HomeMy WebLinkAbout03-16-1994 CITY COUNCIL AGENDAO a ^
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13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 867 -3438
March 16, 1994
City Council
City Manager
Subject: Budget Adjustment Resolutions
Recommended Actions:
1. Adopt Resolution 93 -25.9
2. Adopt Resolution 93 -25.10
COUNCIL MEMBERS:
Karen Anderson
Ann Marie Burger
Willem Kohler
Victor Monia
Karen Tucker
Background: The Beauchamps Park Project contained a $7,500
appropriation for fiscal 1993 -94 from the Park Development Fund
(Fund 31) to cover any miscellaneous, non - maintenance items which
might occur after project completion. As of March 1, 1994, none of
these funds had been encumbered and the Public Works Director has
indicated none will be needed. As a result, these funds can be
used for other park acquisition and /or development purposes.
Discussion: The two resolutions before the City Council would -
1) transfer this appropriation to Project 981 (the Hakone Water
System rebuild) to cover an approximate $4,700 appropriation
shortfall caused by the contractor having to install the
bamboo park irrigation system because the Bamboo Society was
unable to keep its commitment to the City to perform the
installation; and
2) transfer $2,750 to the Parks and Open Space appropriation for
the purpose of securing an updated appraisal on two parcels of
land owned by the Community Foundation of Santa Clara Valley
which have been offered for sale to the City. This appraisal
will establish whether the asking price is reasonable and is
also required of the City before any offer to purchase can be
negotiated.
Harry Peacock, City Manager
HRP:jvg
Printed on recycled paper.
SARATOGA CITY COUNCIL
EXECUTIVE SUMMARY NO. Z C y� AGENDA ITEM tl-�
MEETING DATE: March 16, 1994 CITY MGR. AM4�6��
ORIGINATING DEPT. Office of the City Manager (. ` .
Paula Reeve,. Public Services Assistant
SUBJECT: Animal Control Services
RECOMMENDED MOTIONS:
1. Authorize the City Manager to execute agreements with Central
Animal Hospital, The Humane Society of Santa Clara County, and
the Five West Valley Cities for animal control services.
2. Introduce the ordinance amending Chapter 7, Article 20 of the
Code of the City of Saratoga relating to animals and fowl.
3. Adopt Resolution No. amending the current fee schedule.
4. Approve resolution No. appropriating funding.
Since the County of Santa Clara discontinued all animal control
services to cities as of July 1, 1993, Saratoga has worked with the
cities of Campbell, Cupertino, Monte Sereno and the Town of Los
Gatos in a joint effort to pursue alternatives to replace the
structure previously provided by County Animal Control.
The Humane Society of Santa Clara began providing interim field
services to the City in August 1993. However, a program is needed
which will provide the necessary animal control services in the
long term. Therefore, the West Valley Cities have worked together
in a joint effort to develop a program which is both cost - effective
and meets the level of service which the County previously
provided.
The needed services will be provided as follows:
Service Provider
- Animal Licensing
(except Cupertino)
- Field Services
- Shelter &
Veterinary Care
Central Animal Hospital
The Humane Society -of Santa Clara
County
Central Animal Hospital
Animal Control Service
Fiscal Impacts•
- Page 2, March 16; 1994
Expenditures for animal control services from July, 1993, through
February 1994, are $35,215. Expenditures for the remainder of this
fiscal year are estimated to be $11,025. The current budget is
$36,000, therefore an appropriation resolution for $10,240 is
required.
The fiscal year 94 -95 operating budget for animal control services
under this program is estimated to be $4.4,100,. offset by projected
licensing revenue of $10,400. The net cost will be approximately
$33,700.
Consolidating this program with the other West Valley Cities will
result in cost savings to the City of Saratoga.
Consequences of Not Acting on the Recommended Motions:
The Councils of the other West Valley Cities have approved the
proposed contracts, fee resolutions and ordinance to begin
implementation of this program by April 1, 1994. Failure on the
part of the City of Saratoga to approve the joint effort will
necessitate separate .contracting negating the cost savings
attributable to a consolidated program.
Follow -up Actions
To implement the program effective April 1, 1994, Council needs to
take action now.
Attachments:
1.
2.
3.
4.
5.
6.
7.
8.
Report from the Public Services Assistant, March 16, 1994
(Attachment A)
Agreement between Cities to provide animal control services
(Attachment B)
Agreement between Cities and Central Animal Hospital for
licensing (Attachment C)
Agreement between Cities and Central Animal Hospital for
shelter and veterinary services (Attachment D)
Proposal submitted by Humane Society of Santa Clara County for
field services (Attachment E)
Proposed Ordinance related to animals (Attachment F)
Resolution No. amending fee schedule (Exhibit A)
Resolution No. appropriating funding (Attachment G)
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To:
From:
13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 867 -3438
March 16, 1994 COUNCIL MEMBERS:
Karen Anderson
City Council Ann Marie Burger
Willem Kohler
Paula Reeve Public Services Assistant Victor Monia Karen Tucker
Subject: Animal Control Services Program
RECOMMENDATIONS:
1. Authorize the City Manager to execute agreements with Central
Animal Hospital, The Humane Society of Santa Clara County, and
the five West Valley Cities for animal control services.
