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CC 06-17-04 C OF CUPEIQ1NO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Thursday, June 17,2004 PLEDGE OF ALLEGIANCE At 5:05 p.m. Mayor James called the meeting to order in the Council Chamber, 10300 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor Sandra James, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Public Works Director Ralph Qualls, City Planner Ciddy Wordell, Recreation Supervisor Julia Lamy, Public Information Officer Rick Kitson, and Deputy City Clerk Grace Schmidt. CEREMONIAL MATTERS - PRESENTATIONS - None POSTPONEMENTS-None WRITTEN COMMUNICATIONS The Deputy City Clerk noted the following items: An addition to item number 8 regarding the budget; an amended resolution for item number IO regarding semi-rural designations; and communication from the Citizens of Cupertino Cross-Cultural Consortium (5 C's) describing their purpose and function. ORAL COMMUNICATIONS Lucia Wu, founding member of the Hsinchu Sister City Association, gave a brief history of the fundraising efforts of the association including: a membership drive with the Cupertino Chamber of Commerce; a fundraising booth at the Oktoberfest for the Taiwan earthquake in 2000 with Kathleen Nellis; a concert at Foothill College to raise money for the victims of the Taiwan earthquake; and a fundraising dinner to host Sister City events. She said that when Kris Wang came into office, Wu was excluded from email communication regarding the association. She said that Wang has been interrupting the harmony in the community and asked her to make an apology to the Cupertino community. Wu continued that Wang has established another Autumn June 17,2004 Cupertino City Council Page 2 Moon Festival using the same dates, place, and time as the Moon Festival hosted by the Sister City Association, thereby causing confusion. Wu asked Wang to resign as a Council member and also mentioned that Wang received a gift of airline tickets to visit Hsinchu. CONSENT CALENDAR LowenthallKwok moved and seconded to approve the items on the Consent Calendar as recommended, except for item number I, which was pulled for discussion. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. 2. Adopt resolutions accepting Accounts Payable for June 4 and 11, Resolution Nos. 04-330 and 04-331. 3. Adopt a resolution accepting Payroll for June 4, Resolution No. 04-332. 4. Adopt a resolution destroying records from the Parks and Recreation Department (Quinlan Center), and the City Clerk's office, Resolution No. 04-333. 5. Accept city project performed under contract for Cupertino Sports Center Remodel, Project 2203-9212 (XL Construction). (No documentation in packet). 6. Adopt a resolution approving the intent to establish a Disadvantaged Business Enterprises (DBE) participation goal of 9.9% participation for Federally funded projects for the Federal fiscal year 2004-05, Resolution No. 04-334. 7. Adopt a resolution approving an Improvement Agreement with Richard Shwe and Alma M. Shwe, Husband and Wife as Community Property, 21840 Hermosa Avenue, APN 357-16-054, Resolution No. 04-335. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 1. Approve the minutes from the June 7 City Council meeting. Kwok corrected page 1-6 to change "caseworker" to "case manager." He also corrected page 1-8, 'paragraph 7 to include that "Kwok asked the City Manager to revisit the fee schedule, especially for non-residents, and to look at ways to cut expenditures and increase revenues in order to reduce the 9-1-1 charge." KwoklLowenthal moved and seconded to approve the minutes as amended. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Mayor James reordered the agenda to take up item number 11 next. June 17, 2004 Cupertino City Council Page 3 NEW BUSINESS 11. Receive a report on additional signs for the new Cupertino Community Hall. (This item was continued from June 7). Public Works Director reviewed alternatives for directional signage to the Council Chambers in the new Community Hall. He said that there would be directory signs on the corner of each parking lot entry into the plaza designating the Community Hall and Council Chamber. He reviewed the proposed language for the interior lobby and exterior building signs. Lowenthal/Sandoval moved and seconded to approve lettering to designate the Community Hall and Council Chambers as shown in the architects drawing, Attachment I of the staff report, to be affixed to the east interior wall of the Community Hall lobby, and to have a moveable exterior sign read, "City Council Chamber." Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Item number 13 under New Business was taken up next. 13. Consider a Weekly Single-Stream Recycling program. (This item was continued from June 7). Public Works Director Ralph Qualls reviewed the staff report. He clarifiéd that the program would be funded entirely out of the Resource Recovery Fund and there would be no cost to the customer. Qualls explained the contamination factor with the single-stream recycling and said that there is an added cost for monitoring, which was included in the total cost of the service. He said that the recycling pickup would be weekly and the composting pickup would be bi-weekly. Later in the evening he corrected that statement to say that both recycling and composting pickup would be weekly. City Manager David Knapp clarified that the money in the Resource Recovery Fund couldn't be used for General Fund purposes. It is generated by the ratepayers for recycling purposes and can only go for those authorized uses. He said it could be borrowed from and paid back, as is being done for the Library Fixtures, Furniture, and Equipment (FF&E). Kwok commented that the recycling program proposal is excellent, but the time isn't right due to budget constraints, and he couldn't support it. Discussion followed regarding the possibility of borrowing money from the fund now to balance the budget and pay back when the economy is better; the need for a guaranteed stream of revenue in order to pay back the fund; and the advantages and disadvantages of waiting to implement the recycling program. June 17,2004 Cupertino City Council Page 4 Qualls explained that the advantage is that the reserve money wouldn't be spent, but the disadvantage is that the residents wouldn't receive the service. He also said that the program cost would be more in two years due to inflation and amortization. Kwok commented that Cupertino is well above the 50% County requirement for recycling on the current bi-weekly recycling program. Sandoval said that this type of program should be explained to the public as to the timing, why the funds are available and what the program means. Lowenthal/Sandoval moved and seconded to approve Alternative No.1: Semi-Automated Service as recommended, and to negotiate an amendment with the Los Altos Garbage Company (LAGCO) for weekly composting. Vote: Ayes: James, Lowenthal, Sandoval, and Wang. Noes: Kwok. Absent: None. Item number 14 under New Business was taken up next. 14. Consider adopting a resolution authorizing the City Manager to sign a Core Natural Gas Sales and Aggregation agreement with Association of Bay Area Governments (ABAG) Power, Resolution No. 04-338. (This item was continued from June 7). Administrative Services Director Carol Atwood reviewed the staff report. Lowenthal/Kwok moved and seconded to adopt Resolution No. 04-338. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None Item number 12 under New Business was taken up next. 12. Consider authorizing the City Manager to execute documents regarding the potential partial pre-payment of the City Attorney's housing loan. (This item was continued from June 7). Administrative Services Director Carol Atwood reviewed the staff report. She explained that the benefits to the City would be a payback of a long-term receivable this fiscal year to use for current expenditures. She said the disadvantages would be a higher yield investment to the City with an interest loss, being put into a subordinate position on the loan, and spending the points and fees in order to receive the cash. Council concurred to discuss the budget before making any decisions on this item (see item number 8 for details). Later in the evening Lowenthal/James moved and seconded to accept the City Attorney's loan pre-payment, with Mr. Kilian and the City splitting the closing fee costs. Vote: Ayes: James, Kwok, Lowenthal, and Wang. Noes: Sandoval. Absent: None. Sandoval said she would like the record to reflect that she doesn't think the City needs the $320,000 payment right now and she believes there are other ways to bridge the budget gap. June 17, 2004 Cupertino City Council Page 5 PUBLIC HEARINGS Mayor James indicated that item numbers 8 and 9 would be taken up next and discussed concurrently. 8. Consider the 2004-05 budget. (This item was continued from June 7). 9. Consider adopting a resolution establishing an Emergency Communication Response Fee (9-1-1), Resolution No. 04-336 and conduct the first reading of Ordinance No. 1938 (This item was continued from June 7). A. "An Ordinance of the City Council of the City of Cupertino Adding Chapter 3.38 to the Cupertino Municipal Code Pertaining to 9-1-1 Emergency Communication System Response Fee." City Manager David Knapp reviewed the "budget balance work sheet" handout. He highlighted expenses not in the proposed budget including the Valley Transportation Association (VTA) dues; Case Manager position; School Resource Officer (SRO) #1 and #2; the Drug Abuse Resistance Education (DARE) program; .5 Patrol (Midnight shift); Sheriffs Office (S.O.) benefits increase; and the Sheriffs Office rent increase. Captain John Hirokawa explained what the .5 Patrol (Midnight shift) budget item was. He said that the late swing shift serves from 5:00 p.m. to 3:00 a.m. 3 days of the week. The impact of a cut would be increased response times and reduced back-up ability. He further explained that the School Resource Officer's (S.R.O.) respond to Cupertino schools. Without S.R.O.'s, the patrol officers would have to take care of problems and increasing response times. Mayor James opened the public hearing at 7:00 p.m. Roberta Hollimon, La Paloma Dr., offered support for the Citizens of Cupertino Cross Cultural Consortium (5C's). She explained that the 5C's was organized in 1997 to promote a harmonious and diverse community. She explained that the organization supports the residents of Cupertino by coordinating cultural awareness programs, providing facilitation for meetings on sensitive topics, and institutionalizing activities at the City that build community. The following people spoke in support of Shakespeare in the Park Festival. Their comments included: the group thought they would be given one more year of funding from Cupertino before needing to find its own funding; the group has been performing in Cupertino for the past 8 years and hopes to continue; commitments have already been made and pulling the program now would be disastrous; the festival provides multi- cultural diversity for the community; if the program leaves it will go away forever. June 17,2004 Cupertino City Council Page 6 Toby Leavitt John Ennals, Florence Dr. Frank Je1inch The following people spoke in opposition of the 9-1-1 fee and their comments included: The legal basis was questionable; Apple and Hewlett Packard would be paying the bulk of the cost without using the service as much; Council should layoff employees instead; all sizes of businesses would be financially impacted at a time when they are trying to recover from hard economic times; the voters should decide; the City should look at cutting non-essential services to weigh the cost benefit. Michael Foulkes, Infinite Loop Orrin Mahoney, representing Hewlett Packard Jack Hubby, Lindy Place Mark Burns, Cupertino Chamber of Commerce Jody Hansen, CEO of the Cupertino Chamber of Commerce Mark McKenna, Cupertino Chamber of Commerce and Cupertino Society Historical The following people spoke in favor of the 9-1-1 fee and their comments included: the fee would help to fund the School Resource Officers (SRO) and continue to support youth programs like Drug Abuse Resistance Education (DARE), School Attendance Review Board (SARB), the Teen Academy, and the Every 15 Minutes Program; the youth programs affect the future of kids and the entire community; teachers wouldn't be able to do their job without the SRO's and the different programs for kids like DARE and SARB; the SRO's are able to build relationships with kids and notice at risk kids. Linda Rios, Sheriffs Office Janet Shannon, former Cupertino SRO Ryan Elder, Cupertino SRO Milan Sundaresan, Lago Vista Circle Deputy Nanci Pritchard, Cupertino DARE officer Charron Barney James Post, Cupertino School Resource Officer Mayor James closed the public hearing at 7:55 p.m. Council was in recess from 7:55 p.m. until 8:19p.m. Council reopened discussion on item number 9. KwoklWang moved and seconded not to implement the 9-1-1 fee. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Council concurred to bring this item back at a later date for consideration. Council reopened discussion on item number 12, City Attorney's housing loan. Lowenthal/James moved and seconded to accept the City Attorney's offer. The motion failed with Kwok, Sandoval and Wang voting no. June 17, 2004 Cupertino City Council Page 7 Wang/Lowenthal moved and seconded to split the closing fee costs. City Attorney Charles Kilian suggested he write a $4,000 check for the Fixtures, Furniture, and Equipment (FF&E) library campaign. Lowenthal/James moved and seconded to amend the original motion to accept Kilian's proposal to donate the $4,000 to the Library FF&E. The motion failed with Kwok, Sandoval and Wang voting no. Council voted on the original motion to split the closing fee costs. The motion carried by the following vote: Ayes: James, Kwok, Lowenthal, and Wang. Noes: Sandoval. Absent: None. Sandoval said she would like the record to reflect that she doesn't think the City needs the $320,000 payment right now and she believes there are other ways to bridge the budget gap. Council discussed Shakespeare in the Park festival. Kwok was concerned that it was too late to cut their funding for this year. Lowenthal/Sandoval moved and seconded to cut the funding from $25,000 to $15,000 for this year with a notice that the City is likely to not fund it at all next year. Vote: Ayes: James, Lowenthal, and Sandoval. Noes: Kwok and Wang. Absent: None. Council discussed the possibility of initiating a lease fee for the Cupertino Historical Museum and cutting translation service. Lowentha1!Kwok moved and seconded to not initiate a lease fee at this time, to cut the translation service cost from $30,000 to $15,000, and directed staff to bring back a policy of what the City charges non-profits for use of City facilities. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Council concurred to defer the Case Manager decision until the next budget public hearing on June 21, and directed staff to see ifthe Senior Center parking pass fee could be increased in order to fund the Case Manager position. City Manager David Knapp responded to an earlier public comment regarding the need for layoffs. He said that the staff is doing its part and had already taken two work furloughs. He explained that in the past 2 years, the City has eliminated 8% of the staff, and that Cupertino's population has increased by 11 %. From discussion on the budget balance work sheet, Council proposed the following changes to the budget: Funded Prol!rams not in proposed budl!et VTA increased dues Case Manager Sc;hoo1 Resource Officer (SRO) #1 Additional cost for SRO #1 .5 Patrol Officer - Midnight Shift Sheriff Office benefit increase Sheriff Office rent increase CIP - Tennis Court Resurfacing Amount of expense $12,620 TBD $110,000 $40,000 $230,000 $114,000 $IOO,OOO $15,000 (TBD) (Sports Center Fund) June 17,2004 Cupertino City Council Page g New Revenues Raise Senior Center Fees Raise Golf Fees Raise Sports Center Fees Raise Adult Sports Fees Nature Museum Summer Tour Fees Raise Teen Dance Fees Raise After School Enrichment Fees Raise Community Garden Fees Charge for Bingo Room Rental Charge for tree lighting City Attorney Loan Prepay Amount of revenue $30,000 $50,000 $50,000 $1,500 $6,375 $6,800 $13,250 $1,700 $4,440 $2,000 (new proposal) $326,000 Prol!ram Cuts Cut one issue ofthe Scene Cut Cinema at Sundown Cut 5 C's Support Cut Attorney Contract Services Cut Festival Out of Pocket Expenses Cut Mary Avenue Crosswalk Cut Public Works Budget Cut Youth Special Events Cut Block Party Rec. leaders Keep Skate Park at Creekside Reduce Rec. Staff Uniforms Reduce Teen Volunteer Cut Trailblazer Children's Races Reduce Shakespeare festival Reduce Summer Concert Series Cut Holiday Tree Lighting Cut Saturday Drop-in Nature Museum Reduce Translation Services Amount of Savinl!s $6,000 $20,000 $2,000 $20,000 $35,700 $91,000 (pursue grant) $IOO,OOO $2,000 $500 $6,500 $2,500 $1,500 $800 $IO,OOO $1,500 $3,500 $6,000 $15,000 PLANNING APPLICATIONS - None UNFINISHED BUSINESS - None NEW BUSINESS - continued 10. Consider adopting a resolution approving a semi-rural designation to eliminate the requirement for sidewalks for the following locations: Hibiscus Drive and Court; Wallace Drive; Caroline Drive; portions of Peninsular Avenue; and Barranca Drive, Resolution No. 04-337. June 17, 2004 Cupertino City Council Page 9 Public Works Director Ralph Qualls reviewed the staff report. Public Information Officer Rick Kitson distributed a written communication from Gilbert Wong supporting the adoption of the resolution. Lowenthal/Sandoval moved and seconded to adopt Resolution No. 04-337. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. 15. Conduct the first reading of Ordinance No. 1939 prohibiting skateboarding and rollerblading at Cali Mill Plaza and Civic Center Plaza. . "An Ordinance of the City Council of the City of Cupertino Amending Chapter 11.08.270 Related to Skateboarding and Roller Skating at the Civic Center Plaza." The Deputy City Clerk read the title of the ordinance. KwoklSandoval moved and seconded to read the ordinance by title only, and that the Deputy City Clerk's reading would constitute the first reading thereof. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, Wang. Noes: None. Absent: None. 16. Select an application deadline date of Friday, August 27 at 4:30 p.m. and an interview date of Tuesday, September 7 at 5:00 p.m. for Hyde and Homestead Teen Commission interviews. (No documentation in packet). Council concurred to accept applications until Friday August 27 at 4:30 p.m. and to conduct interviews on Tuesday, September 7, at 4:00 p.m. ORDINANCES-None STAFF REPORTS - None COUNCIL REPORTS Lowenthal mentioned that a page in the Ronald Reagan Memorial Book would be in the City Hall lobby for people to sign. Kwok said that he was in Sacramento offering support for the League of California Cities Initiative (the Local Government Public Safety and Taxpayers Protection Act). CLOSED SESSION - None June 17,2004 Cupertino City Council Page 10 ADJOURNMENT At 10:16 p.m., the meeting was adjourned to Monday, June 21, 2004, at 4:30 p.m. in Cupertino City Hall. G1tR CL) ~ IJ1 Grace Schmidt, Deputy City Clerk For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience from our web site. Visit www.cupertino.org and click on Watch Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.