CC 05-24-04
CI F
CUPEIQ1NO
ROLL CALL
AGENDA
CUPERTINO CITY COUNCIL
REGULAR ADJOURNED MEETING
10300 Torre Avenue, Council Chambers
Monday, May 24, 2004
3:30 p.m.
STUDY SESSION
1.
Study session on the 2004-2005 budget.
A.
B.
c.
D.
E.
F.
G.
Budget Context
Dave Knapp
Overview of Budget:
Budget Projections 2003/04
Budget Projections 2004/05
General Fund Trends
Change in Program Levels
Reserve Policy
State Proposal
Carol Atwood
Ralph Qualls
Departmental Budgets
Council and Commissions
Administration! Attorney/PIO
Law Enforcement/9ll Fees
Administrative Services
Parks and Recreation/Festivals/50th
Community Development
Public Works/Weekly Recycling
Carol Atwood
Therese Smith
Steve Piasecki
Ralph Qualls
5 Year Capital Improvement Program (CIP)
Ralph Qualls
Possible Executive Loan Pay down
Dave Knapp
Questions and Answers
All
Public Comments
May 24, 2004
Cupertino City Council
Page 2
H.
Policy Direction
Revenue Enhancements
Operating Budgets
Change in Program Levels
Reserve Policy
5 Year CIP
Carol Atwood
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the council on any matter
not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will
prohibit the council from making any decisions with respect to a matter not listed on the agenda.
ADJOURNMENT
Adjourn to Tuesday, June I at 3:00 p.m. for Teen Commission interviews, Sports Center
Conference Room, 21111 Stevens Creek Blvd., Cupertino, CA 95014.
In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make
reasonable efforts to accommodate persons with qualified disabilities. If you require special
assistance, please contact the city clerk's office at 408-777-3223 at least 48 hours in advance of
the meeting.
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
Telephone: (408) 777-3354
FAX: (408) 777-3333
CUPEIQ1NO
DEPARTMENT OF PUBLIC WORKS
Summary
AGENDA ITEM
It.
AGENDA DATE
May 24.2004
SUBJECT
Report on Weekly Single-Stream Recycling - Council Workshop FY 2003-2004 Budget
BACKGROUND
As the Council has expressed interest in considering increasing the current recycling program
service to a single-stream, weekly pickup program, this report on the subject is for the Council's
information and consideration as part of the FY 2004-2005 Budget discussions. Until recently,
single-stream recycling was not possible because of the lack of capacity at the existing single-
stream processing facility in San Jose. However, Browning Ferris Industries (BFI), which is also
known as IDC, has advised Los Altos Garbage Company (LAGCO) that single-stream sorting
capacity is now available at its Newby Island landfill facility. With that in mind, staff has
researched with LAGCO two alternatives for weekly single-stream recycling for the Council's
consideration.
Following is a summary of available resources from the Resource Recovery Fund to finance
either of these proposals (numbers are estimates):
Estimated End of Year Balance
$ 6,300,000*
Reserve set-aside for Unknown
Environmental issues/impacts
(1,500,000)
Set-aside for Cleanup reimbursement
To the General Fund
(2,000,000)
Reserve for payment of Library FF &E
000.000)
Estimated Uncommitted Balance
$ 2,100,000
* At this end of year balance level, the fund grows at an annual rate of approximately $500,000
so there is some flexibility in financing programs over a period of years. However, it should be
noted that selection of either alternative to be funded completely from the reserves will bring the
Reserve fund to a very low level.
Printed on Recycled Paper
I ~-I
The two alternatiyes are described below:
Alternative No.1: Semi-Automated Service - Total Cost: $ 3.575.000
Currently, the 5 garbage and 2 yard-waste trucks serving Cupertino are semi-automated and able
to dump carts. LAGCO is proposing to replace the existing 1995 recycling trucks, which don't
have the ability to dump carts, with four, 2002-demonstraion trucks that are able to dump carts.
There is no extra cost to the City to trade out the vehicles. All services would then be semi-
automated and picked up using carts.
Advantages:
With semi-automated service, residents can use 64 gallon carts that can easily be rolled out to the
curb. The driver still must dismount the truck, but because we have curbside oil pickup and
would still need to collect large pieces of cardboard placed outside the cart, semi-automated
service offers more flexibility for collection of these two items.
The semi-automated service also provides a choice for townhouse developments, in case the 64
gallon carts are too large to store, 18 gallon bins can continue to be used.
The trucks are already available and the time for implementation is shorter, possibly six months,
than if new trucks were ordered. The program could be phased in by starting with distributing
carts for garbage and then converting to the weekly yard waste and weekly single-stream
recycling programs.
Disadvantages:
The only disadvantage might be a slightly slower collection time for each stop which would have
minimal effect on customers, although, LAGCO is not included a cost for additional time in their
proposal for semi-automated as compared to automated collection.
Costs:
Carts for garbage and recycling (including delivery)
Program costs over the life of the contract (5 yrs 10 mos.)*
Outreach
Contamination monitoring
Contingencies
$ 1,185,000
$ 2,070,000
$ 150,000
$ 50,000
$ 120.000
Total
$ 3,575,000
* Assuming Start of service J an 2005
If this alternative is funded entirely from reserves there would be no rate increase to customers.
