0" AGL T.O. LUMINAIRE TBD AGL T.O. ANTENNA 35'-5" AGL TAPERED SKIRT ALL ACCESS PORTSINCLUDE COVERS CURB CONCEALMENT BASE WITH SMART METER CONDUIT FORPOWER & CABLES KATHREIN 840 10515 DUAL BAND TRI-SECTOR ANTENNA OR EQUIV. (BY OTHERS) OPTIONAL TRANSITION: - ORNAMENTAL - ROUND TAPERED - SQUARE 458" 1038" 0" 4'-412" 3'-2" AA BASE DETAILS VIEW RRUS-12 RRUS-12 PSU PSU SECTION A-A ISO VIEW BASE CAN BE SQUARE, ROUND, HEXAGONAL OR OCTOGONAL [SQUARE BASE IS SHOWN] POLE CAN BE ROUND, TAPERED, OR FLUTED TAPERED [ROUND TAPERED POLE IS SHOWN] ELEVATION VIEW MANUFACTURER PROPOSAL FOR ROUND ANTENNA / LIGHT POLE CUPERTINO, CA TITLE REV - DATE CHECKED BY WUT PROJECT NUMBER PR-170 TOLERANCE: FRACTIONS 1/16" ANGLES 1 UNLESS OTHERWISE SPECIFIED ALL DIMENSIONS INCLUDE FINISHES AND ARE IN INCHES BYDATEDESCRIPTIONREV. REVISIONS 5032 SALEM DALLAS HWY.SALEM, OR 97304Ph: 503-587-0101 Fx: 503-316-1864 WesternUtilityTelecom.com THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF WESTERN UTILITY TELECOM, INC. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF WESTERN UTILITY TELECOM INC. IS PROHIBITED DRAWING NUMBER AM 11APR17 1--SHEET TR DRAWN BY W/ RECTANGLAR CONCEALMENT BASE UTILITY / TELECOM, INC.WESTERN TM 943 PROPOSED NOTICE SIGNAGE PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK EXISTING STEEL LIGHT POLE ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD 1'-21 4" DIA.±2'-0"NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF CHARLES EQUIPMENT CABINET AND GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE PROPOSED RRU UNIT, TYP. OF (2) TOTAL (CONCEALED IN PROPOSED POLE BASE) PROPOSED DECORATIVE POLE BASE PROPOSED WIRELESS ("SMART") POWER METER & DISCONNECT TO BE LOCATED WITHIN DECORATIVE BASE PROPOSED NOTICE SIGNAGE PROPOSED RRU UNIT, TYP. OF (2) TOTAL (CONCEALED IN PROPOSED POLE BASE) PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT EXISTING STREET 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF CHARLES EQUIPMENT CABINET AND GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 1'-21 4" DIA.±2'-0"EXISTING STEEL LIGHT POLE PROPOSED CONCRETE SLAB PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE PROPOSED WIRELESS ("SMART") POWER METER & DISCONNECT TO BE LOCATED WITHIN DECORATIVE BASE SK-9 DECORATIVE BASE RRUS, WIRELESS METER ELEVATIONS 1/2"=1'-0" SCALE: 1'2'4'1/2"=1'-0" SCALE: 1'2'4'VERIZON WIRELESSCUPERTINOODAS STREET LIGHT PROJECTSHEET TITLE SHEET NUMBER THESE PLANS ARE INSTRUMENTS OF SERVICE AND ARE FOR THE CLIENT'S USE SOLELY WITH RESPECT TO THIS PROJECT. THESE PLANS SHALL NOT BE ALTERED, MODIFIED OR REPRODUCED IN PART OR IN WHOLE WITHOUT PRIOR WRITTEN CONSENT. THESE PLANS ARE FORMATTED TO BE FULL-SIZE AT ARCH D 24"X36". COPYRIGHT 2016 JAMES VACCARO ARCHITECT, INC.. REV DATE ISSUE 1 4/12/2016 PRELIMINARY FOR REVIEW CLIENT MODUS, INC. 240 STOCKTON STREET, 3RD FLOOR SAN FRANCISCO, CA 94108 2785 MITCHELL DRIVE, SUITE 9 WALNUT CREEK, CA 94598 VERIZON WIRELESS CONSULTANTS PRELIMINARY NOT FOR CONSTRUCTION 2 4/15/2016 PRELIMINARY FOR REVIEW 3 4/19/2016 PRELIMINARY FOR REVIEW 4 4/28/2016 PRELIMINARY FOR REVIEW 411 DONDEE WAY, UNIT C PACIFICA I CA I 94044 415.608.3670 PHONE I 415.963.4471 FAX INFO@JVARCHITECT.COM WWW.JVARCHITECT.COM JAMES VACCARO ARCHITECT ,INC . 5 8/1/2016 PRELIMINARY FOR REVIEW 6 5/8/2017 CONCEPTUAL ELEVATION REV. PER CLIENT COMMENTS PROPOSED SIDE ELEVATION PROPOSED FRONT ELEVATION2 1 944 ERICSSON ERICSSON 16"CLR.PROPOSED NOTICE SIGNAGE PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 0'-0" EXISTING GRADE EXISTING SIDEWALK EXISTING STEEL LIGHT POLE NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 5. CONCEALED POWER METER LOCATION CONTINGENT UPON APPROVAL FROM UTILITY PROVIDER. PROPOSED RRU UNIT, TYP. OF (2) TOTAL PROPOSED CABLE SHROUD, TYP. 15'-3" A.G.L. TOP OF PROPOSED RRU UNIT 18'-6" A.G.L. TOP OF PROPOSED RRU UNIT 16'-7" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT 13'-4" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD 1'-21 4" DIA.±2'-0"±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE PROPOSED POWER METER CONCEALED IN DECORATIVE POLE BASE (PENDING APPROVAL FROM UTILITY PROVIDER) PROPOSED DECORATIVE POLE BASE16"CLR.PROPOSED NOTICE SIGNAGE PROPOSED RRU UNIT, TYP. OF (2) TOTAL PROPOSED VERIZON WIRELESS CYLINDRICAL ANTENNA (CONCEALED WITHIN (N) SHROUD) PROPOSED FRP CONCEALMENT SHROUD PROPOSED SHT. MTL. SKIRT 15'-3" A.G.L. TOP OF PROPOSED RRU UNIT EXISTING STREET 0'-0" EXISTING GRADE ±28'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LIGHT POLE EXISTING SIDEWALK PROPOSED CABLE SHROUD, TYP. 18'-6" A.G.L. TOP OF PROPOSED RRU UNIT 16'-7" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT ±30'-0" A.G.L. (VARIES PER SITE) TOP OF EXISTING LUMINAIRE ±3'-0"±31'-0" A.G.L. (TOP OF EXISTING POLE ±3'-0") TOP OF PROPOSED CONCEALMENT SHROUD NOTES: 1. FRP CONCEALMENT SHROUD, SKIRT, RRU UNITS AND CABLE SWEEPS SHALL BE PAINTED TO MATCH EXISTING LIGHT POLE. 2. DESIGN SHOWN ASSUMES EXCLUSION OF GPS ANTENNA. 3. DESIGN SHOWN IN BASED ON AMPHENOL WB080X06FX60 ANTENNA, CONCEALMENT SHROUD/ SKIRT BY WIRELESS STRUCTURES CONSULTING, ERICSSON RRUS32 UNITS. 4. DESIGN AND HEIGHTS MAY VARY ON A SITE BY SITE BASIS BASED ON EXISTING SITE/ POLE CONDITIONS AND EXISTING POLE MOUNTED APPURTENANCES. 5. CONCEALED POWER METER LOCATION CONTINGENT UPON APPROVAL FROM UTILITY PROVIDER. 1'-21 4" DIA.±2'-0"EXISTING STEEL LIGHT POLE PROPOSED POWER METER CONCEALED IN DECORATIVE POLE BASE (PENDING APPROVAL FROM UTILITY PROVIDER) 13'-4" A.G.L. MIN. BOTTOM OF PROPOSED RRU UNIT PROPOSED DECORATIVE POLE BASE ±3'-0" A.G.L. TOP OF PROPOSED DECORATIVE POLE BASE 3'-0" DECORATIVE POLE BASE SK-10 1/2"=1'-0" SCALE: 1'2'4'1/2"=1'-0" SCALE: 1'2'4'VERIZON WIRELESSCUPERTINOODAS STREET LIGHT PROJECTSHEET TITLE SHEET NUMBER THESE PLANS ARE INSTRUMENTS OF SERVICE AND ARE FOR THE CLIENT'S USE SOLELY WITH RESPECT TO THIS PROJECT. THESE PLANS SHALL NOT BE ALTERED, MODIFIED OR REPRODUCED IN PART OR IN WHOLE WITHOUT PRIOR WRITTEN CONSENT. THESE PLANS ARE FORMATTED TO BE FULL-SIZE AT ARCH D 24"X36". COPYRIGHT 2016 JAMES VACCARO ARCHITECT, INC.. REV DATE ISSUE 1 4/12/2016 PRELIMINARY FOR REVIEW CLIENT MODUS, INC. 240 STOCKTON STREET, 3RD FLOOR SAN FRANCISCO, CA 94108 2785 MITCHELL DRIVE, SUITE 9 WALNUT CREEK, CA 94598 VERIZON WIRELESS CONSULTANTS PRELIMINARY NOT FOR CONSTRUCTION 2 4/15/2016 PRELIMINARY FOR REVIEW 3 4/19/2016 PRELIMINARY FOR REVIEW 4 4/28/2016 PRELIMINARY FOR REVIEW 411 DONDEE WAY, UNIT C PACIFICA I CA I 94044 415.608.3670 PHONE I 415.963.4471 FAX INFO@JVARCHITECT.COM WWW.JVARCHITECT.COM JAMES VACCARO ARCHITECT ,INC . 5 8/1/2016 PRELIMINARY FOR REVIEW 6 5/8/2017 CONCEPTUAL ELEVATION REV. PER CLIENT COMMENTS STACKED RRU, DECORATIVE BASE METER ELEVATIONS PROPOSED SIDE ELEVATION PROPOSED FRONT ELEVATION2 1 945 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2398 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:2/28/2017 City Council On agenda:Final action:5/16/2017 Title:Subject: Comprehensive Financial Reports for Fiscal Year 2015-16 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Comprehensive Annual Financial Report FY 2015-16 B - Memorandum of Internal Control and Required Communications C - Independent Accountant's Report on the City of Cupertino Investment Policy D - Site Systems and Bank Processes Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Comprehensive Financial Reports for Fiscal Year 2015-16 Accept the City Financial Reports for Fiscal Year ending June 30, 2016 CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™946 1 CITY MANAGER’S OFFICE CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 16, 2017 Subject Comprehensive Financial Reports for Fiscal Year 2015-16 Recommended Action Accept the City Financial Reports for Fiscal Year ending June 30, 2016 Description Staff presents to the City Council the following financial reports for the fiscal year ended June 30, 2016: 1. Comprehensive Annual Financial Report 2. Memorandum on Internal Control and Required Communications 3. Independent Accountant’s Report on the City of Cupertino Investment Policy The City’s certified public accountants Maze and Associates audited or issued these reports. The Audit Committee accepted all reports on March 13, 2017. The auditors have given a clean opinion on the financial statements and the controls associated with producing the information. However, they also issued four comments of material weaknesses that management would like to discuss in this report to provide background and current status on each item. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. The weaknesses are outlined in the Memorandum of Internal Control and Required Communications document that is attached as Attachment B. They start on page 3, are numbered as follows, and are separately discussed in the following sections: 1. 2016-01: Bank Reconciliation 947 2 2. 2016-02: Super-User Rights 3. 2016-03: Cash Receipts Process 4. 2016-04: Recording of Capital-Related Expenditures Background Key reasons for the issues raised include; the existence of multiple software and manual systems in various departments, complications with integrating the new ERP system with old and new systems in various departments, and historical processes for reconciliation employed in the past. The following discussion identifies each issue.  Multiple software and manual systems in various departments – The City currently has 8 sites uses 6 different systems to receive payments. For each of these systems there are 4 payment types that must be identified and reconciled. They include cash, check receipts, checks issued and credit cards.  Integration of the new ERP system– The timeline to implement the financial module was aggressive but necessary. Once the bank reconciliation module was implemented as part of the new ERP, staff believed it would automate this function and it did not. Staff continued to employ traditional methods of reconciliation using system reports, data extracts from some departments systems and data downloads from the City’s bank. This method continued to be unsuccessful.  Identifying an improved approach to reconciling transactions - Staff is now focused on a technical approach to troubleshoot issues from this complex infrastructure and will reincorporate it into the traditional method for reconciling on a monthly basis. This technical approach was recently made possible due to the addition of technical staff that came onboard in a full-time capacity in March. Bank Reconciliation The City’s financial system, New World, has been unsuccessful in providing a reliable automated method of reconciling the general ledger cash account to the bank statement since implementation, because of an inadequate interface with the City’s six legacy departmental enterprise systems. Finance staff has used temporary staffing resources to maintain an ongoing traditional reconciliation method using system reports, but differences persisted. Recently, a very skilled Business Systems Analyst was assigned to correct the interface between financial system and the source systems where the transactions originate, and Finance has been able to develop a new approach to the reconciliation process that circumvents the problematic reports. The results presented today are derived from data queries directly from the systems in which the financial transactions originate and comparing them to the resulting bank transactions that are also queried and extracted electronically. The new process is 948 3 extremely accurate, reliable, and fast, but because the data is siloed in six disparate systems and the interaction between the software systems and the financial intermediaries is different in each case, the comparison needs to be done separately for each of the eight sites that generate cash transactions and then applied against each payment type (cash, check receipts, issued checks, credit cards). While this is superior to using system reports, it still requires time to validate incoming data, identify exception results, and test the comparison process. This process is summarized in the following table and is broken out in 2 phases and 4 milestones: Phase Assigned Staff Goal MOIC Reference Current Status Time to Completion Phase 1A- Cash Audit BSA All data is extracted and processes run Bank Rec/Cash Receipts 50% Complete May 31, 2017 Phase 1B – Clear Exceptions Finance All exceptions are cleared and cash is reconciled Bank Rec/Cash Receipts In process June 30, 2017 Phase 1C- G/L Update Finance Adjust G/L Bank Rec Not begun, process is dependent on the completion of Phase 1B August 31, 2017 Phase 2- Process Solution BSA/Finance Sustainable tool to support bank reconciliation Bank Rec/Cash Receipts In process Runs concurrent with all other processes For the fiscal year-to-date (July 2017 – March 2017), current monthly bank reconciliation results show that the bank balance is consistently higher than the general ledger, the average difference is trending at $330,000, and the preliminary discrepancy for March 31, 2017 is $561,000. When compared to the total receipts processed by the City, this discrepancy represents 0.56% of total receipts. Super-User Rights Super-User Rights is a common internal control issue for smaller governmental organizations and is often tolerated as unavoidable internal control weakness in smaller organizations. The issue arises when a single individual, within the finance 949 4 organization, has full control over the automated financial system without direct autonomous supervision. However, assigning an individual Super-User Rights is necessary to effectively maintain an automated financial system. Super-User rights will be taken on by the new BSA who is considered an IT employee thus satisfying the concern of the auditors about Super-User rights residing in Finance. The BSA will undergo a week long training to transfer over these rights, along with the security rights of all users in the system in early June. In addition, the BSA will attend the Tyler Conference which will further his knowledge in the system. Super-User access for Finance staff will be eliminated as soon as Phase 1A of the Bank Reconciliation Audit is completed. Cash Receipts Process Reconciliation of receipts to the general ledger is a large area that needs focus and improvement with the bank reconciliation. This issue is thoroughly discussed in the bank reconciliation section above. This material weakness focused on increased segregation of duties with processing of revenue collection transactions, making deposits at the bank, and consistent review of reports. The Finance Manager has resumed frequent review and sign off of aging and delinquent receivables reports. Finance staff has initiated alternating bank deposits between the two Account Clerks. This improves segregation without creating a substantial amount of new workload. The new bank reconciliation process will also facilitate timely review and reconciliation of receipts. Recording of Capital-Related Expenditures Excessive amounts of non-capital expenditures were coded to capital accounts due to a change in budgeting practice initiated with the FY2015-16 Budget. As part of the FY2017-18 budget process, special projects that are not Capital Improvement Projects (CIP) and do not result in a fixed asset will be placed in a new account code, thereby separating the capital-related expenditures from non-capital. A member of the finance team was available at each budget meeting with the City Manager and the appropriate account was identified as part of this meeting where departments provided details on their funding requests. In addition to this staff report the Administrative Services Director will be providing the Audit Committee Chair and City Council with monthly updates on the progress of the two unresolved MOIC material weaknesses. This report will outline progress to date, highlight any successes and challenges encountered or anticipated, and provide a summary of staff resources working on the project. These unresolved items will also be kept as a standing item for all Audit Committee meetings until they are resolved. 950 5 Fiscal Impact Acceptance of the reports has no fiscal impact. The reports describe the City’s financial status as of June 30, 2016. Prepared by: Lisa Taitano, Finance Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: David Brandt, City Manager Attachments: A- Comprehensive Annual Financial Report B- Memorandum on Internal Control and Required Communications C- Independent Accountant’s Report on the City of Cupertino Investment Policy D- Site Systems and Bank Processes 951 2015 –2016COMPREHENSIVE ANNUAL FINANCIAL REPORT For Fiscal Year Ended June 30, 2016 City of Cupertino, California www.cupertino.org BALANCE • CONNECTION • QUALITY OF LIFE 952 This Page Left Intentionally Blank 953 CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2016 PREPARED BY: CITY OF CUPERTINO ADMINISTRATIVE SERVICES DEPARTMENT FINANCE DIVISION 954 This Page Left Intentionally Blank 955 INTR OD UCTORY SE CTIO N 956 This Page Left Intentionally Blank 957 CITY OF CUPERTINO Comprehensive Annual Financial Report For the Year Ended June 30, 2016 Table of Contents INTRODUCTORY SECTION Page Table of Contents ........................................................................................................................................... i Letter of Transmittal .................................................................................................................................... iii Organization Chart ..................................................................................................................................... viii City Council and Directory of City Officials ............................................................................................... ix Commissions and Committees ...................................................................................................................... x Certificate of Award for Excellence in Financial Reporting ....................................................................... xi FINANCIAL SECTION Independent Auditor’s Report ................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited) .............................................................................. 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ................................................................................................................. 22 Statement of Activities ..................................................................................................................... 23 Fund Financial Statements: Governmental Funds: Balance Sheet .................................................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position ................................................................................................................ 29 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ...................................................................................................... 32 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual – General Fund .................................................................................................... 33 Budget to Actual – Transportation Special Revenue Fund ............................................................. 34 Budget to Actual – Housing Development Special Revenue Fund ................................................. 35 Proprietary Funds: Statement of Net Position .................................................................................................................. 38 Statement of Revenue, Expenses and Changes in Fund Net Position ............................................... 39 Statement of Cash Flows ................................................................................................................... 40 Notes to the Basic Financial Statements ................................................................................................ 41 Required Supplementary Information (Unaudited): Schedule of Changes in the Net Pension Liability and Related Ratios ............................................... 72 Schedule of Contributions – Miscellaneous Plan ................................................................................ 73 Schedule of Funding Progress – Defined Benefit Other Post-Employment Benefits Plan ................. 74 i958 CITY OF CUPERTINO Comprehensive Annual Financial Report For the Year Ended June 30, 2016 Table of Contents FINANCIAL SECTION (Continued) Page Other Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - Public Facilities Corporation Debt Service Fund ............................................ 76 Nonmajor Governmental Funds: Combining Balance Sheet ................................................................................................................. 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................. 80 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ............................................................................ 82 Internal Service Funds: Combining Statement of Net Position ............................................................................................... 86 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ......................................................................................................... 88 Combining Statement of Cash Flows ................................................................................................ 90 STATISTICAL SECTION Financial Trends: Net Position/Assets by Component – Last Ten Fiscal Years .............................................................. 97 Changes in Net Position/Assets – Last Ten Fiscal Years .................................................................... 98 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 100 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years................................... 101 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 102 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .............................................. 103 Principal Property Taxpayers – Current Year and Five Years Ago .................................................. 104 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 105 Debt Capacity: Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .......................................................... 106 Direct and Overlapping Bonded Debt ............................................................................................... 107 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................. 108 Ratio of General Bonded Debt – Last Ten Fiscal Years ................................................................... 109 Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years ....................................................... 110 2016 Employer Ranking ................................................................................................................... 111 Operating Information: Full-Time Equivalent City Employees by Function/Program – Last Ten Fiscal Years .................... 112 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 113 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 114 COMMUNITY PROFILE ii959 March 7, 2017 To the Citizens of Cupertino, Honorable Mayor, Members of the City Council, and City Manager It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) for the City of Cupertino (the City) for the fiscal year ended June 30, 2016. The report is prepared in accordance with generally accepted accounting principles (GAAP) set by the Governmental Accounting Standards Board (GASB). The report presents City information on an entity-wide basis and on a more detailed fund level basis. The fund-level reports emphasize the City’s major funds. A Management Discussion and Analysis (MD&A) presents a comparative analysis of current and prior year results, changes in financial position, a comparison of actual versus budget, financial highlights, trends, and disclosure of any known significant events or decisions that affect the financial condition of the City. This transmittal letter is designed to complement the MD&A, and should therefore be read in conjunction with it. The MD&A is required supplementary information and is found in the Financial Section of the CAFR. The accuracy of the data presented and the completeness and fairness of the presentations, including all disclosures, are the responsibility of the management of the City. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to protect the City’s assets and provide sufficient, reliable information for the proper preparation of these financial statements. We believe the data is accurate in all material respects and is presented in a manner that fairly sets forth the City’s financial position. