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HomeMy WebLinkAbout01-17-2001 City Council Agenda Packet AGENDA REGULAR MEETING SARATOGA CITY COUNCIL January 17, 2001 CALL MEETING TO ORDER - 5:30 P.M. ANNOUNCEMENT OF CLOSED SESSION ITEMS ADJOURNED TO CLOSED SESSION - 5:35 P.M. Conference With Legal Counsel - Existing Litigation (Government Code section 54956.9(a)): Name of case: City of Saratoga v. Hinz (Santa Clara County Superior Court Doc. No. CV-784560) Conference with Real Property Negotiator Property: 18870 Allendale Avenue Negotiating Parties: City of Saratoga/Serbian Eastern Orthodox Church Under Negotiation: Instructions to negotiator regarding price and terms and payment for real property lease. Conference With Labor Negotiator: Agency designated representative: Dave Anderson, City Manager .Employee organization: Saratoga Employees Association Conference With Labor Negotiator: Agency designated representative: Dave Anderson, City Manager Employee organization: Saratoga Management Association REGULAR MEETING - 7:00 P.M. - CIVIC THEATER/COUNCIL CHAMBERS AT 13777 FRUITVALE AVENUE. MAYOR'S REPORT ON CLOSED SESSION PLEDGE OF ALLEGIANCE ROLL CALL REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on January 12, 2001) COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non-Agendized Items Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or tala'ng action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff Communications from Boards and Commissions None Written Communications None Oral Communications - Council Direction to Staff Instruction to Staff regarding actions on current Oral COmmunications. iCEREMONIAL ITEMS 1. Commendation for Nancy Anderson, Historic Preservation Commission. Recommended action: Present commendation. CONSENT CALENDAR The Consent Calendar contains routine items of business. Items on this section will be acted in one motion unless they are removed from the Consent Calendar. 2A. Approve Council Meeting Minutes Regular Meeting - January 3, 2001 Recommended action: Approve minutes. 2B. Review of Check Register. Recommended action: Note and file. 2C. Review' Planning Commission Action Minutes January 10, 2001 Recommended action: Note and file. PUBLIC HEARINGS (Applicants/Appellants and their representatives have a total of ten minutes maximum for opening statements. Members of the public may comment on any item for up to three minutes. Applicant/Appellants and their representatives have a total of five minutes maximum for closing statements. Items requested for continuance are subject to Council's approval at the Council meeting) None OLD BUSINESS Authorization to City Manager to execute agreement with Sutro and Company for Financial Advisory Services in regards to the sale of General Obligation Bonds for the Saratoga Community Library Expansion and Renovation Project Recommended action: Authorize City Manager to~ execute agreement. Integrated Pest Management Policy Recommended action: Accept report and direct staff accordingly. o Prides Crossing Traffic Calming Study Recommended action: Accept report and direct staff accordingly. NEW BUSINESS o Presentation of Design Schematics of Library Recommended action: Accept report and direct staff accordingly. o Authorization to City Manager to execute agreement with ALTRANS for fiscal.FY 00-01. Recommended action: Authorize City Manager to execute agreement. Purchasing Agreement for Sale of Development Rights Associated with Parking District #3 Recommended action: Approve Purchase Agreement for sale of development rights. Annual Review of the City of Saratoga Investment Policy Recommended action: Approve the Investment Policy. 10. Report from City Attorney - Procedure for Establishment of a City Community Foundation Recommended action: Accept report and direct staff accordingly. 11. Approval of City Energy Conservation Policy. Recommended action: AccePt report and direct staff accordingly. AGENCY ASSIGNMENT REPORTS Government Agency Assoc. of Bay Area Gov't.(ABAG) Chamber of Commerce Board County Cities Assn. Leg. Task Force County HCD Policy Committee Emergency Planning Council Hakone Foundation Liaison KSAR Community Access TV Board Library Joint Powers Authority Board No. Cent. Flood Cont. Zone Adv. Committee Peninsula Div., League of Calif. Cities Santa Clara Valley Water Commission Santa Clara County Cities Assn. SASCC Liaison Saratoga Business Development Council Sister City Liaison , West Valley Solid Waste JPA Valley Transportation Authority PAC West Valley Sanitation District Silicon Valley Animal Control JPA Representative Mehaffey Waltonsmith Streit Baker BaCer M~haffey/Streit Baker Bogosian I · Bogos~an Mehaffey Streit Mehaffey Waltonsmith Mehaffey Waltonsmith Streit Waltonsmith Baker Bogosian Alternate Baker Streit Bogosian Waltonsmith Waltonsmith Mehaffey Streit Waltonsmith Streit Baker Baker ' Bogosian Waltonsmith Mehaffey Baker Mehaffey Mehaffey CITY COUNCIL ITEMS OTHER CITY MANAGER'S REPORT ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting, please contact the City Clerk at (408) 868-1269. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II) January 23, 2001 February 7, 2001 February 13, 2001 February 21, 2001 March 7, 2001 SCHEDULED CITY COUNCIL MEETINGS Adjoumed Meeting - Joint Session Planning Commission, Heritage Preservation Commission Adult Care Center 19655 Allendale avenue Saratoga, California Regular Meeting/Council Chambers 13777 Fruitvale Avenue Saratoga, California Adjourned Meeting - Joint Session Finance Commission, Library Commission Adult Care Center 19655 Allendale avenue Saratoga, California Regular Meeting/Council Chambers 13777 Fruitvale Avenue Saratoga, California Regular Meeting/Council Chambers 13777 Fruitvale Avenue Saratoga, California 7:00 p.m. 7:00 p.m. 7:00 p.m. 7:00 p.m. 7:00 p.m. SARATOGA CITY COUNCIL MEETING DATE: January 17, 2001 ORIGINATIN(~ D~EPT: Ci~..:~'lanager AGENDA ITEM: CITY MANAGER: DEPT HEAD: SUBJECT: Commendation for Nancy Anderson RECOMMENDED ACTION: Present Commendation. REPORT SUMMARY: Attached is a commendation for Nancy Anderson, outgoing Historic Preservation Commissioner. FISCAL IMPACTS: NA CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N.'A ALTERNATIVE ACTION: N:A FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda. ATTACHMENTS: Attachment A - Copy of commendation. CITY OF SARA TOGA RESOLUTION OF THE CITY CO UNCIL COMMENDING NANCY ANDERSON WHEREAS, Nancy Anderson has served Preservation Commission since 1998; and on the Historic WHEREAS, Nancy was involved and an active participant in numerous Commission meetings held in reference to the Heritage Orchard. WHEREAS, as a respected member of the Heritage Preservation Commission, Nancy has always been prepared and informed. Her dedication, professionalism and ability to keep on task while maintaining a good perspective will be sorely missed; and WHEREAS, Saratoga City Council is proud of the citizens who contribute time and talent to our community, NOW, THEREFORE, THE CITY OF SARATOGA, does hereby commend Nancy Anderson for her sen:ice and dedication to the Saratoga Heritage Preservation Commission. WITNESS MY HAND AND THE SEAL OF THE CITY OF SARATOGA on this the 17th day of January 2001. John Mehaffey, Mayor City of Saratoga SARATOGA CITY COUNCIL MEETING DATE: January 17; 2001 ORIGINATINGiOEPT: Ci ~ty~anager PREP.~,ED B~-~~, AGENDA ITEM: CITY MANAGER: DEPT HEAD: SUBJECT: Ci~' Council Minutes RECOMMENDED ACTION: Approve minutes as submitted for the following City Council Meeting: Regular Meeting -Januao' 3, 2001 REPORT SUMM.M/Y: N.'A FISCAL IMPACTS: N~A CONSEQUENCES OF NOT FOLLOV¢ING RECOMMENDED ACTION: N/A ALTEI~NATIVE ACTION: NA FOLLOW UP ACTION: Retain minutes for legislative histou. ADVERTISING, NOTICING :-~ND PUBLIC CONTACT: N/A ATTACHMENTS: Attachment A - Minutes/January 3, 2001 City Council Minutes Januaw3,2001 MINUTES SARATOGA CITY COUNCIL January 3, 2001 The City Council of the City of Saratoga met in Closed Session, Administrative Conference Room. 13777 Fruitvale Avenue at 5:45 p.m. Liability Claims Claimant: Ron Luketich - Claim #95110020 & 96110014 Agency Claimed Against: City of Saratoga (Gov't Code Sec. 54956.95) Conference With Legal Counsel - Existing Litigation (Government Code section 54956.9(a)): Name of case: City of Saratoga. v. Hinz (Santa Clara Count.',' Superior Court Doc. No. CV-784560) Name of case: B&N Development LLC v. City of Saratoga (Santa Clara County Superior Court Doc. No. CV785117) Conference With Legal Counsel - Initiation of Litigation (Government Code section 54956.9(c)): (1 case) Conference with Real Property Negotiator Property: 18870 Allendale Avenue Negotiating Parties: City of Saratoga:: Serbian Eastern Orthodox Church Under Negotiation: Instructions to negotiator regarding price and terms and pa~vment for real property lease. MAYOR'S REPORT ON CLOSED SESSION - 7:05 p.m. Mayor Mehaffey reported there was Council discussion but no action was taken. Mayor Mehaffey called the Regular Citv Council meeting to order at 7:06 p.m. and requested Councilmember Bogosian to lead the Pledge of Allegiance. ROLL CALL PRESENT: Evan Baker, Stan Bogosian, Nick Streit, .Ann Waltonsmith, Mayor John Mehaffey ABSENT: None ALSO PRESENT: Dave .Anderson, City Manager Richard Taylor, City Attorney Cathleen Boyer, City Clerk Mar), Jo Walker, Director of Administrative Services John Cherbone, Director of Public Works 1 City Council Minutes January 3.2001 James Walden, Director of Community Development Paula Reeve, Administrative .Analyst Car3.' Bloomquist, Administrative Analvst REPORT OF CITY CLERK ON POSTING OF AGENDA FOR JANUARY 3. 2001. Cathleen Boyer, City Clerk, reported that pursuant to Government Code Section 54954.2, the agenda for the meeting of January 3, 2001 was properly posted on December 29, 2000. COMMUNICATIONS FROM COMMISSIONS & PUBLIC None COMMUNICATIONS FROM BO)dlDS :4~ND COMMISSIONS None WRITTEN COMMUNICATIONS None ORAL COMMUNICATIONS No one requested to speak at tonight's meeting. COUNCIL DIRECTION TO STAFF None CEREMONIAL ITEMS 1. COMMENDATION FOR RON ADOLPHSON, FRIENDS OF THE WARNER HUTTON HOUSE STAFF RECOMMENDATION: Present commendation. Mayor Mehaffey presented a commendation to Ron Adolphson. CONSENT CALENDAR The Consent Calendar contains routine ite~ns of business. Items on this section will'be acted in one motion unless they are removed fi'om the Consent Calendar. 2A. APPROV)d~ OF COUNCIL MINUTES OF: DECEMBER 12, 2000 -ADJOUILNED MEETING STAFF RECOMMENDATION: Approve submitted minutes. Councilmember Baker pulled Item 2A from the Consent Calendar. Councilmember Baker requested that Liz Kniss be identified as the Santa Clara 2 City Council Minutes January 3. 2001 County Board Supervisor/Elect instead of Mayor of Palo Alto. Mayor Mehaffey noted a few spelling errors and would forward his corrections to the City Clerk. WALTONSMITI-L/BPd<2ER MOVED TO APPROVE MINUIES OF DECEMBER 12. 2000 CITY COUNCIL MINUTES. MOTION PASSED 5-0. 2B. REVIEW OF CHECK REGISTER STAFF RECOMMENDATION: Note and file. STREIT/BAKER MOVED TO NOTE .~ND FILE CHECK REGISTER. MOTION PASSED 5-0. 2C. NOVEMBER FINANCIAL STATEMENTS STAFF RECOMMENDATION: Note and file. STREIT/BAKER MOVED TO NOTE AND FILE NOVEMBER FINANCIAL STATEMENT. MOTION PASSED 5-0. .2D. REVIEW OF PLANNING COMMISSION ACTION MINUTES STAFF RECOMMENDATION: Note and file. STREIT/BAKER MOVED TO NOTE AND FILE PLANNING ACTION MINUTES. MOTION PASSED 5-0. 2E. APPROVE RESOLUTION DENYING APPEAL OF PLANNING COMMISSION APPROVA.L OF TENTATIVE MAP FOR SUBDIVISION AT 20251 SARATOGA-LOS GATOS ROAD STAFF RECOMMENDATION: Adopt resolution. TITLE OF RESOLUTION: 01-001 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF S.M1ATOGA DENYING APPEAL OF PLANNING COMMISSION APPROVAL OF TENTATIVE MAP FOR SUBDIVISION AT 20251 S.M1ATOGA-LOS GATOS ROAD Mayor Mehaffey noted that he spoke to Mrs. Helen Lee (appellant) over the holiday weekend. - 3 City Council Minutes JanualT 3, 2001 Mayor Mehaffey reassured Mrs. Lee that Howell & McNeil would follow all of the conditions of approval that the City Council voted on at the last Citv Council meeting. MEHAFFEY/STREIT MOVED TO ADOPT RESOLUTION DENYING APPEAL OF PL.&NNING COMMISSION APPROVAL OF TENTATIVE MAP FOR SUBDIVISION AT 20251 SARATOGA-LOS GATOS ROAD. MOTION PASSED 4-1 WITH B.a~k2ER OPPOSING. 2F. APPROVE RESOLUTION CONFIRMING COUNCIL AGENCY AND COMMISSION LIAISON APPOINTMENTS STAFF RECOMMENDATION: Adopt resolution. TITLE OF RESOLUTION: 01-002 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF -SAIL,-XTOGA APPOINTING COUNCIL REPRESENTATIVES TO COMMITTEES .~ND AGENCIES Councilmember Bogosian pulled Item 2F from the Consent Calendar. Councilmember Bogosian noted that the Silicon Valley .Animal Control JPA was not included in the resolution and requested that he be the representative. Mayor Mehaffey directed staff to amend the resolution to include the Silicon Valley Animal Control JPA and appointed Councilmember Bogosian to be the representative. BOGOSIAN/WALTONSMITH MOVED TO ADOPT RESOLUTION APPOINTING COUNCIL REPRESENTATIVES TO COMMITTEES 2F. AND AGENCIES. MOTION PASSED 5-0. APPROVE RESOLUTION SUPPORTING SAILATOGA HIGH SCHOOL'S PERFOR3IING ARTS BUILDING PROJECT STAFF RECOMMENDATION: Adopt resolution. TITLE OF RESOLUTION: 01-003 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SA1La. TOGA SUPPORTING SAILa. TOGA HIGH SCHOOLS' CONCEPTUALIZATION OF THE PERFORMING ARTS A~.ND LECTURE CENTER Dave Schirtzinger representing the Saratoga High School and 4 City Council Minutes the Saratoga High School Foundation explained that the High School was built in 1958 with the intention of building a Performing Arts Center but unfortunately was never constructed. Mr. Schirtzinger explained that 53.1 million dollars has been allocated from Measure B towards the construction of the new building. To date the Foundation has raised an additional $1 million. Mr. Schirtzinger noted that $3.4 million dollars is still needed by June 2001. JanuaD;3.2001 BOGOSIAN/WALTONSMITH MOVED TO ADOPT RESOLUTION SUPPORTING SA1L4TOGA HIGH SCHOOLS' CONCEPTUALIZATION OF THE PERFORMING ARTS AND LECTURE CENTER. MOTION PASSED 5-0. OLD BUSINESS UPDATE STATUS REPORT - SARATOGA PLAYFIELDS STAFF RECOMivlENT)ATION: Accept report and direct staff accordingly. Car3..' Bloomquist, Administrative Analyst, presented staff report. Analyst Bloomquist noted that on August 2, 2000, Staff presented to Council an information report on plavfield usage in Saratoga and the need for additional "flat ~ass" areas for practice and game fields for A.Y.S.O. soccer - and Saratoga Little League. Several leads for additional playfields were investigated by Staff and presented to Council at the August 2 meeting, with staff indicating a need to follow-up on these leads and report back to Council at a late date. Analyst Bloomquist noted that C.Y.S.A. soccer.and Pony League baseball have notified Council regarding their needs for practice and game fields. Analyst Bloomquist explained the list of venues explored by Staff and the status of their availability: 1. Saratoga High School · Possible agreement to construct a Pony League baseball field. · Possible use of fields for games by A.Y.S.O. next season. 2. City of Campbell ~ · Possible availability of facilities. 3. LDS Church · Increased usage a~eement for 2001 season, contingent upon the City of Saratoga entering into a field maintenance a~eement. Analyst Bloomquist noted several recent leads on additional playfield that did City Council Minutes not materialize. JanuaD:3.2001 Coun~ilmember Baker requested an explanation on Prospect High School's need for financial assistance for a new gymnasium. .Analyst Bloomquist explained that the principal at Prospect High School would like to expand/remodel their current g3mmasium and is looking for financial assistance. .Analyst Bloomquist noted that the City of Saratoga Offered financial assistance expecting the use of their playfields in return, this assistance was turned down. Official at the High School claim their fields were currently' being used in full capaciB'. Mayor Mehaffey thanked .Analyst Bloomquist for the report. - UPDATE STATUS REPORT - SEPTIC ABATEMENT N STAFF RECOMMENDATIO~: Accept report and direct staff accordingly. James Walden, Director of Community Development, presented staff report. Director Walden explained that the City initiated the Septic Abatement pro,am last year by collecting from the two sanitation districts lists of all properties that were thought to be subject to its requirements. Of the 585b properties identified by the districts, staff was able to remove many that were either undeveloped parcels or properties that had connected to sanitaD' sewer but were just not in the districts' records. Staff then sent a notice to each of the remaining property owners noti~'ing them of their responsibility. The notice gave them six months to comply with the program. The deadline for compliance was August 31, 2000. Director Walden' no~ed to date the following breakdown of the status of the 585 properties: Connected to Sanitary Sewer ~ 216 Vacant parcel 77 Exempt-No Right-of-Wav 17 Exempt-Inadequate Grade i 15 Exempt-Greater than 200 Ft. Received Extension No response-Noncompliance i 221 Director Walden explained the septic abatement ordinance requires that a lien in the form of a Notice of Noncompliance be recorded on noncompliant properties putting title companies, lenders, and future owners on notice that a sanitary sewer connection must be made before the property can be improved in any manner requiring a City permit, sold or used for equity financing. A discussion took place on connection exemptions. 6 City Council Minutes January ' .>, 2001 Director Walden noted that staff is recommending mailing one final notice to each of these homeowners allowing them an additional 45 days to respond before initiating the property liens. Fred C. Zillmer, PO Box 814, Saratoga, CA., expressed strong opposition to the Septic Abatement Ordinance and noted the only notice he ever received was in February 2000 when the City Council adopted the ordinance. Councilmember Baker explained to Mr. Zillmer that this subject has been on the cover of the Saratoga News On two separate occasions and has been a Council agenda item for over two years. Councilmember Baker opposes an additional 45-day notice to the 221 noncompliant property owners, and supports initiation of the lien process. Councilmember Baker requested more information on the 10 properties that abut the creek. Councilmember Bogosian suggested that the City offer partial/full financial assistance to the properties exempt due to inadequate grade and concurred with Councilmember Baker regarding additional information on the 10 properties that abut the creek. Councilmember Bogosian supports an additional 45-days notice to the 221 noncompliant property owners. Councilmember Waltonsmith concurred with Councilmember Bogosian and supports an additional 45-days notice to the 221 noncompliant property owners. Councilmember Streit concurred with his colleagues with an additional suggestion, that all notices be certified. Mayor Mehaffey directed staff to initiate the process to mail the last notice to the 221 noncompliant property owners giving them an additional 45 days to respond. Mayor Mehaffey .thanked Director Walgren for the report. 7 City Council Minutes January 3.2001 PUBLIC HE~dtINGS 3. RESOLUTION ORDERING ABATEMENT OF A PUBLIC NUISANCE BY REMOVAL OF HAZ.~Cd)OUS WEEDS STAFF RECOMMENDATION: Adopt resolution. TITLE OF RESOLUTION: 01-004 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ORDERING ABATEMENT OF A PUBLIC NUISANCE BY REMOVAL OF HAZARDOUS WEEDS AND BRUSH Cathleen Boyer, City Clerk, presented staff report. City Clerk Boyer explained that this was the second step in the Saratoga's weed abatement pro,am administered by the County Fire Marshall's Office. The County has sent owners of the parcels requiring weed abatement notices informing them the weeds must be abated, either by the owners or by the County. The notice also informed them that they may present objections at tonight's public heating. City Clerk Boyer noted that Fire Marshall Martv Hicks was present tonight to answer any questions the Council may have. Marry Hicks, Fire Marshall's Office, explained that last year there were 210 properties on the list compared to 148 this year. Mr. Hicks explained that the residents in Saratoga respond extremely well to the weed abatement program. Councilmember Streit questioned how long the County xx aits before initiatinu the work for the property owner.' Mr. Hicks responded that the property owners have 45 days to respond before the County abates the weeds on April 1, 2001. Mayor Mehaffey opened the Public Hearing at 7:50 p.m. and invited any public input. Mayor Mehaffey closed the Public hearing at 7:51 p.m. MOVED TO ADOPT RESOLUTION ORDERING ABATEMENT OF A PUBLIC NUISANCE BY REMOVAL OF HAZARDOUS WEEDS. MOTION PASSED 5-0. City Council Minutes January 3, 2001 NEW BUSINESS AUTHORIZATION TO CITY M.'~NAGER TO EXECUTE AMENDMENT TO CONTRACT WITH S:&NTA CLAIL'.