((-.L
Alternative No.2: Automated Service -Cost: $ 4.025.000
Automated service, which allows the driver to stay in the truck in most cases and uses an
automated arm to empty the cart, would require the purchase of 11 new trucks, as none of the
current trucks are fully automated. As with the semi-automated service, garbage and recycling
would be picked up in carts.
Advantages:
Drivers do not need to dismount the vehicle in every case, which does not affect the customer or
the service
Disadvantages:
It may take up to a year to order and deliver new trucks, longer than it would take to implement
semi-automated service, and automated service is more costly than semi-automated service. It
appears the advantages of having the driver stay in the truck over dismounting, and a faster
collection time is not more advantageous to the City and makes very little difference, if any, to
the customer. Any advantage would be for the driver, as LAGCO is not adding more costs
associated with the route of the semi-automated proposal over the automated proposal.
Costs:
Carts for garbage and recyc1ing(including delivery)
Program costs over 6 years
Outreach
Contamination monitoring
Contingencies
$ 1,185,000
$ 2,520,000
$ 150,000
$ 50,000
$ 120.000
$ 4,025,000
Total
As noted above, this report is for the Council's information and consideration as part of the FY
2004-2005 Budget discussions and approvals.
Submitted by:
Approved for submission
~(.¿ tJ U 'if'
Ralph A. Qualls, Jr.
Director of Public Works
iliL
David W. Knapp
City Manager
1(-3
EXHIBITS
BEGIN
HERE
œ 5-)'-(o<{
fXk\6ItS.
F
CUPEI\TINO
ROLL CALL
AGENDA
CUPERTINO CITY COUNCIL
REGULAR ADJOURNED MEETING
10300 Torre Avenue, Council Chambers
Monday, May 24, 2004
3:30 p.m.
STUDY SESSION
1.
Study session on the 2004-2005 budget.
A
B.
C.
D.
E.
F.
G.
Budget Context
Dave Knapp
Overview of Budget:
Budget Projections 2003/04
Budget Projections 2004/05
General Fund Trends
Change in Program Levels
Reserve Policy
State Proposal
Carol Atwood
Ralph Qualls
Departmental Budgets
Council and Commissions
Administration! AttomeylPlO
Law Enforcement/911 Fees
Administrative Services
Parks and RecreationlFestivals/50th
Community Development
Public Works/Weekly Recycl\ng
Carol Atwood
Therese Smith
Steve Piasecki
Ralph Qualls
5 Year Capital Improvement Program (CIP)
Ralph Qualls
Possible Executive Loan Pay down
Dave Knapp
Questions and Answers
All
Public Comments
May 24, 2004
Cupertino City Council
Page 2
H.
Policy Direction
Revenue Enhancements
Operating Budgets
Change in Program Levels
Reserve Policy
5 Year CIP
Carol Atwood
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the council on any matter
not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will
prohibit the council from making any decisions with respect to a matter not listed on the agenda.
ADJOURNMENT
Adjourn to Tuesday, June I at 3:00 p.m. for Teen Commission interviews, Sports Center
Conference Room, 21111 Stevens Creek Blvd., Cupertino, CA 95014.
In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make
reasonable efforts to accommodate persons with qualified disabilities. If you require special
assistance, please contact the city clerk's office at 408-777-3223 at least 48 hours in advance of
the meeting.
2
CitY 01 Cupertino
Budget Studv Session
RscalYear2004~OO5
3
Budget Context
. Revenue Trends
. Sherin Contract
. Vacant Positions
. Other Cuts
4
Budget Projections
2003-04
. Revenue budgets reduced bv
$4.4 M
. Expenditure budgets reduced
hv $2.9 M
. Economic Uncertaintv Reserve
reduced bv 1.5 M
5
City of Cupertino FY 01102 FY 02/03 FY 03/04 FY 03/04
Budget Cuts to Date adopted Midyear
budget adjustment
General Fund Budget Reductions:
1 Accounting Reallocations
Transfer Storm Drain Maint out of General Fund 60,000 60,000 60,000
Reallocated salary/benefit to Redevelopment Fund 145,000 145,000
Reallocated costs to CDBG Fund 55,000 100,000
2 Budget Reductions
Mid-Year budget reductions from all departments 761,553 514,000
Contact services for graffiti removal 20,000 10,000
Janitorial services at Wiison Park 10,000
Traffic contractual services 50,000 116,000
No new vehicie purchases for the fleet 30,000 75,000
E-Govt Phase II 100,000
Conference and Meeting budgets city-wide 150,000
3 Program Reductions
Eliminate second school resource officer 164,000
Park the skate park 20,000 50,000
Eliminate noontime program 10,000 30,000 5,000
Reduce contribution to DeAnza PEG channel 60,000
Eliminate 4th of July Fireworks 50,600 -60,000
4 Selective Hiring Freeze - Salary/Benefit Savings
Furlough Program 72,920
Senior building inspector 102,989 116,283
ProducerlWebmaster 75,754 17,500
Maintenance Worker II 45,059 73,500
Maintenance Worker II 73,500
Maintenance Worker II 49,000
Building Inspector 89,000
Senior Office Assistant - Benefit savings oniy 13,000
Recreation Coordinator 66,000
Traffic Technician 48,000
Case Worker Senior Center 42,000
Sergeant - Traffic Control 46,000
5 CIP Reductions/Modifications
CIP - Gas Tax Programs 200,000
CIP - various projects 100,000 15,000
CIP - San Tomas Aquino Saratoga Creek Trail 150,000
CIP - Traffic Signal Upgrades 150,000 100,000 130,000
CIP - Street Walkability Modifications 95,000 100,000
CIP - Traffic Calming 25,000 75,000
CIP - Memorial Park Ballfield 150,000
CIP - Skatepark 181,950
CIP - Yellow LED lights/City Center Park -191,000
Sidewalk Contact 200,000 120,000
6 Debt savings from refinancing/extension 1,388,000
7 New Revenue Charges 34,000
Total 821,553 1,427,802 2,787,803 1,707,450
6
~
44C15?S?