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City’s financial activity have been included. REPORTING ENTITY This CAFR includes all component units and funds of the City. It reports all activities for which the City is considered to be financially accountable. The general governmental funds support a full range of services, including law enforcement, community development, recreation, public works, public and environmental affairs, and general administration. Enterprise funds account for recreation and solid waste operations supported by user fees. This financial report incorporates data for the City of Cupertino and its component unit, the Cupertino Public Facilities Corporation. The City operates under a Council-City Manager form of government. There are five council members, including the Mayor, who serve staggered four-year terms. The City Council appoints the City Manager who is responsible for the daily administration of City affairs. The City Council also appoints the City Attorney and the City Treasurer. All other employees are appointed by the City Manager. CITY OF CUPERTINO CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3202 (408) 777-CITY • WWW.CUPERTINO.ORG iii960 ECONOMIC CONDITIONS The City of Cupertino is located in Santa Clara County at the southern end of the San Francisco Bay Peninsula. The City is comprised of 13 square miles and is bordered by the cities of San Jose, Saratoga, Sunnyvale, Santa Clara and Los Altos. It has a residential population of 60,572 (based on July 2015 U.S. Census Bureau estimates data). Situated at the west end of Silicon Valley, Cupertino has earned the reputation of a balanced community with a healthy climate for business and well maintained residential neighborhoods, community parks and public facilities. The excellent reputation of Cupertino’s schools has been a major attraction for families wishing to settle in close proximity to jobs in Silicon Valley. The City recognizes the importance of quality school facilities and programs to all Cupertino residents, and works in partnership with the schools in many programs affecting education and youth. National surveys rank the City high in education levels, median household incomes, and registered patent numbers, as well as best cities in which to live. Cupertino is the corporate headquarters of several notable companies including Apple Inc., CRC Health, DURECT, Mirapath, Seagate Technology, Bromium, and SugarCRM Inc., and home to many other well- known firms, such as Altia Systems, Cinarra, Panasonic Ventures, and Ducati North America. Other major employers include DeAnza College, one of the largest single-campus community colleges in the country, the Fremont Union High School District, and Cupertino Union School District. Based on CoStar data as of the fourth quarter 2016, over 7.1 million square feet of office, research, and development space existed in the City with one of the lowest vacancy rates in Silicon Valley at 2.3% for office and 0.2% for industrial. Leasing activity of office space has increased steadily from 2015-2016. As of November 2016, the City’s unemployment rate was 2.8%, having decreased from the previous year and well below the statewide rate of 5.0%. The City features thirteen retail centers and over one hundred eighty eating establishments. The construction and completion of three new mixed-use projects, including Nineteen800 (formerly known as the Rosebowl), Main Street, and The Biltmore Adjacent Project, all have retail/restaurant tenants including Doppio Zero, The Kebab Shop, Kula Sushi, Icool In2 ice cream, Vitality Bowls, Lazy Dog, Philz Coffee, Eureka!, Oren’s Hummus, Chef Hung, 85 Degrees Bakery, Meet Fresh, Target Express, Pieology, Capezio, Howards Shoes, The Counter, and Jersey Mike’s Subs. The Saich Way Project, located on Stevens Creek Boulevard next to Panera Bread and Peet’s Coffee, is completed and includes The Vitamin Shoppe, The Melt, Coder School, H&R Block, T-Mobile, Site for Sore Eyes, UbreakIfix, and Blast 825 Pizza. The successful redevelopment of Homestead Square features a 24-hour Safeway as its anchor and other tenants including Ulta, SteinMart, Ross, a variety of quick-casual dining options, and Pet Club opening soon in a 10,000SF space. The Cupertino Village Shopping Center, located on N. Wolfe Road near Pruneridge Avenue, has completed its two-level parking structure and construction of additional retail buildings (Phases I and II) as part of its overall redevelopment of the center. Phase III of the current approvals provides for the renovation of the existing four-building shopping center with a contemporary architectural design, as well as the reconfiguration of the pedestrian courtyard landscape and hardscape. In the 2016-2017 Assessor's Annual Report for Santa Clara County, Cupertino’s net assessment roll growth increased from $19.40 to $21.35 million from the previous year. That equated to an increase of 10.06%, which far exceeds the county-wide average of 7.97% growth. A large portion of the increase resulted from partial value from the new Apple campus of $700 million in new construction. The value of Apple’s business personal property also contributed to the increase which includes investments in computers, machinery, equipment, fixtures and furniture. The total construction value of the campus so far, totaling $1.6 billion, represents only a fraction of the anticipated full market value when the campus is completed. iv961 Based on second quarter 2016 data, Cupertino experienced a 19.4% decrease in business activity, quarter over quarter. The large decline reflects a correction to normalcy after a large increase in second quarter 2015 of 33.5% resulting primarily from the peak in new construction activity of the new Apple Campus. The City is not as diversified into retail, food products, and transportation compared to the state. It continues to receive over 64% of sales tax revenues from the business-to-business sector. The following chart shows City sales tax variations over the past ten years, reflecting moderate impact from the recession and trending growth from business-to-business activity despite high single-company concentration. Sales Tax Trend With the economic recovery and easing of credit, commercial development activity picked up considerably in 2012-13 and 2013-14 led by plan reviews of the new Apple Campus 2. Plans for the redevelopment of the Marina shopping center into a mixed-use project, Marina Plaza, was approved in 2016. This project will include 23,000SF of retail and restaurant use, a 122-room boutique hotel, and 188 residential units including 16 below market rate units. Construction of a five story, 148-room Hyatt House hotel is underway and will include a full-service restaurant and meeting rooms. The City’s pension and retiree medical unfunded actuarial accrued liabilities are discussed in the Notes to the Basic Financial Statements. The City must pay CalPERS, the state’s government pension system, annually to reduce its long-term liability for pensions. Cupertino’s pension actuarial valuation report of June 2015 reported a pension unfunded liability of $30.5 million with annual payments to CalPERS of 24.45% of payroll for 2016-17 and 2017-18, with ongoing increases after that because of actuarial assumption changes. To address long-term rising costs, Cupertino and state law has reduced pension benefits for new hires and increased employee contributions. As of the January 2016 health cost actuarial valuation report, the City has a retiree medical unfunded liability of $2.2 million with annual payments to a retiree health plan trust at 6.74% of payroll. Because the City contracts out police services to the County Sheriff and because fire protection is handled by a special district, the City avoids the high pension, capital, and operating costs of a City-operated public safety function. The City caps its contributions to employee health insurance premiums that benefit both the City and employees. A build-up of operating reserves from strong revenue years, such as 2013- 14, along with a traditional under-spending of budgets, enables the City to withstand weak revenue years that occur periodically, such as in 2009-10. $0 $5,000 $10,000 $15,000 $20,000 $25,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 v962 ECONOMIC INITIATIVES Apple continues to grow and construction is nearing completion on its Apple Campus 2, bounded by Interstate 280, Homestead Road, Wolfe Road and Tantau Avenue. With the expanded Apple presence, the City’s revenue base will remain concentrated among its top companies and top economic sector, the volatile business-to-business area. Past recessions and the historic departure of a major tax provider, Hewlett-Packard, demonstrates the need for diversification of the City’s revenue base and a long-term balance of revenues and expenditures. The City desires other revenues to mitigate the fluctuating nature of sales taxes, hotel taxes, user fees, and state grabs of local taxes in times of budget distress. Legislation raising the City’s property tax share, the update of the utility user tax, the increase in the transient occupancy tax, and refinancing of the City’s debt are past successes to help diversify and balance revenues and expenditures. The City Council work program underway in 2015-2016 describes economic development and administrative initiatives to further increase the City’s property tax share; streamline City web content and permitting for new businesses; continue sponsoring seminars and workshops for new small businesses; increase coordination with the Chamber of Commerce and other regional business organizations; strengthen shop local habits of residents and daytime visitors; and enhance business access to City services. The City’s Economic Development Division completed an Economic Development Strategic Plan (EDSP) approved by City Council in October 2016. The EDSP is a three to five year plan with strategies and goals in which to strengthen Cupertino’s business vitality and diversity. One of the key strategies is to develop the growing incubator/co-working entrepreneurial sectors. ACCOUNTING AND BUDGETARY CONTROL In developing and evaluating the City’s accounting system, consideration is given to the adequacy of internal accounting controls. The City’s controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against losses from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management. The City’s budget is a detailed operating plan that identifies estimated costs and results in relation to estimated revenues. The budget includes 1) the programs, projects, services and activities to be provided during the fiscal year; 2) estimated revenue and fund balance available to finance the operating plan; and 3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled. INDEPENDENT AUDIT City ordinance requires an annual audit of the financial records by an independent certified public accounting firm selected by the City Council and its audit committee. Maze and Associates audited the vi963 City’s Basic Financial Statements, and their opinion thereon is included in the Financial Section of this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cupertino for its CAFR for the year ended June 30, 2015. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that the current report continues to meet the Certificate of Achievement Program’s requirements. Respectfully submitted, Lisa Taitano Finance Manager ACKNOWLEDGMENTS I would like to express my appreciation to City employees, department heads, the City Manager, and members of City Council for their interest in conducting the financial operations of the City in a responsible manner. Special thanks go to Yulia Rumalean, Giang Dinh, and Tina Mao of the Finance staff for their continued support and dedication. Special recognition goes to Beth Viajar, Richard Wong, and Mary Redwine for their efforts in the preparation and production of this report. Reviewed by, Kristina Alfaro Director of Administrative Services vii964 Citizen Advisory Committees and Commissions City Attorney City Clerk Sustainability Programs Finance Human Resources Administrative Services Building Planning Economic Development Code Enforcement Community Development Sports Center Senior Center Youth Programs Facilities and Community Events Emergency Preparedness Community Relations Neighborhood Watch Recreation and Community Services Capital Improvement Program Transportation and Development Environmental Programs Code Enforcement Grounds Facilities Tree/ROW Fleet/Streets Service Center Public Works Communications Information Technology Information Serivces City Manager City Treasurer City Council Citizens of Cupertino viii965 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2015-16 CITY COUNCIL Barry Chang Mayor Savita Vaidhyanathan Gilbert Wong Councilmember Darcy Paul Councilmember DIRECTORY OF CITY OFFICIALS David Brandt – City Manager Randolph Hom– City Attorney Timm Borden – Director of Public Works Kristina Alfaro – Director of Administrative Services Carol Atwood – Director of Recreation and Community Services Aarti Shrivastava – Assistant City Manager/Director of Community Development Vice Mayor Rod Sinks Councilmember ix966 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2015-16 COMMISSIONS AND COMMITTEES AUDIT COMMITTEE LIBRARY COMMISSION Peter Shin Rose Grymes Eno Schmidt Annie Ho Darcy Paul Gopal Kumarappan Rod Sinks Jerry Liu Mark Zavislak Ann Stevenson HOUSING COMMISSION PLANNING COMMISSION Harvey Barnett Geoffrey Paulsen Shirley Chu Margaret Gong Nina Daruwalla Winnie Lee Rajeev raman Don Sun Krista Wilson Alan Takahashi FINE ARTS COMMISSION BICYCLE PEDESTRIAN COMMISSION Janki Chokshi Vidula Aiyer Russell Leong Gary Jones Rajeswari Mahaliagan Peter Heller Diana Matley Sean Lyn Michael Sanchez Erik Lindskog PUBLIC SAFETY COMMISSION TEEN COMMISSION Neha Sahai Andrew Fung Varsha Swamy Bob Cascone Harshitha Sriraman Annabelle Chan Robert McCoy Meesha Reiisieh Steve Yang Gerald Tallinger Anooj Vadodkar Rishit Gundu Andy Huang SUSTAINABILITY COMMISSION ECONOMIC DEVELOPMENT Angela Chen Meera Ramanathan Carol Atwood Angela Tsui Gary Latshaw Anna Weber Timm Borden Rich Abdalah Vignesh Swminathan Savita Vaidhyanathan David Brandt Aarti Shrivastava Anjali Kausar FISCAL STRATEGIC COMMITTEE Kevin McClelland Mike Rohde Kristina Alfaro Aarti Shrivastava Jason Lundegaard Darcy Paul Rod Sinks Darcy Paul Geoffrey Paulsen Timm Borden Lisa Taitano TECHNOLOGY, INFORMATION & RECREATION AND COMMUNITY SERVICES COMMISSION COMMUNICATIONS COMMISSION David Fung Helen Davis Shishir Chavan Rod Livingood Carol Stanek Neesha Tambe Keita Broadwater Arnold de Leon Judy Wilson Vaishali Deshpande x967 Fh Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Cupertino California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 Executive Director/CEO rF xi968 This Page Left Intentionally Blank 969 FINANCIAL SECTION 970 This Page Left Intentionally Blank 971 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and City Council City of Cupertino, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cupertino as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1972 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matters Management adopted the provisions of Governmental Accounting Standards Board Statement No. 72 – Fair Value Measurement and Application which became effective during the year ended June 30, 2016 that requires modifications of notes to the financial statements as discussed in Note 1(n) and 2(f) to the financial statements. The City restated its General Fund’s beginning fund balance, as discussed in Note 1(p) to the financial statements. The emphasis of these matters does not constitute a modification to our opinions. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and Required Supplementary Information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements as a whole. The Introductory Section, Other Supplementary Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. 2973 The Other Supplementary Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 7, 2017, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Pleasant Hill, California March 7, 2017 3974 This Page Left Intentionally Blank 975 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 This section describes the City of Cupertino’s financial performance for the year. Readers are encouraged to consider the following information in conjunction with the accompanying Transmittal Letter and Basic Financial Statements. 2015-16 FINANCIAL HIGHLIGHTS  City revenues have normalized in 2015-16 with base governmental revenues only showing a $1.5 million increase, or 2%, over 2014-15, after deducting the large one-time revenue of $23.7 million (Gain on Sale of Capital Assets) received in 2014-15.  The City continued to make substantial investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $10.06 million, after depreciation.  The City’s change in net position for governmental funds was $13.4 million for governmental activities and $13.8 million in total, reflecting the stabilization of revenues and continued large investment in capital projects.  The City’s net pension liability for June 30, 2016, was $30.5 million, up to $2.6 million from June 30, 2015, or 9.5%. The funding ratio for the City’s pension plan with CalPERS went from 73% to 72%.  Business-type activities contributed $7.8 million to citywide revenues totaling $85.9 million. However, the same activities contributed over $9 million to citywide expenses of $72.0 million. This resulted in a transfer from the general fund of $1.6 million to cover the shortfall. OVERVIEW OF THE FINANCIAL STATEMENTS The Basic Financial Statements comprise the City-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and positions. The City-Wide Financial Statements provide a long-term view of the City’s activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. These statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The accrual basis of accounting is similar to the accounting used by most private sector companies. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities. The Statement of Activities provides information about all the City’s revenues and expenses, with the emphasis on measuring net revenues and expenses for each of the City’s programs. The Statement of Activities explains in detail the change in net position for the year. Over time, increases or decreases in net position can be indicators of whether the financial condition of the City is improving or deteriorating. All of the City’s activities are grouped into Governmental activities and Business-type activities, as explained below. The Statement of Net Position and the Statement of Activities provide a summary of these two types of activities for the City as a whole.  Governmental activities—Most of the City’s basic services are considered to be governmental activities, including public works, law enforcement, community development, recreation, public & environmental affairs, and general administration. These services are supported by general City revenues such as property, sales and other taxes, and by specific program revenues such as developer fees and grants. The City’s governmental activities include the activities of a separate legal entity, the Cupertino Public Facilities Corporation (the “Corporation”), because the City is considered to be financially accountable for the Corporation. The City leases its major facilities from the Corporation, which then uses the lease payments to pay principal and interest on the Corporation’s long-term debt. 5976 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Business-type activities—All the City’s enterprises are reported here, including solid wastemanagement and most of the City’s recreational operations. Unlike governmental services, theseservices are supported by charges paid by users based on the amount of services used. The Fund Financial Statements report the City’s operations in more detail than the City-wide Financial Statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The Fund Financial Statements measure only current revenues, expenditures, assets, liabilities, and deferred inflows and outflows of resources; they exclude long-term assets and liabilities. Because these statements focus on the near-term inflows and outflows of spendable resources, such information may be useful in evaluating near-term financing requirements. The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. Cupertino’s Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. Each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules, which follow the Notes to Basic Financial Statements, present the detail of these non-major funds. Major funds present the significant activities of the City for the year, and may change from year to year as a result of changes in the pattern of City’s activities and public interest. For example, the Capital Improvement Projects Fund may or may not appear as a major fund depending on the volume of construction activity in a certain year. Governmental Fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. They present essentially the same functions reported as governmental activities in the city-wide financial statements. However, capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund financial statements. Reconciliations are provided to facilitate a comparison between governmental funds and governmental activity statements to allow a better understanding of the long-term impact of the government’s near-term financial decisions. Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis and include current and long-term assets and liabilities and deferred inflows and outflows of resources. Enterprise funds are used to report the same functions presented as business-type activities in the City-wide Financial Statements, and in more detail in the Fund Financial Statements. Since the City’s Internal Service funds provide goods and services only to the City’s governmental and business-type activities, their activities are reported only in total at the fund level. Internal Service funds may not be major funds because their revenues are derived from other City funds. These revenues are eliminated in the City-wide financial statements and any related profits or losses are returned to the activities which created them, along with any residual net position of the Internal Service funds. For this City, internal service activities predominantly benefit governmental rather than business-type functions, and are therefore included within governmental activities in the City-wide Financial Statements. Comparisons of budget and actual financial information are included in the Basic Financial Statements for the General Fund and other major Special Revenue Funds. Since none of the City’s Special Revenue Funds are considered major funds, budgetary comparison schedules for these funds are included in this document as supplemental information only. The Notes to Basic Financial Statements provide additional detail that is essential to a full understanding of the information provided in the City-wide and Fund Financial Statements. 6977 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 CITY-WIDE FINANCIAL ACTIVITIES This analysis 1focuses on the net position and changes in net position of the City’s Governmental Activities (Tables 1 and 2) and Business-Type Activities (Tables 3 and 4) as presented in the City-wide Statement of Net Position and the Statement of Activities. Governmental Activities Table 1 Condensed Statement of Net Position at June 30 (in thousands) Governmental Activities 2016 2015 Assets: Cash and investments $ 115,916 $ 121,058 Other assets 23,374 20,288 Capital assets 179,783 169,351 Total assets 319,073 310,697 Deferred Outflows of Resources: Related to Pension (Note 10) 3,664 3,662 Liabilities: Long term debt 35,835 37,925 Other liabilities 50,882 50,797 Total liabilities 86,717 88,722 Deferred Inflows of Resources: Related to Pension (Note 10) 1,826 4,880 Net Position: Net Investment in capital assets 148,168 131,426 Restricted 34,862 38,328 Unrestricted 51,164 51,004 Total net position $ 234,194 $ 220,757 The City’s change in net position from governmental activities was $13,436,612. The following significant changes within assets, liability, and net position categories occurred: Capital assets increased more than $10.4 million, as a result of substantial investment intocapital projects dedicated to street and transportation improvements, storm drainimprovements, and maintenance of and improvements to City facilities.Cash and investments decreased approximately $5.1 million reflecting the increase intransportation and street improvement project expenses incurred during 2015-16.Other assets increased just over $3.0 million as a result of increased accounts receivable inthe general fund. The receivable was primarily derived from an invoice to Apple Inc. forfunds needed on-hand prior to the City executing consultant agreements with for inspectionservices. The agreements are requirements of the development agreement between AppleInc. and the City. 7978 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Deposits payable in other liabilities increased by $2.6 million primarily due to developerdeposits that had not been recorded in the appropriate period. The City adjusted theGeneral Fund's beginning fund balance as of July 1, 2015, and recorded a deposit payableliability for $2.5 million (see Note 1 (p)). Sources of Revenue, Governmental Activities 2015-16 In 2015-16, the trend was a return to normalcy. Last fiscal year had substantial shifts across all governmental funds resulting from restatements needed to implement GASB 68 and 71 (standardization of pension liability calculations), spikes in sales tax revenues resulting from peak construction activity, heavy investment into CIP projects focused on transportation, and adjustments needed to better reflect activity of development agreements and the City’s commitments outlined in these agreements. Fiscal year 2015-16 was less eventful and shifts within the governmental funds are returning back to longer-term trends. Charges for  Services 25.3% Operating Grants  & Contributions  2.4% Capital Grants &  Contributions  0.5% Property Tax  23.3% Sales Tax 27.3% Transient  Occupancy Tax  7.5% Utility User Tax  4.3% Franchise Tax  4.5% Other Taxes 3.6% Investment  Earnings 1.0%Miscellaneous  0.3% 8979 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Functional Expenses, Governmental Activities 2015-16 The Statement of Activities presents program revenues, expenses, general revenues, and the resulting change in net position as summarized in the next table. 9980 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Table 2 Condensed Statement of Activities for the Year Ended June 30 (in thousands) Governmental Activities Expenses 2016 2015 Administration $ 3,710 $ 3,287 Law enforcement 11,316 10,705 Public and environmental affairs 575 650 Administrative services 2,995 4,300 Recreation services 5,758 5,365 Community development 6,260 5,977 Public works 31,313 27,893 Interest on long-term debt 1,078 1,120 Total expenses 63,005 59,297 Revenues Program revenues: Charges for services 19,749 14,615 Operating grants and contributions 1,851 6,003 Capital grants and contributions 362 4,022 Total program revenues 21,962 24,640 General revenues: Taxes: Property tax 11,864 10,179 Property tax in-lieu of motor vehicle fee 6,330 5,581 Sales tax 21,350 21,750 Transient occupancy tax 5,852 5,582 Utility user tax 3,371 2,862 Franchise tax 3,478 2,850 Other taxes 2,818 2,139 Intergovernmental, unrestricted: Motor vehicle license fee 24 24 Investment earnings 807 296 Gain on sale of capital assets 1 23,716 Miscellaneous 219 692 Total general revenues 56,115 75,671 Total revenues 78,077 100,311 Excess of revenues over expenses, before extraordinary item and transfers 15,072 41,014 Transfers (1,635)872 Change in net position 13,437 41,886 Beginning net position, as restated 220,757 181,398 Ending net position $ 234,194 $ 223,284 10981 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 City-wide Governmental Activities Revenues Table 2 shows that revenues from governmental activities decreased $22.2 million or 22% from last year, finishing at $78.0 million. In 2014-15, the City had a large one-time revenue of $23.7 million (Gain on Sale of Capital Assets) that temporarily boosted revenues. If these one-time revenues were removed from this calculation, the change in base revenues would be $1.5 million, or 2%. For general revenues, if the one-time gain were extracted from our calculation, general revenues would show a $4.2 million increase, or 8%. Most of this gain was attributable to a $2.4 million increase in property tax revenues which is more than a 15% increase. According to the Santa Clara County Assessor’s Annual Report for 2015-16, “In 2014, Cupertino’s growth in assessed value from new construction was $33 million. In 2015 it leaped to $958 million.” The same report showed that total assessed value increased more than $1.7 billion for 2015-16 and that partial value of the new Apple Campus 2 of $820 million in new construction contributed to that increase. The remaining general revenues contributed $1.7 million to the total gain in general revenues. Program revenues showed a decline of $2.7 million or 11%. There was a mix of changes in that charges for services revenues increased by $5.1 million while capital and operating grants and contributions declined by $7.8 million. The increase of $5.1 million in charges for services primarily resulted from payments made by Apple Inc. to satisfy outstanding amounts due from both 2014-15 and 2015-16 related to the development agreement between Apple Inc. and the City of Cupertino. The decline in capital and operating grants and contributions was mostly attributable to decreased housing mitigation payments resulting from a decline in development that did not provide its own housing component. In 2014-15, the City received over $4.0 million in housing mitigation payments, but in 2015-16 that revenue source only brought in $300,000. The other large decline occurred with federal and state grants related to transportation projects. In 2014-15, the Stevens Creek Corridor Park was completed and that project received $2.6 million in 2014-15. Additionally, $3.1 million of transportation grants were received in 2014-15 and as that activity declined in 2015-16, those revenue sources declined to $1.7 in 2015-16. City-wide Governmental Activities Expenses City-wide governmental activities increased expenses by $3.7 million or 6.3%. The largest expense contributing to this overall increase is attributable to inspection services needed for the Apple Campus 2 project. These expenses are primarily captured in the Public works activity which increased $3.4 million or 12.3% and are offset by corresponding revenues classified in the charges for services revenue category. Change in Net Position The City-wide governmental net position increase of $13.4 million was significantly lower than the increase of $41.9 million in 2014-15. This large decrease in change was mostly attributable to the $23.7 million gain on sale of a capital asset when the City sold the portion of Pruneridge Avenue that runs through the middle the Apple Campus 2 to Apple Inc. and the increase in capital asset additions going from $7.4 million to $10.5 million. 11982 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Business Type Activities Business-type activities in the City-wide Financial Statements include the City’s four enterprise funds. Enterprise funds are used to account for recreational and solid waste management operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing services and facilities to the general public on a continuing basis be financed or recovered primarily through user fees. The major proprietary funds section of this report provides more information on business-type results. As shown in Table 3, the business-type net position totaled $9.1 million at June 30, 2016, an increase of $400,000 from the prior year with unrestricted net position increasing $771,000 and the net investment in capital assets decreasing by $371,000. There are no substantial changes in assets, liabilities, and net position of business-type activities. In Table 4, revenues for all business-type activities remained flat at $7.7 million. However, operating expenses increased substantially by $1.3 million. These increased expenses were covered by transfers in from the general fund totaling $1.6 million, resulting in an increase in net position of $400,000. 