~ COUNTY SHERIFF'S DEP.M1TMENT STAFF RECOMMENDATION: Authorize CiB, Manager to execute contract. Paula Reeve, Administrative Analyst, presented staff report. Analyst Reeve explained the current Law Enforcement Contract with the County of Santa Clara covers a five-year period from 1997-2002. The contract terms require the Sheriffto develop an annual Plan projecting service levels for Saratoga, which is mutually a~eed upon by the Sheriff's Department and the City. .Analyst Reeve reported in October 2000, the City modified its law enforcement goals due to changing needs of the community. The City approved increasing Supplemental patrol from 1,977 hours to the current 4,356 hours, providing two additional deputies to address traffic congestion issues throughout Saratoga. ,Analyst Reeve reported that the proposed FY 2000-2001 law enforcement cost for Saratoga is $2,717,500, inclusive of the supplementary traffic patrol sen;ices. Councilmember Waltonsmith expressed interest in a monthly report from the Sheriff's Department including priorities and issues that could affect the changing needs of the City of Saratoga. -- ,Analyst Reeve responded that the Sheriff's Department report monthly to the Public Safety Commission reporting the number of traffic accidents, tickets, and any criminal activity. Councilmember Bogosian requested an explanation of the report of the deployment schedules of the Patrol Officers around the schools and Prides Crossing. Captain Miles, Sheriff's Department, responded that the report was broken dov~m into two types of traffic management; Neighboi-hood Traffic Management and School Traffic Management. Captain Miles explained that all the Patrol Officers have an a.m. and p.m. assigm'nent and sometimes an extra arterial route assignment. Captain Miles explained that an officer might be at a school in the morning and later at an arterial route and then back at the school for the p.m. pickup. ~Councilmember Streit asked if the Sheriff's Department is using their 9 City Council Minutes resources efficiently in the City of Saratoga. JanuaD' 3, 2001 Captain Miles responded that he has noticed that the new deplosq'nent schedules have made an impact, but in order to gather sufficient statistics it would take at least six (6) months to be certain that the deplo.xTnent schedules are having a significant impact in Saratoga. Mayor Mehaffey requested Captain Miles return in six (6) months with a follow up report. Captain Miles reported that during the month of December, Chief Lori Smith allotted 600 overtime hours 'at no cost to the contract cities to utilize "Avoid the lY'. Captain Miles reported that there were no fatal accidents or DUI injuD' incidents around the West Valley cities. Captain Miles proudly reported that the Santa Clara County SherifFs Department had 119 DUI arrests during the fifteen (15) day pro,am, second highest only to the San Jose Police -Department, out of the four counties that participated in the program. Councilmember Bogosian asked out of the 119 DUI arrests how many were in or around Saratoga. Captain Miles responded that there were 17 DUI arrests in Saratoga. Captain Miles noted that on January 8, 2000, the Santa Clara County SherifFs Department would be participating, along with all the other surrounding law enforcement agencies in the county, in a program called "School Zone Crackdown". Captain Miles explained that law enforcement agencies would be providing educational and enforcement activities at the local schools with the hope to change or modify the behavior of the students, parents, joggers, etc. Captain Miles reminded the Council that in lieu of the recent retirement of Lieutenant Dennis GregoD', he was proud to introduce Lieutenant Emie Smedlund, a 23-year veteran of the SherifFs Department who will now be second in command in the West Valley division. Mayor Mehaffey thanked Captain Miles for the report. B.~K_EtL/STREIT MOVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE .&MENDMENT TO CONTRACT WITH SANTA CLARA COUNTY SHERIFF'S DEPARTMENT. MOTION PASSED 5-0. BAKE1L/STREIT MOVED TO AUTHORIZE AN APPROPRIATION TO INCREASE THE POLICE SERVICES BUDGET BY S221.595.00. MOTION PASSED 5-0. POLICY FOR ELECTRONIC MAIL AND INTERNET USAGE STAFF RECOMMENDATION: Accept report and direct staff accordingly. 10 ' City Council Minutes JanuaD: 3, 2001 Mar5' Jo Walker, Director of Administrative Sen:ices, presented staff report. Director Walker explained that with the increasing use of electronic mail (email) and the internet, the City developed a policy last year to communicate to employees the City's intents and expectations regarding use of these resources. The policy states that users are expected to conduct themselves in a professional manner consistent with other forms of communication and that these resources are for business related purposes. Councilmember Bogosian suggested having one designated person in charge of everyone's passwords. Mayor Mehaffey disa~eed with Councilmember Bogosian's suggestion, but suggested having a policy that passwords must be changed on an annual basis. Director Walker responded to Mayor Mehaffey explaining that the computer automatically suggests to the user to change their password, but it is the users decision. Councilmember WaltonSmith suggested getting an opinion from the City Attorney on the use of email. Richard Taylor, City Attomey, explained that all city employee's and elected official's email messages are public information. Mr. Taylor suggested further, not sending confidential items via email. Mayor Mehaffey directed staff to continue to use the current policy for electronic mail and internet usage. o AUTHORIZATION TO CITY M.&NAGER TO EXECUTE CONTRa, CT WITH AVERY & ASSOCIATES FOR THE RECRUITMENT OF COMMUNITY DEVELOPMENT DIRECTOR STAFF RECOMMENDATION: Authorize City Manager to execute contract. TITLE OF RESOLUTION: 01-005 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA MAKING ADJUSTMENTS TO THE FISCAL YEAR 2000- 2001 BUDGET Dave .~nderson, City Manager, presented staff report. Mr. Anderson reported that with the resignation of the Community Development Director, effective JanuaI? 5, 2001, the City of Saratoga must recruit a new Community Development Director. 11 City Council Minutes JanuaD' 3. 2001 Mr. Anderson noted that the most expedient and thorough 'method of recruiting for a Community Development Director was to use the services of an executive search firm. The City solicited and received proposals from m-o search firms: Hughes, Perry & A~sociates and Avery Associates. Mr. Anderson explained that after assessing the two proposals, Aver)- Associates' targeted lateral recruitment strategy was deemed most effective in this veD' challenging labor market, and its consulting fee for conducting this recruitment is $13,400.00 plus out-of-pocket expenditures not to exceed $5000.00. BOGOSIAM/WAETONSMITH MOVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE CONTRACT WlIH AVERY & ASSOCIATES FOR THE RECRUITMENT OF COMMUNITY DEVELOPMENT DIRECTOR. MOTION PASSED 5-0. CITY COUNCIL ITEMS Councilmember Waltonsmith con~atulated Director Walgren on the start of a new career with the City of Los Altos. Councilmember Waltonsmith requested that in the future the Parks and Recreation Commission allow the City Council to schedule ribbon-cutting ceremonies at City parks. Councilmember Streit noted he would bring up their suggestion at the next Parks and Recreation Commission on JanuaD, 8, 2001. Councilmember Baker questioned if the Chamber of Commerce responded to the letter from a patron during the Village Open House in December. Mr. Anderson noted he would follow up with Chamber of Commerce and report back to the Council at a later date. Councilmember Streit reqUeste'd that next-year more effort go into the making "The Village" more festive for the holidays and suggested adding more lights to the street trees. Councilmember Streit applauded the staff on the temporaD' Senior Center portable that has been placed behind the Building Department. He noted that he was impressed with the appearance and placement of the portable. Mayor Mehaffey requested that when the census results are made public, the population signs throughout Saratoga reflect the changes. Mayor Mehaffey wished James Walgren well and thanked him for his twelve (12) years of service to the City of Saratoga. OTHER None 12 City Council Minutes January 3, 2001 CITY MANAGER'S REPORT Mr. Anderson explained that due to the recent power crisis an internal memo was distributed reminding employees to conserve energy. Mr. Anderson also reported that the timers on the lights along Big Basin Way have been rescheduled to run from 7p.m.- 12.p.m. Mr. Anderson also noted that the ABAG Power Pool, in which the City of Saratoga belongs to, recently reported that lower rates are expected. ADJOURNMENT . Mayor Mehaffey adjourned the meeting at 8:40 p.m. Respectfully submitted, Cathleen Boyer City Clerk 13 SARATOGA CITY COUNCIL MEETING DATE: January 17, 2001 AGENDA ITEM: ORIGINATING DEPT: Administrative Services CITY MANAGER: ,,,' ,? '~ ;" SUBJECT: Check Register RECOMMENDED ACTION(S): Note and file. REPORT SUMMARY: Attached is the check register. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): None ALTERNATIVE ACTION(S): None FOLLOW UP ACTION(S): None ADVERTISING, NOTICING AND PUBLIC CONTACT: None ATTACHMENTS: Check Register Certification. IFund# Fund Name AP CHECKS A83831-83932 Date Manual 12128101 Checks I GENERAL 111,939.04 100 COPS-SLESF 110 Traffic Safety 150 Streets & Roads 37,618.94 160 Transit Dev 170 Hillside Repair 180 LLA Districts 250 Dev Services 10,399.09 260 Environmental 17,006.85 270 Housing & Comm 290 Recreation 4,884.00 292 Facility Ops 1,500.00 293 Theatre Surcharge 300 State Park 310 Park Develpmt 320 Library Expansion 76,243.53 400 Library Debt 410 Civic Cntr COP 420 Leonard Creek 700 Quarry Creek 710 Heritage Prsvn 720 Cable TV 730 PD ¢Y2 740 PD #3 800 Deposit Agency 4,500.00 810 Deferred Comp 830 Payroll Agency 990 SPFA Void Total Checks (63.00) ~::::;c.;:_:;.~;::; ;10;'3 Subtotal 264,091.45 (181.00] PAYROLL CHECKS: B26177-26229 TOTAL Prepared by: Date: Approved by:' 0 :~ 0 ~ 0 ~ 0 ['- 0 Z.§oo 0 ~ o 0 ~0 O~ O0 ~o o ~o ~o z ~ ~ ~ ~ ~ ~ ~ ~ ~o ~ ~ ~ o ~ ~ o ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ o o ~ ~ o oo o ~ o o ooooo ~oo z 6 § g o o o o o ooo o ooooo o o ooo ~o zo ~o ~ooo Z ~ 0~ 0 ~ o o o § o oo g g (~0 ~> o § o o o ~0 0 :> ~gggg§§ g gg g ooooo ..... ~oooooo o oo o ooooo ~§§§g§§ oo~° oooo ~o ~ ~ 0 §go° oo oc:,o § o ~ .... ? 77~ 777 T § § § ooo o ~ ~ ~ 0 > § ~o ~ ~o~ > o o o g § § 0 § § § ~ ~o ~ o § o § o § § o o § § § o~ o~ o~ ZZ O0 z OZ ~o§oo ooo 0 0 (J (J Egg oo z 0 ~0 ...... o°o°§ Zo 0 o ~0 [.-, ~, ~0 0 o o oo ~g ? :/~q paAoadd¥I V :/~q paJedaJd qV~O~ 0/..~9~-0S~9~8 :SNO3HO 990~lAVd E;g'~IzZ' L OE;'/...g O0'ggg 9g'f;gff' I, zg'goz'z;I, O0'9E;g'z; 0/_'g96'S gg'E:86'8 I, I,O'E;I,g'g V~dS 066 ~oueBv IIOJ~ed OE:g dtuoo peJJejaa 0 Lg /[oue§v l!sodac] 008 g# ad OiL ~ ad OgZ ~ elqeO O~Z uAs~d eSelpeH 0 ~Z ~ee~o ~eno 00Z ~eeJO pJ~uoe3 0~ dOO Jluo o~A~O 0~ lqeQ ~mq~3 00~ uo~suedxB ~eJq~3 0~S lmdleAeQ ~Jed 0 ~S ~Jed el~lS 00S eSJeqoJns eJl~eq~ S6~ sdo ~l~Oed ~6~ UO~leeJoe~ 06~ ~moo ~ 5u~snoH lelUe~UO~Au~ 09~ seo~es AeQ 0g~ J~ede~ ep~sll~H 0Z ~ AeQ l~SUeJZ 09 ~ sp~o~ ~ slee~lS 0~ ~ ~ejes o~eJZ 0 ~ ~ ~SB3S-SdOO 00~ E~0ffg-SS6SgV SNO=IHO dV I s)loeqo s)loeqo ~01~ i,11, I lelo~ p!o^ lenuelN m, ea atueN pun:l #pun:l o o o o o 0 o~ ~0 o~ r~ o~ ~ o o ~o o o o § o . ~o ~o ~ ~ o ~ ~o ~0 >0 0 · Oo z 0 ......... ~ ....... ~ o o~ oo oo o o o oo ~° ~ ~ ~o ~ ~oo ~oo ~o ~o 0 ~ ~ ~ o o § o o 0 oo ooooooooooooooo o ~oooo ......... o§ ~o CIO · -~ ~-~-~-0 0 ....................................... ooooo ooooo o o ~0 0,~, ,,~ ..... §~ o § oo o ooooo oo o 0 ~ ~ ~ ~ 0 ~ 0 H ~0 o o o o ~ ~ ~ o ~ o ~ ~' ~ oo~°°~ o o~°~ o~ §~ §~ .... ~ ~ooo~ ~ ~ .... ~oo o oo ~§ o o oz ooo ~ ..... o oo g~ § ......... ................ ~ ~o ooo~ooooooooooo o o~ oo ~0 0 ~0 0.~, ~0 -Z ~> ~ 0000 ~ ~ o ~ o oo o© oo O~ 121 o oo o ~ ~ ~ o ~ uoo ~ ~o ~ 0 0 ~ 0 ~ U ~ ~ ~ 0 § o SARATOGA CITY COUNCIL MEETING DATE: January 17, 2001 DEPT: Community Development PREPARED BY: Kristin Borel AGENDA ITEM: CITY ~La._NAGER: DEPT HEAD: SUBJECT: Planning Commission Actions, Janua~· 10, 2001 RECOMMENDED ACTION(S): Note and file. REPORT SUMMARY: Attached are the Planning Commission action minutes of January 10, 2001. FIS C.M.. IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): N/A ADVERTISING, NOTICING .a~ND PUBLIC CONTACT: N/A ATTACHMENTS: Action Minutes - Saratoga Planning Commission CITY OF SARATOGA PLANNING COMMISSION ACTION MINUTES DATE: PLACE: TYPE: YVednesday, January 10, 2001 - 7:30 p.m. Council Chambers/Civic Theater, 13777 Fruitvale Avenue, Saratoga, CA Regular Meeting ROLL CALL: Chamnan Page, Commissioners Bernald, Jackman, Kurash, Patrick, and Roupe AnsE,'cr: Commissioner Ban'3,- STAFF: Planner Connolly and Minutes Clerk Shinn PLEDGE OF At ~ EGIANCE MINqo~rEs ORAL COMMUNICATIONS REPORT OF POSTING AGENDA Pursuant to Government Code 54954.2, the agenda for this meeting was properly posted onJanuaD? 5, 2001. TECHNICAL CORRECTIONS TO PACKET CONSENT CALENDAR PUBLIC HEARINGS All interested persons may appear and be heard at the above time and place. If you challenge a decision of the Planning Commission pursuant to a public hearing in court, you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this agenda, or in written correspondence delivered to the Saratoga Planning Commission at, or prior to, the public hearing. In order to be included in the Planning Commission's information packets, written communication should be filed on or before the Thursday before the meeting. DR-00-050(517-09-025) - NAZZAL/KENNEDY, 14499 Oak Street; Request for Design Review approval to demolish an existing 2,020 square foot txvo-story residence and construct a new 2,873 square foot two-stoo- home in its place. The proposed structure includes a 684 square foot basement. Maximum height of the structure will be 26 feet tall. The propert3' is 8,200 square feet in size and is located witkin an R-M-3,000 zoning district. (APPROVED 5-O,JACKMAN RECUSED) PL4N~'ING COMMISSION AGENDA JANq_TARY 10,2001 PAGE2 DR-00-048 (510-06-014) - ONG, 19051 Austin V~Tay; Request for Desi~o-n Review approval to demohsh an existing 3,855 square foot single story residence and construct a new 6,393 square foot two-story residence with a 1,198 square foot basement. The subject parcel is a 62.291 square feet. Maximum height of the structure xxq]] be 24 feet tall. The subject parcel is located in an R-I-40,000 zoning district. (CONTINUED INDEFINITELY 6-0) UP-00-014 ~r DR-00-053 (386-35-069) - CHURCH OF THE ASCENSION, 12033 . Miller Avenue; Request for Use Permit and Design Review approval for the demolition of an existing 2.568 square foot, single sto~' Church of the Ascension parish office building and construction of a new approximately 3,000 square foot single stor3,' office building in the same location. Additionally, two temporat3,? modular office units have been requested south of the church sanctuaD' and 45 feet north of Ascension Drive. They xx4_ll be removed following construction of the new church office. The site is 7.24 acres and is zoned R-l-10,000. (APPROVED 6-0) DR-00-049 (517-08-024) - HUNTER, 14700 St. Charles Street; Request for Design Review approval to demolish an ex~stmg 1,437 square foot single story residence and construct a new 2.707 square foot two-sto~' residence with a 1,020 square foot basement. Mammum height of the proposed structure is 22 feet tall. The propertT is 7,261 square feet in size and is located within an R-l-10,000 zoning disu-ict. (APPROVED 6-0) DR-00-043 (397-04-026) - FORMICO, 14456 Sobey Road; Request for Design Review approval to demolish an existing 4,417 square foot residence and construction of a new 5.693 square foot residence in its place. The maximum height proposed is 25 feet, 10 inches. The parcel is appro 'xirnately 61,855 square feet located in an R-1-40.000-zoning district. (APPROVED 5-0, BERNALD ABSENT) DIRECTOR ITEMS COMMISSION ITEMS Januan,. 23.2001 PC/HPC/Cit3.? Council Joint Meeting SABIC: 18817 Devon Avenue. DR-00-019 COMMUNICATIONS ADJOURNMENT AT 10:00 TO NEXT MEETING \Vednesday, January 24, ~001 Council Chambers/Civic Theater 13/-77 Fruitvale Avenue. Saratoga, CA SARATOGA CITY COUNCIL MEETING DATE: JanuaD' 17, 2001 AGENDA ITEM: ORIGINATING DEPT: Administrative Sen'ices CITY MANAGER: SUBJECT: Financial Advisors for the Libra~' Project General Obligation Bonds RECOMMENDED ACTION(S): Terminate agreement with Evensen Dodge for financial advisory services related to the sale of General Obligation bonds for the Saratoga Community Library Expansion and Renovation project, and execute professional services agreement with Sutro and Company to continue those services. REPORT SUMMARY: On November 3, 1999, the City signed an agreement with Evensen Dodge to provide financial advisory services related to the sale of General Obligation Bonds for the Saratoga Community Library Expansion and Renovation project. The firm was selected from the four firms which were interviewed primarily because of the quality of the two individuals who were assigned to this project. Mr. Rich Morales and Ms. Katrina Johantgen. Richard Morales informed the City of Saratoga on January 4, 2001, that he was leaving Evensen Dodge after twelve years of service, and moving to the firm of Sutro and Company. Katrina Johantgen left the firm several months ago to work for the State of California. With the departure of both Mr. Morales and Ms. Johantgen from Evensen Dodge. the City no longer has continuity with the individuals who were originally hired and with whom we have built a relationship. Furthermore. an important criteria for the City was to use a Financial Advisor' firm with a local Bay Area presence, which Evensen Dodge will not have after Mr. Morales' departure. Staff recommends that the City of Saratoga exercises its option to terminate the agreement with Evenson Dodge for financial adviso13- services, pursuant to Exhibit B of the City's agreement with them. The agreement provides that. in the event of termination, the City shall compensate Evensen Dodge for out-of-pocket reimbursable costs incurred as of the date of this notice. Evensen Dodge will be asked to invoice the City for these costs as soon as possible. Mr. Morales moved to the investment banking firm of Sutro and Company on January 8. 2001. The City still has a need for a Financial Advisor to guide it through the bonding process which will begin very shortly, so staff recommends that the City hire Mr. Morales' new firm. Sutro and Company, with the provision that Mr. Morales be the primary contact from that firm. Staff was very pleased with Mr. Morales knowledge and service while with Evensen Dodge, and values the -knowledge of the City and the project which Mr. Morales has acquired over the past year. The agreement is almost identical to the one between the Ci~- and Evensen Dodge. Note that the fees are still coniingent upon the sale of the bonds, and the costs have been reduced by any amount which Evensen Dodge will bill for out-of-pocket costs. The City Attorney has reviewed and approved the contract, as has Sutro and Company. FISCAL IMPACTS: There would be no financial impact to the City with changing financial advisor3.' firms. The agreements with both Evensen Dodge and Sutro and Company provide for a fee of $_,~,>00. plus up to $2.500 in out-of-pocket costs. The fees are contingent upon the sale of the bonds. CONSEQUENCES OF NOT FOLLOVqlNG RECOMMENDED ACTION(S): If the Ciw were to remain with Evensen Dodge, staff would have to 'develop a relationship with a new team and bring those individuals up to speed on the status of the library project. At this time. it appears that sen'ices would be provided out of the Los Angeles office. If the City were to start the process of interviewing for a new financial advisor3.' firm. the sale of the bonds would be delayed at least six weeks, which would be a critical set-back at this time. ALTERNATIVE ACTION(S): Remain with Evensen Dodge, or interview and select a new financial advisory firm. FOLLOW UP ACTION(S): Execute agreement with Sutro and Company. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Agreement with Sutro and Company 2 of 2 PROFESSION;M_~ SERVICES AGREEMENT THIS AGREEMENT is made at Saratoga, California. as of , 20 , by and between the CITY OF SA1LAIOGA, a municipal corporation ("City"). and SUtro & Co., Inc., ("Contractor" or "Sutro"), who agree as follows: 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the sen, ices described in Exhibit A. Contractor shall provide said sen'ices at the time, place and in the manner specified in Exhibit A. 2. PAYMENT. City shall pay Contractor for services rendered pursuant to this Agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only pa,~nents to be made to Contractor for sen'ices rendered pursuant to this Agreement. Contractor shall submit all billings for said sen'ices to City in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures and practices which Contractor uses for billing clients similar to City. 3. FACILITIES AND EQUIPMENT. Except as set forth in Exhibit C, Contractor shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing sendces pursuant to this Agreement. City shall furnish to Contractor onlv the facilities and equipment listed in Exhibit C according to the terms and conditions set forth in Exhibit C. Sutro & Co., Inc. Page 1 of 2. 