CC 05-30-01 APPROVED MINUTES
CUPERTINO CITY COUNCIL
Regular Adjourned Meeting
Wednesday, May 30, 2001
PLEDGE OF ALLEGIANCE
At 4:15 p.m. Mayor James called the meeting to order in Conference Room C/D, 10300 Tone
Avenue, Cupertino, California.
ROLL CALL
City Council members present: Mayor Sandra James, Vice-Mayor Richard Lowenthal, and
Council m~i~ibers Don Burnett and Michael Chang. Council members absent: None.
Staff present: City Manager David Knapp, Administrative Services Director Carol At'wood,
Community Development Director Steve Piasecki, Parks and Recreation Director Therese Smith,
Public Information Officer Rick Kitson, City Attorney Charles Kilian, and City Clerk Kimberly
Smith.
ORAL COMMUNICATIONS - None
STUDY SESSION
1. City Council study session on the 2001-2002 budget. The second of two study sessions,
this meeting included a review of the prior study session, department operating budgets,
finalization of the Capital Improvement Projects (CIP), funding options, and direction to
staff regarding program options.
Administrative Services Director Carol Atwood highlighted the General Fund and
explained how council's direction from the previous study session was now reflected in
this document. She then led a discussion regarding whether to sell excess property,
specifically the city's Oak Valley properties, to help fund Stevens Creek and the library,
or whether to hold the property as part of the city's reserves.
Chang said he would support the liquidation of Oak Valley pwperties now and wait on
the rest of the properties until staff can review and made a recommendation on the matter.
Quails mentioned that it takes up to 6 months to auction a piece of property and
recommended starting that process now. He clarified that this does not mean the city
would be committed to sell the property.
Council concurred to start the process of selling one Oak Valley lot this year and the
other two the year after.
Atwood reviewed the budget assumptions and General Ftmd revenues, mentionin~ that
no new revenue sources were included in this budget. She said that a 20% increase in
utility cost was reflected in the budget as well as a 20% increase in utility tax revenues,
but mentioned that the current utility cost increase is 50-60%. She said that staffwould
meet to discuss how to save energy.
Council directed statTto reflect the estimated increase in utility cost in the budget and
follow a more conservative approach.
Atwood reviewed the General Fund expenditures and said that a total compensation
salary increase of 5% is reflected in the budget and that all of the line items were done
with zero based budgeting (each department looked at what they spent in prior years and
evaluated what their needs were for next year).
Each manager reviewed his or her department's budget.
City Manager Dave Knapp said the Assistant City Attorney went from three-quarter time
to full-time, an increase in the law enforcement area represented the new Red Light
program and additional staff required, and there was a small increase in the PlO area in
the government channel operations.
· - Atwood reviewed the Administrative Services' budget, which included an increase in
Finance due to an additional state reporting requirexiient, staff changes from part-time to
full-time and the addition of a Finance Manager; additional costs in the City Clerks'
office due to elections and records management; an increase in Human Resources/Code
Enforcement due to animal control costs; and an increase in Information Technology due
to increased technology.
Parks and Recreation Director Therese Ambrosi Smith said that the biggest change in her
budget was a result of the new Senior Center and additional staffrequiremants.
Comm~mity Development Director Steve Piasecki said that there was an increase in his
budget from the General Plan expenses, the Cupertino Community Services (CCS)
housing project and additional staff.
Public Works Director Ralph Quails said that the depa~'u~,ent is status quo, with a
reduction due to a transfer fi'om the Operating Budget into the Capital Improvement
Program (CIP) for pavement maintenance.
Lowenthal and Burner agreed to meet with Qualls regarding the focus of a new Traffic
Engineer in regards to traffic calming.
._ Atwood reviewed the reserve policy, which totals $15 million.
Quails reviewed the 5-year CIP draft ~vision, which included changes to the Four
Seasons Comer public art project, the skate park, the library, the Sports Center, City Hall
May 30, 2001 Cupertino City Council Page 3
improvements (conference rooms and lobby carpet), De Anza/Stevens Creek crosswalk
enhancements and the Mary Avenue crosswalk and parking pwject.
A discussion followed regarding Mary Avenue parking for the new Senior Center' and
consideration of restricted parking on that street. Staffwill bring a report back to Council
sometime in July.
Atwood asked for policy direction on the reserve policy and Council concurred to utilize
the reserves for acquisitions, including the library project. They further concurred that
revenues from the upcoming KJmpton Hotel would go back into the reserve fund.
She then reviewed the proposed CIP projects: the library, the skate park, the Sports
Center and options for the Teen Center for the future. She said that the unfunded projects
would be listed on a separate sheet.
At 6:10 p.m., the meeting was adjourned.
Kim~ty Clerk