I
Budget Projection 04-05
Five Year
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
GENERAL FUND
" ! $ 13,805 1$ 9,578 $ 9.411 $ 8.131 $ 8,461 $ 5,712
A, ,j",
.,---.
26,560 27.053 28.549 30.886 31.154 32.499
386 - 162 168 175 182 189
(26.539) (26,596) (27.757) (29.415) (30.794) (32.09])1
I
407 619 960 1,646 542 597!
n. 0- (3.547) (3.547) (3,548) (3.548) 13.547) (3.549)1
(3.140) (2.928) (2588)! 0.902) 13.005) (2.952)1
It 1,81 51 500 51 ~I
75
50
11 11 100 11 11
MIS Fund (I (1: (I" (170) (]" 0'
~i (t (90) (t ('
(2,731) (978) (2.123) 0.437) (2515) (2.462)1
001. ,fl 0 1,500 1.500 2,000 0 0
0 500 500 500 500
(2,731: 1,022 023) 1.063 (2.015) (2.462)
(761: (447) (425) 0 0 0
(735 (732)1 (733) (734) (736)
(1,496 (1,157)1 (733) (734) (736)
8.131 8.461 5712 2514
sen", P,
$: 0 0 0 0 0 0
2,078 1.911 631 961 0 0
IT 7,500 7,500 7,500 7.500 5.712 2.514
,
9578 I Mil 8.131 8.461 5.712 2.514
7
General Fund Trends
. Revenue Analvzed separatelv
. Revenues - UP 3.4% from
1998/99
- Sales Tax - down 330/0 from
1999/00
- InlereSllncome - down 56% from
2000/01
- TOT - down 33% from 2000/01
8
General Fund Trends
. Expenditures analvzed separatelv
. Salarv/Benefit Package -to be
negotiated
. Sherin Contract-to be negotiated
. Budget Cut-backs
- Selective Hiring freeze
- Public Safeh Reductions
- CIP/Maintenance reduced/deferred
- Youth/Teen/Senior /Outreach
programs reduced
9
General Fund Operating Revenues I
(excluding Transfers In, Bond Proceeds and Sales of Property)
$000 -.
2003-04 2004-05
1998-99 1999-00 2000-01 2001-02 2002-03 (projected) (projected)
Property taxes 2,784 3,162 3,298 3,560 3,705 3,800 3,540
Sales taxes 8,646 12,530 11,834 10,429 8,844 8,780 8,192
TOT 1,481 1,852 2,325 1,547 1,679 1,500 1,560
Franchise fees 1,676 1,933 1,979 2,274 2,176 2,300 2,312
Utility tax 2,341 2,376 2,908 2,632 2,566 2,750 2,740
Other taxes 1,140 1,266 1,253 1,226 1,133 1,360 1,435
Use of money and property 2,417 2,161 2,694 1,804 1,498 1,100 1,187
Intergovernmental 2,763 2,728 3,255 3,439 3,645 2,580 3,237
Charges for services 2,256 1,872 1,56t 1,765 1,914 1,695 2,090
Fines 503 524 471 616 541 640 600
Miscellaneous 146 419 133 112 16 40 160
Total GF Operating Revenues 26,153 30,823 31,711 29,404 27,717 26,545 27,053
.-
Council and Commissions 472 547 605 650 617 397 447
Administration 288 303 308 340 346 366 402
City Attorney 360 390 474 474 512 545 548
Law Enforcement 4,883 5,091 5,352 5,765 6,019 6,697 6,129
Public Information 545 551 618 708 703 680 739
Administrative Services 2,084 2,443 3,000 3,265 3,450 4,166 4,095
Recreation Service 1,280 1,494 1,774 1,858 2,104 2,220 2,272
Community Development 1,640 1,945 2,536 3,647 3,022 2,889 2,596
Public Works 7,451 7,416 8,506 9,198 8,797 8,578 9.367
Total GF Operating Expenditures 19,003 20,180 23,173 25,905 25,570 26,538 26,595
Debt Service Obligations 4,631 4,672 4,663 4,711 3,532 3,547 3,547
Total Operating & Debt Expense 23,634 24,852 27,836 30,616 29,102 30,085 30,142
10
35,000
30,000 -
25,000
20,000
15,000
10,000
5,000
General Fund Revenue Operating Trends
0
1998-99
2002-03
1999-00
2000-01
2001-02
2003-04
2004-05
. Operating Revenue
Ii!! Operating & Debt Service Expense
11
Change in Programs
-~_~f!~ï~~~~~~~i~~!i1i:::Q_~f~.~~~~:=:=:=:.=::::=:..:r..:~~.:.':~1<~~~':u
S;5!m m_~~HYR~~~~~C~.'š~~[~~~c:..~.._::===::.:.~=...,:==~:t::.:."==~~io~ o_~].~:
DARE Officersj 70,144
SCtïõõï"R es õu'rëë'Offl c ers(2r-"-~-'--_..'-"'_.'.'."..'-"'-."'r""'-.-'226,o00
¥~:~~~~1.~~:_==:-:"==E~~-
CU perti~~~Lat~_......__..__...._.._......._.._-_..~!2QQI:- -
youth/Teen .Program Red~~!!~_~-----_._.".__....--.....L......__._~!.~~OO ""'-'
Senior Center Program Reductions I 56,600
--.----.--------......-----......-..-.----.,...........,............-.--.... .............--..-,...----J,.....