2016 2015 Assets: Cash and investments 10,712$ 10,357$ Other assets 309 336 Capital assets 1,708 2,080 Total assets 12,730 12,773 Deferred Outflows of Resources: Related to pension 255 241 Other Liabilities:3,792 4,009 Total liabilities 3,792 4,009 Deferred Inflows of Resources: Related to pension 109 321 Net Position: Net Investment in capital assets 1,708 2,080 Unrestricted 7,375 6,604 Total net position 9,084$ 8,684$ Table 3 Condensed Statement of Net Position at June 30 (in thousands) Business Type Activities 12983 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Table 4 Condensed Statement of Activities for the Year Ended June 30 (in thousands) Business Type Activities Expenses 2016 2015 Resource recovery $ 2,997 $ 2,549 Blackberry farm 576 547 Sports center 2,299 2,269 Recreation programs 3,136 2,343 Total expenses 9,009 7,708 Revenues Program revenues: Charges for services 7,690 7,665 General revenues: Investment earnings 83 42 Total revenues 7,773 7,707 Excess of revenues over expenses, before extraordinary item and transfers (1,236)(1) Transfers 1,635 (872) Change in net position 399 (873) Beginning net position, as restated 8,684 9,557 Ending net position $ 9,084 $ 8,684 MAJOR GOVERNMENTAL FUNDS General Fund General Fund Revenues General Fund actual revenues of $77.9 million ended $9.7 million, or 14.2%, above the original and final budgets. Actual revenues were up $16.6 million or 27% when compared to 2014-15 actuals. Table 5 displays the variations in actual revenues, while Table 6 shows budgeted revenues compared to actuals. Charges for services contributed the most to the increase in actual general fund revenues with an increase of $12.0 million. The revenues went from $4.8 million in 2014-15 to $16.8 million in 2015-16. The largest contributors were payments made by Apple Inc. to satisfy outstanding amounts duefrom both 2014-15 and 2015-16. The outstanding amount from 2014-15 decreased charges for service revenues by $3.8 million, further exaggerating the incremental increase in the revenue category between 2014-15 and 2015-16. These payments were deposit requirements outlined in the development agreement between Apple Inc. and the City of Cupertino. Property taxes increased 16% or $2.4 million above last year. The increase is mostly due to higher property taxes resulting from incremental assessed value of $700 million from the new construction at the Apple Campus 2 development. The value of Apple’s business personal property also contributed to the increase which includes investments in computers, machinery, equipment, fixtures and furniture. Higher vehicle license fee (swap) revenues contributed $750,000 to the increase in property tax revenues. 13984 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Sales tax revenues were relatively flat with a small decline of $400,000. The remaining tax revenues for the General Fund (Transient Occupancy, Utility User, Franchise, and Other) collectively contributed $2.1 million to the year-over-year increase. The Other Tax revenue stream contributed the majority of these increased revenues with a $900,000 construction tax payment made by Apple Inc. related to its Apple Campus 2 development project. Revenues from use of money and property increased by $589,000 due to an increase in investment earnings and interest of $380,000 and the remainder of $209,000 was from increased activity in facility rentals. Intergovernmental revenues decreased just over $400,000 mostly due to state grants awarded in 2014-15, but not awarded in 2015-16. Licenses and permits included fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations. License and permit fees were flat from 2014-15 with a 3% decline, or $97,000. Fines and forfeitures were flat from 2014-15 with a 1% increase, or $8,000. Other revenues went from $523,000 in 2014-15 to $800,000 in 2015-16. The incremental revenues were the administrative charges applied to inspection service contractual expenses related to the Apple Campus 2 project as outlined in the development agreement between Apple Inc. and the City of Cupertino. In 2014-15, the City had a large one-time revenue of $23.8 million as a result of selling the portion of Pruneridge Avenue that runs through the middle of the Apple Campus 2 to Apple Inc. resulting in the large decline in Proceeds from sale of land category. A small transfer into the General Fund occurred in 2015-16 for $36,015 from an internal service fund. Table 5 Revenue Changes General Fund, Fiscal 2016 vs. 2015 (in thousands) Increase/(Decrease) Fiscal 2016 From Fiscal 2015 Revenue by Source Amount % of Total Amount Percent Taxes: Property $ 18,194 23% $ 2,442 16% Sales 21,350 27% (400) -2% Transient occupancy 5,852 8% 270 5% Utility user 3,371 4% 509 18% Franchise 3,478 4% 628 22% Other 2,541 3% 728 40% Use of money & property 1,362 2% 589 76% Intergovernmental 429 1% (403) -48% Licenses and permits 3,073 4% (97) -3% Charges for services 16,848 22% 12,028 250% Fines and forfeitures 559 1% 8 1% Other 800 1% 277 53% Total revenues $ 77,857 100% $ 16,579 27% Other financing sources: Proceeds from sale of land $ 1 0% $ (23,813) 0% Total other financing sources $ 1 0% $ (23,813) 0% 14985 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Table 6 Revenue, Budget and Actual Comparisons General Fund 2015-16 (in thousands) Budgeted Amounts Variance with Final Original Final Actual Positive/ (Negative) Taxes: Property $ 16,055 $ 16,055 $ 18,194 $ 2,139 Sales 20,360 20,360 21,350 990 Transient occupancy 5,072 5,072 5,852 780 Utility user 3,100 3,100 3,371 271 Franchise 2,800 2,800 3,478 678 Other 1,400 1,400 2,541 1,141 Use of money & property 743 743 1,362 620 Intergovernmental 600 600 429 (171) Licenses and permits 6,171 6,171 3,073 (3,098) Charges for services 10,591 10,958 16,848 5,890 Fines and forfeitures 550 585 559 (26) Other 697 346 800 453 Total revenues $ 68,138 $ 68,190 $ 77,857 $ 9,667 Transfers in $ 24 $ 60 $ 36 $ (24) Proceeds from Sale $ - $ - $ 1 $ 1 General Fund Expenditures Fiscal 2015-16 overall expenditures, at $51.9 million, were $4.8 million or 10% higher than last year. However, this result came in 11% or $6.4 million under the original budget and 12% or $6.8 million under the final budget. Year-over-year and budget-versus-actual results for General Fund programs are described below and in Tables 7 and 8. Administration remained flat from 2014-15 with only a $155,000 increase, or 4.0%, in 2015-16. Law enforcement was higher by $705,000, or 7%, which was the automatic increase in the existing contract with the Santa Clara County Sheriff’s Office triggered by increases in the lease and PERS costs. Public and environmental affairs (IT) and Administrative services both experienced a decrease in expenditures from 2014-15 to 2015-16 of 13%. For Public and environmental affairs (IT), the decreases were across all expenditure types and result from the arrival of the City’s new Chief Technology Officer and his strategic realignment of the department to City priorities. Administrative services’ decrease in expenditures was primarily attributable to vacancy savings as several positions were budgeted, but not filled for a meaningful part of the fiscal year. Recreation services general fund expenditure experienced an 8% increase of $394,000 across its programs. The majority of the expenditures increased in the salaries, benefits and contractual services categories. Community development expenditures in the General Fund increased primarily from higher contractual expenditures in the Planning and Building divisions. Planning’s contractual expenditures were primarily consultant services for completion of several 9212 reports. Building’s contractual expenditures were for inspection services related to Apple Campus 2 inspections. 15986 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Public Works expenditures remained relatively flat with a $370,000 increase, or 3%. The increases were consistently spread among all expenditure categories and do not indicate any anomalies are issues. Transfers out of the General Fund declined from $39.2 million in 2014-15 to $13.2 million, with $3.2 million for annual debt service, $6.3 million for capital projects in the Transportation Fund, $1.8 million to subsidize a state-mandated enforcement program and three Enterprise programs, and $1.9 million to internal service funds. Table 7 Expenditure Changes General Fund, Fiscal 2016 vs. 2015 (in thousands) Increase/(Decrease) Fiscal 2016 From Fiscal 2015 Function/Program Amount % of Total Amount Percent Administration $ 4,052 8% $ 155 4% Law enforcement 10,989 21% 705 7% Public and environmental affairs (IT) 545 1% (80) -13% Administrative services 2,811 5% (415) -13% Recreation services 5,441 10% 394 8% Community development 5,249 10% 1,066 25% Public works 13,115 25% 369 3% Capital outlay 9,657 19% 2,641 38% Total expenditures $ 51,859 100% $ 4,835 10% Transfers out $ 13,164 192% $ (26,013) -66% Table 8 Expenditure Changes General Fund 2015-16 (in thousands) Budgeted Amounts Variance with Final Original Final Actual Positive/ (Negative) Administration $ 5,111 $ 4,827 $ 4,052 $ 775 Law enforcement 10,995 11,055 10,989 66 Public and environmental affairs 462 575 545 30 Administrative services 5,092 5,711 2,811 2,900 Recreation services 5,992 6,193 5,441 752 Community development 6,071 5,601 5,249 352 Public works 14,496 14,625 13,115 1,510 Capital outlay 9,987 10,132 9,657 475 Total expenditures $ 58,204 $ 58,718 $ 51,859 $ 6,858 Transfers out $ 9,371 $ 13,128 $ 13,164 $ 36 16987 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 General Fund - Fund Balance The General Fund carried a June 30, 2016, ending fund balance of $52,194,840, up 33% or $12.9 from beginning of the fiscal year, after restatement for the prior period adjustment described in Note 1(p) of the Basic Financial Statements. The City assigned $19.0 million for general economic uncertainty, $1.4 million for economic fluctuations, and $100,000 for potential pension liabilities. Loan receivables and prepaid expenses totaled $937,381 of non-spendable fund balance and $888,374 was restricted for Public access television purposes. Public Facilities Corporation A transfer of $3,167,033 was made from the General Fund to the Public Facilities Corporation Debt Service Fund to cover principal and interest on the 2012 Certificates of Participation lease payments. See Notes 4 and 6 to the Basic Financial Statements and the Debt Administration section of this analysis for more information. MAJOR PROPRIETARY FUNDS Resource Recovery The City has a solid waste franchise agreement with Recology that shares collection, landfill disposal, and recycling revenues and costs. This fund receives 17% of Recology revenues with the funds going toward landfill costs, regulatory fees, and staffing costs that the City incurs to manage its solid waste, recycling, and household hazardous waste programs. Because of the steady economy and stable tonnage that Recology handled, this fund experienced a 2.8% increase in residential and commercial revenues. These revenues, however, were offset by 17.6% higher contract expenses for landfill disposal. Total operating revenue rose from $2,591,000 last year to $2,664,000 this year, while expenses increased by $449,000. Net position decreased by $280,000. The fund ended the year with a $5,454,010 net position. Blackberry Farm City employees, with a teaching professional contractor, staff the City-owned Blackberry Farm golf course and pro shop. Operating revenues declined 13.8% from $388,000 to $335,000. Operating expenses increased by $29,000 to $576,000 this year due to increased contract services costs and capital investment in the golf course turf. Altogether, the golf course’s operating loss increased from $159,000 last year to $242,000 this year. After a transfer in from the General Fund of $262,000 (increase of $148,000), net position increased $27,000. As of June 30, 2016, this fund’s net position was $572,586. Cupertino Sports Center Tennis lesson, membership, fitness class and rent revenues of $2,224,000 increased by $72,000 or 3.3% over last year, resulting from moderate increases across the Sport Center’s major revenue sources. Expenses, on the other hand, increased by $30,000 or 1.3%, reducing the net operating loss to $75,000. In 2014-15, net operating loss was $117,000. This operating loss improved by $42,000 from 2014-15. Additionally, $658,000 was transferred in from the general fund. As of June 30, 2016, this fund’s net position was $886,842. 17988 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 Recreation Programs This enterprise operates the Quinlan Community Center, Monta Vista Recreation Center, McClellan Ranch, Creekside Park building, eight school sites, and various parks. The improved economy and enhanced marketing helped cultural events, youth and teen programs, sports, dance and fitness classes generate $2,466,000 in revenues that were 2.6% lower than last year. Ongoing program expenses of $3,136,000 included full-time administrative and programming staff, part-time activity leaders, class instructors on contract, and two capital projects to improve the Sport Center sport court and the interior of Quinlan. This resulted in a net operating loss of $670,000 as compared to operating income of $190,000 a year ago. This year a transfer in from the General Fund was made for $715,000. After the transfer, the fund ended up with an increase in net position of $61,000 and a net position of $2,170,189. CAPITAL ASSETS At June 30, 2016, the City had $181.5 million, net of depreciation, invested in a broad range of capital assets used in governmental and business-type activities, as shown in Table 9 and in Note 5 to the Basic Financial Statements. This reflects the City’s continued investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $10.1 million, after depreciation. Table 9 Capital Assets, Net of Depreciation, at June 30 (in thousands) 2016 2015 Governmental Activities: Land $ 62,046 $ 62,046 Easements 19,492 19,492 Construction in Progress 760 197 Buildings 19,770 21,445 Improvements other than buildings 16,974 15,890 Machinery and equipment 2,761 2,272 Roads, curbs, gutters, sidewalks, medians and bridges 50,245 43,000 Streetlights 1,613 1,721 Storm drain structures and mains 5,174 2,272 Traffic signals 948 1,015 Total Governmental Activities 179,783 169,350 Business-Type Activities Buildings 501 516 Improvements other than buildings 1,207 1,550 Machinery and equipment 0 14 Total Business-Type Activities 1,708 2,080 Total City $ 181,491 $ 171,430 18989 CITY OF CUPERTINO Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2016 DEBT ADMINISTRATION The City’s only long-term debt liability at June 30, 2016, comes from $43,940,000 in Certificates of Participation (COPs) issued in May 2012 by the Cupertino Public Facilities Corporation. The certificates refunded previously issued COPs that financed Wilson Park, Blackberry Farm, and Creekside Park purchases, the Memorial Park expansion, the Quinlan Community Center construction, the City Hall remodel, and the new library opened in 2004. The serial fixed rate debt ranging from 0.35% to 3.125% requires annual debt payments of approximately $3,168,000 that are covered by the General Fund. The June 30, 2016, outstanding principal of $35,835,000 is due to be paid off by 2030. More information can be found in Note 6 to the Basic Financial Statements and in the Public Facilities Corporation discussion earlier in this analysis. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This Comprehensive Annual Financial Report is intended to provide a general overview of the City’s finances. Further information can be provided by the City of Cupertino Finance Department, 10300 Torre Avenue, Cupertino CA 95014, phone (408) 777-3280, or by the City website at www.cupertino.org. 19990 This Page Left Intentionally Blank 991 STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis – the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated. The Statement of Net Position reports the difference between the City’s total assets and deferred outflows and the City’s total liabilities and deferred inflows, including all the City’s capital assets and all its long- term debt. The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a Total column which presents the financial position of the entire City. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business Type Activities include all of its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures. The format of the Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues, that are revenues which are generated directly by these programs, are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position. Both these Statements include the financial activities of the City and the Cupertino Public Facilities Corporation, which is a legally separate component unit of the City because it is controlled by and financially accountable to the City. 21992 CITY OF CUPERTINO STATEMENT OF NET POSITION JUNE 30, 2016 Governmental Business-Type Activities Activities Total ASSETS Cash and investments (Note 2) $111,695,321 $10,712,075 $122,407,396 Restricted cash and investments (Note 2) 4,220,380 4,220,380 Receivables: Accounts 11,203,245 309,387 11,512,632 Interest 52,606 52,606 Loans (Note 3) 1,523,627 1,523,627 Prepaid expenses and other assets 102,324 102,324 Net OPEB asset (Note 11) 10,492,537 10,492,537 Capital assets (Note 5): Non-depreciable 82,297,646 82,297,646 Depreciable, net of accumulated depreciation 97,485,048 1,708,183 99,193,231 Total Assets 319,072,734 12,729,645 331,802,379 DEFERRED OUTFLOWS OF RESOURCES Related to pension (Note 10) 3,664,093 254,989 3,919,082 LIABILITIES Accounts payable and accruals 8,055,323 1,110,847 9,166,170 Accrued payroll and benefits 15,721 289 16,010 Deposits 9,747,271 9,747,271 Unearned revenue 155,441 569,535 724,976 Compensated absences (Note 1g): Due in one year 381,994 93,436 475,430 Due in more than one year 2,424,192 126,702 2,550,894 Claims payable (Note 9): Due in one year 489,499 489,499 Due in more than one year 991,599 991,599 Long-term debt (Note 6): Due in one year 2,135,000 2,135,000 Due in more than one year 33,700,000 33,700,000 Net pension liability (Note 10)28,621,153 1,891,424 30,512,577 Total Liabilities 86,717,193 3,792,233 90,509,426 DEFERRED INFLOWS OF RESOURCES Related to pension (Note 10)1,825,690 108,774 1,934,464 NET POSITION (Note 7) Net investment in capital assets 148,168,074 1,708,183 149,876,257 Restricted for: Special revenue projects 20,424,234 20,424,234 Affordable housing 12,840,591 12,840,591 Debt service 1,596,982 1,596,982 Total Restricted Net Position 34,861,807 34,861,807 Unrestricted 51,164,063 7,375,444 58,539,507 Total Net Position $234,193,944 $9,083,627 $243,277,571 See accompanying notes to financial statements 22993 CITY OF CUPERTINO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: Administration $3,710,388 $369,069 $29,850 ($3,311,469) ($3,311,469) Law enforcement 11,316,271 664,483 120,732 (10,531,056) (10,531,056) Public and environmental affairs 575,260 41,352 (533,908) (533,908) Administrative services 2,994,611 359,148 (2,635,463) (2,635,463) Recreation services 5,758,194 1,421,185 (4,337,009) (4,337,009) Community development 6,259,734 10,534,457 310,445 4,585,168 4,585,168 Public works 31,313,396 6,358,870 1,390,255 $362,491 (23,201,780) (23,201,780) Interest on long - term debt 1,077,538 (1,077,538) (1,077,538) Total Governmental Activities 63,005,392 19,748,564 1,851,282 362,491 (41,043,055) (41,043,055) Business-type Activities: Resource recovery 2,997,200 2,664,888 ($332,312) (332,312) Blackberry farm 576,177 334,529 (241,648) (241,648) Cupertino sports center 2,299,210 2,224,146 (75,064) (75,064) Recreation programs 3,136,011 2,466,336 (669,675) (669,675) Total Business-type Activities 9,008,598 7,689,899 (1,318,699) (1,318,699) Total $72,013,990 $27,438,463 $1,851,282 $362,491 (41,043,055) (1,318,699) (42,361,754) General revenues: Taxes: Property taxes 11,864,027 11,864,027 Property tax in lieu of motor vehicle fee 6,330,436 6,330,436 Sales taxes 21,350,056 21,350,056 Transient occupancy tax 5,852,244 5,852,244 Utility user tax 3,370,830 3,370,830 Franchise tax 3,478,024 3,478,024 Other taxes 2,818,019 2,818,019 Intergovernmental, unrestricted: Motor vehicle license fee 24,111 24,111 Investment earnings 807,287 83,187 890,474 Gain on sale of capital assets 580 580 Miscellaneous 219,053 219,053 Transfers (Note 4)(1,635,000) 1,635,000 Total general revenues and transfers 54,479,667 1,718,187 56,197,854 Change in Net Position 13,436,612 399,488 13,836,100 Net Position, beginning of year, as restated (Note 1(p))220,757,332 8,684,139 229,441,471 Net Position, end of year $234,193,944 $9,083,627 $243,277,571 See accompanying notes to financial statements 23994 This Page Left Intentionally Blank 995 FUND FINANCIAL STATEMENTS In the Fund Financial Statements only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Funds by the City for fiscal 2015-16. Individual non-major funds may be found in the Supplemental section. GENERAL FUND The general fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund. TRANSPORTATION SPECIAL REVENUE FUND Accounts for the City’s gas tax, vehicle registration fees and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes including related engineering and administrative expenditures. HOUSING DEVELOPMENT SPECIAL REVENUE FUND Accounts for the Federal Housing and Community Development Grant Program activities administered through the Country. Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program’s rules. PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities. CAPITAL IMPROVEMENT PROJECTS CAPITAL PROJECTS FUND This fund accounts for activities related to the acquisition or construction of major capital facilities. 25996 Public Facilities Corporation Housing Debt General Transportation Development Service Fund ASSETS Cash and investments (Note 2) $54,282,490 $10,458,625 $12,366,743 $5,371 Restricted cash and investments (Note 2)4,220,380 Receivables: Accounts 11,181,310 1,490 Interest 52,606 Loans (Note 3) 868,608 655,019 Due from other funds (Note 4) 450,220 Prepaid items 68,773 Other assets 3,884 Total Assets $66,907,891 $10,460,115 $13,021,762 $4,225,751 LIABILITIES Accounts payable and accruals $4,794,690 $379,361 $88,596 $2,628,769 Accrued payroll and benefits 15,649 Deposits 9,747,271 Unearned revenue 155,441 Total Liabilities 14,713,051 379,361 88,596 2,628,769 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - loans 92,575 Total Deferred Inflows of Resources 92,575 FUND BALANCES (Note 7): Nonspendable 937,381 Restricted 888,374 8,682,089 12,840,591 1,596,982 Committed 1,398,665 Assigned 20,500,000 Unassigned 29,869,085 Total Fund Balances 52,194,840 10,080,754 12,840,591 1,596,982 Total Liabilities, Deferred Inflows of Resources and Fund Balances $66,907,891 $10,460,115 $13,021,762 $4,225,751 See accompanying notes to financial statements CITY OF CUPERTINO GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2016 Special Revenue Funds 26997 Capital Improvement Projects Other Total Capital Governmental Governmental Projects Fund Funds Funds $15,102,414 $11,120,291 $103,335,934 4,220,380 7,500 11,190,300 52,606 1,523,627 450,220 68,773 3,884 $15,102,414 $11,127,791 $120,845,724 $27,606 $4,637 $7,923,659 15,649 9,747,271 155,441 27,606 4,637 17,842,020 92,575 92,575 937,381 10,853,771 34,861,807 1,398,665 15,074,808 269,383 35,844,191 29,869,085 15,074,808 11,123,154 102,911,129 $15,102,414 $11,127,791 $120,845,724 27998 This Page Left Intentionally Blank 999 CITY OF CUPERTINO Reconciliation of the GOVERNMENTAL FUNDS -- BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30, 2016 Total fund balances reported on the governmental funds balance sheet $102,911,129 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following: CAPITAL ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds.177,573,297 ALLOCATION OF INTERNAL SERVICE FUND NET POSITION Internal service funds are used by management to charge the costs of activities such as information technology, insurance, equipment acquisition and maintenance, and certain employees' benefits to governmental funds. The assets and liabilities of the internal service funds are therefore included in the governmental activities of the statement of net position.18,690,745 RECEIVABLES NOT AVAILABLE Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds.92,575 LONG TERM ASSETS AND LIABILITIES The assets and liabilities below are not due and payable in the current period and therefore are not reported in the governmental funds: Long-term debt (35,835,000) Net pension liability and pension-related deferred outflows/inflows of resources (26,782,750) Compensated absences (2,456,052) NET POSITION OF GOVERNMENTAL ACTIVITIES $234,193,944 See accompanying notes to financial statements 291000 Public Facilities Corporation Housing Debt General Transportation Development Service Fund REVENUES Taxes $54,786,297 $299,586 Use of money and property 1,362,393 $84,189 108,699 $4,796 Intergovernmental 428,992 1,701,151 401,882 Licenses and permits 3,073,110 Charges for services 16,848,153 Fines and forfeitures 558,516 Other revenue 799,587 1,710 Total Revenues 77,857,048 1,787,050 810,167 4,796 EXPENDITURES Current: Administration 4,052,241 1,500 Law enforcement 10,988,735 Public and environmental affairs 544,718 Administrative services 2,811,117 Recreation services 5,441,200 Community development 5,248,841 853,979 Public works 13,115,155 1,465,970 Capital outlay 9,657,394 9,670,430 Debt service: Principal 2,090,000 Interest and fiscal charges 1,077,538 Total Expenditures 51,859,401 11,136,400 853,979 3,169,038 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 25,997,647 (9,349,350) (43,812) (3,164,242) OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets 580 Transfers in (Note 4) 36,015 8,574,000 3,167,033 Transfers (out) (Note 4) (13,163,945) Total Other Financing Sources (Uses) (13,127,350) 8,574,000 3,167,033 NET CHANGE IN FUND BALANCES 12,870,297 (775,350) (43,812) 2,791 BEGINNING FUND BALANCES, AS RESTATED (Note 1(p)) 39,324,543 10,856,104 12,884,403 1,594,191 ENDING FUND BALANCES $52,194,840 $10,080,754 $12,840,591 $1,596,982 See accompanying notes to financial statements CITY OF CUPERTINO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 Special Revenue Funds 301001 Capital Improvement Projects Other Total Capital Governmental Governmental Projects Fund Funds Funds $377,073 $55,462,956 94,625 1,654,702 2,532,025 3,073,110 400,970 17,249,123 6,387 564,903 487,716 1,289,013 1,366,771 81,825,832 4,053,741 10,988,735 544,718 2,811,117 5,441,200 6,102,820 497,049 15,078,174 $3,042,267 3,801,036 26,171,127 2,090,000 1,077,538 3,042,267 4,298,085 74,359,170 (3,042,267) (2,931,314) 7,466,662 580 128,676 11,905,724 (2,258,268)(15,422,213) (2,258,268) 128,676 (3,515,909) (5,300,535) (2,802,638) 3,950,753 20,375,343 13,925,792 98,960,376 $15,074,808 $11,123,154 $102,911,129 311002 CITY OF CUPERTINO Reconciliation of the NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $3,950,753 Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSETS TRANSACTIONS Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. Expenditures for capital assets reported as: Capital outlay 16,597,102 Depreciation expense is deducted from the fund balance (6,711,704) Net retirements are deducted from the fund balance (24,939) LONG TERM DEBT TRANSACTIONS Principal payments 2,090,000 ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change): Accounts receivable (3,823,870) Compensated absences 94,356 Net pension liability and pension-related deferred outflows/inflows of resources 591,785 Claims payable 156,900 ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities. Change in Net Position - All Internal Service Funds 516,229 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $13,436,612 See accompanying notes to financial statements 321003 CITY OF CUPERTINO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Revenues: Taxes $48,787,000 $48,787,000 $54,786,297 $5,999,297 Use of money and property 742,530 742,530 1,362,393 619,863 Intergovernmental 600,000 600,000 428,992 (171,008) Licenses and permits 6,171,000 6,171,000 3,073,110 (3,097,890) Charges for services 10,590,878 10,957,878 16,848,153 5,890,275 Fines and forfeitures 550,000 585,000 558,516 (26,484) Other revenue 696,895 346,389 799,587 453,198 Amounts available for appropriation 68,138,303 68,189,797 77,857,048 9,667,251 Charges for appropriation (outflows): Current Administration 5,110,505 4,826,816 4,052,241 774,575 Law enforcement 10,994,684 11,054,684 10,988,735 65,949 Public and environmental affairs 462,298 574,782 544,718 30,064 Administrative services 5,091,571 5,710,774 2,811,117 2,899,657 Recreation services 5,991,882 6,192,890 5,441,200 751,690 Community development 6,070,550 5,600,631 5,248,841 351,790 Public works 14,495,667 14,624,710 13,115,155 1,509,555 Capital outlay 9,986,674 10,132,449 9,657,394 475,055 Total charges for appropriations 58,203,831 58,717,736 51,859,401 6,858,335 EXCESS OF REVENUES OVER EXPENDITURES 9,934,472 9,472,061 25,997,647 16,525,586 OTHER FINANCING SOURCES (USES) Proceeds from sale of land 580 580 Transfers in 24,000 60,015 36,015 (24,000) Transfers (out)(9,371,222) (13,127,932) (13,163,945) (36,013) Total other financing sources (uses)(9,347,222) (13,067,917) (13,127,350) (59,433) NET CHANGE IN FUND BALANCE $587,250 ($3,595,856) 12,870,297 $16,466,153 BEGINNING FUND BALANCE, AS RESTATED (Note 1(p))39,324,543 ENDING FUND BALANCE $52,194,840 See accompanying notes to financial statements 331004 CITY OF CUPERTINO TRANSPORTATION SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Revenues: Use of money and property $84,189 $84,189 Intergovernmental $951,414 $951,414 1,701,151 749,737 Other revenue 1,710 1,710 Amounts available for appropriation 951,414 951,414 1,787,050 835,636 Charges for appropriation (outflows): Current Public works 1,589,761 1,554,304 1,465,970 88,334 Capital outlay 9,390,000 9,659,554 9,670,430 (10,876) Total charges for appropriations 10,979,761 11,213,858 11,136,400 77,458 EXCESS OF REVENUES OVER EXPENDITURES (10,028,347) (10,262,444) (9,349,350) 913,094 OTHER FINANCING SOURCES (USES) Transfers in 9,966,353 9,990,353 8,574,000 (1,416,353) Total other financing sources (uses) 9,966,353 9,990,353 8,574,000 (1,416,353) NET CHANGE IN FUND BALANCE ($61,994) ($272,091) (775,350) ($503,259) BEGINNING FUND BALANCE 10,856,104 ENDING FUND BALANCE $10,080,754 See accompanying notes to financial statements 341005 CITY OF CUPERTINO HOUSING DEVELOPMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Revenues: Taxes $566,652 $566,652 $299,586 ($267,066) Use of money and property 28,000 108,699 108,699 Intergovernmental 310,943 401,882 401,882 Licenses and permits 61,306 61,306 (61,306) Amounts available for appropriation 966,901 627,958 810,167 182,209 Charges for appropriation (outflows): Current Community development 898,527 875,524 853,979 21,545 Capital outlay 40,000 Total charges for appropriations 938,527 875,524 853,979 21,545 EXCESS OF REVENUES OVER EXPENDITURES 28,374 (247,566) (43,812) 203,754 OTHER FINANCING SOURCES (USES) Transfers in 245,238 245,238 (245,238) Total other financing sources (uses) 245,238 245,238 (245,238) NET CHANGE IN FUND BALANCE $273,612 ($2,328) ($43,812) ($41,484) BEGINNING FUND BALANCE 12,884,403 ENDING FUND BALANCE $12,840,591 See accompanying notes to financial statements 351006 This Page Left Intentionally Blank 1007 MAJOR PROPRIETARY FUNDS Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City has identified the funds below as major proprietary funds for fiscal 2015-16. RESOURCES RECOVERY FUND This fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services. BLACKBERRY FARM FUND This fund accounts for activities related to operating the City-owned golf course. CUPERTINO SPORTS CENTER FUND This fund accounts for the operation and maintenance of the Cupertino Sports Center. RECREATION PROGRAMS FUND This fund accounts for activities of the City’s community centers and park facilities. 