101-Draft Minutes.pdf DRAFT MINUTES
CUPERTINO CITY COUNCIL
Regular Adjourned Meeting
Monday, May 23, 2011
ROLL CALL
At 3:05 p.m. Mayor Gilbert Wong called the regular meeting to order in the Council Chamber,
10350 Torre Avenue, Cupertino, California.
Present: Mayor Gilbert Wong, Vice-Mayor Mark Santoro, and Council members Barry Chang
(3:27 p.m.), Orrin Mahoney, and Kris Wang. Absent: none.
STUDY SESSION
1. Subject: Study session on the FY 2011-2012 Budget
Recommended Action: Conduct study session
A. Budget Message
City Manager Dave Knapp stated that the city’s budget was balanced for the next five
years. He said it was a difficult task, given such challenges as the departure of HP next
year, which will result in a loss to the city of about $1 million, and the likelihood that the
Redevelopment Agency will go away, which would cost the city about $192,000. He
noted that there had been a hiring freeze of about 10 positions, although no cuts had been
made to programs, and there have been severe restrictions on the amount of general fund
money going into the Capital Improvement Program budget. Mr. Knapp highlighted
some items included in the proposed budget, as shown in page 4 and 5 of the study
session packet.
B. Overview of Budget:
Budget Projections 2010/11
Budget Projections 2011/12
Funded/New Programs
Unfunded Programs
Fiscal Strategic Plan Committee recommendations
Administrative Services Director Carol Atwood reviewed a series of PowerPoint slides
highlighting the budget and the proactive financial planning steps the city had taken. She
also noted the following revenue assumptions:
• Property tax increases at 1%
• Sales tax increases at 4%. HP loss is reflected starting March of 2012
May 23, 2011 Cupertino City Council Page 2
• Only one new hotel included in TOT projections, several years out.
• Charges for services are conservative
She explained the selective hiring freeze and noted that the budget had absorbed about
$192,000 in staffing charges that in prior years was included in the Redevelopment
Agency budget. She said that the city continued, as it did last year, to defer park and
building maintenance, only approving about half of the projects in this budget. She
highlighted other funding requests (as shown on page 5 of the study session packet) that
were not included in the proposed budget.
Atwood recommended that the City Council increase the reserves to $14.4 million. She
also highlighted a number of proposals from the Fiscal Strategic Plan Committee,
including
• Continue legislative efforts on the TEA/ERAF inequity
• Consider a 2% increase to the hotel tax, which hasn’t been increased since 1991
• Consider consolidating Sheriff’s services with DeAnza College
• Consider new reserve levels and funding priorities – infrastructure first, economic
uncertainty second, $500,000 in undesignated reserves for as needed
appropriations, and then the capital improvement projects.
C. Departmental Budgets:
Council and Commissions
Administration/Attorney/PIO
Administrative Services
Law Enforcement
Parks and Recreation
Community Development
Public Works
Each department head reviewed his or her proposed budget line items.
D. 5 Year Capital Improvement Program (CIP)
Public Works Director Timm Borden provided an overview of the Capital Improvement
Program
E. Questions and Answers
Mayor Wong took up Council comments next.
G. Council Comments:
Operating Budgets
Funded/New Programs
Unfunded Programs
Fiscal Strategic Plan Committee recommendations
May 23, 2011 Cupertino City Council Page 3
5 Year CIP
Council members asked for additional information, including:
• A list of discretionary programs
• A breakdown of the Redevelopment staff time that was absorbed into the general
fund budget
• The year when the current law enforcement contract will end.
• Actual cost of the last two elections
• Data on the number of golfers and why those numbers have dropped
• A list the festivals and how much the city spends on each one
• A detail of the City Council budget
• An explanation of the variation in cost for street cleaning
F. Public Comments
Donna Austin commended staff and recommended that the Council continue funding for
the current library hours, if an increase is not possible, to complete the Stevens Creek
Trail and creek restoration. She also spoke in favor of funding for the Cupertino
Historical Society, and referred to a letter from Darryl Stow.
It was noted that Eno Schmidt had earlier been present to speak in support of extra library
hours, but had to leave the meeting.
Mark Fink, Cupertino Librarian, thanked the Council on behalf of staff and the public for
supporting additional library hours and maintaining current support for next fiscal year.
He referred to a letter from Deputy County Librarian Derrick Wolfgram, and said if the
City Council could fund an additional six hours a week, which would cost about
$123,000, there would be great support.
Jan Rindfleisch, Director of the Euphrat Museum, gave a brief PowerPoint presentation
about the community activities sponsored by the museum. She thanked the City Council
for its support in prior years and asked the Council to maintain the $15,000 in last year’s
budget.
Diana Argabrite, the Arts in Schools representative at De Anza College, said that the
museum serves everyone from preschool age to the senior center and asked for the
Council’s continued support.
Jennifer Griffin expressed her support for the orchard care and the Sterling Barnhart Park.
She encouraged the City Council to continue maintenance of street trees and sidewalks,
and to keep the Lawrence/Mitty Park on the books for future development.
After the public comments, several Council members expressed the need to review and
prioritize all outstanding Capital projects and asked for that information for the next
upcoming budget public hearing.
May 23, 2011 Cupertino City Council Page 4
ORAL COMMUNICATIONS - None
CLOSED SESSION
2. Subject: Public Employee Performance Evaluation (Government Code 54957); Title: City
Manager
Page: No written materials in packet
At 6:32 p.m., Council recessed to a closed session to conduct the performance evaluation.
The Council reconvened at 9:00 p.m.
ADJOURNMENT
At 9:00 p.m., the meeting was adjourned to 3:30 p.m. on Tuesday, May 24, 2011, in City Hall
Conference Room A, 10300 Torre Avenue, Cupertino, for Teen Commission interviews.
____________________________
Kimberly Smith, City Clerk
Staff reports, backup materials, and items distributed at the City Council meeting are available
for review at the City Clerk’s Office, 777-3223, and also on the Internet at www.cupertino.org.
Click on Agendas & Minutes, then click on the appropriate Packet.
Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99
and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, then
click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased
from the Cupertino City Channel, 777-2364.