CC 05-27-98 MINUTES
Cupertino City Council
Regular Adjourned Meeting
May 27, 1998
CALL TO ORDER
At 6:30 p.m. Mayor Chang called the meeting to order in Conference Rooms C & D, 10300
Torre Avenue, Cupertino, California.
ROLL CALL
City Council members present: Mayor Michael Chang, Vice-Mayor Wally Dean,
Councilmembers Don Bumett, Sandy James, and John Statton. Council members absent:
None.
Staffpresent: City Manager Don Brown; Administrative Services Director Carol Atwood;
Community Development Director Bob Cowan; Parks and Recreation Director Steve
Dowling; Public Information Officer Donna Krey; Human Resources Director Bill Woska;
and Public Works Director Bert Viskovich.
ORAL COMMUNICATIONS
None.
BUDGET STUDY SESSION
1. Review of the 1998-99 fiscal year preliminary budget.
City Manager Don Brown reviewed the agenda for this workshop, and said that staff
would present the budget items on an exception basis unless there were questions by
Council or the public. With a few exceptions it is a status quo operating budget with
inflationary changes built in. He reviewed some of the items from last year and gave
an update on their progress. These included new staff for streetscape and median
maintenance as well as Creekside Park; an additional school resource officer; a new
level of support to high schools in particular and recently in graffiti enforcement; and
the completion of a citywide survey.
Administrative Services Director Carol Atwood said this is a conservative budget,
that shows a 3% growth in revenues with the following exceptions: (1) Property tax
revenue growth rate is estimated at 15%; (2) The utility tax estimate is on a
downward trend of 10% because of PG&E recommendations regarding two rate
May 27, 19911 Cupertino City Council Page
decreases they plan next year; (3) Sales tax revenue has been increased for the
Macy's store at Vallco; (4) Transient Occupancy Tax has increased projections of 3%
and includes revenues from the Hilton Garden Inn which is scheduled to open in
September; and (5) Parks and Recreation fees are projected to increase 5%. Total city
revenues are approximately $45 million.
Atwood said that the General Fund revenue is $24 million. Sales tax is high at 35%,
and property tax at 14%. Other revenues have stayed relatively flat, except that the
lease of the water utility shows a large increase in the "other revenue" category for
97-98 FY. Assumptions regarding expenditures are that there will be a 3% growth
rate to track inflation. The majority of expenditures are as follows: public works at
23% (which includes maintenance of parks); 9% law enforcement; 10% debt service;
and capital projects and equipment funding at 35%. Overall expenditures are $54
million citywide. She noted that the Public Works budget shows such a large increase
because there are proposals to fund some substantial capital projects, including the
library and senior center expansion, over the next couple of years.
Atwood highlighted the Management Information System (MIS) budget and said that
council approved $200,000 to fund new purchases over a five year period.
She reviewed the General Plan reserve policy which currently states that the city will
keep 75% of its operating expenses pins debt service as reserve in the General Fund,
with a goal of 100%. Council will be reviewing that policy later in the process. She
noted that in 97-98 they are over the goal mount because of the lease of the water
company. Reserves will drop below the policy amount in 99-00 and 00-01 and then
start to build back up again.
Atwood said that the city has a healthy reserve but will also have some major capital
projects. Some of them have been included in this plan, and some still need more
information but are in the 5-year capital improvement program master plan. She
explained that even with funding $22 million of capital improvement projects over
the next five-year period, the fund balance would still return to a very healthy $22
million in 2002-2003. Council could choose to do debt financing which would speed
up the return in the fund balance.
She highlighted the special revenue funds, gas tax, park dedication fund,
environmental impact fund, Leadership Cupertino and CDBG money. She explained
that funds begin to grow as they have additional revenue and become self supporting,
and then money is put back into the General Fund to pay debt service on past items.
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Atwood reviewed the new programs proposed for this fiscal year:
· Request to fund the additional increment from 33% to 50% for the second school
resource officer
$48,100 pemtaneut outreach coordinator on ~ time
· $97,500 addition of sergeant for supporting community programs and traffic
supervision
· $30,000 for the PDC to continue community efforts. They will establish an initial
funding source out of law enforcement block grant monies if they are approved in
98/99, and if not it will come out of general fund
· $15,000 for night and weekend code enforcement for ail parks
· $50,000 to provide funding for enhanced graffiti abatement program
· $15,000 additional funding for Shakespeare in the Park
· $30,000 for the Historicai Society Museum director position and programs
· $3,000 for creation of an annual film exhibition
· $11,000 to provide push technology for current web site information
· $5,000 to the Leadership Cupertino Program, provided that is matched by the
other two sponsoring agencies, De Anza College and the Chamber of Commerce
· $3,000 for the county-wide green business group
Each of the department heads reviewed their new programs in more detail. Captain
Bob Wilson, Santa Clara County Sheriff's Office, discussed the proposal for the new
sergeant to facilitate neighborhood issues. This program is designed to get officers out
of patrol cars and into neighborhoods, and the sergeant would be working with the
new Community Outreach Coordinator, as well as the city's emergency preparedness
coordinator, to provide a group approach to neighborhood needs such as stranger
danger, children's programs, burglary prevention, home safety, emergency response,
traffic issues, etc. Brown said this position would not actually put on programs, but it
will be possible to assign deputies to interact in neighborhood activities.