371008 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2016 Business-type Activities-Enterprise Funds Governmental Cupertino Activities- Resources Blackberry Sports Recreation Internal Service Recovery Farm Center Programs Totals Funds ASSETS Current Assets: Cash and investments (Note 2) $6,433,913 $800,706 $1,249,774 $2,227,682 $10,712,075 $8,359,387 Accounts receivable 302,144 7,243 309,387 12,945 Prepaid items 29,667 Total current assets 6,736,057 800,706 1,257,017 2,227,682 11,021,462 8,401,999 Noncurrent assets: Net OPEB asset (Note 11)10,492,537 Capital Assets (Note 5): Depreciable, net of accumulated depreciation 17,987 29,262 336,690 1,324,244 1,708,183 2,209,397 Total noncurrent assets 17,987 29,262 336,690 1,324,244 1,708,183 12,701,934 Total Assets 6,754,044 829,968 1,593,707 3,551,926 12,729,645 21,103,933 DEFERRED OUTFLOWS OF RESOURCES Related to pension (Note 10) 83,645 25,550 55,285 90,509 254,989 LIABILITIES Current Liabilities: Accounts payable and accruals 657,977 35,420 202,039 215,411 1,110,847 131,664 Accrued payroll and benefits 289 289 72 Due to other funds (Note 4)450,220 Compensated absences (Note 1g) 31,858 18,799 5,772 37,007 93,436 47,662 Claims payable (Note 9)489,499 Unearned revenue 110,144 459,391 569,535 Total current liabilities 690,124 54,219 317,955 711,809 1,774,107 1,119,117 Non-current Liabilities: Compensated absences (Note 1g) 43,201 25,493 7,826 50,182 126,702 302,472 Claims payable (Note 9)991,599 Net pension liability (Note 10) 622,976 188,309 408,887 671,252 1,891,424 Total Liabilities 1,356,301 268,021 734,668 1,433,243 3,792,233 2,413,188 DEFERRED INFLOWS OF RESOURCES Related to pension (Note 10) 27,378 14,911 27,482 39,003 108,774 NET POSITION (Note 7) Net investment in capital assets 17,987 29,262 336,690 1,324,244 1,708,183 2,209,397 Unrestricted 5,436,023 543,324 550,152 845,945 7,375,444 16,481,348 Total Net Position $5,454,010 $572,586 $886,842 $2,170,189 $9,083,627 $18,690,745 See accompanying notes to financial statements 381009 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2016 Business-type Activities-Enterprise Funds Governmental Cupertino Activities- Resources Blackberry Sports Recreation Internal Service Recovery Farm Center Programs Totals Funds OPERATING REVENUES Charges for services $2,576,077 $312,065 $2,222,609 $2,466,336 $7,577,087 $4,693,577 Other 88,811 22,464 1,537 112,812 29,320 Total Operating Revenues 2,664,888 334,529 2,224,146 2,466,336 7,689,899 4,722,897 OPERATING EXPENSES Salaries and benefits 524,211 148,586 388,508 749,350 1,810,655 2,745,365 Materials and supplies 98,965 146,119 389,498 612,144 1,246,726 1,447,713 Contractual services 2,368,232 261,354 1,481,136 1,452,267 5,562,989 719,007 Insurance and claims and premium 576,653 Depreciation (Note 5)5,792 20,118 40,068 322,250 388,228 695,825 Total Operating Expenses 2,997,200 576,177 2,299,210 3,136,011 9,008,598 6,184,563 Operating Income (Loss)(332,312) (241,648) (75,064) (669,675) (1,318,699) (1,461,666) NONOPERATING REVENUES Investment income 52,789 6,756 7,953 15,689 83,187 74,462 Gain on sale of land 21,944 Total Nonoperating Revenues 52,789 6,756 7,953 15,689 83,187 96,406 Income (Loss) Before Transfers (279,523) (234,892) (67,111) (653,986) (1,235,512) (1,365,260) Transfers in (Note 4) 262,008 657,732 715,260 1,635,000 1,917,504 Transfers (out) (Note 4)(36,015) Change in net position (279,523) 27,116 590,621 61,274 399,488 516,229 Net Position-Beginning of year 5,733,533 545,470 296,221 2,108,915 8,684,139 18,174,516 Net Position-End of year $5,454,010 $572,586 $886,842 $2,170,189 $9,083,627 $18,690,745 See accompanying notes to financial statements 391010 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2016 Business-type Activities-Enterprise Funds Governmental Cupertino Activities- Resources Blackberry Sports Recreation Internal Service Recovery Farm Center Programs Totals Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $2,682,661 $334,529 $2,232,524 $2,355,439 $7,605,153 $4,709,952 Cash payments to suppliers for goods and services (2,727,101) (381,796) (1,862,986) (2,030,258) (7,002,141) (2,214,064) Cash payments to employees for salaries and benefits (554,635) (161,019) (418,109) (815,717) (1,949,480) (2,813,371) Cash payments for judgment and claims (1,128,734) Net cash provided (used) by operating activities (599,075) (208,286) (48,571) (490,536) (1,346,468) (1,446,217) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 262,008 657,732 715,260 1,635,000 1,917,504 Transfers (out)(36,015) Cash Flows from Noncapital Financing Activities 262,008 657,732 715,260 1,635,000 1,881,489 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (16,849) (1) (16,850) (1,245,439) Cash Flows from Capital and Related Financing Activities (16,849)(1) (16,850) (1,245,439) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 52,764 6,755 7,953 15,689 83,161 74,462 Cash Flows from Investing Activities 52,764 6,755 7,953 15,689 83,161 74,462 Net Cash Flows (546,311) 60,477 600,265 240,412 354,843 (735,705) Cash and investments at beginning of year 6,980,224 740,229 649,509 1,987,270 10,357,232 9,095,092 Cash and investments at end of year $6,433,913 $800,706 $1,249,774 $2,227,682 $10,712,075 $8,359,387 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) ($332,312) ($241,648) ($75,064) ($669,675) ($1,318,699) ($1,461,666) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 5,792 20,118 40,068 322,250 388,228 695,825 Change in assets and liabilities: Accounts receivable 17,773 9,363 27,136 (12,945) Prepaid expense 24,206 Net OPEB asset 1,866 Due to retirement system (20,062) (4,564) (11,019) (19,470) (55,115) Accounts payable and accruals (259,904) 25,677 7,648 34,153 (192,426) (71,550) Accrued payroll and benefits (17,369) (7,779) (16,733) (55,433) (97,314) (63,626) Deposits (6,246) Deferred revenue 8,378 (120,260) (111,882) Compensated absences 7,007 (90) (1,849) 8,536 13,604 Claims payable (552,081) Net cash provided (used) by operating activities ($599,075)($208,286) ($48,571) ($490,536) ($1,346,468) ($1,446,217) See accompanying notes to financial statements 401011 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Reporting Entity The City of Cupertino, California (the City) was incorporated on October 3, 1955, under the laws of the State of California. The City operates under a Council - City Manager form of government and provides services through the following departments: Administrative Services, Community Development, City Manager, Parks and Recreation, Public and Environmental Affairs, and Public Works. Fire services are provided by the Santa Clara County Fire District, and the City contracts with the Santa Clara County Sheriff’s Department for police services, and with Recology for garbage and recycling services. The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City’s blended component unit entity for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from this unit is combined with the City. Blended component unit - The Cupertino Public Facilities Corporation (the Corporation) was incorporated in May 1986, under the Nonprofit Public Benefit Corporation Law of the State of California. The Corporation was organized as a nonprofit corporation for the purpose of assisting the City in the acquisition, construction, and financing of public improvements which are of public benefit to the City. The Corporation, after acquiring certain properties from the City, leases these back to the City. The lease money provides the funds for the debt service for the Certificates of Participation issued by the Corporation to acquire the properties. The Corporation does not issue separate financial statements, since it is reported separately in the City’s basic financial statements. (b) Measurement Focus, Basis of Accounting and Basis of Presentation The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States. The Government Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. Government-wide Statements - The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. 411012 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The Statement of Activities presents a comparison between expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Expenses include direct and indirect types. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses such as depreciation, information technology, insurance and equipment replacement are included in expenses for individual activities and functions. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital needs of a particular program. Revenues that are not classified as program revenues, including taxes, are presented as general revenues. Program revenues and direct expenses related to interfund services are included and indirect expenses funded by interfund transfers are excluded from the Statement of Activities. The Statement of Net Position eliminates interfund balances between governmental funds and interfund balances between proprietary funds. Fund Financial Statements - The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Major Funds - The City’s major governmental and enterprise funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund type. Major funds are defined as funds, which have either assets (plus deferred outflows), liabilities (plus deferred inflows), revenues or expenditures in excess of ten percent of their fund-type total and five percent of the aggregate total for both governmental funds and enterprise funds. The General Fund is always a major fund. The City may select other funds it believes should be presented as major funds. 421013 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The City reported the following major governmental funds in the accompanying financial statements:  The General Fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.  The Transportation Special Revenue Fund accounts for the City’s gas tax, vehicle registration fees and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes including related engineering and administrative expenses.  The Housing Development Special Revenue Fund accounts for the Federal Housing and Community Development Grant Program activities administered through the County. Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program’s rules.  The Public Facilities Corporation Debt Service Fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of City Hall, Library, Wilson Park, Memorial Park, and other City facilities.  Capital Improvement Projects Capital Projects Fund Accounts for activities related to the acquisition or construction of major capital facilities. The City reports all its enterprise funds as major funds in the accompanying financial statements:  The Resources Recovery Fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services.  The Blackberry Farm Fund accounts for activities related to the municipal golf course.  The Cupertino Sports Center Fund accounts for the operation and maintenance of the Cupertino Sports Center.  The Recreation Programs Fund accounts for activities of the City’s community centers and park facilities. The City also reports the following fund types: Internal Service Funds. These funds account for workers’ compensation, management information systems maintenance and replacement, equipment maintenance and replacement, retiree health costs, accrued leave payouts, and long-term disability coverage; all of which are provided to other departments on a cost-reimbursement basis. Basis of Accounting - The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. 431014 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt which are recognized as expenditures to the extent the City has provided financial resources to a debt service fund for payment of these liabilities that mature early in the following year. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions under capital leases are reported as other financing sources. Unearned revenues are considered on a full accrual basis, while unavailable revenues are based on the modified accrual measure. Property taxes, transient occupancy taxes, utility taxes, franchise taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes are recognized as revenue when the cash is received. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Sales tax consultant payments which are contingent on revenues collected are netted against the related revenues. Under the terms of grant agreements, the City may fund certain programs with a combination of cost- reimbursement grants, categorical block grants, and general revenue. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Grant revenues are recognized after eligibility and billing occurs, but may be a deferred inflow if not received within sixty days of year-end. Because of the cost-reimbursement and recognition nature of some grants, certain capital project funds may carry deficit fund balances until billing and receipt of grants. The City may also front the capital outlays with cash advances from other funds. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants is recognized as described above. Entitlement and donation revenues are recognized when cash is received. 441015 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Budgetary Practices The budget of the City is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services and activities to be provided during the fiscal year; (2) estimated revenue available to finance the operating plan; and (3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled. The City prohibits expending funds for which there is no legal appropriation. Operating appropriations lapse at fiscal year end. In May of each year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning July 1. Public hearings on the proposed budget are held during the month of June and the budgets for all fund types are legally adopted by Resolution prior to June 30. Original budget amounts are presented on the accompanying budgetary statements include these legally adopted amounts. The City’s legal level of budgetary control is at the functional level for the general fund and at the fund level for other funds. The City Manager is responsible for controlling the City’s expenditures in accordance with the adopted budget. The City Manager is authorized to administer and transfer appropriations between budget accounts within the operating budget when in his opinion such transfers become necessary for administrative purposes. Any revision which increases total appropriations must be approved by the City Council. Requests for additional personnel or capital outlay also require the approval of the City Council. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles. Budget information is presented for the general, special revenue and debt service funds only. Capital projects funds are budgeted on a long-term project-by-project basis and, hence, budgets for these funds are not presented in the basic financial statements. During the fiscal year, expenditures exceeded appropriations as follows: Fund/Department Excess of Expenditures Over Major Fund: Public Facilities Corporation Debt Service Fund $1,500 (d) Cash and Investments The City pools its cash resources, consisting of cash and investments, of all funds for investment except for restricted funds generally held by an outside fiscal agent. Cash amounts are reported net of outstanding warrants. Investments are stated at fair value. (e) Capital Assets Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value on the date donated. Public domain (infrastructure) capital assets consisting of roads, bridges, curbs, gutters, medians, sidewalks, drainage and lighting systems have been capitalized and depreciated. Capital assets are defined as assets with an initial individual cost of more than $5,000 for general capital assets and $100,000 for intangible assets. 451016 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (e) Capital Assets (Continued) Depreciation is recorded using the straight-line method over the following useful lives: Years Buildings 15 - 25 Improvements 10 - 15 Vehicles 4 - 10 Street equipment 3 - 20 Water equipment 3 - 50 Office equipment 3 - 5 Road, curbs, gutters, sidewalks, medians and bridges 30 - 40 Streetlights 20 Storm drain structure and mains 40 Traffic signals 20 Major outlays for capital assets and improvements are capitalized as projects are constructed. For enterprise funds, interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed. (f) Claims and Judgment Payable Claims and judgments payable are accrued when the liability is incurred and the amount can be reasonably estimated. Claims and judgments payable are recorded in an internal service fund for workers’ compensation and long-term disability, and other claims and judgments are recorded in the General Fund or enterprise funds, as appropriate. (g) Compensated Absences Compensated absences comprise vested accumulated vacation and sick leave. The City’s liability for compensated absences is recorded in governmental or business-type activities as appropriate. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be “permanently liquidated,” such as what is due to be paid because of a realized employment action, are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position. Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences are liquidated primarily by the General Fund, using the Compensated Absences and Long-Term Disability internal service fund to account for termination payouts. 461017 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The changes in compensated absences for the year ended June 30, 2016 were as follows: Governmental Activities Business-Type Activities Total Beginning Balance $2,906,788 $206,561 $3,113,349 Additions 630,106 27,154 657,260 Reductions (730,708) (13,577) (744,285) Ending Balance $2,806,186 $220,138 $3,026,324 Current Portion $381,994 $93,436 $475,430 Non-current Portion $2,424,192 $126,702 $2,550,894 (h) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. (i) Property Tax Calendar All property taxes are levied and collected by the County of Santa Clara. Secured taxes are levied on July 1, are due in two installments on November 1 and February 1 and become delinquent after December 10 and April 10. Unsecured taxes are levied on July 1 and become delinquent on August 31. The lien date for secured and unsecured property taxes is January 1. The City, in fiscal year 1993-94, adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives remittances as a series of advances made by the County during the year. (j) Interfund Transactions Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. 471018 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (k) Statement of Cash Flows For purposes of reporting cash flows for the City’s proprietary funds, pooled cash and investments are considered cash equivalents as the proprietary funds can access pooled cash and investments in a manner similar to a demand deposit account. (l) Prepaid Items Prepaid items are reported under the consumption method, which recognizes the expenditures/expense in the period associated with the service rendered or goods consumed. (m) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates. (n) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statements, which became effective during the year ended June 30, 2016. GASB Statement No. 72 – Fair Value Measurement and Application. The intention of this Statement is to enhance the comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. It also enhances fair value application guidance and related disclosures. (o) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. 481019 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (p) Prior Period Adjustment During the fiscal year ended June 30, 2016, the City determined that the Apple Campus 2 and 1- 280/Junipero Serra Channel Trail Improvements developer deposits had not been recorded in the appropriate period. Accordingly, the City decreased the General Fund’s beginning fund balance as of July 1, 2015, and increased the deposit payable liabilities for $2,526,736. NOTE 2 – CASH AND INVESTMENTS The City’s pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council. The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with the provisions of the California Government Code with the priority of safety, liquidity and yield. The policy addresses the safekeeping of securities, types of investment instruments, diversification, maturities, reporting requirements, and internal control. The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s portion of this pool is displayed on the Statement of Net Position and the balance sheet as “cash and investments.” (a) Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law, this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution. The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Security instruments owned by the City are held in safekeeping by a third party custodian acting as agent for the City under the terms of a custody agreement. The City’s investments are carried at fair value. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in investment income for that fiscal year. (b) Classification The City's total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation: Primary Government Cash and Investments $122,407,396 Restricted Cash and Investments: Held by Fiscal Agent for Bond Repayments 4,220,380 Total Cash and Investments $126,627,776 491020 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 2 – CASH AND INVESTMENTS (Continued) (c) Authorized Investments by the City The City’s Investment Policy and the California Government Code allow the City to invest its pooled idle funds in the following, under limits and provisions that address interest rate risk, credit risk, and concentration of credit risk. This does not include the City’s investments of debt proceeds held by fiscal agents that are governed by the provisions of debt agreements of the City. Minimum Maximum Maximum Maximum Credit Percentage of Investment in Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury Obligations 5 years N/A None None U.S. Agency Securities * 5 years N/A None None California Local Agency Investment N/A N/A Up to $65 million None Fund (LAIF) Non-negotiable Certificates of 5 years N/A 30% *** 10% of portfolio; Deposits (time deposits) 5% of issuer's net worth. ** State of California registered state 5 years N/A None None warrants, treasury notes, or bonds California local agency bonds, notes, 5 years N/A None None warrants, or other obligations Bond issued by the local agency 5 years N/A None None Bankers' Acceptances 180 days N/A 40% None 10% of portfolio; Commercial Paper 270 days A-1+/P-1 25% 5% of issuer's net worth; 10% of outstanding paper of issuer. ** Negotiable Certificates of Deposit 5 years N/A 30% 10% of portfolio; 5% of issuer's net worth. ** Repurchase Agreements 1 year N/A None 10% of portfolio; 5% of issuer's net worth. ** Medium Term Corporate Notes 5 years A or better 30% 10% of portfolio; 5% of issuer's net worth. ** Money market mutual funds investing 5 years Aaa/AAA 20% None in U.S. Treasury, Government Agency securities or repurchase agreements collateralized by U.S. Treasury or Government Agency securities * Securities issued by agencies of the federal government such as the Government National Mortgage Association (GNMA), the Federal Farm Credit System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Student Loan Marketing Association (SLMA), and the Federal Home Loan Mortgage Association (FHLMC). ** Represents restriction in which the City’s investment policy is more restrictive than the California Government Code. *** 30% maximum % of portfolio if using a private sector entity to assist in the placement of the time deposits. No maximum for others. 501021 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 2 – CASH AND INVESTMENTS (Continued) (d) Authorized Investments by Debt Agreements The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinances, bond indentures or State statutes. The City’s Investment Policy allows investments of bond proceeds to be governed by provisions of the related bond indentures. The following identifies the investment types that are authorized for investments held by fiscal agents under the terms of the bond indentures of the related debt issue: Minimum Maximum Maximum Credit Percentage of Authorized Investment Type Maturity Quality Portfolio Cash or obligations of the U.S. including U.S. Treasury obligations N/A N/A None Federal agencies obligations which represent full faith N/A N/A None and credit of the U.S. Direct federal agencies obligations which are not fully N/A N/A None guaranteed by the full faith and credit of the U.S. U.S. dollar denominated deposit accounts, federal funds and 360 days P-1, A-1+, A-1 None bankers' acceptances with domestic commercial banks Commercial Paper 270 days P-1, A-1 None Money market funds N/A Aaam or AAAm-G None Pre-refunded municipal obligations that are not callable Highest rating category prior to maturity or as to which irrevocable instructions N/A None have been given to call on the date specified in the notice Municipal obligations or General obligations of states N/A Aaa, AAA, A2, A None California Local Agency Investment Fund (LAIF) N/A N/A Up to $50 million Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the California Government Code which invests exclusively in investments permitted by N/A N/A None Section 53635 of Title 5, Division 2, Chapter of the California Government Code, as it may be amended. 511022 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 2 – CASH AND INVESTMENTS (Continued) (e) Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date: 12 Months 13 to More than Investment Type or less 24 Months 24 Months Total U.S. Treasury Securities $13,022,360 $5,008,280 $2,037,660 $20,068,300 U.S. Agency Notes Federal Home Loan Mortgage Corporation 3,009,840 5,019,330 13,026,020 21,055,190 Federal National Mortgage Association 1,000,000 8,140,233 9,140,233 Federal Home Loan Banks 6,023,550 5,038,290 4,082,220 15,144,060 Federal Farm Credit Banks 11,070,050 11,070,050 Local Agency Investment Fund 40,677,381 40,677,381 Money Market Mutual Funds 6,414,353 6,414,353 Total Investments $70,147,484 $26,135,950 $27,286,133 123,569,567 Cash in banks and on hand 3,058,209 Total Cash and Investments $126,627,776 The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. These investments had weighted average maturity of 167 days. Money market mutual funds are available for withdrawal on demand. At June 30, 2016, money market mutual funds, used for pooled investment and held by fiscal agent purposes, had a weighted average maturity of approximately 17-46 days. 521023 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 2 – CASH AND INVESTMENTS (Continued) (f) Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2016: Investments by Fair Value Level:Level 1 Level 2 Total U.S. Treasury Securities $20,068,300 $20,068,300 U.S. Agency Notes Federal Home Loan Mortgage Corporation $21,055,190 21,055,190 Federal National Mortgage Association 9,140,233 9,140,233 Federal Home Loan Banks 15,144,060 15,144,060 Federal Farm Credit Banks 11,070,050 11,070,050 Local Agency Investment Fund 40,677,381 40,677,381 Total Investments $20,068,300 $97,086,914 117,155,214 Investments Measured at Amortized Cost: Money Market Mutual Funds 6,414,353 Cash in banks and on hand 3,058,209 Total Cash and Investments $126,627,776 Investments classified in Level 1 of the fair value hierarchy include U.S. Treasury Notes valued using quoted prices in active markets. Federal Agency Securities, classified in Level 2 of the fair value hierarchy are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The California Local Agency Investment Fund (LAIF) classified in Level 2 is valued based on the fair value factor provided by the Treasurer of the State of California, which is calculated as fair value divided by the amortized cost of the investment pool. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank. Money market funds are exempt from fair value measurement and are reported at amortized cost. 531024 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 2 – CASH AND INVESTMENTS (Continued) (g) Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2016 for each investment type, including those with fiscal agents, as provided by Moody’s ratings: Investment Type Ratings Total Money Market Mutual Funds AAA $6,414,353 U.S. Agency Notes Federal Home Loan Mortgage Corporation AAA 21,055,190 Federal National Mortgage Association AAA 9,140,233 Federal Home Loan Banks AAA 15,144,060 Federal Farm Credit Banks AAA 11,070,050 U.S. Treasury Securities AAA 20,068,300 Not Rated: Local Agency Investment Fund Not Rated 40,677,381 Total Investments $123,569,567 (h) Concentration of Credit Risk The City’s investment policy contains certain limitations on the amount that can be invested in any one issuer. In certain categories, these limitations are more restrictive than those required by California Government Code Sections 53600 et seq. Excluding those issued or explicitly guaranteed by the U.S. government and investments in the local agency investment fund and mutual funds, the City had the following investments that represent 5% or more of total City-wide investments: Issuer Investment Type Amount Federal Home Loan Mortgage Corporation (FHLMC)U.S. Agency Notes $21,055,190 Federal National Mortgage Association (FNMA)U.S. Agency Notes 9,140,233 Federal Home Loan Banks (FHLB)U.S. Agency Notes 15,144,060 Federal Farm Credit Banks (FFCB)U.S. Agency Notes 11,070,050 541025 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 3 – LOANS RECEIVABLE (a) Related Party Loans In conjunction with the City’s executive housing assistance program, a loan totaling $584,360 has been provided to an executive manager. The 40-year loan bears an interest rate equal to the 11th District Cost of Funds at the time of the loan, and requires bi-weekly principal and interest payments. In addition, there is a two percent deferral on the interest rate for the first five years of the loan, at which time the interest rate may be adjusted to the current 11th District Cost of Funds for the remainder of the loan. At June 30, 2016, the balance remaining on the loan was $400,719. (b) Housing Program Loans On June 30, 1995, the City loaned $821,000 to Community Housing Developers, a California nonprofit public benefit corporation. The note bears interest at three percent per annum, compounded annually, payable to the extent of surplus cash, and all unpaid principal and interest due June 30, 2035. At June 30, 2016, the balance remaining on the loan was $821,000. On June 6, 1996, the City loaned $320,000 to Cupertino Community Services, a California nonprofit public benefit corporation. The note bears interest at three percent per annum and due on July 14, 2026. At June 30, 2016, the balance on the loan was $208,040. In addition to these loans, the City has $93,868 in housing and other loans receivable at June 30, 2016. These loans bear interest at 3 to 6 percent and are due by June 30, 2025. NOTE 4 - INTERFUND TRANSACTIONS Transfers between funds during the fiscal year ended June 30, 2016 were as follows: Fund Making Transfers Fund Receiving Transfers Amount Transferred General Fund Transportation Special Revenue Fund $6,315,732 (A) Public Financing Corporation Debt Service Fund 3,167,033 (B) Non-major Governmental Funds 128,676 (C) Blackberry Farm Enterprise Fund 262,008 (D) Sports Center Enterprise Fund 657,732 (D) Recreation Program Enterprise Fund 715,260 (D) Internal Service Funds 1,917,504 (E) Capital Improvements Projects Capital Projects Fund Transportation Special Revenue Fund 2,258,268 (A) City Channel/Web Internal Service Fund General Fund 36,015 (F) Total Interfund Transfers $15,458,228 The reasons for these transfers are set forth below: (A) To fund capital projects. (B) For annual lease payment for 2012 Certificates of Participation debt service. (C) To support state-mandated activities including complaint response and enforcement programs. (D) Operating subsidy from General Fund. (E) To fund IT operations, personnel costs associated with staffing special project, and compensated absences and retiree health. (F) To fund personnel costs associated with re-organization. Current Interfund Balances – Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2016, the Retiree Medical Internal Service Fund owed the General Fund $450,220. 551026 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 5 - CAPITAL ASSETS A summary of changes in governmental activities capital assets is as follows: Balance at Balance at June 30, 2015 Additions Retirements Transfers June 30, 2016 Governmental activities Capital assets not being depreciated: Land $62,045,969 $62,045,969 Easements 19,491,959 19,491,959 Construction in progress 197,363 $16,597,102 ($16,034,747)759,718 Total capital assets not being depreciated 81,735,291 16,597,102 (16,034,747) 82,297,646 Capital assets being depreciated: Buildings 44,335,568 44,335,568 Improvements other than buildings 45,900,027 3,017,306 48,917,333 Machinery and Equipment - governmental funds 2,606,556 ($24,939)2,581,617 Road, curbs, gutters, sidewalks, medians and bridges 142,308,139 9,276,972 151,585,111 Streetlights 8,633,769 8,633,769 Storm drain structure and mains 32,085,982 3,703,970 35,789,952 Traffic signals 6,155,309 36,499 6,191,808 Total capital assets being depreciated 282,025,350 (24,939) 16,034,747 298,035,158 Less accumulated depreciation for: Buildings (22,890,976) (1,674,458)(24,565,434) Improvements other than buildings (30,009,632) (1,933,567)(31,943,199) Machinery and Equipment - governmental funds (1,971,800) (58,590)(2,030,390) Road, curbs, gutters, sidewalks, medians and bridges (99,308,516) (2,031,335)(101,339,851) Streetlights (6,913,190) (107,448)(7,020,638) Storm drain structure and mains (29,813,579) (802,216)(30,615,795) Traffic signals (5,140,110) (104,090)(5,244,200) Total accumulated depreciation (196,047,803) (6,711,704)(202,759,507) Net general governmental program Capital assets being depreciated 85,977,547 (6,711,704) (24,939) 16,034,747 95,275,651 Internal service fund capital assets Machinery and equipment 7,770,931 1,267,382 9,038,313 Less Accumulated depreciation (6,133,091) (695,825)(6,828,916) Net internal service fund capital assets being depreciated 1,637,840 571,557 2,209,397 Governmental activity capital assets, net $169,350,678 $10,456,955 ($24,939)$179,782,694 561027 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 5 - CAPITAL ASSETS (Continued) A summary of changes in business-type activities capital assets is as follows: Balance at Balance at June 30, 2015 Additions June 30, 2016 Business-type activities: Capital assets being depreciated: Buildings $681,914 $681,914 Improvements other than buildings 2,044,907 2,044,907 Machinery and Equipment 262,370 $16,850 279,220 Total capital assets being depreciated 2,989,191 16,850 3,006,041 Less accumulated depreciation for: Buildings (165,963) (14,673) (180,636) Improvements other than buildings (495,145) (342,857) (838,002) Machinery and Equipment (248,522) (30,698) (279,220) Total accumulated depreciation (909,630) (388,228) (1,297,858) Total capital assets, being depreciated, net 2,079,561 (371,378) 1,708,183 Business-type activity capital assets, net $2,079,561 ($371,378) $1,708,183 Depreciation expense was charged to functions and programs based on their usage of the related assets. Depreciation expense was charged to governmental activities as follows: Governmental Activities Amount Administration $273,257 Public and Environment Affairs 14,874 Administrative Services 26,301 Parks and Recreation 149,754 Public Works 6,247,518 Internal Service Funds 695,825 Total $7,407,529 Depreciation expense was charged to the business-type activities as follows: Business-Type Activities Amount Resources Recovery $5,814 Blackberry Farms 22,858 Cupertino Sports Center 60,650 Recreation Program 298,906 Total $388,228 571028 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 6 - LONG-TERM DEBT (a) Cupertino Public Facilities Corporation Certificates of Participation Original Balance Balance Issue June 30,June 30, Current Amount 2015 Retirements 2016 Portion 2012 Refinancing Certificates of Participation 0.350-3.125%, due 07/01/2030 $43,940,000 $37,925,000 $2,090,000 $35,835,000 $2,135,000 Total long-term debt $37,925,000 $2,090,000 $35,835,000 $2,135,000 The Cupertino Public Facilities Corporation issued Certificates of Participation to provide financing for the construction of the Community Center, improvements of the City Hall and the Library in July 1986; purchase of Wilson Park in 1989; finance the Memorial Park Expansion in 1990; and purchase the Blackberry Farm and Fremont Older site in 1991. The Cupertino Public Facilities Corporation, as lessor, leased real property to the City (under the Lease Agreement with the lessee) and assigned the base rental payments to the trustee for the benefit of the owners of the certificates of participation. The rental payments are scheduled to be sufficient in both time and amount, when the principal and interest of the certificates are due. On May 9, 2012, $43,940,000 principal amount of 2012 Refinancing Certificates of Participation (2012 COPs) were issued to refund the 2002 COPs, to fund a reserve fund for the 2012 COPs, and pay costs incurred in connection with issuance. The 2012 COPs are payable by a pledge of revenues from the lease payments payable by the City pursuant to the Lease Agreement between the Cupertino Public Facilities Corporation and the City for the use and possession of the Site and Facility as described in the Lease Agreement. The City also covenanted in the Lease Agreement to include all lease payments in its annual budget. Total debt service payments remaining on the 2012 COPs is $44,388,323 payable through July 1, 2030. For the year ended June 30, 2016, the bonds had $2,090,000 principal and $1,077,538 interest due. (a) Cupertino Public Facilities Corporation Certificates of Participation (Continued) Annual debt service requirements for the 2012 COPs are shown below: For the Year Ending June 30 Principal Interest 2017 $2,135,000 $1,035,738 2018 2,180,000 993,038 2019 2,220,000 949,438 2020 2,290,000 882,838 2021 2,355,000 814,138 2022 - 2026 12,885,000 2,967,288 2027 - 2030 11,770,000 910,845 Total $35,835,000 $8,553,323 Governmental Activities 581029 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 7 - NET POSITION AND FUND BALANCES Net Position is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis. Net Position – The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: Net investment in capital assets – This category groups all capital assets including, infrastructure, into one component of net position. Accumulated depreciation and outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. Restricted – This category represents net position that has external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted – This category represents net position of the City that do not meet the definition of “net investment in capital assets” or “restricted.” Fund Balances – As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the followings: Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: prepaid items, property held for resale and long- term notes receivable. Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels. Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned. 591030 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 7 - NET POSITION AND FUND BALANCES (Continued) Fund balances for all major and nonmajor governmental funds as of June 30, 2016, were distributed as follows: General Transportation Housing Development Public Facilities Corporation Capital Improvements Projects Other Governmental Funds Total Nonspendable: Loans receivable $868,608 $868,608 Prepaid items 68,773 68,773 Subtotal 937,381 937,381 Restricted for: Public access television 888,374 888,374 Debt service $1,596,982 1,596,982 Storm drain system $1,175,023 1,175,023 Parks and open space 9,232,995 9,232,995 Environmental management 445,753 445,753 Streets and road projects $8,682,089 8,682,089 Housing programs $12,840,591 12,840,591 Subtotal 888,374 8,682,089 12,840,591 1,596,982 10,853,771 34,861,807 Committed for: Streets and road projects 1,398,665 1,398,665 Assigned to: Economic uncertainty I 19,000,000 19,000,000 Economic fluctuation 1,400,000 1,400,000 PERS liability 100,000 100,000 Capital projects $15,074,808 269,383 15,344,191 Subtotal 20,500,000 15,074,808 269,383 35,844,191 Unassigned 29,869,085 29,869,085 Total $52,194,840 $10,080,754 $12,840,591 $1,596,982 $15,074,808 $11,123,154 $102,911,129 NOTE 8 - COMMITMENTS AND CONTINGENCIES (a) Federal and State Grant The City participates in a number of federal and state grant programs subject to financial and compliance audits by the grantors or their representatives. Audits of certain grant programs, including those for the year ended June 30, 2016, have yet to be conducted. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. Management believes that such disallowances, if any, would not have a material effect on the financial statements. 601031 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 8 - COMMITMENTS AND CONTINGENCIES (Continued) (b) Encumbrances The City uses encumbrances to control expenditure commitments for the year. Encumbrances represent commitments related to executor contracts not yet performed and purchase orders not yet filled. Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities, but as restricted, or unassigned fund balance. As of June 30, 2016, the City had the following encumbrances outstanding: Governmental Funds: General Funds:$3,786,698 Transportation Special Revenue Fund 3,962,712 Capital Improvements Projects Capital Projects Funds 1,037,420 Other Governmental Funds 763,117 Total Encumbrances $9,549,947 (c) Lease Agreement with County of Santa Clara The City has an agreement, expiring in 2019, to lease a building to the County of Santa Clara for the purpose of providing library service to the City’s residents. The lease requires a minimum annual payment of $120,000 adjusted for Cupertino’s portion of book circulation and increase of assessed valuation. This is an operating lease with a renewable option. At June 30, 2016, the cost and carrying value of the building which opened in October 2004, is $21,952,133 and $11,572,526 respectively, with $10,379,607 in accumulated depreciation. (d) Consulting Agreement for Sales Taxes The City entered into agreements with two companies to provide services consisting of the assessment and creation of new sales and use tax revenue sources for the City. The City agreed to pay the companies based on a sliding scale payment schedule dependent on the level of new sales tax revenue realized by the City as defined in the consulting agreements. NOTE 9 - LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT (a) General and Property Liability The City is self-insured for the first $250,000 of general and property liability for each occurrence, and the excess (up to $10,000,000 for each occurrence and annual aggregate) is covered through the City’s participation in the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN). The risk pool consists of 30 agencies within the San Francisco Bay Area. The stated purpose of the ABAG PLAN is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to its participating members. ABAG PLAN is governed by a Board of Directors, which comprises officials appointed by each participating member. Premiums paid to ABAG are subject to possible refund based on the results of actuarial studies and approval by the Board of Directors. Complete financial statements for ABAG PLAN may be obtained from their offices at the following address: ABAG PLAN, Finance Department, P.O. Box 2050, Oakland, CA 94604. Premiums are revised each year based on the City’s claims experience and risk exposure. For the year ended June 30, 2016, the City paid ABAG PLAN premiums of $362,011. 611032 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 9 - LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT (Continued) (b) Workers’ Compensation Liability The City belongs to the CSAC Excess Insurance Authority (EIA), a joint power authority which provides excess workers’ compensation liability claims coverage above the City’s self-insured retention of $500,000 per occurrence. Losses above the self-insured retention are pooled with excess reinsurance purchased to a $50,000,000 statutory limit. EIA was established in 1979 for the purpose of creating a risk management pool for all California public entities. EIA is governed by a Board of Directors consisting of representatives of its member public entities. Complete financial statements for EIA may be obtained from their offices at the following address: CSAC Excess Insurance Authority, Finance Department, EIA 75 Iron Point Circle, Suite 200, Folsom, CA 95630. For the year ended June 30, 2016, the City paid premiums of $97,711. It is the City’s practice to obtain biennial actuarial studies for the self-insured workers’ compensation liability. The claims liabilities included in the workers’ compensation internal service fund is based on the results of actuarial studies and include amounts for claims incurred but not reported and loss adjustment expenses. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. Inflation of 2.5%, annual rate of return of 2%, claim severity increase at 2.5% were assumed. In the current year, management used actuarial estimates based on a 90% confidence level. Settlements have not exceeded insurance coverage in the past three years. Changes in the balances of workers’ compensation and general claims liabilities during the years ended June 30 are as follows: 2016 2015 Claims liability, beginning of year $2,190,079 $2,105,897 Incurred claims and changes in estimate (379,665) 393,051 Claim payments and credits (329,316) (308,869) Total claims liability, end of year 1,481,098 2,190,079 Less current portion (489,499) (456,451) Non-current portion $991,599 $1,733,628 NOTE 10 - DEFINED BENEFIT PENSION PLAN (a) Plan Descriptions and Summary of Balances by Plan The City has one defined benefit pension plan. The Miscellaneous Plan is an Agent-Multiple Employer Plan. Benefit provisions under the Plan is established by State statute and City Ordinance. All qualified permanent and probationary employees are eligible to participate in the Plan for which they are an eligible member based on their employment position with the City. The Plan is administered by the California Public Employees’ Retirement System (CalPERS) which acts as a common investment and administrative agent for its participating member employers. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. 621033 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 10 - DEFINED BENEFIT PENSION PLAN (Continued) For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan: Deferred Deferred Outflows Net Pension Inflows of Resources Liability of Resources Miscellaneous $3,919,082 $30,512,577 $1,934,464 Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The Plans’ provisions and benefits in effect at June 30, 2016, are summarized as follows: Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Minimum retirement age 50 52 Monthly benefits, as a % of eligible compensation 2% to 2.7%1% to 2% Required employee contribution rates 8.00%6.25% Required employer contribution rates 23.54%23.54% Employees Covered – As of the June 30, 2014 actuarial valuation date, the following employees were covered by the benefit terms of the Plan: Inactive employees or beneficiaries currently receiving benefits 166 Inactive employees entitled to but not yet receiving benefits 107 Active employees 188 Total 461 631034 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 10 - DEFINED BENEFIT PENSION PLAN (Continued) Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. (b) Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2015, using an annual actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Assumptions – The total pension liabilities in the June 30, 2014 actuarial valuations were determined using the following actuarial assumptions: Valuation Date June 30, 2014 Measurement Date June 30, 2015 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.65% Inflation 2.75% Payroll Growth 3.00% Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 7.5% (2) Mortality Derived using CalPERS’ Membership Data for all Funds (3) (1) Depending on age, service and type of employment (2) Net of pension plan investment expenses, including inflation (3) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this tale, please refer to the CalPERS 2014 experience study report available on CalPERS website. All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011, including updates to salary increase, mortality and retirement rates. Further details of the Experience Study can be found on the CalPERS website under Forms and Publications. Change of Assumptions – GASB 68, paragraph 68 states that the long long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 measurement date. 641035 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 10 - DEFINED BENEFIT PENSION PLAN (Continued) Discount Rate – The discount rate used to measure the total pension liability was 7.50% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.65% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1 - 10(a) Real Return Years 11+(b) Global Equity 51.00%5.25%5.71% Global Fixed Income 19.00%0.99%2.43% Inflation Sensitive 6.00%0.45%3.36% Private Equity 10.00%6.83%6.95% Real Estate 10.00%4.50%5.13% Infrastructure and Forestland 2.00%4.50%5.09% Liquidity 2.00%-0.55%-1.05% Total 100.00% (a) An expected inflation of 2.5% used for this period. (b) An expected inflation of 3.0% used for this period. 651036 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 10 - DEFINED BENEFIT PENSION PLAN (Continued) (c) Changes in Net Pension Liability - The changes in the Net Pension Liability for the City’s Miscellaneous Plan are as follows: Total Pension Liability Plan Fiduciary Net Position Net Pension Liability/(Asset) Balance at June 30, 2014 $104,425,488 $76,548,308 $27,877,180 Changes in the year: Service cost 2,444,939 2,444,939 Interest on the total pension liability 7,789,134 7,789,134 Differences between actual and expected experience 372,917 372,917 Changes in assumptions (1,883,633)(1,883,633) Changes in benefit terms Contribution - employer 3,301,642 (3,301,642) Contribution - employee 1,149,894 (1,149,894) Net investment income 1,724,204 (1,724,204) Administrative expenses (87,780) 87,780 Benefit payments, including refunds of employee contributions (4,637,005) (4,637,005) Net changes 4,086,352 1,450,955 2,635,397 Balance at June 30, 2015 $108,511,840 $77,999,263 $30,512,577 Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Miscellaneous 1% Decrease 6.65% Net Pension Liability $44,892,656 Current Discount Rate 7.65% Net Pension Liability $30,512,577 1% Increase 8.65% Net Pension Liability $18,594,531 Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 661037 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 10 - DEFINED BENEFIT PENSION PLAN (Continued) (d) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the year ended June 30, 2016, the City recognized negative pension expense of $646,899. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date $3,659,170 Differences between actual and expected experience 259,912 Changes in assumptions ($1,312,835) Net differences between projected and actual earnings on plan investments (621,629) Total $3,919,082 ($1,934,464) The $3,659,170 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended Annual June 30 Amortization 2017 ($938,234) 2018 (938,234) 2019 (617,777) 2020 819,693 671038 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 11 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (a) Plan Description Permanent employees who retire under the City’s CalPERS retirement plan are, pursuant to their respective collective bargaining agreements, eligible to have their medical insurance premiums paid by the City. Retirees receive the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefit plan provided by CalPERS up to the maximum received by active employees in their respective bargaining unit. The City contracts with CalPERS for this insured-benefit plan established under the state Public Employees’ Medical and Hospital Care Act (PEMHCA). The plan offers employees and retirees three CalPERS’ self-funded options, setup as insurance risk pools, or offers various third-party insured health plans. The plan’s medical benefits and premium rates are established by CalPERS and the insurance providers. The City contribution is established by City resolution. Retirees and active employees pay the difference between the premium rate and the City’s contribution. Premiums and City contributions are based on the plan and coverage selected by actives and retirees, with the City’s potential contribution ranging from zero to $1,605 per month per employee or retiree. The responsibility for benefit payments has transferred to the insurers and the City does not guarantee the benefits in the event of default by the insurers. A comprehensive annual financial report of CalPERS, inclusive of their benefit plans, is available at www.calpers.ca.gov. The City participates in the Public Agency Retirement System (PARS) Public Agencies Post Retirement Health Care Plan Trust Program (PARS Trust), an agent-multiple employer irrevocable trust established to fund other postemployment benefits. The PARS Trust is approved by the Internal Revenue Code Section 115 and invests funds in equity, bond, and money market mutual funds. Copies of PARS Trust annual financial report is available at the City’s Finance Department. An employee is eligible for lifetime medical benefits under the OPEB Plan, along with his/her spouse or declared domestic partner at the time of retirement, if all criteria listed below are met: The employee was hired or the City Council member was elected prior to August 1, 2004, and the employee has five or more full-time years of service and the City Council member has five or more years of elected service with the City of Cupertino; or The employee was hired or the City Council member was elected on or after August 1, 2004, and the employee has ten or more full-time and/or elected years of CalPERS service, five years of which must be from the City of Cupertino; and The employee is eligible for retirement as defined under the CalPERS retirement system; and The employee retires from the City of Cupertino. In addition, the eligible employee’s dependent children at the time of retirement who are under 23 years old are eligible for medical benefits. In addition to extending the eligibility of dependents from age 23 to age 26 in accordance with the recent healthcare reform act, effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits can continue on the City’s medical and dental plans provided that they pay the premiums in full. 681039 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 11 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) (b) Funding Policy OPEB Plan contributions are set by the adopted budget. The cost of the benefits provided by the OPEB Plan is currently being paid by the City on a fully pre-funded basis. The City has expressed intent to fully fund the annual required contribution (ARC) each year. Based on the actuarial valuation date of January 1, 2016, the annual required contribution rate is 6.74% of annual covered payroll. For the year ended June 30, 2016, the City paid $917,353 in healthcare premium payments. (c) Annual OPEB Cost and Funded Status Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of certain events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with long-term perspective of the calculations. The other significant actuarial assumptions used to prepare the City’s January 1, 2016 actuarial valuation include the following: Valuation date:January 1, 2016 Actuarial Cost Method: Entry Age Normal Amortization Method: Level percent of pay closed Amortization Period:13 year Asset Valuation Method: Market value Actuarial Assumptions: Discount Rate 7.00% Payroll Growth 3.00% Ultimate Rate of Medical Inflation 4.50% 691040 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 11 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) (c) Annual OPEB Cost and Funded Status (Continued) The City’s annual OPEB cost and actual contributions to the OPEB Plan for the past three years are as follows: Fiscal Year OPEB Annual Cost (AOC) Actual Contribution Percentage of AOC Contributed Net OPEB Obligation (Asset) 6/30/2014 $2,295,732 $1,026,967 45% ($2,991,132) 6/30/2015 1,584,785 9,088,056 573% (10,494,403) 6/30/2016 1,227,219 1,225,353 100% (10,492,537) The City’s Net OPEB asset is recorded in the Retiree Medical Internal Service Fund and is calculated as of June 30, 2016 as follows: Annual required contribution $957,466 Interest on prior year net OPEB asset (734,608) Adjustment to annual required contribution 1,004,361 Annual OPEB cost 1,227,219 Insurance premiums paid on behalf of retirees (917,353) Implicit subsidy (308,000) Decrease in net OPEB asset 1,866 Net OPEB (asset) June 30, 2015 (10,494,403) Net OPEB (asset) June 30, 2016 ($10,492,537) The latest available actuarial data and funding progress are set forth below at their actuarial valuation date of January 1, 2016. Actuarial accrued liability (AAL) $24,483,554 Actuarial value of planned assets (22,294,035) Unfunded actuarial accrued liability (UAAL)$2,189,519 Funded Ratio (actuarial value of plan assets/AAL)91.06% Covered payroll (active plan members)$14,214,000 UAAL as a percentage of covered payroll 15.40% 701041 CITY OF CUPERTINO Notes to the Basic Financial Statements For the Year Ended June 30, 2016 NOTE 12 – CONCENTRATION RISK The City has an economic dependency on revenues generated directly or indirectly from one company. For the year ended June 30, 2016, more than 10% of the City General Fund’s total revenues are derived from the company. The City’s operations would be adversely impacted if there are any significant declines in taxes received from the company. NOTE 13 – SUBSEQUENT EVENT In December 2016, CalPERS’ Board of Directors voted to lower the discount rate from 7.5% to 7.0% over the next three fiscal years, beginning in fiscal year 2018. The change in the discount rate will affect the contribution rates beginning in fiscal year 2019 and result in increases to the normal costs and unfunded actuarial liabilities. 