CC 05-28-97--- CC-945A
MINUTES
Cupertino City Council
Regular Adjourned Meeting
May 28, 1997
PLEDGE OF ALLEGIANCE
At 6:00 p.m. Mayor Bautista called the meeting to order in the Conference Room C & D, 10300
Torte Avenue, Cupertino, California, and led the Pledge of Allegiance.
ROLL CALL
City Council members present: Mayor John Bautista, Vice-Mayor Michael Chang, Council
members Don BurneR, Wally Dean and Lauralee Sorensen. Council members absent: None.
Staffpresent: City Manager Don Brown; City Clerk Kimberly Smith; City Attorney Charles
Kilian; Administrative Services Director Carol Atwood; Community Development Director Bob
-- Cowan; Parks and Recreation Director Steve Dowling; Public Information Officer Donna Krey;
and Public Works Director Bert Viskovich.
ORAL COMMUNICATIONS
None.
NEW BUSINESS
City Manager Don Brown noted that at the meeting of May 19 a closed session was held
regarding labor negotiations. The City Council directed the City Manager and Human Resources
officer to proceed as discussed in the closed session related to employee wages.
1. Review of the 1997-98 fiscal year preliminary budget.
City Manager Don Brown reviewed the budget message and said that the economic
climate has been very favorable for over a year, and the City's General Fund reserve is in
a strong position. The City policy calls for a reserve of 75% of the total cost of
operations and debt service, and the City will be exceeding that. Brown reviewed the
operating revenues and operating expenses as illustrated on page 2 of the preliminary
budget and discussed the changes in number of employees from 92/93 through 97/98. He
said that over a period of two years the city will have over $4 million more than
previously projected. Brown also highlighted the proposed new programs as shown on
page 3 of the budget.
May 21], 1997 Cupertino City Council Page 2
Administrative Services Director Carol Atwood reviewed the assumptions included in
this budget: (1) Sales tax revenue will remain fiat with the exception of projected use tax
from new development; (2) Property tax revenue will grow at 10%; (3) Fees from park
dedication, construction tax, and permits will be higher than nom~al due to several major
developments; (4) Overall revenue and expenditure growth will be 3%; and (4) Employee
compensation will track inflation. She also reviewed the charts on pages 30-33 showing
revenues and expenditures. Atwood said that staff did not assume any income from the
agreement with Apple about sales tax, the lease of the City's water company, or income
from a second hotel, so these are very conservative estimates. She reviewed the fund
balance for the next five years, as shown on page 50 of the budget, and noted that the
park dedication fee amount is also a very conservative number because it reflects a 50%
credit for the Diocese park dedication fees, although skaff is not recommending that such
credit be given.
The City Manager reviewed page 109, law enforcement costs, and explained that it
reflects the new 5-year contract showing cost of living increases. An additional School
Resource Office, listed under new programs, would increase this amount. He explained
that Cupertino only pays for investigative services when needed, so this contract amount
is consistently underspent.
Staff from each division reviewed their individual budgets and noted any significant
changes. Most budgets were status quo for this year.
Public Works Director Bert Viskovich and Parks and Recreation Director Steve Dowling
highlighted the 5-year Capital Improvement Projects budget. Items programmed for
fiscal year 97/98 include (1) Park renovation program; (2) Senior Center expansion; (3)
Blackberry Farm repairs; (4) Americans with Disabilities Act (ADA) upgrade to the Blue
Pheasant Restaurant; and (5) Stevens Creek Boulevard Specific Plan.
The City Manager polled the Council members about their support for the proposed new
programs, as listed below. All of these costs would come from General Fund Operations.
$110,000 One additional School Resource Officer for 9 months.
$ 60,000 Contingency funding for campaign reform enforcement (election years)
$ 50,000 Feasibility study of a new/expanded library
$ 30,000 Continuation of the Public Dialogue Consortium community outreach
$ 20,000 Funding of the entire anm~al Fourth of July fireworks celebration
$ 15,000 Semi-annual community survey of 400 citizens regarding city services
He explained staff would continue discussions with Fremont High School District
regarding the SRO. The funds for the Public Dialogue Consortium would only be spent
if they were unable to obtain other funding through grants, etc. Beginning in 1998 the
fireworks would be funded entirely by the City, although continuation of the Fourth of
July committee of citizens would be encouraged.
The Council members were all in favor of adding these new programs.
May 28, 1997 Cupertino City Council Page 3
Discussion was held regarding other items which had not yet been raised. Council
directed staff to move up the Rainbow Avenue median improvements (DeAn:~a to
Stelling) into 98/99 fiscal year and to move the Portal Park expansion into the
programmed items. The Public Works Director reported on the status of the Varian Park
orchard tree replacement and said that would be done this year.
AD,IOURNMENT
At 8:00 p.m. the meeting was adjourned.
City Clerk