-;;~~~J~:~~~=~""~~..~~~~:~~==~I: ~
"--'-'---- - "---" .---.-. -..-......, -....---.......-.......,.... ..._.M.. --"""""""'-'-""""-"-'-""""'--f"".J'"
VTA Proposed Increase (22%) I 12,620"
-"""'-""'--'-"--"-""""""""-""""--'-"-""---.""".-".'.,.,..-....,...-.....--.,....,....,."....,.........."..........,........'t....-""'."."-"""""""'.""""-"".'......,.. .-..
-.QI!'..:..~~I~~<:'.""-d~~S~__-_.._...._..+-_.._--_..t
~~~~!~~~I~~:l)i~~r~~:~:::~:~~'~~:~:::'::::'::.:":"..":"":"::':'::I:.::..:::":..::::'::::::!'"
Library Extra Hours i 120,000
1"'~õurt5:?!:~~f~:..-~¡~~~~r~~=::=:::::.:::::::.:::::::=:::::::::::"::".:::"":::[:::::...":.:~~~~Q~ ::.. .-
I Social Service Agency Grants 40,000
I=~~~i~~=~:===:::=:~::=:=r ==:~~~=t
[.....~~ e ~~..~!....~,.~.~~..?.~~(~~~~~~..~~~i~~j~..g!~).. ...................................,..l"............._......,.~!g~~J..
12
CURRENT VACANCIES. MAY 2004
Position
Division
Former Employee
Date Vacant Annual Savings
Includes
31.39% in Benefits
Maintenance Worker I Blackberry Nick Alvarez 9/23/2002 $56,335
Maintenance Worker I PW .Streets Bernie Higa 5/16/2003 $56,335
Maintenance Worker I PW . Grounds Joseph Moore 7/25/2003 $56,335
Traffic Technician PW . Traffic Nancy Lee 1/9/2004 $85,425
Recreation Coordinator Pre.School/Sports Programs Richard Gonzales 8/5/2003 $60,545
Sr. Building Inspector CD. Building Joseph Antonucci 8/9/2002 $119,938
Building Inspector CD. Building Joseph Strasser 9/12/2003 $92,330
Sr. Planner CD. Planning Aarti Shrivastava 2/2/2004 $93,418
Environmental Prog Assist PW. Environmental Prog Pam Ledesma 5/15/2004 $76,705
Case Manager Sr. Center Jackie Baddeley 12/15/2004 $64,675
Maintenance Worker I PW. Streets Cynthia Jarvis 5/11/2004 $56,335
Total Annual Savings $818,376
As of May 5,2004, there is a Maintenance Worker I vacancy in facilities, however, a recruitment has been conducted
and the vacancy will be filled within the next two months.
'Colleen Manning in the Pre.School/Sports Program replaced Richard Gonzales in the Sports Center.
The Pre.School/Sports Program position was not filled. .
13
Projected Reserve
816-30-04
. Economic Uncertaintv I
$1.0 million
. Economic Uncertaintv II
$1.5 million
. CIP - Future Acquisitions
$0.0
Total
$8.5 million
14
State Proposal
. $623,313 for FY 04/05
. $623,313 lor FY 05/06
. $989,000 payback for FY
06/01 119%]
- Represents 1/3rd sales
tax, 1/3rd propertv tax and
1/3rd VlF
15
Departmental Budgets
. Council/Admin/Anornev/PIO
. Law Enlorcement/911 Fees
. Administrative Services
. Parks and
Recreati on/Festiva Is/5 oth
. Communitv Development
. Public Works/Weeklv
Recvcling
16
Y 2004/2005:
Resource
DARE Officers
School Resource Officers
1/2 Patrol Officer -
to date
Sheriff Contract
New
Officer
Citations
Sheriff Contract on 4-09-04
Slrift
FY 2004/2005
17
-.....---.
""-""-"--
. .-
..----...-.-
.'-'--'-'-'-----
.-......-.--.-..--.,..
5,999,853
...~_._-_..-
6,129,153
911 Access Fee
. $111,000 Medical/Police
Dispatch Cost
. Fee not a Tax
. Assessed per phone line - $1.80
per line per month
. Adopted in several Counties
and Cities
. Results in $451,000 this vear
and $686,000 thereafter
. November Initiative in process
18
City Hall
10300 TaITe Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
Fax: (408) 777-3366
(I OF
CUPEIQ1NO
DEPARTMENT OF ADMINSTRA TIVE SERVICES
Agenda Item No,
Meeting Date: May 24, 2004
SUBJECT
Establish Ordinance of an Emergency Communication System Response Fee.