711042 CITY OF CUPERTINO Required Supplementary Information (Unaudited) For the Year Ended June 30, 2016 Measurement Date 6/30/2014 6/30/2015 Total Pension Liability Service Cost $2,504,228 $2,444,939 Interest 7,349,943 7,789,134 Changes of benefit terms -- Differences between expected and actual experience -372,917 Changes in assumptions -(1,883,633) Benefit payments, including refunds of employee contributions (4,351,614) (4,637,005) Net change in total pension liability 5,502,557 4,086,352 Total pension liability - beginning 98,922,931 104,425,488 Total pension liability - ending (a)$104,425,488 $108,511,840 Plan fiduciary net position Contributions - employer 2,891,986 3,301,642 Contributions - employee 1,061,884 1,149,894 Net investment income 11,379,985 1,724,204 Benefit payments, including refunds of employee contributions (4,351,614) (4,637,005) Administrative expense - (87,780) Net change in plan fiduciary net position 10,982,241 1,450,955 Plan fiduciary net position - beginning 65,566,067 76,548,308 Plan fiduciary net position - ending (b)$76,548,308 $77,999,263 Net pension liability - ending (a)-(b)27,877,180 30,512,577 Plan fiduciary net position as a percentage of the total pension liability 73.30% 71.88% Covered - employee payroll $13,080,327 $13,504,966 Net pension liability as percentage of covered-employee payroll 213.12% 225.94% Notes to Schedule: * - Fiscal year 2015 was the 1st year of implementation. Source: CalPERS Accounting Valuation Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Last 10 Years* SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the actuarial valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes in assumptions. GASB 68, paragraph 68 states that the long long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 measurement date. 721043 CITY OF CUPERTINO Required Supplementary Information (Unaudited) For the Year Ended June 30, 2016 2015 2016 Actuarially determined contribution $3,608,853 $3,659,170 Contributions in relation to the actuarially determined contributions (3,608,853) (3,659,170) Contribution deficiency (excess)$0 $0 Covered-employee payroll $13,080,327 $13,504,966 Contributions as a percentage of covered-employee payroll 27.59%27.09% Notes to Schedule Valuation date:6/30/2013 6/30/2014 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll, closed Remaining amortization period 19 Years as of the Valuation Date Asset valuation method 15 Year Smoothed Market Inflation 2.75% Salary increases 3% Investment rate of return Retirement age Mortality * - Fiscal year 2015 was the 1st year of implementation. Source: City of Cupertino's general ledger and CalPERS Actuarial Valuation The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post- retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Last 10 Years* SCHEDULE OF CONTRIBUTIONS 7.50% Net of Pension Plan Investment and Administrative 731044 CITY OF CUPERTINO Required Supplementary Information (Unaudited) For the Year Ended June 30, 2016 Schedule of Funding Progress – Defined Benefit Other Post-Employment Benefits Plan: Unfunded Actuarial Unfunded Actuarial Actuarial Accrued Actuarial Actuarial Liability as Valuation Liability Value of Accrued Funded Covered Percentage of Date Entry Age Assets Liability Ratio Payroll Covered Payroll 1/1/2013 $24,791,457 $12,835,681 $11,955,776 51.77% $13,909,000 85.96% 1/1/2015 23,370,871 14,770,023 8,600,848 63.20% 13,800,000 62.32% 1/1/2016 24,483,554 22,294,035 2,189,519 91.06% 14,214,000 15.40% 741045 MAJOR GOVERNMENTAL FUNDS OTHER THAN THE GENERAL FUND AND SPECIAL REVENUE FUNDS This section is provided for the presentation of budget-to-actual statements for the Public Facilities Corporation Debt Service Fund. Although the fund is considered to be a major government fund, budget- to-actual information in the basic financial statements is limited to the General Fund and major Special Revenue Funds. All other major governmental fund schedules with such information are therefore included as Supplemental Information. The Capital Projects Funds are budgeted on a major project length basis and therefore not comparable on an annual basis. PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities. 751046 CITY OF CUPERTINO PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Variance Final Positive Budget Actual (Negative) REVENUES Use of money and property $4,796 $4,796 Total Revenues 4,796 4,796 EXPENDITURES Administration 1,500 (1,500) Debt service: Principal $3,167,538 2,090,000 1,077,538 Interest and fiscal charges 1,077,538 (1,077,538) Total Expenditures 3,167,538 3,169,038 (1,500) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,167,538) (3,164,242)3,296 OTHER FINANCING SOURCES (USES) Transfers in 3,167,538 3,167,033 (505) Total Other Financing Sources (Uses)3,167,538 3,167,033 (505) NET CHANGE IN FUND BALANCE 2,791 $2,791 BEGINNING FUND BALANCE 1,594,191 ENDING FUND BALANCE $1,596,982 761047 NON-MAJOR GOVERNMENTAL FUNDS All funds not considered as major funds on the Fund Financial Statements are consolidated in one column entitled “Other Governmental Funds.” These non-major funds are identified and included in this supplementary section and includes the City’s Special Revenue Funds and Capital Project Funds. The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Storm Drain Improvement – Accounts for the construction and maintenance of storm drain facilities including drainage and sanitary sewer facilities. Revenues were collected from developers as a result of connections to the storm drainage sewer system. Park Dedication – Accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City’s General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion and implementation of the City’s parks and recreation facilities. Environmental Management / Clean Creeks – Accounts for all activities related to operating the non-point source pollution program. A parcel tax provides revenues. Capital Projects Funds account for the financial resources committed to the construction or improvement of major facilities. Stevens Creek Corridor Park Capital Projects Fund – Accounts for the design and construction of the Stevens Creek Corridor Park projects. Don Burnett Bicycle-Pedestrian Bridge – Accounts for the design and construction of a bicycle footbridge extension of Mary Avenue over Interstate 280. It includes gateways, paths, residential buffering elements, and landscaping. 771048 CAPITAL PROJECTS SPECIAL REVENUE FUNDS FUNDS Storm Environmental Drain Park Management/Stevens Creek Improvement Dedication Clean Creeks Corridor Park Assets Cash and investments $1,175,024 $9,232,995 $438,253 $268,645 Accounts receivable 7,500 Total assets $1,175,024 $9,232,995 $445,753 $268,645 Liabilities Accounts payable and accruals $1 $4,636 Total liabilities 1 4,636 Fund balances Restricted 1,175,023 $9,232,995 $445,753 Assigned 264,009 Total fund balances 1,175,023 9,232,995 445,753 264,009 Total liabilities and fund balances $1,175,024 $9,232,995 $445,753 $268,645 CITY OF CUPERTINO NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2016 781049 CAPITAL PROJECTS FUNDS Don Burnett Total Bicycle Nonmajor Pedestrian Governmental Bridge Funds $5,374 $11,120,291 7,500 $5,374 $11,127,791 $4,637 4,637 10,853,771 $5,374 269,383 5,374 11,123,154 $5,374 $11,127,791 791050 CAPITAL PROJECTS SPECIAL REVENUE FUNDS FUNDS Storm Environmental Drain Park Management/Stevens Creek Improvement Dedication Clean Creeks Corridor Pak REVENUES Taxes $154,698 $222,375 Use of money and property 14,239 77,770 $2,616 Charges for services 33,544 367,426 Fines and forfeitures 6,387 Other revenue 487,010 706 Total Revenues 655,947 333,689 377,135 EXPENDITURES Current: Public works 497,049 Capital outlay 3,757,979 16,667 $26,390 Total Expenditures 3,757,979 16,667 497,049 26,390 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,102,032) 317,022 (119,914) (26,390) OTHER FINANCING SOURCES (USES) Transfers in 128,676 Total Other Financing Sources (Uses) 128,676 NET CHANGE IN FUND BALANCES (3,102,032) 317,022 8,762 (26,390) BEGINNING FUND BALANCES 4,277,055 8,915,973 436,991 290,399 ENDING FUND BALANCES $1,175,023 $9,232,995 $445,753 $264,009 CITY OF CUPERTINO NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 801051 CAPITAL PROJECTS FUNDS Don Burnett Total Bicycle Nonmajor Pedestrian Governmental Bridge Funds $377,073 94,625 400,970 6,387 487,716 1,366,771 497,049 3,801,036 4,298,085 (2,931,314) 128,676 128,676 (2,802,638) $5,374 13,925,792 $5,374 $11,123,154 811052 CITY OF CUPERTINO BUDGETED NON-MAJOR FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 SPECIAL REVENUE FUNDS STORM DRAIN IMPROVEMENT PARK DEDICATION Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Taxes $100,000 $154,698 $54,698 $100,000 $222,375 $122,375 Use of money and property 14,239 14,239 77,770 77,770 Charges for services 33,544 33,544 Fines for forfeitures Other revenue 487,010 487,010 Total Revenues 100,000 655,947 555,947 100,000 333,689 233,689 EXPENDITURES Current: Public works Capital outlay 3,757,979 3,757,979 16,667 16,667 Total Expenditures 3,757,979 3,757,979 16,667 16,667 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,657,979) (3,102,032) 555,947 83,333 317,022 233,689 OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES ($3,657,979) (3,102,032) $555,947 $83,333 317,022 $233,689 BEGINNING FUND BALANCES 4,277,055 8,915,973 ENDING FUND BALANCES $1,175,023 $9,232,995 821053 SPECIAL REVENUE FUND ENVIRONMENTAL MANAGEMENT/ CLEAN CREEKS Variance Final Positive Budget Actual (Negative) $2,616 $2,616 367,426 367,426 $502,000 6,387 (495,613) 706 706 502,000 377,135 (124,865) 594,954 497,049 97,905 594,954 497,049 97,905 (92,954) (119,914) (26,960) 128,679 128,676 (3) 128,679 128,676 (3) $35,725 8,762 ($26,963) 436,991 $445,753 831054 This Page Left Intentionally Blank 1055 INTERNAL SERVICE FUNDS Internal Service Funds are used to finance and account for special activities and services provided by one department or program to other departments of the City on a cost reimbursement basis. The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the City departments that generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position. However, internal service funds are still presented separately in the Fund financial statements. Information Technology - Accounts for the activities related to the maintenance and replacement of the City’s technology infrastructure. Workers’ Compensation - Accounts for the activities in support of the self-insured workers’ compensation program. Equipment Revolving - Accounts for the activities related to the maintenance and replacement of the City's vehicle fleet and other equipment. Compensated Absences and Long-Term Disability - Accounts for accrued leave payouts and the City’s long term disability insurance program. Retiree Medical – Accounts for funds set-aside for other post employment retirement benefits. City Channel/Web – Accounts for government access television station and website maintenance 851056 Compensated Absences and Information Workers' Equipment Long-Term Retiree Technology Compensation Revolving Disability Medical ASSETS Current Assets: Cash and investments $2,475,941 $2,645,517 $2,524,856 $288,013 $87,489 Accounts receivable 12,945 Prepaid items 25,210 Total current assets 2,501,151 2,645,517 2,537,801 288,013 87,489 Noncurrent Assets: Net OPEB assets 10,492,537 Capital assets, depreciable net of accumulated depreciation 437,577 1,307,266 Total noncurrent assets 437,577 1,307,266 10,492,537 Total Assets $2,938,728 $2,645,517 $3,845,067 $288,013 $10,580,026 LIABILITIES Current Liabilities: Accounts payable and accruals $28,940 $2 $69,164 Accrued payroll and benefits 72 Due to other funds $450,220 Compensated absences 11,982 320 2,603 Claims payable 489,499 40,922 489,821 71,839 450,220 Non-current Liabilities: Compensated absences 76,041 2,031 16,518 Claims payable 991,599 76,041 993,630 16,518 Total Liabilities 116,963 1,483,451 88,357 450,220 NET POSITION Net investment in capital assets 437,577 1,307,266 Unrestricted 2,384,188 1,162,066 2,449,444 $288,013 $10,129,806 Total Net Position $2,821,765 $1,162,066 $3,756,710 $288,013 $10,129,806 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION JUNE 30, 2016 861057 City Channel/Web Total $337,571 $8,359,387 12,945 4,457 29,667 342,028 8,401,999 10,492,537 464,554 2,209,397 464,554 12,701,934 $806,582 $21,103,933 $33,558 $131,664 72 450,220 32,757 47,662 489,499 66,315 1,119,117 207,882 302,472 991,599 207,882 1,294,071 274,197 2,413,188 464,554 2,209,397 67,831 16,481,348 $532,385 $18,690,745 871058 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2016 Compensated Absences and Information Workers' Equipment Long-Term Retiree Technology Compensation Revolving Disability Medical OPERATING REVENUES Charges for services $1,655,088 $958,056 $1,219,560 $81,197 Other 29,320 Total Operating Revenues 1,655,088 958,056 1,248,880 81,197 OPERATING EXPENSES Salaries and related expenses 908,341 32,746 263,661 $919,219 Materials and supplies 873,272 4,213 348,951 Contractual services 474,562 57 125,268 Insurance claims and premium 576,653 Depreciation 175,260 405,897 Total Operating Expenses 2,431,435 37,016 1,143,777 576,653 919,219 Operating Income (Loss) (776,347) 921,040 105,103 (495,456) (919,219) NONOPERATING REVENUES (EXPENSES) Interest income 24,168 20,724 22,096 1,959 459 Gain on sale of capital assets 21,944 Total Nonoperating Revenues (Expenses) 24,168 20,724 44,040 1,959 459 Income (Loss) Before Transfers (752,179) 941,764 149,143 (493,497) (918,760) Transfers in 237,000 640,004 1,000,500 Transfers (out) Change in Net Position (515,179) 941,764 149,143 146,507 81,740 BEGINNING NET POSITION 3,336,944 220,302 3,607,567 141,506 10,048,066 ENDING NET POSITION $2,821,765 $1,162,066 $3,756,710 $288,013 $10,129,806 881059 City Channel/Web Total $779,676 $4,693,577 29,320 779,676 4,722,897 621,398 2,745,365 221,277 1,447,713 119,120 719,007 576,653 114,668 695,825 1,076,463 6,184,563 (296,787) (1,461,666) 5,056 74,462 21,944 5,056 96,406 (291,731) (1,365,260) 40,000 1,917,504 (36,015) (36,015) (287,746) 516,229 820,131 18,174,516 $532,385 $18,690,745 891060 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2016 Compensated Absences and Information Workers' Long-Term Retiree Technology Compensation Equipment Disability Medical CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $1,655,088 $958,056 $1,235,935 $81,197 Cash payments to suppliers for goods and services (1,416,027) (4,268) (477,666) Cash payments to employees (1,041,961) (33,492) (263,817)($917,353) Cash payment for judgment and claims (552,081)(576,653) Cash Flows from (used for) Operating Activities (802,900) 368,215 494,452 (495,456) (917,353) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 237,000 640,004 1,000,500 Transfers (out) Cash Flows (used for) Noncapital Financing Activities 237,000 640,004 1,000,500 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (259,359)(653,471) Cash Flows from Capital and Related Financing Activities (259,359)(653,471) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 24,168 20,724 22,096 1,959 459 Cash Flows from Investing Activities 24,168 20,724 22,096 1,959 459 Net Cash Flows (801,091) 388,939 (136,923) 146,507 83,606 Cash and investments at beginning of year 3,277,032 2,256,578 2,661,779 141,506 3,883 Cash and investments at end of year $2,475,941 $2,645,517 $2,524,856 $288,013 $87,489 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)($776,347) $921,040 $105,103 ($495,456) ($919,219) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: 175,260 405,897 Change in assets and liabilities: Accounts receivable (12,945) Prepaid expenses 28,663 Net OPEB asset 1,866 Accounts payable and accruals (96,856)2 (3,447) Accrued payroll and benefits (28,734) (1,287) (12,721) Compensated absences (104,886)541 12,565 Claims payable (552,081) Cash Flows from Operating Activities ($802,900) $368,215 $494,452 ($495,456) ($917,353) 901061 City Channel Web Total $779,676 $4,709,952 (316,103) (2,214,064) (556,748) (2,813,371) (1,128,734) (93,175) (1,446,217) 40,000 1,917,504 (36,015) (36,015) 3,985 1,881,489 (332,609) (1,245,439) (332,609) (1,245,439) 5,056 74,462 5,056 74,462 (416,743) (735,705) 754,314 9,095,092 $337,571 $8,359,387 ($296,787) ($1,461,666) 114,668 695,825 (12,945) (4,457) 24,206 1,866 28,751 (71,550) (20,884) (63,626) 85,534 (6,246) (552,081) ($93,175) ($1,446,217) 911062 This Page Left Intentionally Blank 1063 STA TISTICA L SE CTI ON 1064 This Page Left Intentionally Blank 1065 STATISTICAL SECTION This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time: 1.Net Position/Assets by Component 2.Changes in Net Position/Assets 3.Fund Balances of Governmental Funds 4.Changes in Fund Balance of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the City’s most significant own-source revenue, property tax. 1.Assessed and Estimated Actual Value of Taxable Property 2.Direct and Overlapping Property Tax Rates 3.Principal Property Taxpayers 4.Property Tax Levies and Collections Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future: 1.Ratios of Outstanding Debt by Type 2.Direct and Overlapping Bonded Debt 3.Legal Debt Margin Information 4.Ratio of General Bonded Debt Outstanding Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place: 1.Demographic and Economic Statistics 2.2015 Employer Ranking Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs: 1.Full-Time Equivalent Employees by Function/Program 2.Operating Indicators by Function/Program 3.Capital Assets Statistics by Function/Program Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 951066 This Page Left Intentionally Blank 1067 2007200820092010201120122013201420152016Governmental ActivitiesNet investment in capital assets80,343,053$ 85,173,998$ 103,341,905$ 120,405,290$ 120,724,205$ 117,440,257$ 116,343,918$ 122,081,223$ 131,425,677$ 148,168,074$ Restricted9,265,565 9,926,770 6,661,074 8,692,175 7,721,962 7,572,865 8,351,118 24,232,367 38,327,705 34,861,807 Unrestricted39,243,717 43,242,639 33,290,050 31,087,861 33,185,903 38,117,361 47,558,701 63,150,548 51,003,950 51,164,063 Total governmental activities net position/assets 128,852,335 138,343,407 143,293,029 160,185,326 161,632,070 163,130,483 172,253,737 209,464,138 220,757,332 234,193,944 Business-Type ActivitiesNet investment in capital assets467,416 84,126 136,127 788,213 777,521 824,687 762,013 1,110,414 2,079,561 1,708,183 Unrestricted6,977,436 7,849,147 8,949,142 9,063,616 9,779,087 10,057,331 10,865,479 10,292,210 6,604,578 7,375,444 Total business-type activities net position/assets 7,444,852 7,933,273 9,085,269 9,851,829 10,556,608 10,882,018 11,627,492 11,402,624 8,684,139 9,083,627 Primary GovernmentNet investment in capital assets80,810,469 85,258,124 103,478,032 121,193,503 121,501,726 118,264,944 117,105,931 123,191,637 133,505,238 149,876,257 Restricted9,265,565 9,926,770 6,661,074 8,692,175 7,721,962 7,572,865 8,351,118 24,232,367 38,327,705 34,861,807 Unrestricted46,221,153 51,091,786 42,239,192 40,151,477 42,964,990 48,174,692 58,424,180 87,382,915 60,135,264 58,539,507 (1)136,297,187$ 146,276,680$ 152,378,298$ 170,037,155$ 172,188,678$ 174,012,501$ 183,881,229$ 220,866,762$ 229,441,471$ 243,277,571$ (1) Represents net assets thru June 30, 2012 and net position after that.Fiscal Year Ended June 30CITY OF CUPERTINONet Position/Assets by ComponentLast Ten Fiscal Years(Accrual basis of accounting)(Unaudited)971068 2007200820092010201120122013201420152016ExpensesGovernmental activities:Administration1,675,443$ 1,636,284$ 1,769,500$ 1,911,665$ 1,860,451$ 1,837,072$ 2,367,255$ 4,529,539$ 3,286,919$ 3,710,388$ Law enforcement7,148,187 7,679,467 8,804,195 8,385,476 8,434,885 8,776,633 9,274,536 10,062,192 10,705,328 11,316,271 Public and environmental affairs1,186,929 1,216,164 1,624,210 1,653,034 1,625,876 1,743,151 1,595,982 512,895 649,442 575,260 Administrative services3,874,003 3,923,217 4,001,738 4,080,134 3,993,654 4,309,503 4,171,440 2,662,008 4,300,336 2,994,611 Recreation services2,517,725 3,845,873 4,206,343 4,444,536 4,528,968 4,577,243 4,473,861 4,866,974 5,365,282 5,758,194 Community development4,090,959 4,059,740 6,177,879 4,351,975 5,961,774 4,922,237 4,676,273 9,108,949 5,976,797 6,259,734 Public works16,230,274 16,569,310 18,104,649 19,320,151 20,224,662 20,387,508 22,149,063 21,143,331 27,893,361 31,313,396 Interest on long-term debt2,239,657 2,183,403 2,118,714 2,076,264 2,032,464 1,837,655 1,256,922 1,130,428 1,120,138 1,077,538 Total governmental activities expense38,963,177 41,113,458 46,807,228 46,223,235 48,662,734 48,391,002 49,965,332 54,016,316 59,297,603 63,005,392 Business-type activities:Resource recovery2,122,805 2,056,061 1,998,184 2,018,147 1,801,599 1,566,229 1,764,993 2,159,047 2,548,461 2,997,200 Blackberry farm975,064 450,206 495,845 457,169 457,065 460,698 463,336 571,000 547,185 576,177 Cupertino sports center1,623,839 1,547,402 1,594,325 1,478,143 1,716,741 1,897,611 2,011,483 2,221,703 2,269,420 2,299,210 Recreation programs1,830,401 1,853,217 1,739,892 1,854,648 1,753,156 1,985,618 2,025,416 2,730,765 2,342,457 3,136,011 Senior center771,570 - - - - - - - - - Total business-type activities expense7,323,679 5,906,886 5,828,246 5,808,107 5,728,561 5,910,156 6,265,228 7,682,515 7,707,523 9,008,598 Total primary government expense46,286,856 47,020,344 52,635,474 52,031,342 54,391,295 54,301,158 56,230,560 61,698,831 67,005,126 72,013,990 Program RevenuesGovernmental activities:Charges for services:Administration3,618 10,711 2,240 21,873 15,801 6,454 5,676 1,087,393 322,534 369,069 Law enforcement1,031,736 799,350 869,295 811,676 797,757 696,498 637,595 725,631 590,378 664,483 Public and environmental affairs - - - - - - - - 41,352 41,352 Administrative services - - - - - - - - 481,616 359,148 Recreation services193,752 847,424 801,280 930,773 1,020,159 1,166,323 970,292 955,081 1,798,134 1,421,185 Community development4,768,026 3,551,478 3,586,993 3,310,355 4,149,620 4,919,216 6,765,564 6,649,292 8,511,745 10,534,457 Public works200,969 135,942 157,311 556,636 549,065 503,225 593,501 7,916,897 2,869,357 6,358,870 Operating grants and contributions3,048,512 2,392,987 4,014,036 2,042,557 2,351,287 2,508,917 2,752,493 10,000,131 6,002,617 1,851,282 Capital grants and contributions3,496,095 5,696,124 4,759,485 5,511,359 1,972,951 780,761 719,880 569,159 4,022,190 362,491 Total government activities program revenue12,742,708 13,434,016 14,190,640 13,185,229 10,856,640 10,581,394 12,445,001 27,903,584 24,639,923 21,962,337 Business-type activities:Charges for services:Resource recovery2,254,416 2,254,790 2,100,704 2,104,299 1,931,076 1,727,783 1,882,517 2,074,251 2,591,276 2,664,888 Blackberry farm1,101,564 640,771 596,944 568,770 447,797 411,056 386,753 302,472 388,091 334,529 Cupertino sports center1,655,169 1,605,545 1,732,282 1,578,330 1,722,700 1,965,684 2,150,139 2,188,127 2,152,498 2,224,146 Recreation programs2,396,720 2,493,214 2,364,037 2,249,191 2,260,296 2,325,705 2,409,720 2,480,209 2,532,800 2,466,336 Senior center690,603 - - - - - - - - - Operating grants and contributions14,343 14,309 14,471 6,895 - - - - - - Total business-type activities program revenue8,112,815 7,008,629 6,808,438 6,507,485 6,361,869 6,430,228 6,829,129 7,045,059 7,664,665 7,689,899 Total primary government program revenue20,855,523 20,442,645 20,999,078 19,692,714 17,218,509 17,011,622 19,274,130 34,948,643 32,304,588 29,652,236 (Continued)Fiscal Year Ended June 30CITY OF CUPERTINOChange in Net Position/AssetsLast Ten Fiscal Years(Accrual basis of accounting)(Unaudited)981069 2007200820092010201120122013201420152016Fiscal Year Ended June 30CITY OF CUPERTINOChange in Net Position/AssetsLast Ten Fiscal Years(Accrual basis of accounting)(Unaudited)Net (Expense) Revenue:Governmental activities (26,220,469) (27,679,442) (32,616,588) (33,038,006) (37,806,094) (37,809,608) (37,520,331) (26,112,732) (34,657,680) (41,043,055) Business-type activities 789,136 1,101,743 980,192 699,378 633,308 520,072 563,901 (637,456) (42,858) (1,318,699) Total primary government net expense (25,431,333) (26,577,699) (31,636,396) (32,338,628) (37,172,786) (37,289,536) (36,956,430) (26,750,188) (34,700,538) (42,361,754) General Revenues and TransfersGovernmental activities:Taxes:Property taxes 6,529,772 6,941,910 7,491,965 7,488,701 7,296,970 7,479,132 8,793,110 9,169,183 - 11,864,027 Property tax in lieu of motor vehicle fee 3,652,509 3,894,502 4,299,902 4,420,912 4,404,795 4,487,412 4,772,355 5,289,476 - 6,330,436 Incremental property tax 187,276 220,267 1,211,128 1,322,925 1,251,777 202,793 - - - - Sales taxes 11,252,341 13,154,749 14,139,190 9,930,530 14,539,243 17,326,460 18,721,193 19,794,036 - 21,350,056 Transient occupancy tax 2,511,184 2,711,590 2,140,274 2,142,137 2,536,501 3,112,934 3,768,504 4,590,156 - 5,852,244 Utility user tax 3,011,755 3,175,724 3,205,073 3,271,452 3,227,942 3,264,896 2,994,526 3,098,639 - 3,370,830 Franchise tax2,537,018 2,547,439 2,618,125 2,597,930 2,841,344 2,808,136 2,848,950 2,775,892 - 3,478,024 Other taxes2,661,449 1,709,892 1,317,767 1,211,899 1,491,316 1,377,211 4,561,219 18,791,559 - 2,818,019 Intergovernmental (1)364,261 266,789 171,621 166,440 259,289 29,064 30,256 25,294 - 24,111 Investment earnings1,752,177 1,451,973 889,823 295,059 259,217 61,096 176,782 133,243 40,751 807,287 Miscellaneous291,423 103,529 81,342 119,393 1,144,429 82,684 126,690 57,005 (2) 219,053 Gain on sale of capital assets1,510,410 - - - - - - - 23,715,897 580 Extraordinary items (2) - - - - - (1,130,797) - - - - Transfers500,000 992,150 - - 15 207,000 (150,000) (401,350) 872,340 (1,635,000) Total Government Activities36,761,575 37,170,514 37,566,210 32,967,378 39,252,838 39,308,021 46,643,585 63,323,133 24,628,986 54,479,667 Business-type activities:Investment earnings366,596 378,828 171,804 67,182 71,486 12,338 31,573 11,238 42,531 83,187 Transfers(500,000) (992,150) - - (15) (207,000) 150,000 401,350 (872,340) 1,635,000 Total business-type activities(133,404) (613,322) 171,804 67,182 71,471 (194,662) 181,573 412,588 (829,809) 1,718,187 Total primary government36,628,171 36,557,192 37,738,014 33,034,560 39,324,309 39,113,359 46,825,158 63,735,721 23,799,177 56,197,854 Change in Net Position/Assets (3)Government activities10,541,106 9,491,072 4,949,622 (70,628) 1,446,744 1,498,413 9,123,254 37,210,401 (10,028,694) 13,436,612 Business-type activities655,732 488,421 1,151,996 766,560 704,779 325,410 745,474 (224,868) (872,667) 399,488 Total primary government11,196,838$ 9,979,493$ 6,101,618$ 695,932$ 2,151,523$ 1,823,823$ 9,868,728$ 36,985,533$ (10,901,361)$ 13,836,100$ (1) The 2006 state take-away of sales taxes, property taxes, and vehicle license fees is reported in this category.