Human Resources Officer Bill Woska discussed the code enforcement contract
position. The $15,000 cost would cover 800 hours a year of parks and recreation
enforcement. Parks and Recreation Director Steve Dowling explained that part of
justification is to protect the city's investment in the parks. There are some leagues
that use the fields without permits and don't adhere to policies regarding field
maintenance. Discussion followed regarding the feasibility of cost recovery and f'mes.
Public Works Director Bert Viskovich reviewed the graffiti abatement program. He
said it is important to remove the graffiti as soon as possible. Currently employees are
pulled out of other programs to do graffiti abatement, so to increase the level of
service they need a contract position. He explained that the additional $50,000 is an
estimate based on the amount of time spent in abatement. This is a new line item,
showing that total graffiti abatement costs are $112,000 per year. Brown noted that
this topic was raised during the Council goais session. The city is aiso looking at
..-- some technology solutions, but this is clearly a higher level of service to do abatement
of graffiti as soon as it shows up. Right now it can take as much as two or three days,
takes away from other work, and would necessitate purchasing additional equipment.
Atwood highlighted the request for additional funding for Free Shakespeare in the
Park. Mr. Mike Oalane, a member of the Board of Directors for the Silicon Valley
Shakespeare Festival, said they are looking at a funding model where there's funding
from city business and individuals have obtained additional corporate sponsors. They
will not be looking for complete funding from the city over the long term. He said
the overall cost oft his professional performance is approximately $10,000 per
evening, over the course of 9 evenings. This year they will share one day with the
Cupertino Art and Wine Festival. Attendance last year was so good that people were
turned away on some nights. They hope to have Cupertino as a permanent home in
the South Bay. City and staffwill continue looking at options to better utilize the site.
Parks and Recreation Director Steve Dowling said that since the opening of the
Cupertino Historical Society 8 years ago, the city has provided the space. All other
operational funding is generated and managed by the society. Their request is for
funding for two part time positions, a Museum Director and Museum Coordinator.
Ms. Kathy Nellis, 22322 Regnart Road, said seven other board members from the
Historical Society were present as well as Ethel Worn, Museum Director. She
thanked the city for the space and discussed the need to keep the museum open. The
$30,000 will just be to support staff and everything else is volunteer. She described
their programs, including the fixed exhibits and the traveling think. She said the
Society would like to enter into dialogue regarding the future of the city, and one
option would be to have a history room at the new library or at some of the city's
historical buildings.
Ms. Nellis said that total income for ten months was $26,000, and expenses this year
to date are $43,000, of which $25,000 was salaries. Fund-raising has not been very
successful, and levels of use have remained consistent with about 5,000 visitors a
year.
Ms. Ethel Worn said that it is difficult to raise general operating expenses, but
sponsors and grants help to pay for exhibits. Dowling said it is not uncommon for
municipalities in Santa Clara County to fully fund these operations. Ms. Nellis said
unless there's an endowment or more fund raising when these two years of funding
mn out, they probably won't be able to continue unless the city provides additional
support for operations. Dowling suggested forming a subcommittee comprised of
Historical Society staffand Parks and Recreation commissioners to explore long-term
options and strategies for Council review.
May 27, 199~ Cupertino City Council Page
Dowling explained that the annual film exhibition was originally an idea which came
out of discussions between the Parks and Recreation Commission and the Fine Arts
Commission for an outdoor film festival. The first-year cost was prohibitive, so the
idea was modified to be an indoor weekend film event in the Quinlan center. The
committee was considering an ethnic film event, not necessarily ajuried event. The
$3,000 would fund royalties for film rental and logistical support. Eventually this
could become an independent project and the committee members were looking into
other organizations that could take over.
Atwood discussed the idea of push technology, which was an idea f~om one of the
Council's goal sessions. To fully automate the program would cost approximately
$11,000 in sof~ware and labor (interact service provider and webmaster). Dean said
their goal was to take desired information and send it out to the community, and he
assumed it would be at the ordinary cost of doing business by just sending it to a
group address. Atwood said there may be as many as 11,000 citizens going into the
website and selecting what they want pushed to them, and the sol,are would
automate this process so that staff does not have to make continual updates.
Brown said there was one additional request not already listed. The Chamber of
Commerce requests an increase in their contract with the City, Which hasn't been
renewed for three years. Linda Asbury, Executive Director of the Chamber of
Commerce, described the contents of the relocation packet and that they wanted to
start profiling dubs and organizations again.
The department heads each highlighted their departmental budgets.
2. Review of the 1998-2003 Capital Improvement Program
Public Works Director Bert Viskovich summarized the Capital Improvement Program
items. He explained that the acquisition of the Stockelmier property is to be
negotiated, so there is no dollar estimate available until it goes through the appraisal
process.
Parks and Recreation Director Steve Dowling said that the Senior Center expansion
project is expected to be in construction next year. He also highlighted plans for
Blackberry Farm repairs, Blue Pheasant upgrades, and better utilization of space at
the Sports Center.