3 4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions. 5. EXItIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein. 6. CONTRACT ADMINIST1La, TION. This Agreement shall be administered by the Administrative Services Director ("Administrator"). All correspondence shall be directed to or through the Administrator or his or her designee. 7. NOTICES. Any written notice to Contractor shall be sent to: Richard Morales, Senior Vice President Sutro 8,: Co., Inc. 201 California Street, 4t~ Floor San Francisco, CA 94111-5096 .Any written notice to City shall be sent to: MaD' Jo Walker, Administrative Sei~'ices Director City of Saratoga 13777 Fruitvale Avenue Saratoga, CA 95070 Sutro 8,: Co., Inc. Page 2 of 1. 3 Executed as of the day first above stated: CITY OF SARATOGA. a municipal corporation Attest: City Clerk Approved as to form: By BY "City" "Contractor" City Attorney Approved as to budget authority: Administrative Sen, ices Director Sutro & Co.. Inc. Page 3 of 13 EXHIBIT A TERM OF AGREEMENT .ANT) SCOPE OF WORK 1. TERM OF AGREEMENT. The term of this a~eement shall be until completion of the tasks established in the scope of work below, unless it is extended by written mutual agreement between the parties, provided that the parties retain the right to terminate this Agreement as provided in Exhibit B at all times. 2. SCOPE OF WORK. The following outlines the Scope of Se~wices that Sutro will provide. a) Sutro will be available to participate in all community meetings. Sutro will update tax rate analyses for better public understanding. b) Sutro will provide bond counsel with the specifications of the bond issue to assist in the preparation of the required legal documents for official consideration and action. Sutro will be available to discuss all documents and financing points with the City Council and/or other members of the community. c) Sutro will assist with the preparation of the preliminaw and final official statements. Sutro will ensure that the City's official statement meets the disclosure requirements of the Government Finance Officers Association, and ensure that it cOmplies with the City's Continuing Disclosure Agreement. d) Sutro will prepare complete information for credit presentations to the rating services and the pote. ntial credit enhancement providers (the bond insurers), as appropriate and necessary under the circumstances. e) Sutro will prepare and maintain a time schedule, costs of issuance budget, list of participants, and take such actions as desired by the City to efficiently manage the bond issue to meet the City's objectives. Sutro will advise the City as to the timing of the bond sale date and the condition of the tax-exempt market. Sutro Will distribute the Official Statement to under, vfiters, banks, insurance companies and others ~known to be investors in municipal bonds. Sutro xvill assist the City in selectin~ other sen'ice providers necessary to conduct the bond issue, including but not limited to, the trustee, paying agent, printer, credit enhancement providers, special counsel, and such other professionals as requested by the City. Sutro & Co., Inc. Page 4 of 2.' 3 g) h) i) J) k) 1) m) n) Prior t'o the sale of the City's G.O. bonds, Sutro will analyze and make recommendations with respect to biddin~o ruleg appropriate to the size and complexi~' of the City's issue within market preferences and constraints. The rules will be developed, along with the City's bond counsel, to encourage the largest number of bidders and to provide incentives for efficient bids to l~e structured so that the resulting debt sen'ice to be paid will be the lowest possible. SUtro will assist bond counsel in the preparation of a Notice of Sale and Bid Fom~ to be used by the City in advertising the sale and describing the terms thereof and the fom~ and rules by which bids will be received and evaluated. Sutro will distribute the bidding documents: Notice of Sale, Bid Form and Preliminary Official Statement, to prospective bidders selected fi.om Sutro's nationwide mailing list of p¢ospective underwriters. Sutro will ensure that Silicon \~llev investors are included on the bidding list so that local participants may bid on and own bonds that affect their community. Sutro will arrange for the advertisement of the sale and contact potential under, vriters through our marketing desk to solicit bids. Sutro will attend and oversee the bid openin_o and assist in analvzin~ the bids received; verify the true interest cost; notify the lowest bidder; prepare the final schedule of principal and interest requirements based on the interest rates established at public sale; and make a recommendation as to the subsequent actions to be taken by the City. SUtro will assist the City with the deliver3.' of the proceeds of the bonds, payment of issuance costs, &nd matters related to the closing of the bond issue. Sutro will compute the bond yield as defined by federal regulations. Sutro can Provide investment advisoD.' sen-ices to the City, upon request, and under a separate fee agreement. Sutro will prepare a post sale analysis that documents the results of sale, summarizes the essential terms of the offering, identifies market conditions at the time of sale, and describes the sales results of other comparable issues in the market. Upon request, Sutro will deliver a presentation to the City Council to set forth the results of the sale and to respond to any questions or inquiries that it may have. 3. COMPENSATION. Sutro is prepared to provide financial advisou' services to the City of Saratoga:immediately. Our compensation is contingent upon an issuance of bonds. Accordingly, our financial advisou: fee is payable upon closing of a G.O. bond issue. For an issue between $10 and $15 million, our financial advisou, fee would be $32,500. Our base fee does not include expenses, which would be limited to 52,500, less any amount billed by Evensen Dodge, Inc. ~Sutro & Co., Inc. Page 5 of ~ 3. EXHIBIT B PAYMENT City shall pay Contractor an amount not to exceed the total sum of thirty-two thousand five hundred dollars (532,500) for sen'ices to be performed. Contractor shall submit an invoice to the City, and shall be paid from the proceeds of the sale of bonds issued for the Library expansion project. The Contractor shall also be reimbursed for out-of-pocket costs incurred for this project for an amount not to exceed S2,500, less any amount billed by Evensen Dodge, Inc. The invoices for out-of-pocket reimbursable costs shall contain the following information: 1. The beginning and ending dates of the billing period. 2. Detail of the specific costs. City shall make monthly payments, based on such invoices, for authorized reimbursable out-of-pocket costs incurred. The City shall pay for financial advisor).' fees of 532,500 out of bond proceeds only after the bonds are successfully sold and bond proceeds have been received by the City. The total sum stated above shall be the total which City shall pay for the services to be rendered by Contractor pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering sen:ices pursuant to this Agreement. City shall make no pa.vl'nent for any extra, further or additional sen'ice pursuant to this Agreement unless such extra service and the price therefore is agreed to in writing executed by the City Manager or other designated official of City authorized to obligate City thereto prior to the time such extra service is rendered. Sutro & Co., Inc. Page 6 of ~ 3 The services to be provided under this Agreement may be terminated with cause at any point in time at the sole and exclusive discretion of City by providing prior written notice. In this event, City shall compensate the Contractor for out-of-pocket reimbursable costs incurred as of the date of written notice. Contractor shall maintain adequate records to veril\' costs incurred to date. The Contractor is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a fully executed Purchase Order from the City of Saratoga. Sutro & Co., Inc. Page 7 of ! 3 EXHIBIT C FACILITIES :,-LNrD EQUIPMENT City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Contractor's use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing said physical facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility which may involve incurring any direct expense, including, but not limiting the generality of this exclusion, long-distance telephone or other comlnunication charges, vehicles, and reproduction facilities. Sutro & Co., Inc. Page 8 of z 2 EXHIBIT D - GENE1L&L PROVISIONS 1. INDEPENDENT CONT1L, kCTOR. At al! times during the term of this Agreement, Contractor Shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of Contractor's sen'ices rendered pursuant to this Ageement; however, City shall not have the right to control the means by which Contractor accomplishes sen-ices rendered pursuant to this Agreement. 2. LICENSES: PEP~..MITS: ETC. Contractor represents and warrants to City that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Contractor to practice its profession. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required Ibr Contractor to practice its profession. 3. TIME. Contractor shall devote such time to the performance of sen'ices pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Contractor's obligations pursuant to this Agreement. 4. INSUqLANCE REQUIREMENTS. Contractor Shall procure and maintain for the duration of the contract "occurrence coverage" insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. (a) Minimum Scope of Insurance. Coverage shall be at least as broad as: Insurance Sen'ices Office form number GL 0002 (Ed. 1:73) covering comprehensive General Liability and Insurance Sen'ices Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Sen'ices Office Commercial General Liability coverage ("occurrence" form CG 0001.) Insurance Sen'ices Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. Workers' Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. (b) Minimum Limits of Insurance. Contractor shall maintain limits no less than: Sutro & Co., Inc. Page 9 of 2 2 General Liability: $1,000,000 combined single limit per occurrence for bodily injuD', personal injuD, and property damage. If commercial General. Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general ag~egate limit shall be twice the required occurrence limit. Automobile Liability: SI,O00,O00 combined single limit per accident for bodily injuD.-' and property damage. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of Califomia and Employers Liability limits of S 1,000,000 per accident. (c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials and employees; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. (d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of the protection afforded to the City, its officers, officials,-employees or volunteers. The Contractor's insurance coverage shall be primaD-' insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. Sutro & Co., Inc. Page 10 of '.' 3 (e) (I3 (g) (h) The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. ..) Workers' Compensation and Employers Liability CoYerage. The insurer shall a~ee to waive all rights of subrogation against the City. its officers, officials, employees and volunteers for losses ari_sing from work performed by the Contractor for the City. 3. Professional Liability. Contractor shall can3..' professional liability insurance in an amount deemed by the City to adequately' protect the Contractor against liability caused by negligent acts, errors or omissions on the part of the Contractor in the course of performance of the services specified in this Agreement. 4. All Coverages. Each insurance policy required bv this clause shall be_endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placedwith insurers with a Bests' rating of no less than A:VII. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certi fled copies-of all required insurance policies, at any time. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. The Risk Manager of City may approve a variation in those insurance requirements upon a determination that the coverages, scope, limits and forrns of Sutro & Co.. Inc. Page 11 of 7_ 5: such insurance are either not commercially available or that the City's interests are otherwise fully protected. 5. CONT1L;kCTOR NO AGENT. Except as City ma3' specie' in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to anv obligation whatsoever. 6. ASSIGN~'MENT PROHIBITED. No party to this Agreement may assign any right or obligation pursuant to this A~eement. ,~my attempted or purported assi~ent of any right or obligation pursuant to this A~eement shall be void and of no effect. 7. PERSON~'EL. Contractor shall assign only competent personnel to perform services pursuant to this A~eement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, Contractor shall, immediately upOn receiving notice from City of such desire of City, remove such person or persons. 8. STANT),~uV,.D OF PERFO1LM,~ICE. Contractor shall perform all services required pursuant to this A~eement in the manner and according to the standards observed by a competent practitioner of the profession in which Contractor is engaged in the geographical area in which Contractor practices its profession. All instruments of service of whatsoever nature which Contractor delivers to City pursuant to this A~eement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Contractor's profession. 9. HOLD HARMLESS ANT) RESPONSIBILITY OF CONTtL4_CTORS. Contractor shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to any subcontractor, to the City, to City officers and employees, or to parties designated by the City, on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the Contractor or of any subcontractor. Contractor shall indemni~,-, defend and hold harmless the City, its officers, officials, directors, employees and agents from and against any or all loss, liability, expense, claim, costs (including costs of defense), suits, and damages of even' kind, nature and description directly or indirectly arising from the performance of the work. This paragraph shall not be construed to exempt the City, its employees and officers from its own fraud, willful injuD." or violation of law whether willful or negligent. For purposes of Section 2782 of the Civil Code the parties hereto recognize and agree that this agreement is not a construction contract. By execution of this Agreement, Contractor ac'knowledges and agees that it has read and understands the provisions hereof and that this paragraph is a material element of consideration. Approval of the insurance contracts does not relieve the Contractor or subcontractors from liability under this para~aph. Sutro & Co.. Inc. Page 12 of 13 10. GOVERzNZvIENTAL REGUq_ATIONS. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Contractor shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. 11. DOCL~,IJENTS. All reports, data, maps, models, charts, studies, surveys, photographs. memoranda or other written documents or materials prepared by Contractor pursuant to this Agreement shall become the property of City upon completion of the work to be performed hereunder or upon' termination of the Ageement. 12. COMPLL~NCE WITH APPLICABLE LAWS. Contractor shall comply with all laws applicable to the performance of the work hereunder, including, but not limited to, laws prohibiting discrimination based on race, religious creed, color, national origin, ancestD', physical handicap, medical condition, marital status or sex. 13. USE OF RECYCLED PRODUCTS. Contractors shall prepare and submit all repons, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. Sutro & Co., Inc. Page 13 of '__ 2 SARa. TOGA CITY COUNCIL MEETING DATE: January 17, 2000 ORIGINATING DEPT: Public Works PREPARED BY: AGENDA ITEM: CITY MANAGER: DEPT HEAD: SUBJECT: Integrated Pest Management Policy RECOMMENDED ACTION(S): Receive report and provide direction to staff. REPORT SUMMARY: At the October 18 and November 15 City Council Meetings, staff presented information regarding the t3pes of pesticides that are applied in and around City owned facilities, parks, open spaces, medians, rights of ways, and landscape assessment zones (see attached reports). Council subsequently directed staffto explore implementation of a Pest Management Policy in the City. Through various sources, staff learned of a successful Inte~ated Pest Management Policy implemented in the City and County of San Francisco. The San Francisco Policy is comprehensive and ag~essive, a policy that one would expect to see in a large bureaucracy with its own Department of the Environment. However, there are good policies and procedures in the San Francisco Policy which staff believes can be adopted and implemented in Saratoga without requiring extensive staff resources while preserving the integrity of the policy. Attached is a draft Inte~ated Pest Management Policy for the City based on San Francisco's Policy. The key features of the Policy are as follows: · Ban on use of pesticides categorized as having Toxicity Levels of I and II by City departments and pesticide applicators hired by the City. · Encourage use of non-pesticide methods and consider use of chemicals as a last resort. · Noticing of pesticide use prior to application. · Support staff training on alternative pest control methods. · Public outreach regarding pesticide use. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Depends on the direction of the Council, if any. ADVERTISING, NOTICING AND PUBLIC CONTACT: None additional. ATTACHMENTS: 1. Draft City of Saratoga Inte~ated Pest Management Policy. 2. October 18 and November 19 Pesticide Staff Report. 2 of 2 -Integrated Pest Management Policy I. PURPOSE AND FINDINGS 1. The City Council hereby finds and declares that it shall be the policy of the City for City departments and City contractors who apply pesticides to City property to eliminate or reduce pesticide applications on City property to the maximum extent feasible. 2. This policy concerns the application of pesticides to property owned by the City only, and does not concern the application of pesticides to property that us not owned by the City. II. CITY INTEGIL4~TED PEST MANAGEMENT POLICY The City, in carr3.4ng out its operations, shall assume pesticides are potentially hazardous to human and environmental health. City departments shall give preference to reasonably available non-pesticide alternatives when considering the use of pesticides on City property. For all pest problems on City property, City departments shall follow the inte~ated pest management OPM) approach outlined below. 1. Monitor each pest ecosystem to determine pest population, size, occurrence, and natural enemy population, if present. 2. Identi~' decisions and practices that could affect pest populations. Consider a range of potential treatments for the pest problem. 3. Employ non-pesticide management tactics first. Consider the use of chemicals only as a last resort. 4. Determine the most effective treatment time, based on pest biology and other variables, such as weather, seasonal changes in wildlife use and local conditions. 5. Design and construct indoor and outdoor areas to reduce and eliminate pest habitats. 6. Modify management practices, including watering, mulching, waste management, and food storage. 7. Modi~, pest ecosystems to reduce food and living space. 8. Use physical controls such as hand-weeding, traps and barriers. 9. Use biological controls introducing or enhancing pests' natural enemies. 10. Acquaint staff with pest biologys, the IPM approach, new pest management strategies as they become known, and toxicology of pesticides proposed for use. 11. Inform the public of the City's attempt to reduce pesticide use and respond to questions from the public about City's pest management practicesl III. DEFINITIONS The following terms shall have the meanings set forth below: 1. "City department" means any department of the City of Saratoga includes any pesticide applicator hired by a City department to apply pesticides on City property. ' 2. "Contract" means a binding written a~eement, including but not limited to, a contract, lease, permit, license or easement between a person, firm, corporation or other entity, and a City department, which ~ants a right to use or occupy property of the City of Saratoga for a specified purpose or purposes. 3. "Contractor" means a person, firm, corporation or other entity that enters into a contract with the City. 4. "Inte~ated pest management" means a decision-making process for managing pests, which uses monitoring to determine pest injury levels and combines biological, physical, and chemical tools to minimize health, environmental risks. The method uses extensive knowledge about pests, such as infestation thresholds, life histories, environmental requirements, and natural enemies to complement and facilitate, biological and other natural control of pests. The method uses the least toxic synthetic pesticides only as a last resort to controlling pests. 