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CC 05-27-09CUPERTINO APPROVED PVIINUTES CUPERTINO CI'1CY COUNCIL Regular Adjourned Meeting Wednesday, M;~y 27, 2009 ROLL CALL At 5:05 p.m. Mayor Orrin Mahoney called the regular adjourned meeting to order in Conference Room 100, City Hall, 10300 Torre Avenue, Cupertino, California. Present: Mayor Orrin Mahoney, Vice-Mayor Kris Wang, and Council members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. POSTPONEMENTS -Staff recommends postpo~iing Item No. 2 to June 2. STUDY SESSION 1. Study Session on the proposed 2009/10 Bu~~et. A. Budget Message City Manager David Knapp reviewed his budget message on pages 1-6 of the proposed budget document and highlighted the following: • Expectation that the State will borrow approximately $1.3 million. Cupertino anticipated this and has set aside $915,000 in contingency funds, leaving the City in a strong reserve position • Fiscal Strategic Plan adopted in 2006 has already helped to bring in revenues • The budget is balanced for the next 5 years • Cupertino is down about $2 million in revenues but that has been dealt with through a selective hiring freeze anti modest reductions to department budgets • The recession will continue to impact on revenue sources and interest earnings are likely to be down, but year-to-date expenditures are also down about 2% • Personnel changes include 8 po;~itions to be kept vacant; the position of Equipment Mechanic is being recniited; the Park Planner position that was hired fora 2-year arrangement is extended in this proposed budget to take care of Phase 2 of the Stevens Creek Corridor Project; two Code Enforcement positions will be classified as Senior positions; th~~ McClellan Ranch Recreation Coordinator position will become a Special P~°ograms Coordinator; and the Assistant City Attorney is funded as a full-time po:~ition • Items included in the adopted budgc;t, Capital Improvement Projects funded in the 09/10 budget, and requests not incll~ded in the proposed budget are listed on pages May 27, 2009 Cupertino City Council Page 2 4 and 5 of the proposed budget document. One additional requested item is to set aside monies for a trial off-leash dog area, including a small fenced area, enforcement, and/or community education. B. Overview of Budget: - Budget Projections 2008/09 - Budget Projections 2009/10 - Funded/New Programs - Unfunded Programs - Fiscal Strategic Plan Committee recommendations Administrative Services Director Carol Atwood reviewed a PowerPoint presentation which highlighted the following: • General Fund Trends • General Fund Revenues • General Fund Operating Expenditures • General Fund -New Items • Funded 09/10 (CIP) Capital Imf~rovement Projects • Funded CIP projects 09/10 and beyond • Programs not included • General Fund reserves & policy levels • CIP Fund reserves & policy leve;ls • Fiscal Strategic Plan Committee recommendations • Federal Stimulus Grant applications She said that revenues have declined due to the recession but expenditures have been kept under control. Sales tax will be on budget but only because of the State "true up" from the prior fiscal year, as the City is now seeing declines in business- to-business sales tax and in the retail area. Expenditures are below budget, leaving Cupertino with a projected $1 million in savings at the end of this Fiscal Year; that is reflected in the proposed Midget. Property tax increases estimated by the County are going up 1 % next year because Cupertino has not experienced the decline in property values seen in ether communities. The Utility User Tax is at risk by approximately $500,000-$E-00,000 a year from cell phones that weren't defined in the prior ordinance, and. Council will consider going to the voters in November to update that language. Several new hotels were approved but revenue from only one hotel is reflected in the next 5 years because developers have asked to have the projects either phased or put on hold. Operating expenditures includes the third year of a 3-year contract ~•ith City employees, a selective hiring freeze is in place for 8 positions, and Cupertino is funding medical retiree obligations by setting that up in a trust. C. Departmental Budgets: - Council and Commissions - Administration/Attorney/PIO - Administrative Services - Law Enforcement May 27, 2009 Cupertino City Council Page 3 - Parks and Recreation - Community Development - Public Works City department heads highlighted the changes to their departmental budgets. D. 5 Year Capital Improvement Program (CIP) Public Works Director Ralph Qualls gave an overview of the CIP program including park facility improvements, Blackberry Farm infrastructure, Stevens Creek Corridor Phase 2, parks tennis court resurface, Wilson Park irrigation, McClellan Ranch blacksmith shop, Quinlan terrace fountain replacement, Service Center wash rack, street concrete maintenance, traffic improvements, and storm drainage. He also noted unfunded projects including City Hall remodel, Sports Center gym, and Bubb/McClellan storm drain. E. Questions and Answers F. Public Comments Jennifer Griffin said that she is excited to hear about the blacksmith shop. She also noted that she is glad that the :iterling Barnhart Park is coming soon and that it would be nice to have historical plaques in Cupertino. G. Council Comments: - Operating Budgets - Funded/New Programs - Unfunded Programs - Fiscal Strategic Plan Committee recommendations - 5 Year CIP The City Council members asked for more information on the following items: • Recap the last two years of School Resource Officer costs • Footnote Retiree Medical Trust activity in the budget document • Denote any deadlines on Stimuhas Grant applications • What can $130,000 provide for the Heart of the City • Breakdown of General Election versus Utility User Tax costs • What's happening with Cupertino Channel broadcasting regarding quality improvement and update on digital status • Status of bandwidth project and budget • Community Development budget regarding Below-Market-Rate housing projects for two years; mid- to long-term planning projects for two years; affordable housing projects for two years; total project to date Housing Element budget • Any cost sharing agreement for traffic study for new hotel and office squares? May 27, 2009 Cupertino City Council Page 4 • Capital Improvement Projects regarding a list of wish items and reconciliation between Public Works Director Ralph Qualls and Administrative Services Director Carol Atwood's PowerPoint presentations • Rental revenue from the Simms property • 09/ 10 expenditure trends PUBLIC HEARING 2. Consider an appeal of a Planning Commission decision to approve a Use Permit and Architectural and Site Approval to allow the construction of a new automated carwash tunnel, a new trash enclosure and enhancements to the parking lot, and new landscaping features at an existing gas station. Application Nos. U-2009-02 and ASA-2009-02, Muthana Ibrahim (Atam Sandhu), 1699 Soi.~th De Anza Boulevard, APN 366-10-120. Sandoval moved and Wong seconded to ~;,ontinue this item to June 2, as requested by staff. The motion carried unanimously. 3. Review summer schedule of Council meetings. Santoro moved and Wong seconded to co~itinue this item to June 2. The motion carried unanimously. ORAL COMMUNICATIONS -none ADJOURNMENT At 8:10 p.m. the meeting was adjourned to Monday, June 1 at 4:30 p.m. for Teen Commission interviews, Cupertino City Hall Conference Room A, 10300 Torre Avenue. ~~ _ r Grace Schmidt, Deputy City Clerk Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Online Services, then Watch City Meetings. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cuRertino.ora ,then click Online Services and Watch City Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.