BACKGROUND
This year the City of Cupertino is facing a fourth year of budget cuts as a result of the California
recession and State "revenue shifts". In conjunction with the 2004/05 budget process, staff has
proposed additional reductions in expenditures and/or revenue enhancements for your
consideration. Our city cannot increase taxes without voter approval, however we can charge for
services based on actual costs,
Fourteen entities within Santa Clara County (SCC) are currently considering implementation of
this fee. The city currently pays $771,709 annually to the County of Santa Clara for the 911
system. To date, four nearby entities have adopted ordinances that impose a fee on local
telephone service subscribers to recover the majority of their costs to develop, improve, maintain
and operate 911 communications centers. The basis for the fee is the cost to provide emergency
communications services to telephone subscribers. Under these ordinances, local telephone
service suppliers, such as SBC and Verizon, are required to collect fees each month from
customers and to remit to the entities. San Francisco was the first to pass an emergency response
fee ordinance in 1993. The ordinance was later modified to include recovery of operational costs
and to make the fee permanent. The County of Santa Cruz and Cities of Santa Cruz and
Watsonville, who participate in consolidated emergency communications center operations
through ajoint powers agreement, also have adopted similar ordinances.
The attached ordinance creates the legal structure for the fee. The amount of the fee will be
established annually by resolution to provide the city the ability to reflect increases in the SCC
Communication System charges. Subject to verification, for fiscal year 2004/05, the fee will be
$1.80/month for "access lines" (individual phone lines) and $13.50/month for trunk lines, each of
which is the equivalent of 7.5 access lines.
It is recommended that there be the following exemptions from the fee:
. Lifeline service customers
. Payphones
Government agencies
. Non-profit, tax-exempt hospitals
. Non-profit, tax-exempt educational organizations
Service locations which automatically connect a person dialing 911 to an answering point
other than Santa Clara County Emergency Communications Center
19
Pdnted on Recycled Pape'
These exemptions are consistent with those in emergency response fee ordinances passed by
some of the other jurisdictions. There is no legal requirement to exempt these telephone service
subscribers from a fee, but it would be appropriate policy. For Lifeline service customers, who
are exempt from the State 911 surcharge, exemption would be in keeping with the rationale for
establishing Lifeline service, which provides discounted rates so that low income and elderly
customers are assured of telephone access for emergencies.
FEE DETERMINATION
Fees were determined for the two most common types of telephone lines in service: single
access lines and trunk access lines, A single access line is an individual telephone line from a
local telephone company to a residence or business. A trunk access line is one that is capable of
carrying multiple cans, and is usuany used in business applications, such as with PBX telephone
systems. Based on information provided by the California Public Utilities Commission, trunk
line access to the 911 system is assumed to be 7.5 times greater than that of an individual access
line. Therefore, a trunk line was assigned an equivalency of 7.5 relative to a single line and its
fee set at 7.5 times the regular single line fee.
Currently, an wireless 911 calls originating in the County's jurisdiction are routed to and initiany
answered by the California Highway Patrol. Under the proposed ordinance, wireless telephone
subscribers would become subject to the fee once technology upgrades occur permitting wireless
911 cans to be routed directly to County Communications. Revenues from wireless telephone
subscribers have not been included in calculating the proposed fee. But after wireless 911
telephone subscribers are routed directly to County Communications, the number of telephone
subscribers subject to the fee wi11 increase, which should result in decreased fees to an
subscribers. When information on the number of wireless telephone subscribers becomes
available, the fee amount wi11 be reevaluated.
Fees were calculated by obtaining the Fiscal Year 2004/05 cost to provide emergency Jaw
enforcement and medical (and excluding fire) can answering and dispatching services in
Cupertino, and dividing that cost by the number of telephone subscriber lines in service for the
area. The total number of lines was based on information pertaining to residential and business
units and win be verified once actual line counts are received from the largest telephone service
providers. The fee proposed represents a maximum, fun recovery fee.
FISCAL IMPACT
This fee wi11 be implemented in November of 2004 to permit the phone companies adequate time
to process the charge on customer statements. We estimate that the fee wi11 produce
approximately $457,000 in fiscal year 2004/05 (9 months) and $686,000 annually thereafter
(costs for exempt lines win be continued to be assumed by the city). It wi11 be used exclusively
to pay for 911 dispatch services. Attachment A documents the fee calculation and Attachment B
is a comparison of monthly fees and other information for Santa Clara County and the other
entities that have emergency response fee ordinances.
20
RECOMMENDA nON
Approve the Emergency Communication System response fee and conduct the first reading of an
ordinance establishing an emergency communication system response fee.
Submitted by:
Carol A. Atwood
Director of Administrative Services
David W. Knapp
City Manager
21
REVISED
Attachment A
Calculation of Fee
Fees were calculated by identifying the FY 2004/05 cost to provide emergency law enforcement
and medical call answering and dispatching services in the city of Cupertino, and dividing that
cost by the number of telephone subscriber lines in service in the area.