5. '!Pesticide" means pesticide as defined in Section 12753 of Chapter 2 of Division 7 of the 'California Food and Agricultural Code. 6. "Toxicity Category I Pesticide Product" means any pesticide product that meets United States Environmental Protection Agency criteria for Toxicity CategoD, I under Section 156.10 of Part 156 of Title 40 of the Code of Federal Regulations. 7. "Toxicity CategoD, II Pesticide Product" means any pesticide product that meets United States Environmental Protection Agency criteria for Toxicity Category II under Section 156.10 of Part 156 of Title 40 of the Code of Federal Regulations IV. BAN ON USE OF TOXICITY CATEGORY I AND CATEGORY I1 No City department shall use any Toxicity CategoD:' I or Category II Pesticide Product. V. NOTICE OF PESTICIDE USE Any City department that uses any pesticide shall comply with the following notification procedures: 1. Sig-ns shall be posted at least two days before application of the pesticide product and remain posted at least two days after application of the pesticide 2. Sigmas shall be posted at eveD: entD, point where the pesticide is applied if the pesticide is applied in an enclosed area, and in highly visible locations around the perimeter of the area where the pesticide is applied if the pesticide is applied in an open area. 3. Signs shall be of a standardized design which are easily recog-nizable to the public and workers. 4. Signs shall contain the name and active in~edient of the pesticide product, the target pest, the date of pesticide use, the signal word indicating the toxicity categoD' of the pesticide product, the date for re-entry to the area treated, and the name and contact number for the City department responsible for the application. 5. City departments shall not be required to post signs in right-of-way locations that the general public does not use for recreational purposes. 6. City departments may apply a pesticide without providing a two day advance notification in the event of a public health emergency. SARATOGA CITY COUNCIL MEETING DATE: October 18, 2000 ORIGINATING DEPT: Public Works PREPARED BY:~ '~..~ AGENDA ITEM: CITY MANAGER: DEPT HEAD: SUBJECT: Pesticide Use RECOMMENDED ACTION(S): Receive Report. REPORT SUMMARY: As per your request Dave Mooney, Parks Maintenance Supervisor, put together a list of the pesticides the maintenance division uses for different purposes throughout the year. For ~1~°~ informational purposes it may help for you to know that the City does not use category 1 pesticides (high toxicity). The majority of pesticides that are currently used (approximately ~) are considered category 3 (low toxicity) pesticides with the remainder use being category 2 (moderate toxicity) pesticides. The list below categorizes the pesticides into locations where they are used, gives a brief description of their use, toxicity category, and specifies whether the application is done by City staff or by outside contractor. Parks/City Hall/Open Space: Round up pro; non-selective, post emerge herbicide. Sur, flan; non-selective, pre emerge herbicide. Fusilade; selective, post emerge grass control. Wilco gopher getter; gopher control bait. Dexol gopher gasser; gopher and ground squirrel gas cartridges. Safer Rose and Flower; contact insecticide soap. Barricade 6$WG; selective, post emerge broadleafweed control. Cat. 3 City staff. Cat. 3 City staff Cat. 2 City staff. Cat. 3 City staff Cat. 3 City staff Cat. 3 City staff. Cat. 3 Contractor. Landscal}e and Li~htine Assessment Zones: Round up pro; non-selective, post emerge herbicide. Gallery; non-selective, pre emerge herbicide. Surflan; non-selective, pre emerge herbicide. Orthene; Contact insecticide. Snail bait; non-selective, insecticide. Cat. 3 Contractor. Cat. 3 Contractor. Cat. 3 Contractor. Cat. 3 Contractor. Cat. 2 Contractor. Medians and Right of Ways: Daconil; Fungicide, for control of various fungi on oaks. Cat. 2 Astro; insecticide, for control of ambrosia beetle on heritage oaks. Cat. 3 DursbanPro; insecticide, periodic control of tern caterpillars. Cat. 3 Round up pro; non-selective, post emerge herbicide. Cat. 3 Diuron; nonselective, pre emerge herbicide. Cat. 3 Folk Oil; insecticide oil for control of scale. Cat. 3 Diazinon 4E; insecticide for control of scale. Cat. 3 FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Depends on the direction of the Council, if any. ADVERTISING, NOTICING AND PUBLIC CONTACT: None additional. ATTACHMENTS: Contractor. Contractor. Contractor. Contractor. Contractor Contractor. Contractor. None. SARATOGA CITY COUNCIL MEETING DATE: November 15, 2000 ORIGINATING DEPT: Public Works PREPARED BY: ~ ~ AGENDA ITEM: CITY MANAGER: SUBJECT: Pesticide Use RECOMMENDED ACTION(S): Receive Report. REPORT SUMMARY: At the October 18 City Council Meeting, staff was directed to provide information in regard to the types of pesticides that are applied in and around City owned facilities. The following information will supplement the information reported to you on the 18th (see attached report). As you recall, Catego~ 1 pesticides are high toxicity, Category 2 pesticides are moderate toxicity, and Category 3 pesticides are low toxicity. The information listed below was provided by Robert Kirk, Facility Maintenance Supervisor, and categorizes the pesticides into locations where they are used, gives a brief description of their use, and specifies.whether the application is done by city staff or by outside contractor. Additionally, these particular pesticide applications are performed only as needed. City Owned Facilities: Dursban pro; Carpenter Ants. Tempo; ,4rots. Sungro Permith. Ants, Cockroaches. Cat. 3 Contractor. Cat. 3 Contractor. Cat. 3 City staff. Staff is currently looking into ways to reduce pesticide use to the maximum extent feasible, and are exploring Integrated Pest Management Programs implemented in other jurisdictions. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Depends on the direction of the Council, if any. ADVERTISING, NOTICING AND PUBLIC CONTACT: None additional. ATTACHMENTS: None. 2 of 3 SARATOGA CITY COUNCIL MEETING DATE: Januao? 17, 2001 AGENDA ITEM: ORIGINATING DEPT: Administrative Services CITY MANAGER: SUBJECT: Saratoga CommuniD' Libra~~ Schematic Design and Cost Estimates RECOMMENDED ACTION(S): Approve the Saratoga Community Library schematic design and the schematic construction cost estimate, and direct the Library project team to proceed with the design development phase of the project. REPORT SUMMARY: Schematic Design For the past six months, the kibraD' Expansion Committee and staff members have been working with the Library Architects and various other consultants to develop the schematic design for the Saratoga Community kibrat% The process consisted of meetings between the Architect and the Library Expansion Committee ever,,' two weeks to develop the concept for the building, and three public meetings to receive community input. The result is the design that Mark Schatz of Field Paoli will present on January 17. The proposed Library features a single story design of 49,000 square feet incorporating the existing building and the new addition, and parking for 165 cars pursuant to two traffic studies commissioned by the City. Attachment A includes several drawings from the Architect. The first two pages are renderings of the proposed entry to the building, followed by elevation drawings looking at the building from the north, south, east and west. and a floorplan which highlights the old portion of the building. Also attached are seven 8 %_ X 11 sheets shov¢ing various other views of the proposed building. The Landscape Architect has been working with the Heritage Preservation Commission and Matt Novokovich to minimize the Library expansion project's impact on the Heritage Orchard. The main landscaping theme is orchard related. Plans call for bringing the orchard closer to the LibraD' building, replacing dead or dying fruit trees and most ornamental trees with orchard varieties. While the Library and parking lot will intrude somewhat into the orchard area, plans for transplanting healthy prune and apricot trees from these areas to other areas in the orchard have been drawn up. Schematic Construction Cost Estimates The Architects' professional cost estimators have prepared an estimate of the costs to construct the Library as designed. The estimate is the first of two very detailed estimates that will be prepared bv the Architects at crucial stages in the design process. The Architects' estimate totals $13,520,597, plus $1,988,171 in design and construction contingencies, for a total of $15,508,768. This includes all costs associated with the completion of the project including renovation and construction of the proposed building, architect and construction management fees, bond issuance costs, moving costs, and temporary quarters for the library during the eighteen months of construction. See the Schematic Project Budget Worksheet at Attachment B. This estimate exceeds the $15 million available for the project, so the process of value engineering has begun to reduce the estimate to no more than $15 million, including adequate contingencies. The Architect and Construction Manager will develop a list of options for reducing the cost estimate, and will meet with the Library Expansion Committee on January 25 to review and prioritize the options. This approach was discussed with the both the Library Expansion Committee and the Citizen's Oversight Committee at their respective meetings on January 9. and both Committees felt comfortable that this process would accomplish the goal of reducing estimated costs to confirm with the project budget. The City's construction Management firm has also prepared an independent cost estimate, which was requested to ensure that the project could be built within budget. The Construction Manager's cost estimates were not completed in sufficient time to include in the agenda packet, but will be ready for presentation to the City Council at the meeting on January 17. Construction Phases The Citizens' Oversight Committee (COC) raised an issue that they wished to bring to the City.' Council's attention. To meet the target date for opening the new Library by November 1. 2002. the construction is divided into two phases; phase one is the site preparation and construction of the foundations and parking lot. and phase two is the rest of the Library construction. Phasing allows the project team to continue working on the construction bid documents for the phase two work while phase one is being built. It also allows the construction to start prior to the rainy season, reducing risks of delays and associated added costs. The COC felt that the phased approach could pose a cost risk because it limits the Architect's options in phase two to reduce costs, should the need arise. The construction bids for phase two will be received after the phase one work is nearly completed, so if the construction bids come in higher than estimated, the options for reducing costs in phase two are more limited because the foundation has already been laid. The phased approach was recommended by the Architect as a necessity to meet the November 2002 deadline, and although this is not the Architect's preferred method due to its complexity, it is common. The Construction Manager reported that this approach is the most commonly used in their experience, and most of the projects they manage use it. The Library Expansion Committee is comfortable with the phased approach, as they understood it would be used since the conceptual design began last summer. The Architect believes there are still many value 2 of 3 engineering options other than reducing the size of the building that can be explored to reduce costs if the phase two bids are higher than estimated. FISCAL IMPACTS: The estimates indicate that the Librav,.' project, as designed, could cost as much as S15.486.450. The Architect and Construction Manager will develop a list of options for reducing the cost estimate to no more than $15 million, and will meet with the Libra~' Expansion Committee on January 25 to review and prioritize the options. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): Since the entire project is under a tight timeframe., if acceptance of the design is deterred tbr more than a few weeks, the beginning of the construction phase of the project could be delayed. and completion of the project as originally scheduled would probably have to be extended. ALTE1LNATIVE ACTION(S): Regarding the schematic design, direct the Architects to make modifications to the design and return to the City Council on February 7. Regarding the cost estimates, direct the Architect and Construction Manager to return to the City Council with prioritized cost cutting options. FOLLOW UP ACTION(S): If approved, the next steps in the Library project will be to direct the Library project team to proceed with the design development phase of the prqiect, prepare development permits to be submitted to the City, prepare the environmental study, and begin the orchard restoration project. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Attachment A - Architectural Drawings Attachment B - Schematic Project Budget Worksheet 3 of 3 ATTACHMENT A SARATOGA LIBRARY SCHEMA TIC PROJECT BUDGET WORKSHEET Field Paoli Architects - January 12, 2001 1. SITE ACQUISITION COSTS PURCHASE NEW SITE 2. CONSTRUCTION COSTS FROM OPPENHEIM LEWIS RENOVATION OF EXISTING BUILDING DEMOLITION FOUNDATIONS & SLAB BUILDING SHELL INTERIORS SHELVING & EQUIPMENT PLUMBING HVAC ELEC, LIGHTING & COMMUNICATIONS FIRE PROTECTION SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY- 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET NEW CONSTRUCTION FOUNDATIONS & SLAB BUILDING SHELL INTERIORS SHELVING & EQUIPMENT PLUMBING HVAC ELEC, LIGHTING & COMMUNICATIONS FIRE PROTECTION SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY- 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET 11/6/00 Preliminary Estimate 470,000 360,000 36O,OO0 70,000 265,000 460,000 55,000 $ 2,040,000 $ 183,600 $ 88,944 2,312,544 $ 231,254 $ 127,100 2,670,988 $ 285,000 $1,735,000 $ 900,000 $ 600,000 $ 125,000 $ 735,000 $ 765,000 $ 95,000 $ 5,240,000 471,600 228,464 $ 5,940,064 $ 594,006 $ 326,704 $ 6,860,774 118101 Schematic Estimate 237,110 57,510 483,O35 473,58O 117,750 58,215 328,239 410,362 64,470 $ 2,230,271 200,724 97,240 $ 2,528,235 $ 252,824 $ 97,337 $ 2,878,396 353,383 1,916,290 955,123 529,650 108,115 609,586 941,900 119,730 $ 5,533,777 498,040 241,273 $ 6,273,090 $ 627,309 $ 241,514 $ 7,141,913 TOTAL ATTACHMENT B Page I of 3 SITE DEVELOPMENT SITE PREPARATION TREE RELOCATION VEHICULAR PAVING PEDESTRIAN PAVING SITE STRUCTURES EXTERIOR SIGNAGE LIGHTING DRAINAGE LANDSCAPE & IRRIGATION SITE FURNISHINGS UTILITIES SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY- 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET TOTAL ESTIMATED CONSTRUCTION BUDGET - PHASE 1 3. FEES AND INSPECTIONS ARCHITECTURE & ENGINEERING ENGINEERS & CONSULTANTS CONSTRUCTION MANAGEMENT ALLOWANCE FOR REIMBURSABLES LEGAL COSTS ART CONSULTANT - not in bond budget SPECIAL TESTS & INSPECTIONS - 1.5% COST OF BOND ISSUANCE PLAN CHECK & UTILIITY FEES Note: these are estimates, need numbers from the city PLANNING BUILDING FIRE DEPARTMENT WATER & SEWER GAS & ELECTRICAL SUB-TOTAL - FEES & INSPECTIONS 4. FURNISHINGS, FIXTURES & EQUIPMENT -ALLOWANCES MOVABLE FURNISHINGS - NOT IN BOND BUDSET ALLOW FOR PUBLIC ART - NOT IN BOND BUDGET TELEPHONE SYSTEM COMPUTER CABLING SYSTEM SECURITY SYSTEM COMPUTERS - NOT IN BOND BUDGET SUB-TOTAL - FURNISHINGS & EQUIPMENT 1,125,000 101,250 49,050 1,275,300 127,530 70,142 1,472.972 $ $ $ 750,000 492.150 752,000 65,000 165,071 216,000 5,000 50,000 50,000 40,000 40,000 25,000 $ 11,004,734 $ 2,545,221 105,000 $ 156,775 $ 37,500 $ 244,500 $ 220,550 $ 126.875 $ 20,000 $ 103.000 $ 50,000 $ 118,300 $ 40,250 $ 110.390 $1,228,140 $ 110.533 $ 53,547 $1,392,220 $ 139,222 $ 53,600 $1.585,042 750.000 492,150 752,000 65,000 $ 174,080 $ 216,000 - 5,000 50,000 50,000 $ 40,000 $ 40.000 $ 25,000 $ 11,605,350 $ 2,554,230 105,000 Paoe 2 of 3 5. MISCELLANEOUS COSTS MOVING COSTS RENTAL ON TEMPORARY FACILITY ADDED CHARGE FOR SITE RENTAL AT SERBI,Z~N CHURCH SUB-TOTAL - MISCELLANEOUS 6. CONTINGENCIES RENOVATION CHANGE ORDER ALLOWANCE - 10% NEW. CONSTRUCTION CHANGE ORDER ALLOWANCE - 5% PHONE & DATA CABLING DESIGN FF&E CHANGE ALLOWANCE - 5% CONSULTANT EXTRA SERVICES - 5% SUB-TOTAL - CONTINGENCIES TOTAL ESTIMATED PROJECT COST - PHASE 1 AVAILABLE BUDGET FROM BOND MEASURE $ 25,000 $ 35O,OOO $ 267.099 $ 416,687 $ 7,500 $ $ 37,500 $ 375,000 $ 728,786 $ 14,758,741 $ 15,000,000 25,000 350,000 100.000 $ 287.840 $ 436.348 $ 7.500 $ $ 37.500 $ 475,000 $ 769,187 $ 15,508,768 15,000,000 Amount that costs will have to be reduced $ 508,768 Page 3 of 3 SARATOGA CITY COUNCIL MEETING DATE: Janua~' 17, 2001 AGENDA ITEM: ORIGINATING DEPT: Administrative Sen'ices CITY MANAGER: _ _ ,J'./~J,../1,/"D E P T HEAD: /.; L""//;r~..- SUBJECI: Saratoga Community Library Schematic Design and Cost Estimates RECOMMENDED ACTION(S): Approve the Saratoga Community Libra~' schematic design and the schematic construction cost estimate, and direct the LibraD' project team to proceed with the design development phase of the project. REPORT SUMMARY: Schematic Design For the past six months, the Library Expansion Committee and staff members have been working with the LibraD- Architects and various other consultants to develop the schematic design for the Saratoga Community Library. The process consisted of meetings between the Architect and the Library Expansion Committee every two weeks to develop the concept for the building, and three public meetings to receive community input. The result is the design that Mark Schatz of Field Paoli will present on January 17. The proposed LibraD' features a single stoD' design of 49,000 square feet incorporating the existing building and the new addition, and parking for 165 cars pursuant to two traffic studies commissioned by the City. Attachment A includes several drawings from the Architect. The first two pages are renderings of the proposed entD' to the building, followed by elevation drawings looking at the building from the north, south, east and west. and a floorplan which highlights the old portion of the building. Also attached are seven 8'5 X 11 sheets showing various other views of the proposed building. The Landscape Architect has been working with the Heritage Preservation Commission and Matt Novokovich to minimize the Library expansion project's impact on the Heritage Orchard. The main landscaping theme is orchard related. Plans call for bringing the orchard closer to the Library building, replacing dead or dying fruit trees and most ornamental trees with orchard varieties. While the Library and parking lot will intrude somewhat into the orchard area, plans for transplanting healthy prune and apricot trees from these areas to other areas in the orchard have been drawn up. Schematic Construction Cost Estimates The Architects' professional cost estimators have prepared an estimate of the costs to construct the Library as designed. The estimate is the first of two veD' detailed estimates that will be prepared by the Architects at crucial stages in the design process. The Architects' estimate totals $13,520,597, plus $1,988,171 in design and construction contingencies, for a total of $15,508,768. This includes all costs associated with the completion of the project including renovation and construction of the proposed building, architect and construction management fees, bond issuance costs, moving costs, and temporaD- quarters for the library during the eighteen months of construction. See the Schematic Project Budget Worksheet at Attachment B. This estimate exceeds the $15 million available for the project, so the process of value engineering has begun to reduce the estimate to no more than $15 million, including adequate contingencies. The Architect and Construction Manager will develop a list of options for reducing the cost estimate, and will meet with the Library Expansion Committee on Januao~ 25 to review and prioritize the options. This approach was discussed with the both the kibrarv Expansion Committee and the Citizen's Oversight Committee at their respective meetings on JanuaD' 9, and both Committees felt comfortable that this process would accomplish the goal of reducing estimated costs to confirm with the project budget. The City's construction Management firm has also prepared an independent cost estimate, which was requested to ensure that the project could be built within budget. The Construction Manager's cost estimates were not completed in sufficient time to include in the agenda packet, but will be ready for presentation to the City Council at the meeting on January 17. Construction Phases The Citizens' Oversight Committee (COC) raised an issue that they wished to bring to the City Council's attention. To meet the target date for opening the new Library by November 1. 