(2) Asset transfer to Successor to Redevelopment Agency fiduciary trust in 2012.(3) Represents changes in net assets thru fiscal year ended June 30, 2012 and changes in net position after that.991070 CITY OF CUPERTINOFund Balances of Governmental FundsLast Ten Fiscal Years(Modified accrual basis of accounting)(Unaudited)Fiscal Year Ended June 302007 2008 2009 2010General FundReserved 2,711,586$ 2,668,914$ 2,325,283$ 2,308,290$ Unreserved 23,634,874 16,997,569 19,871,574 13,622,828 Total General Fund 26,346,460 19,666,483 22,196,857 15,931,118 All Other Governmental FundsReserved 8,555,042 11,240,851 4,180,483 5,465,423 Unreserved, reported in:Special Revenue Funds 6,844,632 7,270,331 3,692,187 5,113,020 Capital Project Funds (472,405) 7,631,866 968,077 3,788,810 Total All Other Governmental Funds 14,927,269 26,143,048 8,840,747 14,367,253 Total Governmental Funds 41,273,729$ 45,809,531$ 31,037,604$ 30,298,371$ 2011 (1) 2012 2013 2014 2015 2016General FundNonspendable 1,023,950$ 1,003,438$ 956,827$ 3,363,065$ 938,245$ 937,381$ Restricted 663,254 695,564 725,903 - 761,653 888,374 Assigned 14,739,394 17,729,297 16,400,000 16,400,000 28,849,679 20,500,000 Unassigned 3,380,279 6,669,379 17,961,579 23,197,378 8,774,966 29,869,085 Total General Fund 19,806,877 26,097,678 36,044,309 42,960,443 39,324,543 52,194,840 All Other Governmental FundsNonspendable 615,000 - - - - - Restricted6,314,106 6,877,301 7,625,215 24,232,367 37,566,052 33,973,433 Committed1,398,665 1,398,665 Assigned4,303,822 3,646,073 5,299,904 7,619,534 20,671,116 15,344,191 Unassigned - - - (2,280,961) - - Total All Other Governmental Funds11,232,928 10,523,374 12,925,119 29,570,940 59,635,833 50,716,289 Total Governmental Funds31,039,805$ 36,621,052$ 48,969,428$ 72,531,383$ 98,960,376$ 102,911,129$ (1)The City implemented GASB Statement No. 54 under which governmental fund balances are reported as nonspendable, restricted, assigned and unassigned compared to reserved and unreserved.1001071 2007200820092010201120122013201420152016RevenuesTaxes28,903,993$ 34,589,139$ 36,395,950$ 30,994,583$ 37,582,299$ 40,265,944$ 48,382,570$ 72,211,724$ 55,134,238$ 55,462,956$ Use of money and property2,169,977 2,490,444 1,300,508 774,219 792,035 661,602 744,196 764,299 915,933 1,654,702 Intergovernmental8,200,519 8,285,280 6,896,394 7,539,835 3,543,641 2,678,888 2,841,407 3,069,400 7,210,562 2,532,025 Licenses and permits3,325,844 2,656,017 2,740,463 2,583,131 2,901,944 2,900,936 3,502,617 3,679,943 3,170,445 3,073,110 Charges for services2,062,067 1,728,099 1,707,533 1,701,157 2,311,216 3,273,946 4,515,066 10,744,113 5,203,371 17,249,123 Fines and forfeitures926,310 722,087 761,320 736,239 695,666 661,899 560,417 616,889 554,002 564,903 Other154,235 95,388 80,835 689,941 73,881 264,302 57,828 545,052 542,429 1,289,013 Total revenues45,742,945 50,566,454 49,883,003 45,019,105 47,900,682 50,707,517 60,604,101 91,631,420 72,730,980 81,825,832 ExpendituresCurrent:Administration1,287,101 1,351,273 1,336,921 1,469,004 1,528,070 1,533,070 2,005,176 3,957,739 3,897,701 4,053,741 Law enforcement6,975,517 7,456,661 8,133,168 8,384,310 8,434,885 8,445,917 8,783,885 9,626,121 10,283,772 10,988,735 Public and environmental affairs1,121,437 1,169,247 1,486,443 1,487,265 1,497,263 1,659,856 1,486,910 477,852 624,295 544,718 Administrative services3,715,994 3,797,156 3,634,043 3,733,414 3,695,076 4,103,982 3,772,714 2,444,670 3,226,164 2,811,117 Recreation services2,403,296 3,745,244 3,789,260 4,003,764 4,117,477 4,319,983 4,083,822 4,536,519 5,047,548 5,441,200 Community development3,969,837 3,931,055 5,841,428 4,125,739 5,693,541 4,762,229 4,395,601 8,424,254 5,180,659 6,102,820 Public works10,477,727 11,137,935 11,914,584 11,961,218 12,234,726 12,528,194 13,996,516 17,469,627 14,625,038 15,078,174 Capital outlay4,292,169 8,334,093 22,262,369 4,710,360 5,281,927 3,523,047 4,684,676 7,110,974 21,760,899 26,171,127 Debt service:Principal repayment1,295,000 1,355,000 1,415,000 1,460,000 1,500,000 - 1,920,000 2,040,000 2,055,000 2,090,000 Interest and fiscal charges2,239,657 2,183,403 2,118,714 2,076,264 2,032,464 1,837,655 1,256,922 1,130,428 1,120,138 1,077,538 Payment to refunded debt escrow agent - - - - - 44,897,800 - - - - Total expenditures37,777,735 44,461,067 61,931,930 43,411,338 46,015,429 87,611,733 46,386,222 57,218,184 67,821,214 74,359,170 Excess (deficiency) of revenues over(under) expenditures7,965,210 6,105,387 (12,048,927) 1,607,767 1,885,253 (36,904,216) 14,217,879 34,413,236 4,909,766 7,466,662 Other Financing Sources (Uses)Bond proceeds - - - - - 44,823,839 - - - - Proceeds from sale of capital assets1,663,842 - - - 1,055,449 421 - 37,569 23,814,257 580 Transfers in9,658,000 19,136,165 5,035,925 7,788,417 5,684,483 6,484,426 8,438,707 13,610,304 39,408,990 11,905,724 Transfers out(14,777,500) (20,705,750) (7,758,925) (10,135,417) (7,883,751) (7,692,426) (10,308,210) (24,499,154) (39,177,284) (15,422,213) Total other financing sources(3,455,658) (1,569,585) (2,723,000) (2,347,000) (1,143,819) 43,616,260 (1,869,503) (10,851,281) 24,045,963 (3,515,909) Extraordinary ItemAssets transferred to Successor Agencies - - - - - (1,130,797) - - - - Change in fund balances 4,509,552$ 4,535,802$ (14,771,927)$ (739,233)$ 741,434$ 5,581,247$ 12,348,376$ 23,561,955$ 28,955,729$ 3,950,753$ Debt service as a percentage ofnoncapital expenditures (1) 10.6% 9.8% 8.9% 9.1% 8.7% 55.6% 7.6% 6.6% 5.8% 5.5%(1) Noncapital expenditures is total expenditures less capital assets added each year to statement of net position/assets.Fiscal Year Ended June 30CITY OF CUPERTINOChanges in Fund Balances of Governmental FundsLast Ten Fiscal Years(Modified accrual basis of accounting)(Unaudited)1011072 State Board ofTotal Assessed &DirectTotalEqualizationSecuredEst. Full MarketTaxFiscal YearSecured (a)Unsecured (a) Non-UnitaryExemptionsValuation (a)Rate200710,794,991,704 381,307,801 213,610 94,957,979 11,176,513,115 5.74%200811,512,949,952 417,564,226 - 96,690,910 11,930,514,178 5.87%200912,637,622,059 533,413,208 1,390,000 99,950,894 13,172,425,287 6.26%201012,979,346,158 564,277,611 1,390,000 99,947,559 13,545,013,769 6.51%201113,017,910,372 476,332,025 1,390,000 96,704,811 13,495,632,397 6.51%201213,219,574,367 527,310,319 1,390,000 96,081,912 13,748,274,686 6.24%201313,882,147,291 738,243,050 1,390,000 108,468,872 14,621,780,341 6.20%201415,391,656,690 813,117,019 1,390,000 113,744,809 16,206,163,709 5.62%201516,133,637,244 965,141,148 - 119,476,276 17,098,778,392 5.61%201618,308,720,226 1,086,786,901 - 114,223,063 19,395,507,127 5.59%(a) Net of exemptionsSource: HdL, Coren & ConeData Source: Santa Clara County Assessor 0/ - 2015/16 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & ConePrepared On 8/4/2016 By MVCITY OF CUPERTINO(Unaudited)Last Ten Fiscal YearsAssessed and Estimated Actual Value of Taxable Property$0$2$4$6$8$10$12$14$16$182007200820092010201120122013201420152016BillionsSecured PropertyUnsecured Property1021073 THE CITY OF CUPERTINODirect and Overlapping Property Tax Rates(Rate per $100 of taxable value)2006/07 2008/09 2010/11 2012/13 2013/14 2014/15 2015/16Basic Levy¹1.00000 1.00000 1.00000 1.00000 1.00000 1.00000County Bond 2008 Hospital Facility 0.00000 0.01220 0.00470 0.00350 0.00910 0.00880County Library Retirement Levy 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240County Retirement Levy 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880Cupertino Elementary 0.03370 0.03120 0.02900 0.05250 0.05400 0.05190El Camino Hospital 2003 0.01290 0.01290 0.01290 0.01290 0.01290 0.01290Foothill De Anza College 0.01130 0.03220 0.02970 0.02900 0.02760 0.02400Fremont High 0.02410 0.03060 0.04150 0.04050 0.03960 0.05250Los Gatos-Saratoga High 1998 0.03450 0.03520 0.03810 0.03510 0.05160 0.04230Santa Clara Unified 0.02710 0.07010 0.08360 0.07070 0.07040 0.00080Santa Clara Valley Water District 0.00710 0.00740 0.00640 0.00700 0.00650 0.09420Saratoga Elementary 0.03630 0.03880 0.04440 0.04500 0.04580 0.04490West Valley College 0.01180 0.01400 0.01370 0.02550 0.01200 0.02320Total Direct & Overlapping² Tax Rates 1.24000 1.32580 1.34520 1.36290 1.37070 1.40240City's Share of 1% Levy Per Prop 13³0.057060.056410.056500.05626 0.05617 0.05571General Obligation Debt RateRedevelopment Rate⁴1.048301.048601.04760Total Direct Rate⁵0.058700.065100.062380.05623 0.05610 0.05588Notes:²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.Data Source: Santa Clara County Assessor 2006/07 - 2015/16 Tax Rate TableThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & ConePrepared On 8/4/2016 By MV1.048401.047301.048400.058420.062630.065070.062040.057250.056610.056440.056520.012600.003200.013900.028901.311601.283801.317901.386400.007200.006100.007200.006900.035100.036300.043700.045200.033900.036500.035100.033000.037700.036800.079700.074300.051900.081900.002400.002400.002400.038800.038800.038800.039000.028900.030600.030800.059800.012900.012900.012900.034600.012300.032600.028700.02430¹In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.³City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may ⁴Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.⁵Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.0.00510Last 10 Fiscal YearsAgency2007/082009/102011/120.038801.000001.000001.000001.000000.000000.000000.009500.012900.002401031074 2016Percentage of2011Percentage ofAssessed Total Assessed Assessed Total AssessedValuationValuationValuationValuationApple Inc.1,815,276,300$ 9.36%807,920,115$ 5.99%Campus Holdings Inc.1,511,150,025 7.79%396,651,458 2.94%Vallco Property Owner315,500,000 1.63%85,475,396 0.63%BVK Perimeter Square Retail LLC ET AL 168,296,699 0.87%--Main Street Cupertino Aggregator LLC 145,220,564 0.75%--Cupertino City Center Buildings140,942,274 0.73%--Mission West Properties LP II ETAL130,330,481 0.67%--SVF Cupertino City Center Corp.125,412,347 0.65%--Cupertino Property Development112,284,481 0.58%--Markham Apartments LP97,513,905 0.50%--Total4,561,927,076$ 23.53%1,290,046,969$ 9.56%Source: HdL, Coren & ConeCITY OF CUPERTINOPrincipal Property TaxpayersCurrent Year and Five Years Ago(Unaudited)Taxpayer1041075 Percent ofPercent Delinquent Total Total TaxFiscal Total Current Tax of Levy Tax Tax CollectionsYear Tax Levy Collections Collected (1) Collections (1) Collections to Tax Levy2007 6,717,048 6,717,048 100.00% - 6,717,048 100.00%20087,162,177 7,162,177 100.00%- 7,162,177 100.00%20098,703,093 8,703,093 100.00%- 8,703,093 100.00%20108,760,881 8,760,881 100.00%- 8,760,881 100.00%20118,497,119 8,497,119 100.00%- 8,497,119 100.00%20127,681,925 7,681,925 100.00%- 7,681,925 100.00%20138,199,752 8,199,752 100.00%- 8,199,752 100.00%20149,169,183 9,169,183 100.00%- 9,169,183 100.00%201510,178,734 10,178,734 100.00%- 10,178,734 100.00%201611,864,026 11,864,026 100.00%- 11,864,026 100.00%(1) Per the Teeter Plan, the City receives 100% of the tax levy, while the County receives delinquencies and penalties.Source: City of CupertinoCITY OF CUPERTINOProperty Tax Levies and CollectionsLast Ten Fiscal Years(Unaudited)1051076 Percentage of Estimated % ofFiscal Certificates Actual Market Value PersonalYear of Participation of Taxable Property Per Capita Income 2007 49,740,000 0.45% 929 1.60%2008 48,385,000 0.41% 886 1.44%2009 46,970,000 0.36% 853 1.36%2010 45,510,000 0.34% 815 1.36%2011 44,010,000 0.32% 755 1.70%2012 43,940,000 0.30% 744 1.56%2013 42,020,000 0.29% 705 1.41%2014 39,980,000 0.25% 671 1.38%2015 37,925,000 0.22% 633 1.28%201635,835,000 0.21%598 1.21%Source: City of CupertinoCITY OF CUPERTINORatios of Outstanding Debt by TypeLast Ten Fiscal Years(Unaudited)1061077 19,395,507,127$ Total Debt %City’s Share of 6/30/2016 Applicable (1) Debt 6/30/16 Santa Clara County 792,585,000$ 4.998% 39,613,398$ Foothill-DeAnza Community College District 584,782,455 13.580% 79,413,457 West Valley Community College District 419,930,312 1.180% 4,955,178 Santa Clara Unified School District 530,270,000 2.814%14,921,798 Fremont Union High School District 365,975,088 30.148% 110,334,170 Cupertino Union School District 292,848,688 50.708% 148,497,713 El Camino Hospital District 136,280,000 1.138%1,550,866 Midpeninsula Regional Open Space District 45,000,000 8.006%2,602,700 Santa Clara Valley Water District Benefit Assessment 99,060,000 4.998%4,951,019 Total Overlapping Tax and Assessment Debt 3,266,731,543 406,840,299 Overlapping Debt: Santa Clara County General Fund Obligations 683,441,121$ 4.998%34,158,387$ Santa Clara County Pension Obligations 367,118,349 4.998%18,348,575 Santa Clara County Board of Education Certificates of Participation 6,380,000 4.998%318,872 Foothill-De Anza Community College District Certificates of Participation 9,723,341 13.580%1,320,430 West Valley-Mission Community College District General Fund Obligations 64,180,000 0.713%757,324 Santa Clara Unified School District Certificates of Participation 13,835,000 1.840%389,317 Santa Clara County Vector Control District Certificates of Participation 2,890,000 4.998%144,442 Midpeninsula Regional Open Space Park District Certificates of Participation 122,305,886 8.006%9,791,809 Subtotal Overlapping General Fund Debt 1,269,873,697 65,229,156 Direct Debt: City of Cupertino Certificates of Participation 35,835,000 100.000% 35,835,000 (2) Total Direct and Overlapping General Fund Debt 1,305,708,697 101,064,156 Totals by Category: Total Direct Debt 35,835,000 35,835,000 Total Overlapping Debt 4,536,605,240 472,069,455 Combined Total Debt 4,572,440,240$ 507,904,455$ (3) Ratios to 2014-15 Assessed Valuation: Total Overlapping Tax and Assessment Debt 2.10% Total Direct Debt ($35,835,000)0.18% Combined Total Debt 2.62% (1) (2)Principal amount as of 7/1/16. (3)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Direct and Overlapping Bonded Debt CITY OF CUPERTINO Source: MuniServices Overlapping Tax and Assessment Debt: (Unaudited) 2015-16 Assessed Valuation Direct and Overlapping General Fund Debt June 30, 2016 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 1071078 Total net debtTotal Net Legal applicable to theFiscal Debt Debt Applicable Debt limit as a % ofYear Limit to Limit Margin debt limit2007 408,373,114 - 408,373,114 - 2008431,735,623 - 431,735,623 - 2009473,910,827 - 473,910,827 - 2010486,725,480 - 486,725,480 - 2011488,171,639 - 488,171,639 - 2012495,734,039 - 495,734,039 - 2013520,580,523 - 520,580,523 - 2014577,187,126 - 577,187,126 - 2015605,011,397 - 605,011,397 - 2016686,577,008 - 686,577,008 - Debt Limit:Secured property assessed value, net of exempt real property18,308,720,226$ Adjusted valuation - 25% of assessed valuation4,577,180,057 Debt limit - 15% of adjusted valuation686,577,008 Amount of Debt Subject to Limit:Total Bonded Debt35,835,000 Less: Certificates of Participation not subject to debt limit(35,835,000) Amount of debt subject to limit- Legal Debt Margin686,577,008$ Source: City of CupertinoNote: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.CITY OF CUPERTINOLegal Debt Margin Information(Unaudited)Last Ten Fiscal Years1081079 Ratio of GeneralFiscal Assessed General Bonded Debt Bonded Debt toYear Population Value Bonded Debt Per Capita Assessed Value2007 53,549 11,176,513,115 - - - 2008 54,584 11,930,514,178 - - - 2009 55,045 13,172,425,287 - - - 2010 55,838 13,545,013,769 - - - 2011 58,302 13,495,632,397 - - - 2012 59,022 13,748,274,686 - - - 2013 59,620 14,621,780,341 - - - 2014 59,620 16,206,163,709 - - - 2015 59,777 17,098,778,392 - - - 2016 58,185 19,395,507,127 - - - Sources: HdL, Coren & Cone City of CupertinoCITY OF CUPERTINORatio of General Bonded DebtLast Ten Fiscal Years(Unaudited)1091080 Fiscal YearCity Population (1)County Population (1)City Population % of CountyCity Personal Income (2)Per Capita Personal Income (2)**Public School EnrollmentCity Unemployment Rate (%) (3)County Unemployment Rate (%) (3)Median Age (4)% of Population Over 25 with High School Degree% of Population Over 25 with Bachelor's Degree2006-07 53,549 1,794,522 2.98% 3,117,408,000 58,216 9,823 2.8%----2007-08 54,584 1,748,976 3.12% 3,369,668,000 61,734 10,300 3.0%----2008-09 55,045 1,857,621 2.96% 3,442,884,000 62,547 10,300 3.8%----2009-10 55,838 1,800,876 3.10% 3,350,250,000 59,999 10,350 7.2%- 40.5 96.5% 69.3%2010-11 56,431 1,781,642 3.27% 2,586,120,000 44,357 10,365 7.3%- 39.1 96.3% 72.6%2011-12 59,022 1,809,378 3.26% 2,818,655,000 47,756 10,625 6.3%- 39.2 97.0% 74.7%2012-13 59,620 1,842,254 3.24% 2,888,768,456 48,453 29,699 5.4%8.4% 39.9 96.7% 75.5%2013-14 59,946 1,868,558 3.21% 2,965,595,760 49,471 29,904 4.4%6.8% 40.4 96.1% 75.0%2014-15 59,777 1,889,638 3.16% 3,290,377,494 55,064 29,871 3.1%3.8% 40.0 96.5% 74.6%2015-16 58,185 1,927,888 3.02% 3,298,679,878 56,693 29,684 3.4%4.2% 40.2 96.5% 75.6%Source: 2011-12 and prior, previously published CAFR ReportSource: MuniServices, LLC, U.S. Census Bureau, 2010 American Community Survey. The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark. 1.) Population Projections are provided by the California Department of Finance Projections.2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.4.) Median Age reflects the U.S. Census data estimation table.**Reported Public School Enrollment reflects the total number of students in the Fremont Union High School District and Cupertino Union School District. Previously published reports included Fremont Union High School District only.City of CupertinoDemographic and Economic StatisticsLast Ten Fiscal Years1101081 CITY OF CUPERTINO2016 Employer Ranking(Unaudited)EmployerRankingEmployer_________________RankingApple1 Oracle11Seagate Technology2 99 Ranch Market12Cellular Biomedicine3 Keller Williams Realty13Magnet Systems4 Whole Foods Market14Jenifer's Health Ctr.5 Coldwell Banker15Aemetis6 Cort Clearance Ctr16Scion Capital7 Cupertino Heathcare & Wllnss 17Ciena Corp8 Morgan Stanley Wealth Mgmt 18Target9 Kaiser Foundation Hospitals19Sugar CRM Inc10 Sprouts Farmers Market20Source: Report#1278698384, 6/1/16 from InfoUSA.com1111082 Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Council and Commissions 1.40 1.40 1.40 1.47 1.46 1.47 1.52 1.57 1.55 1.60 Administration 4.30 4.30 4.85 4.90 4.85 5.05 5.05 10.75 10.75 10.85 Public & Environmental Affairs 5.55 6.50 7.45 6.95 6.95 6.95 6.90 11.00 10.25 11.40 Administrative Services 21.63 21.88 22.33 22.33 22.34 22.48 22.26 11.00 12.00 12.30 Recreation & Community Services 31.96 31.76 30.77 30.78 30.78 29.78 29.53 31.48 33.28 34.18 Community Development 22.78 23.78 23.78 23.73 23.78 23.43 23.90 24.83 24.80 27.30 Public Works 71.13 71.13 72.17 72.59 72.59 73.59 73.59 74.12 77.12 82.12 Total 158.75 160.75 162.75 162.75 162.75 162.75 162.75 164.75 169.75 179.75 Source: City of Cupertino Budget CITY OF CUPERTINO Full-Time Equivalent City Employees by Function/Program Last Ten Fiscal Years (Unaudited) 0 20 40 60 80 100 120 140 160 180 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public Works Community Development Recreation & Community Services Administrative Services Public & Environmental Affairs Administration Council and Commissions 1121083 2007200820092010201120122013201420152016Law Enforcement Sheriff ResponsePriority One-Respond within 5 minutes4.94 Min.5.83 Min.3.88 Min.3.95 Min.4.49 Min.4.84 Min.3.76 Min.4.30 Min.4.90 Min.4.90 Min.Priority Two-Respond within 9 minutes7.15 Min.7.95 Min.5.94 Min.5.90 Min.5.76 Min.6.44 Min.5.98 Min.6.39 Min.6.56 Min.6.56 Min.Priority Three-Respond within 20 minutes15.82 Min.15.73 Min.9.40 Min.9.77 Min.9.79 Min.10.62 Min.10.29 Min.10.76 Min.10.52 Min.10.52 Min.Public WorksStreet Sweeping696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles575 Curb Miles575 Curb Miles575 Curb Miles575 Curb Miles575 Curb MilesStreet Maintenance 24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of CallRecreation ServicesTeen Center Memberships510444400447492576564684424491Sports Center Memberships1,3361,4191,7001,3851,5981,7761,8521,9502,0001,989Senior Center Memberships1,9352,1102,2432,2872,3872,4702,4562,6232,5492,493Local Resident Rentals at Blackberry Farm (a)--2891120135141148120107Quinlan Community Center Rental Revenue (a)--$80,000$71,000$91,000$133,000$120,000$109,342$110,033$104,150Community DevelopmentApproved Building Plan SetsWithin 5 DaysWithin 5 Days 91% Within 5 Days 96% Within 5 Days 97% Within 5 Days 93% Within 5 Days 92% Within 5 Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work DaysDiscretionary Land Use ApplicationsWithin 21 DaysWithin 21 Days 95% Within 21 Days 100% Within 21 Days 100% Within 21 Days 99% Within 21 Days 99% Within 21 Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work DaysPublic Notice of Upcoming ProjectsWithin 10 DaysWithin 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 DaysAdministrative ServicesAccounts Payable Processing5 Days5 Days5 Days5 Days5 Days7 Days7 Days7 Days7 Days7 DaysBusiness License Renewal Certificates3 Days3 Days3 Days3 Days3 Days3 Days3 Days3 Days3 Days3 DaysLibraryVolumes in Collection - - - - - - - - 361,817364,557Annual Gate Count - - - - - - - - 869,762880,894Annual Circulation Children's Items - - - - - - - - 1,474,9961,544,095Annual Circulation Adult and Teen Items - - - - - - - - 999,7661,032,326Adult Classes and Events - - - - - - - - 209215Adult Classes and Events Attendence - - - - - - - - 11,8608,855Teen Classes and Events - - - - - - - - 5278Teen Classes and Events Attendence - - - - - - - - 3,3933,135Children's Classes and Events - - - - - - - - 458493Children's Classes and Events Attendence - - - - - - - - 25,52928,532Volunteer Hours - - - - - - - - 11,78610,000Sources: City of Cupertino and Santa Clara County Library DistrictFunction/ProgramCITY OF CUPERTINOOperating Indicators by Function/ProgramLast Ten Fiscal Years(Unaudited)1131084 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Public WorksCenterlane Miles of Streets 142 142 142 142 142 142 142 142 142 142 Streetlights2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 Traffic Signals39 39 39 39 39 39 48 48 48 48 Culture & RecreationParks and Open Spaces17 17 17 18 19 19 19 21 21 21Park and Landscape Acreage150.8 150.8 150.8 151.4 152.0 152.0 152.0 159.0 165.0 165.0City Trails1 1 1 1111333Golf Courses1 1 1 1111111Community Center1 1 1 1111111Community Hall1 1 1 1111111Senior Center1 1 1 1111111Sports Center1 1 1 1111111Swimming Pools1 1 1 1111111Tennis Courts17 17 17 17 17 17 17 17 24 24Sports Fields1 1 1 1111414141City Library1 1 1 1111111Source: City of CupertinoFunction/ProgramCITY OF CUPERTINOCapital Assets Statistics by Function/ProgramLast Ten Fiscal Years(Unaudited)1141085 COMMUNITY PR OFIL E 1086 This Page Left Intentionally Blank 1087 History Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spanish explorer Captain Juan Bautista de Anza. Starting in Sonora, Mexico, Anza led a group up the coast of California, aiming to establish a presidio (fort) on San Francisco Bay. In late March, Anza left the majority of his party of men, women, and children in Monterey to rest and pressed on through the Santa Clara Valley to his San Francisco destination with 18 men and Pedro Font, a diarist, cartographer, and Franciscan priest. With the expedition encamped in what is now Cupertino, Font christened the creek next to the encampment the Arroyo San Joseph Cupertino in honor of his patron, San Guiseppe (San Joseph) of Copertino, Italy. The arroyo is now known as Stevens Creek. The village of Cupertino sprang up at the crossroads of Saratoga-Sunnyvale Road (now DeAnza Boulevard) and Stevens Creek Boulevard. It was first known as West Side, but by 1898, the post office at the Crossroads needed a more unique name. John T. Doyle, a San Francisco lawyer and historian, had given the name Cupertino to his winery in recognition of the name bestowed on the nearby creek – likewise, in 1904, the same name was applied to the Crossroads and to the post office as the Home Union Store in the northeast corner of the Crossroads changed its name to The Cupertino Store. Although Cupertino’s pioneer settlers planted grapes in the late 1800s, many switched to keeping orchards when phylloxera, a root louse, struck the thriving wine industry in 1895. As the orchards flourished, the valley became known for the spring profusion of blossoms. In the late 1940’s Cupertino was swept up in Santa Clara Valley’s postwar population explosion. Concerned by unplanned development, higher taxes, and piecemeal annexation to adjacent cities, Cupertino’s community leaders began a drive for incorporation in 1954. The incorporation was approved in the September 27, 1955 election, and Cupertino officially became Santa Clara County’s 13th City on October 10, 1955. A major milestone in Cupertino’s development was the creation of Vallco Business and Industrial Park by some of the city’s largest landowners in the early 1960’s. Of the 25 property owners, 17 decided to pool their land to form Vallco Park and six sold their land to Varian Associates, a thriving young electronics firm founded by Russell Varian. The name Vallco was derived from the names of the principal developers: Varian Associates and the Leonard, Lester, Craft, and Orlando families. 1171088 2016 Community Economic Profile Cupertino, with a population of 60,572 and the city limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the San Francisco Bay Area. Economic health is an essential component to maintaining a balanced city, which provides high- level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that our success as a partnership is a direct reflection of our success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters business and residential prosperity and strengthens working relationships among all sectors of the community. Cupertino is considered one of the most prestigious cities in which to live and work within Silicon Valley and the San Francisco Bay Area. Because Cupertino is a mature, 90% built-out city, we focus on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc. and Seagate Technologies, and as a community with stellar public schools. DeAnza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City’s proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive. The City strives to retain and attract local companies through active outreach and a responsive and customer- oriented entitlement process. Cupertino is excited to have a number of new mixed-use development projects in final construction phases and almost fully leased, which will provide more retail and dining options, as well as provide additional housing opportunities to meet the needs of the growing community. The Main Street and Nineteen800 mixed-use developments have created a vibrant downtown area for Cupertino offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Rootstock Wine Bar, Oren’s Hummus, Lazy Dog, LYFE Kitchen, 85 Degree Bakery, Target Express, Kula Sushi, Vitality Bowls, Fit 36, Doppio Zero, and Icool In2 Ice Cream. Housing, office, and hotel rooms are available to support the area. The AMC Theater, Bowlmore, Ice Rink, and Silicon Valley Bay Club serve as anchors to the downtown area. 1181089 The construction of new retail and commercial development strengthens existing popular venues in Cupertino, including the Cupertino Marketplace. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals, including Daiso, Marukai Groceries, Super Cue, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Aloha Fresh, Merlion Restaurant, Wingstop, and Erik’s Deli Café. Cupertino Village is undergoing renovations to upgrade buildings, parking, and open courtyard space. The shopping center is home to 99 Ranch Market, Ten Ren Tea, Fantasia Coffee & Tea, Joy Luck Palace, Kee Wah Bakery, and other Asian restaurants, bakeries, and shops. Cupertino features many other stores, including TJ Maxx and Home Goods, Whole Foods, Target, and over 180 restaurants to serve the local workforce and residents. Cupertino features five hotels: Cupertino Inn, Hilton Garden Inn, Marriott Courtyard, Juniper Hotel operated by Curio, and The Aloft Cupertino Hotel. The Residence Inn by Marriott and Hyatt House are under construction. The redevelopment of the Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard, includes a 24-hour Safeway, Ulta Beauty, Ross Stores, Stein Mart, Michael’s, Rite Aid, FedEx Kinko’s and numerous restaurants, such as Fish’s Wild, 1000 Degreess Neapolitan Pizzeria, and Chipotle, to complement the area. Apple Inc.’s plans for a new corporate campus is under construction and will include approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. The City of Cupertino continues to provide high-level municipal services to complement the sense of community and quality of life enjoyed by our residents. 