The total cost of these services for FY 2004/05 is $771,709 and is broken down as follows:
Law enforcement calls in Cupertino
Medical caBs in Cupertino
Total Cost
$697,709
$ 74,000
$771,709
Following are the number of telephone lines in service in the City:
Single Access Lines
Trunk Access Lines
Total
27,110
1,158
Exempt
3,011
138
Subject to Fee
24,099
1,020
Total Line Equivalents
(1 trunk = 7.5 single access lines)
Single Access Line Fee = Total cost! Total Line Equivalents/12 months = $1.80 per month
Trunk Access Line Fee = Single Access Line Fee x 7.5 = $13.50 per month
22
REVISED
Attachment B
Fee Comparison
Single Line Trunk Line Lines Approx. Population % of
Fee Fee Subject to Exempt 1/1/03 Budget
Fee Line % Census Recovered
San
Francisco $1.75 $13.13 780,500 14.9% 791,900 Unknown
Santa Cruz
County
$1.47 $11.03 79,000 9% 134,700 91%
Santa Cruz
City $3.49 $26.16 30,659 10% 55,600 90%
Watsonvi1Je $2.00 $18.00 13,479 38% 47,700 45%
Average of
Above $2.18 $17.08
Santa Clara
County
(Actual
Cost Basis) $3.16 $23.70 47,398 20% 99,600 80%
Santa Clara
County
Proposed
Fee $2.21 $16.58
Cupertino $1.80 $13.50 % 52,000 %
23
Cupertino Festivals
Financial Statements
FY 03/04 Moon Iranian Art & Cherry Rotary Lunar New
Festival Cultural Wine Blossom Oktoberfest Year
Revenues:
Sponsorships $16,050 $45,825 $37,430
Donations 9,510 2,400 17,300 2,765
Booth Rentals 42,250 4,300 45,628 22,720 11,585
Booth Sales 9,136
Drawings/Raftles 13,006
FoodlDrinklLiquor Sales 3,621 1,090 6,088 7,350 45,498
Investment Income 98
Miscellaneous 300 270 2,692 677
Total Revenue $71 ,829 $5,660 $100,232 $32,470 $97,202 $40,195
Expenses:
Event Organizer Fees $0 $3,000
Advertising 11,666 11,172 13,492 9,836
Entertainment 2,257 720 3,850 5,250 5,850 8,549
FoodlDrinkslLiquor Products 677 6,319 2,550 20,685 2,710
Equipment Rental 8,611 300 7,850 2,800 839
Booth Rental 8,113 1,700
Sanitation 1,659 852 832
Security 3,339 3,411 1.719
Festival Supplies 3,436 300 9,449 5,354 1,957
Decorations 2,000 1,415 469
Performing Artists 2,193 175
Permits 1,178 50 4,212 2,036
Returned Checks 900
Website 1,075
Dues & Subscriptions 258
Electrical 1,338
Postage 109
Printing/Reproduction 110 1,000 642 2,870 4,330
Staffing 1.150 10,070
Telephone 134
Miscellaneous Expense 130 600 14,662 8,700 7,290 6,914
Total Expenses 47,845 6,260 64,906 19,500 73,467 35,135
Net Income before Donations 23,984 .601 35,327 12,970 23,735 5,060
24
Cupertino Festivals
Financial Statements
FY 03/04 Moon Iranian Art & Cherry Rotary Lunar New
Festival Cultural Wine Blossom Oktoberfest Year
Net Income before Donations 23,984 .601 35,327 12,970 23,735 5,060
Donations:
Toyokawa Student Exchange Program 12,970
Leadership Cupertino 2,350
Scouts 1,200
Interact Club 4,825
PTA 2,701
CEEF 500
Foothill-DeAnza Foundation 1,000
Rotary Club 1.000
Cupertino High Band 500
Chinese Historical & Cultural Project 1,000
Monta Vista HS 200
Lunar Unity Parade 250
Enlightenment Foundation 4,000
FUHSD Foundation 500
So Bay Historic Chinese Cemetery 800
Chinese Nds Village Project 7,189
Total Donations 16,939 0 2,350 12,970 8,726 0
Net Income to Organization 7,045 .601 32,977 0 15,009 5,060
Fee Waver Breakdown: (2002)
Quinlan CenterlMemorial Park 8,600 7,700 9,908 11,020 8,8-85 1,495
Senior Center 3,410 0 1,320 1,470 1.280 0
Other Costs (Porta Potties, Street Sweeping) 0 0 0 0 0 4,400
Public Works Staffing 3,000 0 3,000 3,000 3,000 2,400
Parks and Recreation Staffing 655 655 655 441 655 2,430
Sheriff Staffing 2,048 0 2,048 2,048 2,048 3,218
Total City Cost 17,713 8,355 16,931 17,979 15,868 13,943
25
City of Cupertino
Human Service Grants
Proposed for FY 04/05
"""""FY 03/04"""'" """""FY 04/05"""'"
Recipient Gen Fund' CDBG Total Gen Fund CDBG Total
CCS 0 8,333 8,333 23,007 19,143 42,150
CCS Rotating Shelter 0 25,000 25,000 0 25,000 25,000
Live Oak/Senior Day Care Services 7,820 10,200 18,020 7,820 10,200 18,020
Long Term Care 4,165 0 4,165 4,165 0 4,165
Outreach 0 0 0 0 0 0
Second Harvest Food Bank 4,590 0 4,590 4,590 0 4,590
Senior Adults Legal Assistance 0 11,667 11,667 0 11,667 11,667
Social Advocates for Youth 0 10,000 10,000 0 0 0
Supt Network for Battered Women 0 5,900 5,900 0 5,900 5,900
Total 16,575 71,100 87,675 39,582 71,910 111,492
CDBG. Construction Grants 0 40,000 40,000 0 0 0
Total 16,575 111,100 127,675 39,582 71,910 111,492
% funded
CCS & CCS Rotating Shelter 85.00%
Live Oak/Senior Day Care Services 85.00%
Long Term Care 85.00%
Outreach Program Eliminated 0.00%
Second Harvest Food Bank I 85.00%
Senior Adults Legal Assistance Add'i CDBG 106.32%
Social Advocates for Youth Program Eliminated 0.00%
Support Network for Battered Women Add'i CDBG 100.00%
-~.