2002. the construction is divided into two phases; phase one is the site preparation and construction of the foundations and parking lot, and phase two is the rest of the Library, construction. Phasing allows the project team to continue working on the construction bid documents for the phase two work while phase one is being built. It also allows the construction to start prior to the rainy season, reducing risks of delays and associated added costs. The COC felt that the phased approach could pose a cost risk because it limits the Architect's options in phase two to reduce costs, should the need arise. The construction bids for phase two will be received after the phase one work is nearlv completed, so if the construction bids come in higher than estimated, the options for reducing costs in phase two are more limited because the foundation has already been laid. The phased approach was recommended by the Architect as a necessity to meet the November 2002 deadline, and although this is not the Architect's preferred method due to its complexity, it is common. The Construction Manager reported that this approach is the most commonly used in their experience, and most of the projects they manage use it. The LibraD' Expansion Committee is comfortable with the phased approach, as they understood it would be used since the conceptual design began last summer. The Architect believes there are still many value engineering options other than reducing the size of the building that can be explored to reduce costs if the phase two bids are higher than estimated. FISCAL IMPACTS: The estimates indicate that the LibraD- prQect, as designed, could cost as much as $15.486.450. The Architect and Construction Manager will develop a list of options for reducing the cost estimate to no more than $15 million, and will meet with the Library Expansion Committee on January 25 to review and prioritize the options. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): Since the entire project is under a tight timeframe, if acceptance of the design is deterred for more than a few weeks, the beginning of the construction phase of the project could be delaved. and completion of the project as originally scheduled would probably have to be extended. ALTE1LNATIVE ACTION(S): Regarding the schematic design, direct the Architects to make modifications to the design and return to the City Council on FebruaD: 7. Regarding the cost estimates, direct the Architect and Construction Manager to return to the City Council with prioritized cost cutting options. FOLLOW UP ACTION(S): If approved, the next steps in the Library project will be to direct the Library project team to proceed with the design development phase of the project, prepare develoPment permits to be submitted to the Cit.',-, prepare the environmental study, and begin the orchard restoration project. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Attachment A - Architectural Drawings Attachment B - Schematic Project Budget Worksheet 3 of 3 ATTACHMENT A SARATOGA LIBRARY SCHEMA TIC PROJECT BUDGET WORKSHEET Field Paoli Architects - January 12, 2001 1. SITE ACQUISITION COSTS PURCHASE NEW SITE 2. CONSTRUCTION COSTS FROM OPPENHEIM LE~NIS RENOVATION OF EXISTING BUILDING DEMOLITION FOUNDATIONS & SLAB BUILDING SHELL INTERIORS SHELVING & EQUIPMENT PLUMBING HVAC ELEC, LIGHTING & COMMUNICATIONS FIRE PROTECTION SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY- 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET NEW CONSTRUCTION FOUNDATIONS & SLAB BUILDING SHELL INTERIORS SHELVING & EQUIPMENT PLUMBING HVAC ELEC, LIGHTING & COMMUNICATIONS FIRE PROTECTION SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY - 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET 1116100 Preliminary Estimate $ $ 470,000 $ 360.000 $ 360.000 $ 70,000 $ 265,000 $ 460,000 $ 55,000 $ 2,040,000 $ 183,600 $ 88,944 2,312,544 $ 231,254 $ 127.190 2,670,988 285.000 1,735,000 900.000 600,000 125,000 735.000 765,000 95.000 $ 5,240,000 $ 471.600 $ 228.464 $ 5,940,064 $ 594.006 $ 326,704 $ 6.860.774 TOTAL 1/8101 Schematic Estimate 237.110 57,510 483.035 473.580 117,750 58,215 328.239 410,362 64,470 2.230.271 $ 200,724 $ 97.240 $ 2.528.235 $ 252.824 $ 97,337 $ 2,878,396 353,383 1,916,290 955,123 529.650 108.115 609.586 941,900 119.730 $ 5.533,777 $ 498.040 $ 241.273 $ 6,273,090 627.309 241,514 $ 7.141.913 TOTAL ATTACHMENT B Page I of 3 SITE DEVELOPMENT SiTE PREPARATION TREE RELOCATION VEHICULAR PAVING PEDESTRIAN PAVING SITE STRUCTURES EXTERIOR SlGNAGE LIGHTING DRAINAGE LANDSCAPE & IRRIGATION SiTE FURNISHINGS UTILITIES SUB-TOTAL - DIRECT COSTS GENERAL CONDITIONS - 9% OVERHEAD & PROFIT - 4% PLANNED CONSTRUCTION COST DESIGN CONTINGENCY - 10% COST ESCALATION - PHASED CONSTRUCTION - 3.5% RECOMMENDED CONST. BUDGET TOTAL ESTIMATED CONSTRUCTION BUDGET - PHASE 1 3. FEES AND INSPECTIONS ARCHITECTURE & ENGINEERING ENGINEERS & CONSULTANTS CONSTRUCTION MANAGEMENT ALLOWANCE FOR REIMBURSABLES LEGAL COSTS ART CONSULTANT - not in bond budget SPECIAL TESTS & INSPECTIONS - 1.5% COST OF BOND ISSUANCE PLAN CHECK & UTILIITY FEES Note: these are estimates, need numbers from the city PLANNING BUILDING FIRE DEPARTMENT WATER & SEWER GAS & ELECTRICAL SUB-TOTAL - FEES & INSPECTIONS 4. FURNISHINGS, FIXTURES & EQUIPMENT. ALLOWANCES MOVABLE FURNISHINGS - NOT tN BOND BUD:3ET ALLOW FOR PUBLIC ART - NOT IN BOND BUDGET TELEPHONE SYSTEM COMPUTER CABLING SYSTEM SECURITY SYSTEM COMPUTERS - NOT IN BOND BUDGET SUB-TOTAL-FURNISHINGS & EQUIPMENT $1,125.000 $ 101.250 $ 49.050 $1.275,300 $ 127,530 $ 70,142 $1,472,972 $ $ $ 750,000 492.150 752.000 65.000 165,071 216,000 5.000 50.000 50.000 40,000 40.000 25,000 $ 11,004,734 $ 2,545,221 105,000 156.775 37,500 244,500 220,550 126.875 20.000 103.000 50,000 118,300 40,250 110.390 $1.228.140 $ 110.533 $ 53,547 $1,392,220 $ 139,222 $ 53.600 1,585,042 $ 750.000 $ 492,150 $ 752.000 $ 65.000 174,080 216,000 - 5,000 50,000 50,000 $ 40,000 S 40,000 $ 25.000 $ 11,605,350 $ 2,554,230 $ 105,000 Paoe 2 of 3 5. MISCELLANEOUS COSTS MOVING COSTS RENTAL ON TEMPORARY FACILITY ADDED CHARGE FOR SITE RENTAL AT SERBIAN CHURCH SUB-TOTAL - MISCELLANEOUS 6. CONTINGENCIES RENOVATION CHANGE ORDER ALLOWANCE - 10% NEW CONSTRUCTION CHANGE ORDER ALLOWANCE - 5% PHONE & DATA CABLING DESIGN FF&E CHANGE ALLOWANCE - 5% CONSULTANT EXTRA SERVICES - 5% SUB-TOTAL - CONTINGENCIES TOTAL ESTIMATED PROJECT COST - PHASE 1 AVAILABLE BUDGET FROM BOND MEASURE $ 25,000 $ 350,000 $ 267.099 $ 416.687 $ 7.500 $ $ 37.500 $ 375,000 $ 728,786 $ 14.758,741 $ 15,000,000 $ 25.000 $ 350.000 $ 100.000 287,840 436.348 7.500 37.500 $ 475,000 $ 769,187 $ 15.508,768 $ 15,000,000 Amount that costs will have to be reduced $ 508,768 Page 3 of 3 SARATOGA CITY COUNCIL MEETING DATE: January 17. 2001 AGENDA ITEM: ORIGINATING DEPT: Ciw Manaaer CITY MANAGER: PREPARED BY: ~'~~ ~~- _ DEPT HEAD: Paula Reeve SUBJECT: Renewal of Contract vdth ALTRANS to continue College/K-12 Trip Reduction Program in FY 2000/2001 RECOMMENDED ACTION(S): Approve the attache~l agreement with ALTtLANS (Alternative Transportation Solutions) whose services have been retained by the City to implement the College,aK-12 Trip Reduction Project. REPORT SUMMARY: Since February of 1997. the City in cooperation vdth ALTtL~NS, has applied for and received funding from the Santa Clara Valley Transportation Authority (VTA) from the Transportation Fund for Clean Air (TFCA) 40% program. The Ci~- of Saratoga submitted a similar gram application for FY 2000/2001, and was subsequently awarded $322,000. The agreement vdth the Santa Clara Valley Transportation Authori~: for the Ci~' to receive these grant funds has previously bee~ executed. However. the attached contractual agreement needs to be finalized to have ALT1L~.NS implement the FY 2000/2001 College/K-12 Trip Reduction Project, and to receive funding from the Cit' of Saratoga which vdll be acting as the primary grant administrator. ALTtL4.NS has been providing trip reduction and ridesharing sen'ices for the 7,500 students of Santa Clara County community colleges and universities since 1993, and K- 12 schools since 1996. The program spearheads clean air campaigns; provides trip planning services, on-site rideshare matching and encourages participation in alternative transportation modes such as carpool, transit and bicycle commuting at the college campuses. It educates students about automobile congestion, safety and environmental degradation due to negative impacts of the automobile source emissions. As part of the program, ALTRANS has worked with the City to reduce vehicle trips for West Valley College and Saratoga K-12 schools, which is a particularly important and worthwhile component given the recent traffic congestion issues impacting the City. FISCAL IMPACTS: ALT1L4,NS submits a quarterly invoice to the City for the amount it spends operating the program. In turn, the CiB- invoices VTA, which acts as the conduit for the Clear Air grant from the State. The City passes this amount through to ALT1L4~NS, keeping 5% as an administrative fee. CONSEQUENCES OF NOT ACTING: ALTtL, kNS would not be able to continue the implementation of the College/K-12 Trip Reduction Program. ADVERTISING, NOTICING AND PUBLIC CONTACT: ALT1L~NS has been advised of the January 17, 2001 CiB~ Council Meeting. ATTACHMENTS: 1. Agreement with the CiB' and ALTRANS STANDARD CONTi~ACTUAL SERVICES AGREEMENT THIS AGREEMENT is made at Saratoga, California, as of Janua~: 17, 2001, by and between the CITY OF SARATOGA, a municipal corporation ("Ci~-"), and ALTtLANS TMA. Inc. ("Contractor"), who agree as follows 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to CiB' the sen'ices described in Exhibit A. - Contractor shall provide said sen, ices at the time, place and in the manner specified. 2. PAYMENT. Citx.' shall pay Contractor for services rendered pursuant to this agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be made to Contractor for sen'ices rendered pursuant to this agreement. Contractor shall submit all billings for said sen'ices to City in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customarx.' procedures and practices which Contractor uses for billing clients similar to City. 3. FACILITIES AND EQUIPMENT. Except as set forth in Exhibit C, Contractor shall, at its sole cost and expense, furnish all facilities and equipment which max., be required for furnishing services pursuant to this Agreement, City shall furnish to Contractor only the facilities and equipment listed in Exhibit C according to the terms and conditions set forth in Exhibit C. 4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions. 5. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein. 6. CONT1LACT ADMINISTRATION. This Agreement shall be Standard Contractual Ser~'ices Agreement 6\12\95 - w61 P:\SARATOGA',CONTRACTS'~ALTIL4NS-STD.DOC Page 1 of 3 administered by Paula Reeve ("Administrator"). All correspondence shall be Directed to or through the Administrator or his for her designee. 7. NOTICES. Any written notice to Contractor shall be sent to: Stephen C. Blaylock, President ALTtL~NS TMA, Inc. 14000 Fruitvale Ave. Saratoga, CA 95070 Any x~xitten notice to City shall be sent to: David Anderson, CiB: Manager 13777 Fruitvale Ave. Saratoga, CA 95070 8. ADDITIONAL AGREEMENTS. The parties hereby further agree as follows: (a) State and Federal Taxes. As Contractor is not CiB"s employee, Contractor is responsible for paying all required state and federal taxes. In particular, ciB' will not withhold FICA (social Security) from Contractor's payments, withhold state or federal income tax from payment to Contractor, make state or federal unemployment insurance contributions on behalf of Contractor, or obtain worker's compensation insurance on behalf of Contractor. (b) Statement of Truth. Contractor developed and wrote the original Saratogw'ALTlL4~NS K-12 Grant Application for City and Contractor Assisted in securing the final grant approval from the Congestion Management Program and Valley Transportation Agency. (c) Representation. Contractor represents the City, the Saratoga Union School District, Cupertino Union School District, SJSU, and six Communi~' Colleges in Transportation Demand Management sen, ices. (d) Liabiliw Notice. Commuter information is provided as a sen'ice by Contractor and City to be independently evaluated by users of that information and neither Contractor nor City shall be responsible for commuters' decisions based on information provided by Contractor in the case of an accident. Standard Contractual Sen, ices Agreement 6;12/95 - w61 P:\SAILATOGA"..CONTRACTS\~ALTRANS-STD.DOC Page 2 of 3 (e) (13 Fiscal Administrator. Ci~' is the fiscal administrator for the Saratoga/Cupertino/ALT1L4NS Trip Reduction Program and will receive equal promotional and marketing opportunities as Contractor promotes this program to the communities in Santa Clara County. Third Parties. If CiD' is contacted or solicited by anv other Trip Reduction or Traffic Safety organization for potential work within the scope of this Agreement, City will name Contractor as their service provider and Ci~' will refer any interested third parties to Contractor-for further program communication or cooperative projects. Executed as of the day first above stated: · Attest: City Clerk CITY OF SA1L4TOGA. a municipal Corporation By "City" By "Contractor" Approved as to form: Bv City Attorney. Approved as to budget authority: Bv Finance Director Standard 'Contractual Services Agreement 6/12/95 - w61 P:\ SARATOGA\CONTRACTS'~ALTRANS-STD.DOC Page 3 of 3 EXHIBIT A TE~MS OF AGREEMENT AND SCOPE OF WORK 1. TEtLMS OF AGREEMENT. The terms of this agreement shall be from July 1, 2000 through December 31, 2001, or the completion of the project, which ever occurs first, unless it is extended by written mutual agreement between the parties, provided that the parties retain the right to terminate this Agreement as provided in Exhibit D at all times. 2. SCOPE OF WORK. Contractor shall provide services set forth in Sections 1.8, 1.8.1 through 1.8.5.6 and 1.9 and 1.10 as set forth in Section 1 of the attached document entitled "Application for Funds - 2000/2001': and shall prepare all progress and annual reports described in Section 5.F of the attached agreement between the Santa Clara Count),, Transit District and the Cit-3-' of Saratoga ("VTA Agreement"). Contractor shall perform all work in accordanCe with the requirements set forth in Section 5 of the VTA Agreement. Exhibit A Page 1 of 1 EXHIBIT B PAYMENT City shall pax: Contractor an amount not to exceed the total sum of Three Hundred Twenty Two Thousand dollars ($322,000.00) for sen'ices to be performed and reimbUrsable costs incurred pursuant to this Agreement. Contractor shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: 1. Serial identification of bills, i.e., Bill No. 1. 2. The beginning and ending dates of the billing period, 3. A.SummaW containing the original contract amount, the amount of prior billings, the total due this period, and the balance available. Hourly employee time sheets documenting the time spent by Contractor's employees who are paid by the hour in the implementation of this Agreement unless an alternative method of documenting such costs is approved by the City and either the Santa Clara County Transit District or the Bay Area Air Quality Management District. City shall make monthly payments, based on such invoices, for sen, ices performed in accordance with the terms of this Agreement, and for authorized reimbursable costs incurred. The total sum stated above shall be the total which City shall pay for the sen'ices to be rendered by Contractor pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering sen'ices pursuant to this Agreement. Contractor understands that this Agreement is for the purposes of administering the Agreement between the Santa Clara County Transportation District and the CiB' (VTA Agreement), attached hereto, and that City, as administrator, may recover from the total amount of this Agreement, administrative costs of up to five percent (5%) of the total amount of this Agreement. To facilitate Exhibit B Page 1 of 2 project recordkeeping and administration, Contractor agrees to include City's administrative costs on Contractor's invoices upon the request of Ci~'; the amount of these administrative costs will not be included in City's payments to Contractor. Civ,.' shall make no payment for any extra, further or additiOnal service pursuant to this Agreement unless such extra sen'ice and the price therefore is agreed to in writing executed by the City Manager or other designated official of Cit-3.' authorized to obligate Ci~' thereto prior to the time such extra sen, ice is rendered and in no event shall change order exceed twen~,-five (25%) of the initial contract price. The sen'ices to be provided under this Agreement may be terminated by either party for cause by providing notice as specified in Exhibit D. In this event, City shall compensate the Contractor for all outstanding costs inCurred for work completed in accordance with this Agreement as of the date of written notice thereof. Contractor shall maintain adequate records to veri~~ costs incurred to date. Notwithstanding section 6 of Exhibit D to this Agreement, Contractor may assign all or part of this Agreement to a firm qualified to perform the sen'ices contemplated herein upon receipt of written consent to such assignment from the City. Exhibit B Page 2 of 2 EXHIBIT C City shall fumish physical facilities such as desks, filing cabinets and conference space, as may be reasonably necessary for Contractor's use while consulting with City employees and reviewing records and the information in possession of City. The location, quantiB', and time of furnishing said physical facilities shall be in the sole discretion of City. In no event shall Ci~' be obligated to furnish any facility which may involve incurring any direct expense, including but not limiting the generality of this exclusion, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Exhibit C 6 12;95 w61 P:\SARA TOGA~CONTRACTS:,EXHIBITC.DOC Page 1 of 1 EXHIBIT D GENERAL PROVISIONS 1. INDEPENDENT CONTRACTOR. At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of Civ,,'. City shall have the right to control Contractor only insofar as theresults of Contractor's sen'ices rendered pursuant to this agreement; however. City shall not have the right to control the means by which Contractor accomplishes sen'ices rendered pursuant to this Agreement. 2. LICENSES: PERMITS: ETC. Contractor represents and warrants to Cit,-,- that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Contractor to practice its profession. Contractor represems and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals whichlare legally required for Contractor to practice its profession. In addition to the foregoing, Contractor shall obtain and maintain during the term hereof a valid City of Saratoga Business License. 3. TIME. Contractor shall devote such time to the performance of sen'ices pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Contractor's obligations pursuant to this Agreement. INSURANCE REQUIREMENTS. Contractor Shall procure and maintain for the duration of the contract "occurrence coverage" insurance against claims for injuries to persons or damages to property which ma',' arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. The cost of such insurance shall be included in the Contractor's bid. (a) Minimum Scope of Insurance. Coverage shall be at least as broad as: Insurance Services Office form number GI.0002 (Ed. 1/73) covering comprehensive General Liability and Insurance Sen, ices Office form Number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Sen'ices Office Commercial General Liabili~' coverage ("occurrence" form CG 0001 .) 2. Insurance Sen'ices Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. Exhibit D 6/12/95 rev/w61 A:TXHIBITD.SAR Page 1 of 6 (b) (c) (d) 3. Workers' Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. Minimum Limits of Insurance. Contractor shall maintain limits no less than: General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial General Liability Insurance or other form with a general aggregate limit is used, either the general ag~egate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injuD, and property damage. o Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the CiB~, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials and employees;' or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. The Ci.ty, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed bv or on behalf of the Contractor; products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of the protection afforded to the City, its officers, officials, employees or volunteers. b. The Contractor's insurance coverage shall be primary insurance as Exhibit D 6/12/95 rev/w61 A:'-EXHIBITD.SAR Page 2 of 6 (e) (I3 (g) respects the City, its officers, officials, employees and volunteers. Any' insurance or self-insurance maintained by the CID', its officers. officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CID', its officers, officials, employees or volunteers. do The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liabiliD,. 