FSP 04-04 2011City of Cupertino
Fiscal Strategic Plan Committee
Minutes
April 4, 2011
1. CALL TO ORDER
At 4:10 p.m. Carol Atwood called the meeting to order at Cupertino City Hall, 10300
Torre Avenue, Conference Room A, Cupertino, CA.
2. ROLL CALL
Present: Mark Santoro, Gilbert Wong, Carol Atwood, Kelly Kline, Aarti Shrivastava,
David Woo, Mark Linder, Roger Lee, Timm Borden, Julia Lamy
Absent: None
Guests: Keith Murphy
3. APPROVAL OF MINUTES
Roger Lee moved to approve the minutes of March 7 and March 21, 2011. Mark Linder
seconded and the motion passed unanimously.
4. ORAL COMMUNICATIONS - None.
5 WRITTEN COMMUNICATIONS - Carol Atwood distributed a 4-4 e-mail update
from Bryan Godbe on the telephone survey being conducted on a 2% TOT increase.
6. OLD BUSINESS
A. TEA/ERAF Legislation - Carol 'Atwood reported that the proposed legislation will be
heard at the Senate Appropriations Committee on 4/6/11 at 9:00 a.m. She will follow up
with Dave Anderson regarding attendance, and will also provide an update to Council
Member Wang.
B. Dog/Cat License Enforcement - Carol. requested feedback on a proposed fall event to
proactively target pet owners for licensing. The committee suggested waiting until 2012
— potentially linking with the "Cupertino Day" at Blackberry Farm on the first Saturday
in May,
7. NEW BUSINESS
A. Revenue Considerations
1. SB 570 (Calderon) on-line Hotel Tax losses — The committee continued
discussion on whether to pass this on to the City Council legislative committee.
(The League is opposed to SB 570 since revenues would go to the state instead of
cities.) The committee recommended putting this on the 5/3/11 Council Agenda.
In the meantime, Finance will estimate Cupertino's annual loss.
2. Cell Towers on Public Right-of-Yf7ay — The Committee discussed limiting the
location of cell phone towers to the Public Right -of --Way only to save staff time
related to the lengthy appeals process for private property applications. Mayor
Wong and Vice Mayor Santoro stated that restricting applications to "only" the
Right -of -Way was too stringent. Instead, staff will investigate a policy/ordinance
change that clarifies the rules for :public v. private land which will likely have the
same effect.
It was also recommended that the TICC actively engage with Joint Venture
Silicon Valley's Wireless Communications Initiative, if they aren't already. - J
3. Apple — Responding to questions from the last meeting, Carol Atwood reported
that Apple stores typically generate $200-400k annually in sales tax revenues.
Information on a proposed strategy for future sales tax agreements will be
forthcoming.
4. Other ideas? The following items were brought up:
a. Demand driven facility rental
b. Parking Meters near the library to supplement library funding
c. Golf Course wate r rights
d. On-line Permitting -- quantify savings beyond value for customers
e. Electricit y Savings from streetlights -- $250k/year is current estimate
f. New Irrigation System — current estimates are flat, and will be adjusted
accordingly
g. Senior Center Travel Program Cost Recovery — program used to cost
$50k, and will soon be zero
h. IT Efficiencies including printer consolidation and automatic shut -down
B. Expenditure Reductions/Best Practices
1. Charging of Attorney Fees to Third Parties — While this has been happening with
some projects/departments, it will now happen - systematically, and will be
detailed in the new fee schedule.
2.- Funding Storm Drain Expenditures — This item is on hold until after the January
survey. Carol Atwood briefed the committee on additional alternatives that are
available should the committee decide not to recommend a 2012 ballot measure
to the City Council, including passing through costs as part of development and
construction review. Aarti Shrivastava noted that some of the staff costs could be
added to the new fee schedule.
3. Researching Re -financing of debt portfolio — Unfortunately, it is no longer a good
time to refinance based on the state's instability. However, staff will continue to
check since this would represent approximately $100k in savings annually over a
9 year period. Pursuing this item requires 6 months of preparation by staff.
4. Other — see ideas listed on 7. A. 4.
C. Reserve Policy/Levels — to be discussed at future meetings
D. Next Meeting/goals — April 11 t1', 4:00 p.m., May 2" d, 4:00 p.m.
8. ADJOURNMENT
The meeting was adjourned at 5:15 p.m.
Carol Atwood, Director of Administrative Services
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