2016 City Profile 1191090 The City of Cupertino operates as a general law city with a City Council-City Manager form of government. Five council members serve four year, overlapping terms, with elections held every two years. The council meets twice a month on the first and third Tuesday at 6:45 p.m. in the Community Hall. The meetings can be viewed on the City website. The City has 180.75 authorized full-time benefited employee positions. City departments include Administration (City Council, Commissions, City Clerk, City Manager, City Attorney, Environmental Affairs, Economic Development, Code Enforcement); Administrative Services (Finance, Human Resources); Community Development (Planning, Building, Housing Services); Recreation and Community Services (Neighborhood Watch, Emergency Preparedness); Public Works (Engineering, Maintenance, Transportation, Solid Waste, and Storm Drain Management); and Information Services (IT, GIS, Communications). Police service is provided by the Santa Clara County Sheriff’s Department, and fire service is provided through the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions/committees including housing, telecommunications, fine arts, library, planning, audit, parks and recreation, bicycle and pedestrian, teens, economic development, strategic planning, public safety and sustainability. Members of the volunteer boards are appointed by the City Council and vacancies are announced so that interested residents can apply for the positions. Residents are kept informed about city services and programs through the Cupertino Scene, a monthly newsletter; the City Channel, Cupertino’s government access cable TV channel; and the city’s website. Housing The median sales price for an existing single-family home is $1,635,000 for the time between July and October 2016. For housing programs in Cupertino, please see “Programs & Applications.” Community Health Care Facilities Cupertino is served by the Cupertino Medical Clinic, NovaCare Occupational Health Services. Nearby hospitals include Kaiser Permanente Medical Center in Santa Clara, El Camino Hospital in Mountain View, O’Connor Hospital in San Jose, Community Hospital of Los Gatos, Stanford Hospital in Palo Alto, and the Saratoga Walk-in Clinic in Saratoga. Utilities Gas & Electric Pacific Gas and Electric, 800-743-5000 Phone AT&T residential service, 800-894-2355 AT&T business service, 800-750-2355 Cable Comcast, 800- 945-2288 Solid Waste & Recycling Recology, 408-725-0420 Water San Jose Water Company, 408-279-7900 California Water, 650-917-0152 1201091 Sewer Service Cupertino Sanitary District, 408-253-7071 Tax Rates and Government Services Residential, commercial, and industrial property is appraised at full market value as it existed on March 1, 1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975 bears full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 (full cash value) plus any tax levied to cover bonded indebtedness for county, city, school, and other taxing agencies. Assessed valuations and tax rates are published annually after July 1. Assessed Valuation (Secured and Unsecured) Cupertino: $19,395,507,127 (8/1/16) County: $373,922,973 (7/1/16) Retail Sales Tax Grand Total = 8.7500%. Breakdown = Cupertino 1%, State General Fund 3.9375%, State and Local Revenue Fund 1.0625%, State Local Public Safety 0.5%, State Local Revenue 0.5%, State Education Protection 0.25%, County Transportation 0.25%, Local District (Valley Transportation Authority) 1.25%. Transportation Rail: The CalTrain station is four miles north of city. The Amtrak station is 10 miles south. Air: The San Francisco International Airport is located roughly 30 miles north, and the Mineta San Jose International Airport is located approximately 11 miles south. Bus: Cupertino is served by the Santa Clara Valley Transportation Authority. The routes listed below pass through the City. For Cupertino-specific schedules and maps visit their online website: Route 23 San Jose – Mountain View/Palo Alto Route 25 San Jose – De Anza College Route 26 Eastridge – Lockheed Route 36 East San Jose – Vallco Route 51 Vallco – Moffett/Ames Route 53 Westgate – Sunnyvale Route 54 West Valley – Fair Oaks/ Tasman Route 55 De Anza – Great America Route 81 East San Jose – Vallco Express 101 Camden/Branham – Palo Alto Express 501 Palo Alto – I.B.M Bailey Car: The City of Cupertino is in the heart of the world renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway. Sister Cities City of Cupertino recognizes the value of developing people-to-people contacts by 1211092 strengthening the partnerships between the city and its four sister cities of Copertino, Italy; Hsinchu, Taiwan; Toyokawa, Japan, and Bhubaneswar, India. Cupertino’s sister city partnerships have proven successful in fostering educational, technical, economic and cultural exchanges. Over the years, there have been many delegations visiting both the cities as well as many local students participated in annual student exchange programs. Education ________________________________________________________________________________________________________________ Winner of numerous state and national awards for excellence, our city’s schools are widely acknowledged as models of quality instruction. Cupertino Union School District serves over 18,000 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 20 elementary schools and five middle schools, including several choice programs. Eighteen schools have received state and/or national awards for educational excellence. Student achievement is exceptionally high. Historically, district test scores place Cupertino among the premier public school districts in California. The district is a leader in the development of standards-based system of education and is nationally recognized for leadership in the use of technology as an effective tool for learning. Quality teaching and parent involvement are the keys to the district’s success. The Fremont Union High School District serves 10,000 students in a 42 square mile area covering all of Cupertino, most of Sunnyvale, and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered many awards and recognition based on both the achievement of students and the programs designed to support student achievements. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a “Community Service Award” medal that may be worn at their graduation ceremonies. 1221093 Building on its tradition of excellence and innovation, DeAnza College challenges students of every background to develop their intellect, character, and abilities; to achieve their educational goals; and to serve their community in a diverse and changing world. DeAnza College offers a wide range of quality programs and services to meet the work force development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom settings and customized training arranged by employers. Several DeAnza programs encourage economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. Programs & Applications Community Outreach Programs Leadership 95014 Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants’ leadership skills. The ten full-day sessions feature inside looks at local governments, the social sector, local non- profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online. Neighborhood Block Leader Program Good neighborhoods are those where neighbors work together on common issues and look out for each other. Block leaders take extra steps to connect neighbors and build community, making our neighborhoods safer and more harmonious. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods, and leaders gain the inside track on neighborhood development activities. High Transfer Rates to 4‐Year Universities and Colleges (2012‐2013): •University of California: 727 •California State Universities: 1,225 •Private Colleges & Universities: 452 1231094 Neighborhood Watch Neighborhood Watch is a crime prevention program that enlists the active participation of citizens in cooperation with law enforcement to reduce crime in our communities. It involves: neighbors getting to know each other and working together in a program of mutual assistance; citizens being trained to recognize and report suspicious activities in their neighborhoods; and implementation of crime prevention techniques such as home security and operation identification. To organize a Neighborhood Watch program in your neighborhood, please contact the Neighborhood Watch Coordinator at 408.777.3177. eCAP Email Community Alert Program (eCAP) was created by the Santa Clara County Sheriff’s Office to prevent and reduce crime by raising community awareness, minimizing opportunities for crime, and increasing the possibility of solving crimes with the public’s help. Cupertino residents may voluntarily register their email addresses with the Sheriff’s Office for community alert messages. Citizens can sign-up at a Neighborhood Watch meeting or log-on to the City of Cupertino’s eCAP online registration. Affordable Housing: BMR (Below Market Rate) Program The City of Cupertino requires 15% of all new construction be affordable to households below 120% of the County median income. Rental units are affordable to very low and low-income households while ownership units are affordable to median and moderate-income households. The City of Cupertino contracts with West Valley Community Services (WVCS) to screen and place qualified households in most of the city’s BMR units. WVCS maintains a waiting list of interested persons for these BMR units. If interested, please call 408.255.8033. More information can be found online. Smart Phone Applications Mobile 95014 City of Cupertino’s Mobile 95014 app offers latest listing of Cupertino news and events as well as local parks, schools, and recreation offerings in the city. This app showcases environmental services and community services such as Block Leaders and Neighborhood Watch programs. Users can learn about public safety and contact City Council members and City officials. The app also offers links to Cupertino’s social media sites. 1241095 Trees 95014 Trees 95014 is an iPhone/iPad and Android app which provides details about the city-planted trees in Cupertino. Users can search for trees by street name or by current location. The search results show the picture of the tree and details such as location, height, diameter, and species. Cupertino residents can also sign up their tree, name their tree, and request tree service through this app. Eats 95014 Eats 95014 is the local restaurant app that showcases Cupertino’s dining options such as restaurants, grocery stores, farmers’ markets, and vineyards. The app provides information on the services offered at such eating places including store hours, parking information, noise level, directions, and website link. Ready 95014 Ready 95014 is an app that puts safety information into the hands of Cupertino residents. Steps to prepare and respond to emergencies including earthquakes, floods, fires, and pandemics are outlined in an easy-to-understand format. The app also streams Cupertino’s own AM radio station (1670 AM) and has a map of the City’s Area Resource Centers, satellite locations opened after disasters to provide public assistance. The Geographic Information System (GIS) Division captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, reports, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help our staff, citizens, business and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared – on a map! Cupertino.org/GIS has been redesigned to better showcase our department’s services. Among those services is our new Open Data Portal. This site offers the ability to Search, Filter, Download and use API Access to over 50 GIS layers gis.cupertino.opendata.arcgis.com. 1251096 The GIS Division also manages and deploys Cupertino’s GIS-centric asset management system, Cityworks. Cupertino Fleet, Trees, Median/ROWs, Storm Drain, Streetlights, Traffic Signals, Streets and Sidewalk/EOP divisions utilize Cityworks to manage, track, and analyze Cupertino’s infrastructure assets in the office and in the field. Cupertino Green Cupertino is committed to maintaining the City as a sustainable place to live, learn, work, and play for all the community members. To achieve this goal of safeguarding the community’s well-being and environmental health, Cupertino is actively working to implement its first Climate Action Plan (CAP) and provide residents, businesses, and schools with clear and easy-to-access programs and services to jumpstart green leadership. More information can be found online at http://www.cupertino.org/green Social Media Sites Facebook Sites City of Cupertino Facebook Cupertino Rec & Comm. Services Cupertino Teen Center Facebook Cupertino Teens & Teen Programs McClellan Ranch Preserve Facebook Cupertino Senior Center Facebook Cupertino Sports Center Facebook Cupertino Block Leader Facebook Twitter Sites City of Cupertino Twitter Cupertino Fields Twitter Cupertino Rec & Comm. Services YouTube Site – City of Cupertino, City Channel Community Statistics Facts and Figures 1 Population in City Limits 60,572 Median Household Income $134,872 Median Age 40 Registered Voters 27,489 Democrats 10,291 Republicans 6,256 American Independent 144 Other 256 No Political Party designated 10,209 1 U.S. Census Bureau 1261097 Top 40 Sales Tax Producers First Quarter 2016, in Alphabetical Order A2Z Development Goodfellow Top Grade Scandinavian Designs Alamillo Bear Granite Rock Company Seagate Technology Alexander’s Steakhouse Huawei Enterprise Seele Apple Computers Corporation Insight Solutions Inc. Shane Co. Argonaut Window & Door J C Penney Company Shell Service Stn. BJ’s Restaurant & Brewhouse Mirapath Superior Air Handling Benihana Mitsubishi Consumer El. Target Stores California Dental Arts Permasteelisa The Wiremold Company CEMEX const. materials Pro Installations TJ Maxx Chevron Service Stations Ranch 99 Markets Valero Service Stn. Columbia Stone Rosendin Electric Verizon Wireless De Anza College Campus Ctr. Ross Stores Whole Foods Market Dynasty Chinese Food Rotten Robbie Service Stn. Frener & Reifer Safeway Demographic Information 1271098 Community and Recreation Services Blackberry Farm Blackberry Farm has been upgraded and restored to improve the natural habitat for native trees, animals, and fish. Improvements to the park include construction of a new ticket kiosk, re-plastered pools, a new water slide, bocce ball, horseshoe courts, and numerous upgrades to the west bank picnic area. The park is located at 21979 San Fernando Avenue. Telephone: 408-777-3140. The Blackberry Farm Golf Course is located at 22100 Stevens Creek Boulevard. Telephone: 408-253-9200. The Quinlan Community Center The City of Cupertino’s Quinlan Community Center is a 27,000 square foot facility that provides a variety of recreational opportunities. Most prominent is the Cupertino Room - a multi-purpose room that can accommodate 300 people in a banquet format. Telephone: 408-777-3120. Cupertino Sports Center The Sports Center is a great place to meet friends. The facility features 17 tennis courts, complete locker room facilities, and a fully-equipped fitness center featuring free weights, Cybex, and cardio equipment. A teen center and a child-watch center are also included. The center is located at the corner of Stevens Creek Boulevard and Stelling Road. Telephone: 408-777-3160. Cupertino Senior Center The Senior Center provides a welcome and friendly environment for adults over age 50. There is a full calendar of opportunities for learning, volunteering, and enjoying life. There are exercise classes, computer lab classes, and English as a second language classes, and cultural and special interest classes. The center also coordinates trips and socials. The Senior Center is located at 21251 Stevens Creek Boulevard and is open Monday through Friday, 8 a.m. to 5 p.m. Telephone: 408-777-3150. Civic Center and Library The complex has a 6,000 square foot Community Hall, plaza with fountain, trees, and seating areas. City Council meetings, Planning Commission sessions, and Parks and Recreation Commission sessions are held in the Community Hall. The 54,000 square foot library continues to be one of the busiest libraries in the Santa Clara County Library system. For more information, call 408-446-1677. McClellan Ranch Park A horse ranch during the 1930’s and 40’s, this 18-acre park has the appearance of a working ranch. Preserved on the property are the original ranch house, milk barn, livestock barn, and two historic buildings: Baer’s Blacksmith Shop, originally located at DeAnza and Stevens Creek, and the old water tower from the Parish Ranch, now the site of Memorial Park. Rolling Hills 4-H Club members raise rabbits, chickens, sheep, swine, and cattle. The Junior Nature Museum, which features small live animal 1281099 exhibits and dispenses information about bird, animal, and plant species of the area, is also located at the ranch. The newly opened Environmental Education Center has Open House hours on Friday, Saturday, and Sunday. McClellan Ranch is located at 22221 McClellan Road. Telephone: 408-777- 3120. Things to Do and See Euphrat Museum of Art The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at DeAnza College, presents one-of-a-kind exhibitions, publications, and events reflecting the rich diverse heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists. Museum hours are 10 a.m. – 3 p.m. Monday through Thursday. Telephone: 408-864-5464. Fujitsu Planetarium The Fujitsu Planetarium on the DeAnza College campus is a must-visit Cupertino facility for stargazers. It hosts a variety of planetarium shows and events, including educational programs for school groups and family astronomy evenings. For more information, visit the website at http://planetarium.deanza.edu or call 408-864-8814. Flint Center The cultural life of the Peninsula and South Bay is enhanced by programs presented at the Flint Center for Performing Arts located at 21250 Stevens Creek Boulevard in the DeAnza College campus. The center opened in 1971 and was named in honor of Calvin C. Flint, the first chancellor of the Foothill-DeAnza Community College District. The box office is open 10 a.m. – 4 p.m. Tuesday through Friday and 1.5 hours prior to any performance. Box office: 408-864-8816; administrative office: 408-864-8820. Cupertino Historical Society The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is dedicated to the preservation and exhibition of the city’s history. Their museum, located at the Quinlan Community Center, develops and expands the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino. Telephone: 408-973-1495. Farmers’ Market There are two farmers’ markets located in the City of Cupertino. One is held on Fridays from 9:00 a.m. to 1:00 p.m. at the Vallco Shopping Mall parking lot behind Sears, and the other is held every Sunday from 9:00 a.m. to 1:00 p.m. at the Cupertino Oaks Shopping Center, 21275 Stevens Creek Blvd. 1291100 California History Center The California History Center and Foundation is located on the DeAnza College campus. The center has published 37 volumes on California history and has a changing exhibit program. The center’s Stocklmeir Library Archives boast a large collection of books, pamphlet files, oral history tapes, videotapes, and a couple thousand student research papers. The library’s collection is for reference only. Heritage events focusing on California’s cultural and/or natural history are offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June, Tuesday through Thursday, from 9:30 a.m. to noon and 1:00 p.m. to 4:00 p.m. 1301101 1102 1103 1104 1105 1106 1107 1108 1109 1110 1111 1112 1113 1114 1115 1116 1117 1118 1119 CITY OF CUPERTINO INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES FOR THE CITY OF CUPERTINO INVESTMENT POLICY FOR FISCAL YEAR ENDED JUNE 30, 2016 1120 This Page Left Intentionally Blank 1121 1 INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES ON THE CITY OF CUPERTINO INVESTMENT POLICY Lisa Taitano Finance Manager City of Cupertino 10300 Torre Avenue Cupertino, CA 95014-3255 Dear Lisa: At your request, we have performed the limited procedures enumerated below, which were agreed to by the City of Cupertino (City), solely to assist you with respect to the City’s Investment Policy. The City’s management is responsible for the City’s compliance with the Investment Policy. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the City’s responsibility as the specified user of this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings are summarized as follows: 1. We obtained the Investment Policy (policy), dated May 17, 2016, approved by City Council. We also obtained the policy, dated December 16, 2014, approved by City Council. We noted no major changes to the policy which was previously adopted on May 21, 2013. We compared the investments authorized by the policy with the investments listed in the March 2016 Treasurer’s Investment Report to determine if all investment types are allowed by the investment policy. Finding: No exceptions noted. 2. We compared the City’s Investment Policy with California Government Code Section 53601 to determine whether the City’s Investment Policy complied with California Government Code Section 53601. Finding: No exceptions noted. The City’s Investment Policy appears to comply with California Government Code Section 53601. 1 1122 2 3. We compared the March 2016 Treasurer’s Investment Report with California Government Code Section 53646 to ensure that the March 2016 Treasurer’s Investment Report complied with California Government Code Section 53646. Finding: California Government Code 53646 section 1(b) states “The treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency. The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report. During our interim audit, we selected the March 2016 Treasurer’s Report for testing against the California Government Code 53646. Per review of the March 2016 Treasurer’s Report and the City Council minutes located on the City’s website, it appears the City submitted the March 2016 Treasurer’s Report to City Council as of August 2, 2016. The March 2016 Treasurer’s Investment Report appears to not be in compliance with California Government Code Section 53646. 4. We inquired whether investment performance statistics and activity reports are generated on a quarterly basis for presentation to the oversight (audit) committee, City Manager and City Council, as required by the Investment Policy. Finding: Per our conservation with the Finance Manager and per review of the City Audit Committee and City Council minutes obtained from the City’s website, investment performance statistics and activity reports are generated on a quarterly basis and presented to the oversight (audit) committee. During our testing of the March 2016 quarterly investment report it was noted that the City presented the quarterly investment performance report to the Audit Committee on April 14, 2016 and submitted the quarterly report to City Council on August 2, 2016. Therefore, the City has not been in compliance with the Investment Policy’s requirement to present quarterly reports to City Council “no later than the second regular council meeting, or approximately 45 days following the end of the quarter covered by the report.” 5. We inquired and documented our understanding of the wire transfer procedures. The Investment Policy requires all wire transfers initiated by Treasury Section personnel to be reconfirmed by the appropriate financial institution to non-treasury staff. Finding: No exceptions noted. Per our inquiry and observation of wire transfer procedures, the City appears to be in compliance with the Investment Policy. 6. We selected three investment sales/maturities from various quarters of Treasurer’s Reports and performed the following:  Traced investment type to the supporting broker’s confirmation.  Traced the maturity date to the supporting broker’s confirmation.  Traced the amount of the investment sold to the supporting broker’s confirmation. Finding: No exceptions noted. The City appears to be in compliance with the Investment Policy. 1123 3 7. We selected two investments purchased (one as of October 2015 and one as of March 2016) for fiscal 2016 from the City’s investment files and performed the following:  Traced the purchased investments to the corresponding Treasurer’s Investment Report for the month in which the investments were acquired.  Agreed the amount, terms and interest rate to the Treasurer’s Investment Report.  Verified that the investment type is authorized by the investment policy. Finding: No exceptions noted. The City appears to be in compliance with the Investment Policy. 8. We obtained the Wells Fargo Bank Market/Cost Value Comparison Report, the City’s third party investment safekeeping custodian, for March 2016 and traced the following from each investment listed in the Wells Fargo statement to the City’s March 2016 Treasurer’s Investment Report:  Investment description  Market value  Purchase date  Maturity date  Coupon rate Finding: Per review of March 2016 Bank of New York Mellon statements, it appears market values for account #334904 and #334905 were incorrectly understated on the Treasurer’s Report by a total of $1,031. 9. We traced three Federal Agency investments that were purchased in fiscal 2016 and traced the reported ratings to Moody’s rating online. Finding: No exceptions noted. The City appears to be in compliance with the Investment Policy. We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the specified elements, accounts, or items in this report. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the City Council and City management and is not intended to be and should not be used by anyone other than those specified parties. Pleasant Hill, California March 7, 2017 1124 This Page Left Intentionally Blank 1125 1  Attachment D – Site Systems and Bank Processes (two tables)    SOURCE TRANSACTION TO FINANCIAL SYSTEM Site Site Software Export Method Import Method to Financial System Risks Community Development CSI Magnet Community Development Extract in html Upload directly to revenue collection module Errors in data entry and maintenance in site software hard to identify Quinlan Community Center Class System 8.0 Extract in text format Clean up text file then upload directly to general ledger Human intervention to clean up text file; no detail in financial system Sports Center CSI Software USA (Spectrum) CSI Report Direct batch entry to revenue collection module Errors in data entry and maintenance in site software hard to identify Senior Center Class System 7.0 Extract in text format Clean up text file then upload directly to general ledger Human intervention to clean up text file; no detail in financial system Finance Online Business License In-house website program Email from website Enter into CSI Magnet Business License* Very manual two-step process Finance Business License *CSI Magnet Business License (New World effective 3/1/17) Extract in html Upload directly to revenue collection module Previous software unreliable; reliability should improve in New World Blackberry Farm Park Class System 8.0 Extract in text format Clean up text file then upload directly to general ledger Human intervention to clean up text file; no detail in financial system Blackberry Farm Golf Cash register/spreadsheet Spreadsheet Direct batch entry to revenue collection module No automation; human intervention throughout      1126 2  BANK DEPOSIT PROCESS Site Cash Checks Credit Card Risks Community Development Daily deposit delivered to Finance; Finance deposits at branch Daily deposit delivered to Finance; Finance scans to deposit Wells Fargo Bank Merchant Services Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Quinlan Community Center Daily deposit in locked bag delivered to Finance; Finance deposits at branch Daily deposit in locked bag delivered to Finance; Finance scans to deposit ActiveNET Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Sports Center Daily deposit in locked bag delivered to Finance; Finance deposits at branch Daily deposit in locked bag delivered to Finance; Finance scans to deposit Wells Fargo Bank Merchant Services Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Senior Center Daily deposit in locked bag delivered to Finance; Finance deposits at branch Daily deposit in locked bag delivered to Finance; Finance scans to deposit Wells Fargo Bank Merchant Services Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Finance Online Business License N/A N/A PayPal Credit card transactions reconciled at month end only Finance Business License Collected at Finance window Finance scans to deposit Wells Fargo Bank Merchant Services Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Blackberry Farm Park Armored car to bank Armored car to bank ActiveNET Cash and checks balanced in each deposit; credit card transactions reconciled at month end only Blackberry Farm Golf Armored car to bank Armored car to bank Wells Fargo Bank Merchant Services Cash and checks balanced in each deposit; credit card transactions reconciled at month end only   1127 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2026 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:10/4/2016 City Council On agenda:Final action:5/16/2017 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council5/16/2017 1 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 5/10/2017Page 1 of 1 powered by Legistar™1128