2. Workers' Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Contractor for the CID'. 3. All coverages. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either part3,, reduced in coverage or in limits except after thin).., (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptabiliw of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A:VII. ~ Verification of Coverage: Contractor shall fumish CiD' with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the CiD' before work commences. The Ci~' reserves the right to require complete, certified copies of all required insurance policies, at any time. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the Exhibit D 6/12/95 rev/w61 A:',EXHIBITD.SAR Page 3 of 6 requirements stated herein. (h) The risk Manager of City may approve a variation in those insurance requirements upon a determination that the coverages, scope, limits and forms of such insurance are either not commercially available or that the Citv's interests are otherwise fully protected. 5. CONTRACTOR NO AGENT: Except as City may speci~- in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agem. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to an.',' obligation whatsoever. 6. ASSIGNMENT PROHIBITED. No part3.' to this agreement may assign any right or obligation pursuant to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. 7. PERSONNEL. Contractor shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, Contractor shall, immediately upon receiving notice from eiB' of such desire of CiB-, cause the removal of such person or persons. 8. STANDARD OF PERFORMANCE. Contractor shall perform all sen'ices required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Contractor is engaged in the geographical area in which Contractor practices its profession. All instruments of sen'ice of whatsoever nature which Contractor delivers to City pursuant to this agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Contractor's profession. 9. HOLD HARMLESS AND RESPONSIBILITY OF CONTRACTORS. Contractor shall take all responsibility for the work. shall bear all losses and damages directly or indirectly resulting to him. to anv subcontractor, to the City. to City officers and employees, or to parties designated bv the Cit.',', on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the Contractor or of any subcontractor. Contractor shall indemni~-, defend and hold harmless the City, its officers, officials, directors, employees and agents from and against any or all loss, liabili~', expense, claim, costs (including costs of defense), suits, and damages of every.' kind, nature and description directly or indirectly arising from the performance of the work. This paragraph shall not be construed to exempt the City, its employees and officers from its own fraud, vdllful injury or violation of law whether willful or negligent. For purposes of Exhibit D 6/12/95 rev/w61 A:\£XHIBITD.SAR Page 4 of 6 Section 2782 of the Civil Code the parties hereto recognize and agree that this agreement is not a construction contract. By execution of this Agreement, Contractor acknowledges and agrees that it has read and understands the provisions hereof and that this paragraph is a material element of consideration. Approval of the insurance contracts does not relieve the Contractor or subcontractors from liability under this paragraph. 10. TE1LMINATION. Either party may terminate this agreement for cause by providing 30 days notice in vcriting to the other party. Upon termination,: this Agreement shall become of no further force or effect whatsoever and each of the parties hereto shall be relieved and discharged herefrom, subject to pay.,ment for acceptable services rendered prior to the expiration of the notice of termination. 11. DEFAULT AND REMEDIES. a. Each of the following shall constitute an event of Default hereunder: 1. Failure to perform any obligation under this Agreement and failure to cure such breach immediately upon receiving notice of such breach, if the breach is such that the Ci~' determines the health, welfare, or safety.' of the public is immediately endangered; or 2. Failure to perform any obligation under this Agreement and failure to cure such breach within fifteen (15) days of receiving notice of such breach, if the breach is such that the City determines that the health, welfare, or safety of the public is not immediately endangered, provided that if the nature of the breach is such that the City determines it will reasonably require more than fifteen (15) days to cure, Contractor shall not be in default if Contractor promptly commences the cure and diligently proceeds to completion of the cure; or 3. Without limiting the generality of the foregoing, any Material Breach of any term of this Agreement. b. Upon any Contractor Default, City shall have the right to immediately suspend or terminate the Agreement, seek specific performance, and/or seek damages including incidental, consequential and/or special damages to the full extent allowed by law. 12. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Contractor shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance Exhibit D 6/12/95 rev/w61 A:\EXHIBITD.SAR Page 5 of 6 program. 13. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by Contractor pursuant to this Agreement shall become the property of City upon completion of the work to be performed hereunder or upon termination of the Agreement. 14. COMPLIANCE WITH APPLICABLE I.AWS. Contractor shall comply' with all laws applicable to the performance of the work hereunder; including, but not limited to. laws prohibiting discrimination based on race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status or sex. 15. USE OF RECYCLED PRODUCTS. Contractors shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. 16. PROFESSIONAL SEAL. ~ere applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/scaled and signed by the licensed professional responsible for the repo~/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility" as per sample below. Seal and Signature of Registered Professional Report/design responsibili~'. Exhibit D 6/12/95 rew'w61 A:~EXHIBITD.SAR Page 6 of 6 y SARATOGA CITY COUNCIL EXECUTIVE SUMMARY NO. MEETING DATE: January 17, 2001 AGENDA ITEM CITY MANAGER: ORIGINATING DEPT: Communi~' Development PREPARED BY: Richard Taylor SUBJECT: Purchase A~eement for Sale of Development Rights Associated with Parking Spaces in Parking District No. 3 RECOMMENDED ACTIONS: Approve Purchase A~eement for sale of development rights associated with parking spaces in Parking District No. 3 conditioned upon Planning Commission approval of related development application and determination of adequate parking supply within six months. STAFF REPORT: Summary Mr. Jin Lee, owner of the Saratoga Cleaners at 14495 Big Basin Wav has requested that the City sell him the development fights associated with some of the 31.2 parking spaces in Parking District No. 3 retained by the Ci~~ when the District was established in 1988. Mr. Lee is considering expanding the Saratoga Cleaners and the development rights would be used to satis~, the parking requirements applicable in the Village district. Based on existing Ci~' policy, Mr. Lee would pay S19,546 per parking space. Because the Planning Commission has not yet considered Mr. Lee's expansion application and because no determination has yet been made regarding adequacy of parking facilities during the hours that the Cleaners are in operation, staff is recommending that approval of the sale be conditioned on Planning Commission approval of the related development application and on a determination by the Planning Commission that the expansion will not adversely affect parking conditions in the Village. Parking District No. 3 The Village Area of Saratoga contains several Parking Districts for parking improvements developed by the City at various times. The parking requirements applicable to proposed developments (including expansions) in the Village depend on the parking District in which the development is proposed. Section 15-035.035(a) of the Saratoga City Code requires that within Parking District No. 3, one parking space be provided for each 350 square feet of gross floor area to be developed. Parking District No. 3 was established by the City in 1988. The City imposed an assessment on identified properties along Big Basin Way based on the square footage of those properties at the time the assessment district was created. The parking facilities constructed for the project included 31.2 "extra" parking spaces. These extra spaces were not necessaD' to satisfy the needs of existing development within the assessment district based on the assessment district engineer's methodology in calculating assessments. The assessment was calculated based on a ratio of one space for each 350 square feet of floor area. The CiW Council concluded in 1988 that the excess parking spaces were equivalent to 10,920 square feet of additional development that could be permitted within Parking District No. 3. Parkinz District No. 3 "Development Rizhts" Following the establishment of Parking District No. 3, the City Council adopted Resolution No. 2473.15 on October 5, 1988. That Resolution established a policy for the transfer of development rights in connection with the 31.2 excess parking spaces in the District. (A copy of the Resolution is attached for your information.) The Resolution ganted existing property owners within the Parking District an option to purchase additional development rights in proportion to the size of their respective properties. That option expired on June 30, 1989. The Resolution provided that the price for development rights associated with parking spaces in the District would be $1,450 tbr each development right adjusted quarterly (commencing on September 30, 1989) based upon the percentage of any increase in the CalTrans Highway Index. The current price based on this formulation is $19,546. Resolution No. 2473.15 also provided that despite the methodology established for the sale of development rights the CID,' Council retained the discretion "at any time, [to] modify the price and terms of sale set forth [in the Resolution] or may, at any time, determine that any portion or all of the unsold development rights are no longer available for sale." Accordingly the Cid: remains free to change the policy concerning sale of development rights at any time. 2 The ProPosed Expansion and Purchase A~eement Mr. Lee is considering an expansion at the Saratoga Cleaners. He has not yet submitted a development application to the City because the feasibility of the project depends, in part, on the City's willin~maess to sell the development rights on the terms specified in Resolution No. 2473115. The attached purchase agreement specifies the terms under which the City. would agree to sell to Mr. Lee the development rights associated with parking spaces in Parking District No. 3. The agreement specifies that the rights may not be transferred to another property and that, if unused, the development rights must be returned to the City' for a refund. Policy Questions The proposed agreement raises several policy concerns which are addressed below. First, because no development application has yet been submitted to the City, it is important that approval of the transfer of development rights not be construed as approval of a development application. The City' simply lacks the information to make any determination regarding the propriety of the development contemplated by Mr. Lee. In some circumstances, the proper course of action would be to defer action on the transfer of development rights until after final action by the Planning Commission on the underlying development application. In this case, hov,'ever, because the City has never acted to implement the transfer of development fights policy of Resolution No. 2473.15. Mr. Lee understandably wishes to have some assurance that the policy is still in effect before investing time and money in a formal development application. Accordingly, staff recommends that the sale be conditioned on Planning Commission approval of a development application. In that way, the sale agreement will not be signed until such time as a development application has been approved. To ensure that the approval is not "open-ended" staff recommends that the approval of the agreement expire after six months if no action has been completed in that time. Mr. Lee would be free to reapply after six months if necessary. A second policy question concerns the adequacy of parking in the Village. At the time that parking District No. 3 was established, the City' determined that the parking that was developed in the District would be more than adequate to accommodate the existing development in the District as well as up to 10,000 square feet of additional development. Public testimony to the City, Council in recent years has suggested that this conclusion may no longer be correct due to increased traffic and changing use patterns in the Village. If the existing parking spaces in Parking District No. 3 are no longer adequate to accommodate the parking demand generated by existing development in the 3 District, the Council could conclude that it would be prudent to repeal or amend the sale of development rights policy in Resolution No. 2473.15. To learn whether such revisions are appropriate, staff recommends that a parking stud), be conducted as part of the development review process for Mr. Lee's expansion tO determine what effect, if any, the expansion will have on the adequacy of parking in Parking District No. 3. If the study concludes that the expansion would have an adverse effect, the Council should revisit the sale of development rights policy in Resolution No. 2473.15. The final policy question concerns the appropriate price to charge for each parking space. Resolution No. 2473.15 sets the price based on the costs incurred by' the City in 1988 and carried by the CiB, since that time. Alternate methodologies are also possible. For example, costs could be based on the likely costs of creating a new parking space or could be calculated based on the relative value of additional parking spaces in light of existing parking conditions in the Village. Staff is of the view that the methodology established in 1988 is reasonable and has not pursued any other valuation strategies at this time. If Council believes that additional alternatives should be explored, staff will inform Mr. Lee of that fact and retain the necessaD' experts to determine alternative methodologies. FISCAL IMPACTS: If the sale a~eement is implemented the City would recover the costs of several parking spaces in Parking District No. 3 paid for by the City in 1988. ADVERTISING, NOTICING AND PUBLIC CONTACT: Notice for this meeting. CONSEQUENCES OF NOT ACTING ON RECOMMENDED MOTION(S): Mr. Lee wouldbe required to abandon the contemplated expansion on Big Basin Wa3' or to develop additional parking capacity as part of the development project. FOLLOW UP ACTIONS: Communicate decision to Mr. Lee. ATTACHMENTS: A~eement for Sale of Development Rights in Parking District No. 3 City of Saratoga Resolution No.2473.15 (1988) 4 AGREEMENT FOR SALE OF XqLLAGE OF SARATOGA PARKING-RELATED DEVELOPMENT RIGHTS IN PARKING DISTRICT NO. 3 THIS PURCHASE AGREEMENT ("Agreement"), is made and entered by and between the City of Saratoga ("Ci~"') and Mr. Jin Lee ("Purchaser") as of the date last entered below. Recitals Saratoga Parking District Number 3 ("Parking District") was established'in 1988 to improve vehicular access and improve parking areas lying behind commercial structures fronting on Big Basin Way. Assessments levied on subject properties in the creation of the Parking District were based in large part on the square footage of developed commercial uses on each parcel located in Parking District. In recognition of the possibiliD' for future =o-rowth of commercial development in Parking District, the CID." financed development of 31.2 parking spaces in excess of the number of spaces required for the existing development in the Parking District at the time the Parking District was established. Pursuant to Resolution 2473.15 of the Ci~' Council of the City of Saratoga adopted October 5, 1988 ("Resolution 2473.15"), the City Council may, at its discretion, offer these 31.2 parking spaces for purchase on a first come, first served basis. In accordance with Resolution 24, ~. 1 >, City Staff has determined that the cost for purchasing development rights associated with the excess parking spaces as of JanuaD' 1, 2001, is $19,546 per parking space. Fo In accordance with section 15-35.035(a) of the Saratoga CiB: Code, one parking space is required in the Parking District for each 350 square feet of gross floor area to be developed. Go Purchaser otvns property, commonly known as _[street address]_ ("Property"), as more fully described in Exhibit A, which is located within Parking District. Purchaser tvishes to purchase development rights from City in connection v,'ith its planned expansion of the gross commercial floor area of its property. In accordance with Paragraph 6 of Resolution 2473.15. on .2001. Purchaser submitted a notice of intent to buy development rights associated with __ parking spaces, accompanied by a 5% deposit of $ NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, City and Purchaser hereby agree as follows: Section 1. Sale of Development Rights. CiB, sells to Purchaser and Purchaser buys from CiD, the development rights associated with __ parking spaces, subject to the terms and conditions set forth herein, and such rules and regulations as the Ciw may further create from time to time to apply to all parking spaces in Parking District. The total purchase price is S Purchaser has paid a deposit of $ to Cit3..." which amount shall be applied to the purchase price. section 2. Development Rights. (a) The development rights acquired by Purchaser as a result of the full performance of this Agreement satisf?-' the parking requirements of section 15-35.035(a) of the Saratoga City Code for creation of up to square feet of additional commercial floor space within Parking District No. 3 (in accordance with the formula established in Paragraphs 1 and 2 of Resolution No. 2473.15, which multiplies parking spaces acquired by 350 square feet of additional commercial floor space). (b) With the sole exception of the requirements of Saratoga City Code section 15-035(a), neither this Agreement nor the acquisition of development rights for parking spaces satisfies or waives any other requirement, permit, or authorization Purchaser must meet or acquire in order to increase its commercial floor space in Property. (c) This Agreement conveys only development rights associated with the number of parking spaces referenced in Section 1, and does not create or transfer property rights in any parking spaces in Parking District. Section 3. Use. Purchaser shall comply with all rules and conditions Cit2v.' may establish from time to time for parking spaces in Parking District. Section 4. Assignment and Transfer. (a) Development rights in parking spaces in the Parking District can be assigned or transferred only to subsequent Purchasers of the ProperD-'. No assignment or transfer may be made to any other property. (b) Development rights in parking spaces in Parking District may be returned to CiD, for refund of the amount paid. No interest will be paid to Purchaser if it returns development rights it has acquired. Section 5. Letter Confirming Acquisition of Development Rights. CiD' will provide-Purchaser with a letter confirming existence of development rights in parking spaces in Parking District upon receipt of final payment tbr development rights. Executed as of the day first above stated: CITY OF SARATOGA, a municipal corporation By. Attest: By "City"., City Clerk "Purchaser" Date Date Date APPROVED AS TO FORM: City Attomey Attachments: Exhibit A: Legal description of Property. RESOLUTION NO. 2473.15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ESTABLISHING A POLICY FOR TRANSFER OF DHI'ELOPMENT RIGHTS IN CONNECTION WITH THE FORMATION OF VILLAGE PARKING DISTRICT NO. 3 WHEREAS, the City Council has adopted establishment of Village Parking District No. 3; and various resolutions for the WHEREAS, upon construction of the parking facilities for said District, the number of parking spaces will exceed the number required for the existing structures within the District, computed according to a ratio of I space for each 350 square feet of floor area; and WHEREAS, the City Council has determined that the excess number of parking spaces will be 31.2, and such excess is equivalent t° 10,920 square feet of additional development that would be permitted within the District; and WHEREAS, the City Council has decided to offer to each of the property owners in the District an opportunity to acquire development rights, to be allocated between them according to the size of their respective properties; and WHEREAS, the City Council desires to establish the terms and conditions pursuant to which such development rights will be offered, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saratoga as follows: 1. The City shall grant to the owner(s) of each parcel of property within Village Parking District No. 3 an option to purchase development rights in proportion to the size of their respective properties. The allocation shall be divided to the nearest 1/10th parking space such that each 1/10th of a space shah equal the right to construct 35 square feet of floor area. Based upon'this allocation, the development rights to be offered to the owner(s) of each parcel would be as follows: OWNER: SPACES: DEV.RTS: SQ. FEET: Commodore (The Inn) 3.6 36 Brozda 1.7 17 Melton 1.8 18 Wallace 0.9 9 Rosen feld 3.9 39 Masek 1.1 1 I Payne 2.5 25 Caneellieri 0.5 5 Mead 0.5 5 Casabonne 1.7 17 Crawford 0.6 6 Sullivan 0.3 3 Chabre 8.0 80 Downey Savings 1.7 17 Cunningham 2.4 2~4 1,260 595 63O 315 1,365 385 875 175 175 595 210 105 2,800 595 840 TOTAL: 31.2 312 10,920 -1- 2. The purchase price for acquisition of the development rights during the option period shall be $1,360 for each development right (or each 35 square feet) which the property owner, elects to purchase. 