-
26
CAROL ATWOOD
City Hall
10300 ToITe Avenue
Cupertino, CA 95014.3202
Telephone: (408) 777-3354
FAX: (408) 777-3333
0
CUPEIU1NO
DEPARTMENT OF PUBLIC WORKS
Summary
AGENDA ITEM
It.
AGENDA DATE
Mav 24. 2004
SUBJECT
Report on Weekly Single-Stream Recycling - Council Workshop FY 2003-2004 Budget
BACKGROUND
As the Council has expressed interest in considering increasing the current recycling program
service to a single-stream, weekly pickup program, this report on the subject is for the Council's
information and consideration as part of the FY 2004-2005 Budget discussions. Until recently,
single.stream recycling was not possible because of the lack of capacity at the existing single.
stream processing facility in San Jose. However, Browning Ferris Industries (BFI), which is also
known as IDC, has advised Los Altos Garbage Company (LAGCO) that single-stream sorting
capacity is now available at its Newby Island landfill facility. With that in mind, staff has
researched with LAGCO two alternatives for weekly single-stream recycling for the Council's
consideration.
Following is a summary of available resources from the Resource Recovery Fund to finance
either of these proposals (numbers are estimates):
Estimated End of Year Balance
$ 6,300,000*
Reserve set-aside for Unknown
Environmental issues/impacts
(1,500,000)
Set-aside for Cleanup reimbursement
To the General Fund
(2,000,000)
Reserve for payment of Library FF&E
(700.000)
Estimated Uncommitted Balance
$ 2,100,000
* At this end of year balance level, the fund grows at an annual rate of approximately $500,000
so there is some flexibility in financing programs over a period of years. However, it should be
noted that selection of either alternative to be funded completely from the reserves will bring the
Reserve fund to a very low level.
27
P6nted on Recycted Pape'
The two alternatives are described below:
Alternative No.1: Semi-Automated Service - Total Cost: $ 3,575,000
Currently, the 5 garbage and 2 yard.waste trucks serving Cupertino are semi-automated and able
to dump carts. LAGCO is proposing to replace the existing 1995 recycling trucks, which don't
have the ability to dump carts, with four, 2002-dernonstraion trucks that are able to dump carts.
There is no extra cost to the City to trade out the vehicles. All services would then be semi-
automated and picked up using carts.
Advantages:
With semi-automated service, residents can use 64 gallon carts that can easily be rolled out to the
curb. The driver still must dismount the truck, but because we have curbside oil pickup and
would still need to collect large pieces of cardboard placed outside the cart, semi-automated
service offers more flexibility for collection of these two items.
The semi-automated service also provides a choice for townhouse developments, in case the 64
gallon carts are too large to store, 18 gallon bins can continue to be used.
The trucks are already available and the time for implementation is shorter, possibly six months,
than if new trucks were ordered. The program could be phased in by starting with distributing
carts for garbage and then converting to the weekly yard waste and weekly single-stream
recycling programs.
Disadvantages:
The only disadvantage might be a slightly slower collection time for each stop which would have
minimal effect on customers, although, LAGCO is not included a cost for additional time in their
proposal for semi.automated as compared to automated collection.
Costs:
Carts for garbage and recycling (including delivery)
Program costs over the life of the contract (5 yrs 10 mos.)*
Outreach
Contamination monitoring
Contingencies
Total
$ 1,185,000
$ 2,070,000
$ 150,000
$ 50,000
$ 120,000
$ 3,575,000
* Assuming Start of service Jan 2005
If this alternative is funded entirely from reserves there would be no rate increase to customers.
28
Alternative No.2: Automated Service -Cost: $ 4,025,000
Automated service, which al1ows the driver to stay in the truck in most cases and uses an
automated arm to empty the Car1, would require the purchase of 11 new trucks, as none of the
current trucks are fully automated. As with the semi.automated service, garbage and recycling
would be picked up in Car1S.
Advantages:
Drivers do not need to dismount the vehicle in every case, which does not affect the customer or
the service
Disadvantages:
It may take up to a year to order and deliver new trucks, longer than it would take to implement
semi-automated service, and automated service is more costly than semi-automated service. It
appears the advantages of having the driver stay in the truck over dismounting, and a faster
collection time is not more advantageous to the City and makes very little difference, if any, to
the customer. Any advantage would be for the driver, as LAGCO is not adding more costs
associated with the route of the semi. automated proposal over the automated proposal.