Viskovich highlighted the infommtion about the library expansion and at this point
the estimate is $18 million, which includes $1.5 million for all the different analyses
and architect fees, and the remaining $16.5 construction. This is a good guess for
the cost of a new library until further analysis is done. If it is remodeled and
expanded, the cost would probably be less.
May 27, 199g Cupertino City Council Page
Viskovich also highlighted plans regarding Stevens Creek Blvd. Specific Plan, the
Four Seasons Comer at De Anza and Stevens Creek, and the Stevens Canyon Road
Widening Project, which was in the list of unprogrammed items waiting for Council
to move it forward if they wish. The project consists of widening of Stevens Canyon
Road from Ricardo Road to the entrance to the Stevens Creek Park. He discussed
grants they had received for bikeways, Monta Vista undergrounding of PG&E lines,
and storm drain projects.
Statton said that in the master plan, he would like to see a railroad trail on the list.
Dowling said that the De Anza National Historic Trail references the railway corridor
as the route.
Chang asked Atwood for a comparison of new programs to total budget picture. She
said the figures on page 52 of the proposed budget is the "big picture", based on not
having these programs included. The ending fund balance would change, (assuming
the city gets the COPS grant and block grant) by approximately $275,000 a year if
Council adopts all of the new programs. The other line item to consider is net activity
for the year. Instead of $5.7 million negative for 98-99, the city would have about a
$6 million deficit
Council Discussion of New Projects
Council reviewed the new projects and took a straw vote:
· School resource office - adding percentage from 33% to 50%, addition of
$18,000. Consensus in favor.
· Community outreach coordinator at % time. Consensus in favor.
· Provide for additional sergeant for coordinate community programs and traffic
supervision. Unanimous in favor.
· PDC -Statton suggested it be the last year this program is funded unless there's a
whale of a program that comes back next year. Consensus in favor.
· Weekend code enforcement for parks. Consensus in favor.
· Funding for graffiti abatement contract - Chang and Bumett voted in favor. Dean
and Statton felt there was sufficient staff. James voted no and said they need
more information, but staffis doing a good job.
· Shakespeare from $5,000 to $20,000 - Consensus to grant an additional $15,000,
but not to fund the film event.
· Cupertino Historical Society - Consensus to grant funds for one year and then
review their plans for future projects/needs/funding.
· Film exhibition - consensus not to fund this project.
May 27, l {){)~ Cupertino City Council Page
· Push technology - consensus not to fund this project. Statton suggested that the
Public Information Officer, Community Outreach Officer, and Parks and
Recreation Director discuss how they provide citizens with email information
when they request it.
· Leadership Cupertino - James was in favor if the Cupertino Chamber of
commerce and De An?a College match the city's contribution, whether it' s money
or in-kind services. Burnett said he was not enthusiastic about the funding. Statton
felt there was value in having people that are well trained, they may be future
council members. Chang agreed that quality candidates would be an asset.
Consensus to approve.
· County wide green business program - resource recovery fund. Brown explained
that this was originally a short-term project that accomplished its original tasks.
Cupertino had planned to stop funding this year, but they have been asked by
Supervisor Simitian to reconsider. The resource recovery fund is in a very healthy
position and this is not a large amount of money. The program provides some
motivation for businesses to be environmentally sound. Statton said he would
approve funding if every other public entity involved is paying their fair share.
James said it makes sense to be involved in regional efforts that the city endorses.
Burner said if it pushes Kaiser even a little bit toward better dust suppression it
would be worthwhile. Consensus to approve.
· Chamber of Commerce - Consensus to approve.
Council Discussion of Capital Improvements Program
Discussion followed regarding the Stevens Creek Widening project and when that project
should be scheduled. Viskovich said it could be designed this year and construction could
begin spring or summer of next year. Council members discussed options and decided to do
the project in two phases, beginning in the 1998-99 fiscal year. Viskovich said they could
move $50,000 into that year for the first phase.
Council members discussed the library budget options. Viskovich said at this time Council is
asked to approve only the 1998-99 expenditure. The items listed in following years are more
of a planning tool. Next year when it is time to consider additional funding there will be
alternative analyses and more accurate cost estimates, but this budget document simply
shows a ballpark figure. Viskovich estimated that it would cost about $100,000 to obtain a
good analysis of all of the options and economic analysis for rebuilding versus remodeling,
and the $1.5 million would be moved over into the following year.
May 27, 1998 Cupertino City Council Page
Atwood said that staffwould return to Council on June 1 with a possible fee schedule
amendment that would include fines for groups not authorized to use the sports fields.
Also, a detail of sheriff's personnel will be provided to city council along with an explanation
from the City Clerk regarding digital records versus microfilmed records. Staffwould
summarize changes requested by council during the workshop and would consider adding
trend infom-,afion in the budget modification section next year. Page No. 220 would be
amended to remove the word "design," and there would be an explanation for the increase in
public works under environmental management. Staff would also discuss ways to provide e-
mail information to citizens.
ADJOURNMENT
At 10:30 p.m., the meeting was adjourned.
City Manager