3. The options must be exercised not later than 5:00 p.m. on January 31, 1989, at which time the options will automatically expire..Exercise of an option can only be accomplished by delivering to the City Clerk the "Notice of Exercise of Option': that will be furnished to the property owners, accompanied by a non-refundable deposit the amount of $60 for each development right to be acquired. The deposit shall be credited to the total purchase price when the transaction is closed. 4. During the option period, any portion or all of the development rights offered in an option may be transferred to another property owner within the District, on such terms as the parties may agree upon; provided, however, the transfer shall not become effective until written notice thereof is delivered to the City Clerk, signed by the transferror and the transferee. 5. If an option is.exercised, the purchase price for the development rights to be acquired shall be paid in full to the City not later than sixty days after the date on which the City receives the Notice of Exercise of Option. Immediately following such payment, the City shall execute and record in the Office of the Recorder for Santa Clara County a "Transfer of Development Rights" evidencing the acquisition of such rights from the City and the transferability of such rights to any other person owning property located within Village Parking District No. 3. 6. All development rights which are not acquired pursuant to the exercise of the options described above shall be available for purchase by any person owning property within the District, on a first come first served basis. The price shall be $1,350 for each development right for which a Notice of Intent to Purchase is delivered to the City Clerk not later than 5:00 p.m. on June 30, 1989. Thereafter, the price shall be $1,450 for each development right, adjusted quarterly (commencing on September 30, 1989) based upon the percentage of any increase in the Cal Trans Highway Index. Any Notice of Intent to Purchase shall be accompanied by a deposit equal to five percent of the total purchase price, and the transaction shall be closed within sixty days after the City's receipt of such Notice. 7. Except with respect to development rights which are the subject of an outstanding option granted by the City or an executed purchase agreement by which the City is bound, the City Council may, at any time, modify the price and .terms of sale set forth herein or may, at any time, determine that any portion or all of the unsold development rights are no longer available for sale. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Saratoga held on the 5th day of October , 1988, by the following vote: AYES: NOES: None ABSTAIN: None Attest: ~ City Clerk Councilmembers Clevenger,Moyles, Peterson, Stutzman ~_nd Mayor Anderson .l~l~[yor - ~ -2- SARATOGA CITY COUNCIL MEETING DATE: JanuaD' 17, 2001 AGENDA ITEM: ORIGINATING DEPT: Administrative Services CITY MANAGER: '' / SUBJECT: Annual Review of the City of Saratoga Investment Policy RECOMMENDED ACTION(S): Approve the City of Saratoga Investment Policy REPORT SUMMARY: California Government Code Section 53600 et seq., City of Saratoga Municipal Code Section 2-20.035. and Section 16.0 of the City of Saratoga Investment Policy require the City Council to annually review and approve the City's Investment Policy. The Investment Policy lays the foundation for the City's investment management functions. It serves as a guide for setting and achieving investment objectives, defines rules and established benchmarks, prohibits and/or restricts investment instruments and reduces the exposure to liability of both staff and City Council. Compliance with the Policy is an element of fiscal discipline considered by the City's auditors and rating agencies during their respective reviews. Last year, at the January 19. 2000 City Council meeting, staff recommended minor changes to the Investment Policy from the previous year. and the City Council approved the Investment Policy in its current version. This year, the Finance Commission reviewed the Policy at their January 8. 2001 meeting, and recommended forwarding the Policy on to the City Council after some minor changes. These changes have been incorporated in the Investment Policy you have in front of you. FISCAL IMPACTS: None. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): The City would not be in compliance with State and Local regulations. ALTERNATIVE ACTION(S): Direct Staff to make changes to the Investment Policy and return at the February 7 City Council meeting. FOLLOW UP ACTION(S): Issue updated Investment Policy (with nexv adoption date) to interested parties. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: City of' Saratoga Investment Policy. . CITY OF SAIL4~TOGA INVESTMENT POLICY LAST ADOPTED 1/19/00 1.0 Policy: It is the policy of the City of Saratoga to invest public funds in a manner which will provide the maximum security with the highest investment return while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds. 2.0 geone: This investment policy applies to all financial assets of the Citx' of Saratoga. These funds are accounted tbr in the Ci~' of Saratoga's Comprehensive Annual Financial Report and include: 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 General Fund Special Revenue Funds Capital Improvement Funds Debt Sen'ice Funds Trust and Agency Funds .&ay new fund. unless specifically exempted 2.2 Exeentions: The following financial assets are excluded: 2.2.3 Deferred Compensation Plans-Investments are directed by the individual plan participants. Debt Sen'ice Funds Held bv Trustees-Investments are placed in accordance with bond indenture provisions. Notes and Loans-Investments are authorized bx- separate agreements approved bx' Civ' Council. 3.0 Prudence: Investments shall be made with the same judgment and care--under circumstances then prevailing--which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investments, considering the probable safe~' of their capital as well as the probable income to be derived. 3.1 The standard of prudence to be used bv investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. C:\M5 Documents\Invests:~InvPolic.~ .doc I 1/8::01 Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibili~' tbr an individual secufi~"s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0 Objectives: The primary objectives, in priority order, of the City of Saratoga's investment activities shall be: 4.1 SafeD': Safety of principal is the /bremost objective of the investment program. Investments of the Ci~- of Saratoga shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall' >ortfolio. The objectives will be to mitigate credit risk and market risk ae bo Credit risk. defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing only in investment grade securities and by diversifying the investment portfolio so 'that potential losses on individual securities vdll have a minimal impact on the portfolio~ Market risk. defined as market value fluctUations, due to overall Changes in the general level of interest rates, shall be miti~°ated by limiting the average maturity of the City's investment portfolio to two years and the maximum maturity of any one securi~- to five years, and bv structuring the portfolio based on cash flow analysis so as to avoid the need to sell securities prior to maturity. 4.2 LiquidiD': The City of Saratoga's investment portfolio will remain sufficiently liquid to enable the City of Saratoga to meet all operating requirements which might be reasonably anticipated. 4.3 Return on Investments: The City of Saratoga's investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City of Saratoga's investment risk constraints and the cash flow characteristics of the portfolio. 5.0 Delegation of Authori~': Authority to manage the Ci~' of Saratoga's investment program is derived from the following: California Government Code Section 53600 et seq. and Saratoga Municipal Code Section 2-20.035. Management responsibility/bt the investment program is hereby delegated to the City Manager who shall be responsible for supervising all treasury activities of the Administrative Sen, ices Director and who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, deliver),- vs. payment, investment accounting, wire transfer agreements, banking sen-ice contracts and collateral/depository agreements. Such C :\M.x Documents'-lnvests JnvPolicy.doc 2 1/8/01 6.0 7.0 8.0 procedures shall include explicit delegations 'of authoriv.' to persons responsible for investment transactions. No person may engage in investment transactions except .as provided under the terms of this policy and the procedures established by the Cie`' Manager. The Civ.' Manager shall be responsible Ibr all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. F. thic~ and Conflict~ of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict or appear to conflict with proper execution of the investment program, or which could impair their abiliv.~ to make impartial investment decisions. These officers and employees involved in the investment process shall disclose to the Civ.' Manager any material Onancial interests in financial institutions that conduct business with the City. - Employees and investment officials shall refrain from undertaking personal investment transactions vdth individuals with whom business is conducted on behalf of the Cie`' of Saratoga. Authorized Financial Dealera and lnatitutiona: The Cie`- Manager will maintain a list' of financial instiiutions authorized to provide investment services to the Civ.-. In addition, a list will also be maintained of approved securiv.- brokeffdealers selected by credit worthiness and who are authorized to provide investment sen'ices in the State of California. These may include "primaD'" dealers or regional dealers that quali~' under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depositor3.' as established bv state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Civ.' Manager with the following: personal interview, firm description and audited financial statements, proof of National Association of Securities Dealers .(NASD) certification, proof of State of California registration, completed brokeffdealer questionnaire and certification of having read and willingness to abide by the Civ.' of Saratoga's investment policy and applicable depository contracts. ..An annual review of the financial condition and registrations of qualified bidders will be conducted by the City Manager. A current audited financial statement is required to be on file for, each financial institution and broker/dealer with which the Civ.' of Saratoga invests prior to an,,' transaction. Authorized and Suitable lnve.qtment~: The Cie,- of Saratoga is empowered by Government Code Section 53601. and further limited by this investment policy, to invest in the Ibllowing v.-pes of securities: CSM_x Documentszlnvests'-InvPolic.x .doc 3 1/8/0! ELIGIBLE SECURITIES AND CRITERIA Type 1 .imita Maximum Term to LAIF State Fund $20,000.000 Demand U.S. Treasury Bills U.S. Treasury No limit: One year U.S. Treasury Notes U.S. Treasury No limit 5 ,,'ears U.S. Govt. Agency issues (e.g. FNMA, GNMA) Certificates of Deposit (Calif. Banks or Savings & Loan Co.) Negotiable Certificates of Deposit Federal Agencies N9 limit 5 vears FDIC / FSLIC 20%/portfolio 3 years and collateral per institution; 30%/total portfolio Issuing 20%/portfolio 5 years Institution per institution; 30%/total portfolio Investment-gade obligations of California, or its local governments or public entities Public entity 20%/portfolio per institution 5 years Money market mutual funds Fund Demand 10%-portfolio per institution 20%/total portfolio Passbook Savings Account and Demand Deposits Issuing Bank Demand Minimum necessary for current cash flow The Ci~' shall not engage in leveraged investing, such as margin accounts, or any form of borrowing for the purpose of investing. The Cir- shall not invest in instruments whose principal and interest could be at risk contrary to Section 4.1 of this policy. Examples of these instruments are options and future contracts. C:'.M.x Documents'dnvests'.InvPolic.x .doc 4 1/8/01 The Ciw shall not invest in "derivatives". See Glossary for description of above securities. 9.0 Collateralizafion: Collateralization will be required on certificates of deposit and other deposit-B'pe securities. In order to anticipate market changes and provide a level of securir,.' for all funds, the collateralization level will be 110% of market value of principal and accrued interest, in accordance with California Government Code Section 53651 and 53652. The Ci~' of Saratoga chooses to limit collateral to those listed in Section 8.0. Collateral will always be held by an independent third part).' with whom the entity has a current custodial ageement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City of Saratoga and retained. The right of collateral substitution may be granted. 10.0 gafekeepinE and Custody: All security transactions entered into bv the City of Saratoga shall be conducted on a deliver3'-versus-pax'ment (DVP) basis. Securities will be held by a third part3.' custodian, in the City of Saratoga's name and control, designated by the City Manager and evidenced by safekeeping receipts. The Ci~' of Saratoga will diversi~? its investments by securi~' type and institution. Limits are. provided for in Section 8.0. With the exception of U.S. Treasury securities and authorized pools, no more than 30% of the Ci~' of Saratoga's total investment portfolio will be invested in a single securiV,.' type or 20% with a single financial institution. 12.0 Maximum Maturities: To the extent possible, the Ciw of Saratoga will attempt to match its investments with anticipated cash flov,- requirements. Unless matched to a specific 'cash flow. the CiB' of Saratoga will not directly invest in securities maturing more than five (5) years from the date of purchase. However, the City of Saratoga ma,,' collateralize its certificates of deposits using longer-dated investments not to exceed ten (10) years to maturity. Debt reserve funds may be invested in securities exceeding five (5) 3'ears if the maturities of such investments coincide as nearly as practicable with the expected use of the funds: The City of Saratoga will retain a general operating reserve adopted annually.by the City Council. The amount equal to or greater than the required general operating reserve shall C:~M_x Documents\lmests\invPolic.~ doc 5 1/8!01 i 13.0 14.0 15.0 16.0 always be maintained in active deposits and inactive investments with a maturity of one year or less. with at least one quarter of that amount available eveD' three months of the year. The report discussed in Section 15.0 shall demonstrate this policy is in effect. Internal Control: The City of Saratoga is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss. theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by the CiD' Manager and staff. ' Accordingly, the City shall establish an annual processl of independent review bv an extemal auditor. INs review will provide internal control by assuring compliance with policies and procedures. The internal controls shall address the following points? · -Control of collusion. · Separation of transaction authority from accounting and recordkeeping. · Custodial safekeeping. · Avoidance of physical delivery of securities. · Clear delegation of authority to subordinate staff members. · _ Written confirmation of transactions/'or investments and wire transfers. · Development of a wire transfer a~eement with the lead bank and third-party custodian. Performance Standards: The investment portfolio shall be designed with the objective of obtaining a reasonable rate of return throughout budgetary and economic cycles; commensurate with the investment risk constraints and cash flow needs. 14.1 Market Yield (Benchmark): The Ci~"s investment strate~, is passive. Given this strate~-, the benchmark used by the Ci~ of Saratoga to determine whether market yields are being achieved shall be the one year U.S. IreasuD: Bill. Renortin.o: The City Manager is Charged with the responsibiliB' of including a market report on investment activity and returns in the City of Saratoga's Cash and Investment Report. The report will be in compliance with California Government Code Section 53646. Investment Policy Adoption: The Civ,.- of Saratoga's investment policy shall be adopted by the City Council. Annually, the policy shall be reviewed by the Finance Commission and approved by the City CoUncil. C:'-My Documents\Invests'dnvPolicy doc 6 1/8/01 GLOSSARY l~roker Someone who brings buyers and sellers together and is compensated for his:her service. Comprehensive Annnal Financial Report (CAFR) The City's annual financial statements and footnotes, along with an executive summary, financial outlook, statistical information, and other financial information. CertificaTes of Deposit Commonly called time deposit certificates or time deposit open accounts. These are nonnegotiable. Collateralization Process bv which a borrov,-er pledges securities, securing the repayment of a loan and'or securib'. secure deposits of public monies. property or other deposits for the purpose of Also refers to securities pledged by.a bank to CusTodian A bank or other financial institution that keeps custody of stock certificates and other assets. Dealer Someone who acts as a principal in all transactions, including buying and selling from his;her own account. Delivery rs_ Payment The preferred method of delivering securities, with an exchange of money for the securities. Demand Denosits A deposit of monies vYhich are payable by the bank upon demand of the depositor. Derivative Securities that are based on. or derived from. some underlying asset, reference date, or index. FDIC Federal Depositor3.' Insurance Corporation V.ql lC Federal Savings and Loans Insurance Corporation Iiquidity An asset that can easily and rapidly be convened into cash without significant loss of value. l.ocal Ag. encv Investment Fund (I.AIF) C ~Nl.x Documents'dn~ests\InvPolic.x doc 7 1/8/01 The LAIF was established by the State of Califomia to enable treasurers to place funds in a pool for investments. There is a limitation of $30 million per agency ~u~ect to a maximum often (10) total transactions per month. The Ci~' uses this fund when market interest rates are declining as well as for short-term investments and liquidi~~. Money market munml fi~nd~ Mutual funds that invest in short term securities and strive to maintain a share price of $1. Negotiable certificates of deposil A bank deposit issued in negotiable form (i.e.. one that can be bought or sold in the open market). Passive Investment .qtrate~' An approach to managing the investment portfolio which entails a "buy and hold" strategy in which investments are generally held until the5' mature. Portfolio Combined holding of more than one stock, bond, commodi~', cash equivalent or other asset. The purpose of a portfolio is to reduce risk through diversification.! PrimaU' Dealer A group of government securities dealers that submit daily repons of market activin' and security positions held to the Federal Reserve Bank of New York and are subject to its oversight. Re~oional Dealer A dealer who is not a primal?' dealer, and therefore not monitored by the Federal Reserve. but is registered with the Securities and Exchange Commission. Safekeenino Offers storage and protection of assets provided by an institution serving as an agent 1 L.q Treasury Bills Commonly referred to as T-Bills these are short-term marketable securities sold as obligations of the U.S. Govemmentl They are offered in three-month, six-month and one-year maturities. T-Bills do not accrue interest but are sold at a discount to pay face value at maturity. 