Costs:
Carts for garbage and recycling(including delivery)
Program costs over 6 years
Outreach
Contamination monitoring
Contingencies
$ 1,185,000
$ 2,520,000
$ 150,000
$ 50,000
$ 120.000
Total
$ 4,025,000
As noted above, this report is for the Council's information and consideration as par1 of the FY
2004.2005 Budget discussions and approvals.
Submitted by:
Approved for submission
~'-' tJ u. ,t!o
Ralph A. Qual1s, Jr.
Director of Public Works
IDL
David W. Knapp
City Manager
29
5 Year CIP
. Marv Avenue Bicvcle
Footbridge
. Sale Routes to School
. Tranic Signal Upgrades
. Blue Pheasant Re-Rool
. Pavement Management
30
TO:
Dave Knapp, City Manager
FROM:
Charles T. Kilian
RE:
Potential Partial Pre-Payment of Housing Loan
DATE:
May 3, 2004
MEMO
As you are aware, I am one of the staff members who have availed themselves of the City's
Housing Assistance Program as described in City Council Resolution 99-070, a copy of
which is attached,
In 1999, under this Program, the City loaned me the sum of $686,500 which was secured by
a fIrst deed of trust on my home in Cupertino. The term of the loan is 40 years, although it is
to be repaid within two years after retirement. The interest rate is 4.49% per annum, A copy
of the promissory note evidencing the loan is attached,
The City is currently in need ofa cash infusion of unencumbered funds to aid it in making its
budget decisions for the next fiscal year, Fortunately, current market interest rates are
experiencing near historic lows which make it economically feasible to consider prepaying a
portion of the city's loan. Subject to my ability of obtaining such a low rate, I propose a lump
sum prepayment to the City of $330,000 wruch would occur by means of a new loan ITom a
private institutional lender with the reduced balance of the City's loan to be subordinated to a
new deed of trust. This would be accomplished either by a subordination agreement, or a
new promissory note and deed of trust in favor of the City. The reduced balance owed to the
City would be re-amortized over 20 years (instead of the current 40 year term) with monthly
payments to continue to be withheld ITom my paycheck. Any additional voluntary payments
in excess of the regular payment would be applied to principal, with future interest payments
to be calculated on the reduced principal balance.
In order for me to provide the City with a lump sum payment of$330,000 it will be
necessary to obtain a loan with an interest rate which is reasonably close in terms to the
City's interest rate. Such a new loan will require the payment of "loan origination fees" or
"points" and other closing costs which should not exceed $10,000. A copy ofa Good Faith
H,\DOCSICityIMEMO re housing loan .DOC
31
Estimate of costs is attached. My only request is that in return for providing this early lump
sum payment of $330,000 to the Ci1y, that the Ci1y reimburse me for my closing costs not to
exceed $10,000.
In sum, the Ci1y would receive $330,000 in liquid, unencumbered funds, at a cost of
approximately 3%.
If you recommend approval of this proposal, I request that you submit it to the Ci1y Council
and that you request the authori1y to execute all documents on the Ci1y's behalf to effectuate
this prepayment.
Finally, the Ci1y has the right to seek the advice of an independent attorney of the Ci1y's
choice regarding this proposal.
If you have any questions, please let me know.
~k~
Charles T. Kilian
Ho\DOCSICityIMEMO" ho~ing 100n.DOC
32
Fiscal Year 2004-2005
. Questions and Answers
. Public Comments
33
Policy Direction
. Revenue Enhancements
. Operating Budgets
. Change in Program Levels
. Reserve Policv
. 5 Year CIP
34
Ct 5-1L{.OY
txtu'þl t
PARKS AND RECREATION DEPARTMENT
REDUCTIONS SINCE MIDYEAR
Blackberrv FarmJNature
. Vacant I maintenance worker at BBF - $44,000
. Cancellation of Cupertino Day at BBF - $9,000
Sports/Fitness
. Eliminated 0.5 Recreation Coordinator - $32,000
CulturaV Art
. Eliminated publisher for recreation brochure. $8,000/yr.
Youth/Teen
. School programs - $5,000
. Eliminated .5 Recreation Coordinator - approx, $32,000
. Youth programs - $2,495
. Rec programs - $39,115
. Sk8 Park - $1,000
Senior Center
. Eliminated Case Management Program - $53,400
. Eliminated Mailing the Newsletter - $6,600
. Eliminated Emergency Fund Program - $1,000
. Eliminated Evening Programs - $11,165
. Eliminated Holiday Basket Program - $800
. Eliminated Health & Safety Fair - $4,000
. Eliminated Flu Shots - $300
. Eliminated Professional Memberships - $900
. Reduced Line Item Expenditures for Supplies, trips, newsletter, socials, classes, training and
maintenance - $31,837
Department reductions = $282,612
New Revenue for 04-05
. Playground @ $50 registration fee per person - $10,000
. Co-sponsored Club facility rental - $10,000
. Non-resident fee/rental fee at Teen Center - $10,000
. Field use fee at $llIparticipantiseason - $45,000
. Increased Blue Pheasant rent - $52,800 (increase)
. Simms House rent - $26,400
New Revenue Total = $154,200
Total General Fund offset = $438,812
g:\parks and recreation admin\budgct\2004-05\reduction and savings already accomplished.doc
EXHIBITS
END
HERE