1 :-_S_ Treasury Notes These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually. 17 ~ Government A_oencv l~sues Include securities which fall into this category. Issues which are unconditionally backed bv the full faith and credit of the United States. e.g. Small Business Administration Loans. C :Man.'Jo\Invest\lnvPolicy C:\M? Documents\Invests'.InvPolic_x .doc 8 1/8/01 SARATOGA CITY cOUNCIL EXECUTIVE SUMMARY NO. _ MEETING DATE: January 17, 2000 ORIGINATING DEPT: City Attorney AGENDA ITEM _ CITY MANAGER: PREPARED BY: Richard Taylor SUBJECT: Establishment of Communi¢' Foundation RECOMMENDED ACTION: Accept report and direct staff to provide background information to interested members of the Community. STAFF REPORT: Although tax deductible contributions can be made directly to local governments, many communities have found that community foundations can provide a valuable tool to encourage private donations in support ~)f community projects. Community foundations may be oriented to specific concerns (e.g., playfields or the arts) or may be more broadly foc'used on all issues of general benefit to the local communiB'. Community foundations established by local governments are subject to the Brown Act, Political Reform Act, and other public agency restrictions applicable to all actions by the City. Independent foundations are not subject to these restrictions. Independent foundations are established by filing articles of incorporation with the SecretaD: of State and seeking approval to operate as a non-profit from the Internal Revenue Service and the state Franchise Tax Board. Discussio___Bn This staff report describes (1) the general purpose and function of community foundations, (2) legal issues arising in connection with City-sponsored foundations, and (3) the process of establishing a communi~r foundation. 1. ~General Purpose and Function of Community Foundations The main purpose ora community foundation is to collect and distribute funds contributed by individual citizens, corporations, and other charitable organizations to benefit a specific geographic area. Some community foundations serve small cities (e.g., the Claremont Community Foundation, http://www.claremontfoundation.ore/) while others serve large cities (~.g., the California Community Foundation. http://www.calfund.o~/, which serves Los Angeles) and entire regions (e.~.. the Silicon Valley Community Foundation, http://www.siliconvalleygives.org/, which covers San Mateo and Santa Clara Counties). Community foundations traditionally have had three central missions: 1. Provide donors with a way of~ivin~ that fulfills their financial interests and charitable desires; ~ ~ 2. Build permanent funds to be used for the broad charitable needs of the community; and 3. Maintain needed non-profit sen;ice deliver),, in their communities. A community foundation differs fi.om a private grant making foundation in that it is not subject to the control of an individual family, business, corporation or other limited group. Rather, it is governed by a board of area residents knowledgeable about community needs, and chosen to represent the public interest. Because of these attributes, a community foundation is classified by the Internal Revenue Sen'ice as a public charity. That status entitles living donors ofcommunitw, foundations to tax deductions that are often superior to those accorded private foundations' donors. The following examples provide a sense of how community foundations have been formed in different communities, and how they operate: > In Los Gatos, there are several groups devoted to community projects. The Los Gatos Community Foundation (hr :;;www.loszatoscommunitvfoundafion.or~) focuses on town beautification projects and gives grants and scholarships to local residents. Smaller groups in Los Gatos, such as the Friends of the LibraD, and the Los Gatos Disaster Aid Response Team, solicit money for specific purposes relating to existing city sen'ices. The Claremont Community Foundation was originally founded by the City but is now entirely independent, has given over 5.300,000 to support over 100 projects and pro,ams relating to education, health and general welfare, history and cultural 2 SAIL~.TOGA CITY COUNCIL EXECUTIVE SUMMARY NO. MEETING DATE: January 17, 2000 ORIGINATING DEPT: CiD- Attorney AGENDA ITEM CITY MANAGER: PREPARED BY: Richard Taylor SUBJECT: Establishment of Communi~, Foundation RECOMMENDED ACTION: Accept report and direct staff to provide back~ound information to interested members of the Community. STAFF REPORT: Although tax deductible contributions can be made directly to local governments, many communities have found that community foundations can provide a valuable tool to encourage private donations in support of community projects. Community foundations may be oriented to specific concerns (e.g., playfields or the arts) or may be more broadly focused on all issues of general benefit to the local community. Community foundations established by local governments are subject to the Brown Act, Political Reform Act, and other public agency restrictions applicable to all actions by the City. Independent foundations are not subject to these restrictions. Independent foundations are established by filing articles of incorporation with the Secretary of State and seeking approval to operate as a non-profit from the Internal Revenue Service and the state Franchise Tax Board. Discussion This staff report describes (1) the general purpose and function of community foundations, (2) legal issues arising in connection with City-sponsored foundations, and (3) the process of establishing a community foundation. 1. General Purpose and Function of Communitv Foundations The main purpose of a community foundation is to collect and distribute funds contributed by individual citizens, corporations, and other charitable organizations to benefit a specific geographic area. Some communiB: foundations serve small cities (e.g., the Claremont CommuniB' Foundation, http://www.claremontfoundation.org ). while others serve large cities (e.g., the California Community Foundation, http://www.calfund.org/, which serves Los Angeles) and entire regions (e.g., the Silicon Valley Community Foundation, http://www.siliconvalleygives.org:, which covers San Marco and Santa Clara Counties). Community foundations traditionally have had three central missions: 1. Provide donors with a way of giving that fulfills their financial interests and charitable desires; 2. Build permanent funds to be used for the broad charitable needs of the community; and 3. Maintain needed non-profit service deliver3., in their communities. A communiB' foundation differs from a private grant making foundation in that it is not subject to the control of an individual family, business, corporation or other limited group. Rather, it is governed by a board of area residents knowledgeable about communiB, needs, and chosen to represent the public interest. Because of these attributes, a community foundation is classified by the Internal Revenue Service as a public charity. That status entitles living donors of community foundations to tax deductions that are often superior to those accorded private foundations' donors. The following examples provide a sense of how communi~: foundations have been formed in different communities, and how they operate: In Los Gatos, there are several groups devoted to community projects. The Los Gatos Communi~ Foundation (http://www.loseatoscommunitvtYundation.om) focuses on town beautification projects and gives grants and scholarships to local residents. Smaller groups in Los Gatos, such as the Friends of the LibraD' and the Los Gatos Disaster Aid Response Team, solicit money for specific purposes relating to existing city sen, ices. The Claremont Community Foundation was originally founded by the City but is now entirely independent, has given over $300,000 to support over 100 projects and programs relating to education, health and general welfare, histoD-' and cultural 2 heritage, and performi!~g and visual arts. Friends of Fields, in Mill Valley, was established by private citizens for the sole purpose of renovating existing playing fields in the city. Soliciting money from private sources, including little league and soccer club users of the field, the Friends have spent Sl.3 million to renovate 8 fields, with the renovation of 2 additional fields currently being planned. The Concord Youth Sports Foundation, was created in partnership with the City to raise money to build baseball and soccer fields for Concord. The Foundation included the city's Director of Leisure Services as a board member. The Foundation raised $1.5 million for construction and continues to raise money for the facility's operating budget. There are alternatives to forming a new community foundation to serve the purposes for which it would be formed. A local chapter of the United Way, or one or more existing charitable organizations, might perform the same functions and serve the same community needs as a community foundation. Moreover, members of the public may contribute directly to the City to fund activities, institutions, and facilities within the community. Contributions to the City are deductible for purposes of the federal income tax so long as they are made solely for public purposes, such as building or renovating a public playing field or funding an arts program. 2. Leeal Issues If the City creates a community foundation the foundation will be subject to the same legal requirements applicable to City commission and departments. These include the Brown Act (requiring advance notice and public access for most agency meetings), the Public Records Act (requiring public access to most agency documents), and the Political Reform Act (requiring public disclosure of financial information for all agency decision makers) among others. In our discussions with.various foundation representatives we found a general concern that the requirements of these laws, while appropriate to the activities of public agencies, served to limit the flexibility of foundations and to constrain their ability to raise funds. For this reason, many cities and individuals interested in sponsoring community foundations have concluded that foundations should be established independently of local governments to complement rather than expand the local government. 3. Formation of a Community Foundation. The manner in which the Cit'5' proceeds in support of formation of a community foundation depends on whether the foundation will be independent of the City or will be a City-sponsored foundation. If the City wishes to support formation of an independent foundation, the City Council could direct staffto take steps to inform the Community of the Council's interest and to encourage interested members of the community to step fol~vard. Interested community members would form an initial board of directors that would define the goals and objectives of the foundation. The board of directors would then file articles of incorporation with the SecretaD, of State and would seek a determination of tax-exempt status from the Internal Revenue Service and the state Franchise Tax Board. The specific form of the corporation would be determined based on the specific goals and objectives and fundraising strategy selected by the Board of' Directors. Most community foundations are established as non-profit organizations that are exempt from federal taxation under section 501 (c)(3) of the Internal Revenue Code. After the state and federal tax exemption determinations are made, the community foundation can begin accepting donations. The manner in v,'hich those donations are used would be determined by the foundation's board of directors consistent with the foundation's articles of incorporation. If the City wishes to support a Cit3,'-spons0red foundation, the City Council could direct staffto solicit applications for a special committee to investigate and create a City of Saratoga Community' Foundation. That committee could make recommendations to the City Council concerning the proper scope and organization of such a foundation. With these factors defined, the committee could proceed with formation of the foundation using a process similar to that described above for an independent foundation. The only difference between the two would be the City's active role in the City foundation's governance and the fact that the City foundation would operate subject to the various public agency laws described above. FISCAL IMPACTS: Creation of a successful community foundation could have sigxfificant financial advantages by creating an additional source of revenues to finance pro.ams that are important to the community. If the City proceeds with a City- sponsored community foundation, the staff resources required following creation of the Foundation w-.'ould depend on the level of effort desired by the Foundation and the Council. There would be no significant costs associated with encouraging formation of an independent community foundation. 4 ADVERTISING, NOTICING AND PUBLIC CONTACT: Notice .for this meeting. CONSEQUENCES OF NOT ACTING ON RECOMMENDED MOTION(S): No action would be taken to encourage creation of a community foundation. FOLLOW UP ACTIONS: Report to Council on staff actions taken in response to Council direction. ATTACHMENTS: None. i5 SARATOGA CITY COUNCIL MEETING DATE: January 17, 2000 ORIGINATING DEPT: Public Works PREP.MIED BY: AGENDA ITEM: CITY M.a~NAGER: DEPT HEAD:' ~Q,~ ~Q~,--'-,-~_ SUBJECT: CiD' Energy Conservation Efforts RECOMMENDED ACTION: 1. Adopt Resolution Declaring the City of Saratoga's Participation in the League of California Cities Efforts to Conserve Energy. REPORT SUMMARY: At various times since the beginning of December, California has been under Stage 1, Stage 2, and Stage 3 energy alerts. Recently, on Thursday, Janua13., 12, a Stage 3 energy alert was issued. A Stage 3 alert can necessitate rolling blackouts. The cold weather coupled with planned and unplanned maintenance of power plants, and the problems with deregulation has reduced the State's operating energy reserves. On JanuaD' 12, the League of California Cities issued a memorandum asking all cities to certi~: that they will reduce energy usage by 5% by January 16, 2001 (see attached League Memo). Although the City has been proactive during the power shortages (see attached memo to staff dated December 8), the recent Stage 3 alert has prompted the City to take a more ag~essive approach in reducing its energy consumption. The following are some energy conservation methods the City will be implementing at City Hall and the Village until the power shortages are over: Durinz Sta~e 1 and Sta~e 2 Alerts · Turn off office lighting if absent for longer than ½ hour. · Shut off PCs, monitors, printers, and copiers when not needed. · Set thermostats at no more than 68 de~ees. · Turn off all non-essential decorative lighting at City Hall. · Operate the Village Ornamental Tree Lighting from 7 p.m. to 12:00 p.m. only. During Stage 3 Alerts · Turn off lobby, hallway, and all non-essential building lighting. · Set thermostats at no more than 65 de~ees. · Take down flags at City Hall during the ni~t and turn off lighting. · Turn off the Village Ornamental Tree Lighting. · Ifa rolling blackout notice is issued which affects City Hall, close City offices and send non-emergency employees home. In addition to the above, the City will install motion detection light switches in all offices, conference rooms, and restrooms and monitor the energy system status via the California Independent System Operator's web site on a daily basis. In order to monitor the City's energy conservation effort a baseline energy consumption amount will be established based on the following data: Enerev usaee in kilowatt-hours (kWh) durine the period 10/26/00 to 11/28/00 Warner Hutton House: 775 Civic Theater: 16,680 Administration: 5,560 Community Center: 11,000 Corporation Yard: 2,035 CNG Station: 2.459 Total: 38,509 Note: Natural gas usage is based on a pooled amount purchased through ~ad3AG. The City's cost for natural gas is $1,200 per month in F.Y. 2000/2001 regardless of the amount of gas usage. Therefore, meter readings will be taken in order to monitor natural gas usage. In addition, street lights, pathway lights, and traffic lights were not considered as candidates for energy conservation efforts due to public safety. FISCAL IMPACTS: A reduction in the cost of electricity. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): N/A 2 of 3 FOLLOW UP ACTION(S): The League of California Cities will be notified of the City's commitment to reducing energy consumption. AI)VERTISING, NOTICING AND PUBLIC CONTACT: None additional. ATTACHMENTS: 1. League Memo dated January 11, 2001. 2. Memo to staff dated December 8, 2001. 3. Resolution Declaring the City of Saratoga's Participation in the League of California Cities Efforts to Conserve Ener~'. 3 of 3 Ikl rcr Ci :les-A Better Life Leaque of hlilorni (iti s ww~ccaciucs.o'rg DATE: January 11, 2001 TO: Mayors and City Managers FROM: Clu'is McKenzic, Executive Director As you know, Califonfia faces unprecedented energy challenges. The need to cons~ve energy in city facilities, in order to avoid rotating blackouts, has never been greater. On Wednesday, January 10, 2001, the League Board of Direetors voted to: 1) endorse the Governor's goal of 7% energy conservation; 2) urge all cities to reduce energy use by 7%; and 3) urge their citizens to do the same. Your immediate action is necessary and appreciated. In order to demonstrate California's commitment to conservation, the Governor's office is asking all cities to certify that they will reduce energy u.s.e by 5% by January 16~ 2001. Please notify the League as soon as possible by fax or e-mail that your city has done so. We encourage you to notify the media of your actions mad to urge yourrcsidcnts to immediately conserve energy. The League will post a sample news release on its wcbsite on Friday, January 12. Ti~ank you very much for your cf/bt'ts. c: The Honorable Gray Davis, Governor David Rosenberg, Director of Intergovernmental Affairs and Senior Advisor to the Governor Conference Rcgistration Office P~'~l Office [~ox 1519 I .'dhyctte: C;A 94549 9251283.2113 FAX 925.283.7533 ltcadquancrs 1400 K Strcc~ Sacramcr, to. CA 95814 FAX 916.658.8240 Soulhern California OIfice 602 E~t Huntington Dr., Smtc C Monrcw,-~, CA 91016 626.305.1315 FAX 626.305.1345 Memo Re: City Staff John Cherbone, Public Works Director December 8, 2000 Energy Conservation In the last few days, California has been under both Stage 1 and Stage 2 alerts in regard to energy availability. A Stage 3 alert can necessitate rolling blackouts. The cold weather coupled with planned and unplanned maintenance of power plants has reduced the State's operating reserves. The following are some ways you can reduce energy both at work and at home: · Turn off PCs, monitors, printers, and copiers when not needed. If you cannot turn offthe whole computer, turn off monitor and the printer. · Tum off li~o_ahts when they are not needed. · Delay turning on holiday lights until 7 p.m. · If possible, avoid using major household appliances during peak hours (peak hours are t3~ically 5:00 p.m. - 7:00 p.m. during the winter). · Keep your thermostat set at 65 de~ees or cooler, health permitting. · For more energy saving tips, you can contact the Smarter Energy Line at 1-800- 933-9555 or log in at www poe corn The Public Works Department and Facility Maintenance will be adjusting all City controlled ornamental and non-safety related lighting to operate during non-peak demand times until the energy shortages are over. RESOLUTION NO. 01- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA DECLARING THE CITY OF SA_IL~XTOGA'S PARTICIPATION IN THE LEAGUE OF CALIFORNIA CITIES EFFORTS TO CONSERVE ENERGY WHEREAS, since the beginning of the New Year. California has been under both Stage 1, Stage 2, and Stage 3 alerts at various times regarding energy availability; and WHEREAS, On JanuaD' 12, 2001, the LeagUe of Calilbrnia Cities issued a memorandum asking all cities to certi~' that they will reduce energy use by 5% by January 16, 2001; and WHEREAS, City Council and City Staff will be proactive during this time by implementing several energy conservation methods throughout City Hall and the Village; and WHEREAS, the City of Saratoga's added efforts in the intent to reduce the consumption of energy will help prevent possible rolling blackouts; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saratoga, a.s follows: - The above and foregoing resolution was passed and adOpted bv the Saratoga City Council at a regular meeting held on the 17th day of JanuaD' 2001, by the following vote: AYES: NOES: .M~ST.MN: Pd3SENT: ATTEST: John Mehaffey, Mayor Cathleen Boyer, CMC City Clerk