2. Introduce the ordinance amending Chapter 7, Article 20 of the
Code of the City of Saratoga relating to animals and fowl.
3. Adopt Resolution No, amending the current fee schedule.
4. Approve resolution No. appropriating funding.
BACKGROUND:
The County of Santa Clara discontinued all animal control services
to cities as of July 1, 1993. Action by the State Legislature
during the 1993 session eliminated the - requirement for counties to
provide animal services.
Services which were provided to cities by the County in the past
included:
- Pick up and care of sick or injured strays
- Quarantine of biting animals
- Bite and dangerous dog investigations
- Patrol for stray dogs
- Licensing and maintenance of license records
- Sheltering and adoption of unowned animals
- Euthanasia of badly injured animals or those whose owner
could not be located
- Capture of dangerous animals
- Low -cost rabies, spay, and neuter clinics
- Rabies testing
Pick up of dead animals in Saratoga was taken over by the City
Public Works staff during FY 1992 -1993 when County Animal Control
discontinued that non - mandated service as a cost - saving measure.
ATTACHMENT A
Printed on recycled paper.
Saratoga Animal Control Services Program - Page 2, March 16.,,1994
DISCUSSION:
A program is needed which will provide the necessary animal control
services in the long term. Several alternatives have been analyzed,.
including:
A joint program with the City of San Jose and other
cities in central Santa Clara County
A joint program with cities in the West Valley area
A program for the City of Saratoga alone
The most cost- effective arrangement was determined to be an
agreement between the West Valley Cities (Campbell, Cupertino,
Monte Sereno, Los Gatos and Saratoga). The needed services will be
provided as follows:
Service Provider
- .Animal Licensing Central Animal Hospital
(except Cupertino)
- Field Services The Humane Society of Santa Clara
County
- Shelter & Central Animal Hospital
Veterinary Care
Agreements of five years with renewal and escape clauses are
proposed. The Councils of the other four cities have approved and
adopted these agreements.
ANIMAL LICENSING
The City of Cupertino has been licensing animals for several months
and prefers to continue with its existing program. The other four
cities propose to contract with Central Animal Hospital for
licensing services.
Rates for licenses have been set in conformance with other
jurisdictions in Santa Clara County. One year and three year
options have been established to correspond with the re- vaccination
requirements.
One year license fees will be:
Altered
dogs:
$10
Unaltered
dogs:
$25
Altered
cats:
$ 5
Unaltered
cats:
$15
Three year license
fees will be:
Altered
dogs:
$25
Unaltered
dogs:
$75
Altered
cats:
$12
Unaltered
cats:
$45
Central Animal Hospital has agreed to rebate monies to the agencies
at the rate of $4.00 per cat license and $9.60 per dog license,
regardless of the license term. Central Animal Hospital will be
offering free rabies vaccinations with the license as an incentive
for residents to license their pets.
Saratoga Animal Control Services Program - Page 3, March 16, 1994
Although none of the West Valley Cities has required cat licensing
in the past, this requirement was adopted recently by the City of
San Jose. It is advantageous to the West Valley Cities to add this
requirement because cats are a much higher percentage of the animal
population susceptible to being injured while at large and being
bitten by a rabid wild animal.
FIELD SERVICES
The Humane Society of Santa Clara County will provide 3.75 animal
control officers dedicated to the West Valley Cities. The officers
will be on duty from 7:00 a.m. to 11:00 p.m., with emergency after -
hours service available.
The following services will be provided by the Humane Society:
Pick up of sick or injured strays and delivery to a
veterinarian
Supervision of owner - quarantined biting animals
Bite and dangerous dog investigations
Response to stray dog reports
- Capture of dangerous animals
- Police assists
- Pick up and disposal of dead animals on City
streets /private property, including deer
- Other animal related field services as required
The cities of Saratoga and Cupertino have been operating under
interim agreements with the Humane Society for field services since
the County ceased service. The cooperation and quality of service
from the Humane society has been very satisfactory.
SHELTER AND VETERINARY SERVICES
Central Animal Hospital of Campbell will provide animal shelter and
veterinary services to the West Valley Cities. A veterinarian will
be on duty for emergency medical assistance 24 hours per day, seven
days per week. The facility will receive strays for sheltering
from 7:00 a.m. to midnight, seven days per week.
The following services will be provided by Central Animal Hospital:
- Emergency stabilization of sick or injured strays
- Quarantine of biting animals
- Sheltering and adoption of unowned animals
- Reclaiming of owned animals following treatment or
sheltering
- Euthanasia of badly injured animals or those whose owner
cannot be located
Rabies testing, in cooperation with the County Health
Department
Central Animal Hospital. has provided all shelter and veterinary
services to the City of Campbell since July, 1993. The City's
Saratoga Animal Control Services Program - Page 4, March 16, 1994
experience has shown the business to be skilled and cooperative,
and its fees to be reasonable.
Central Animal Hospital will need to enlarge its space in order to
accommodate the additional animals expected from the other four
West Valley Cities. A modular addition is proposed which will
provide space for examination of strays, separation of animals with
unknown medical history, and reclaim /adoption services.
MUNICIPAL ORDINANCE MODIFICATIONS:
To facilitate financial and enforcement issues, the City /Town
Managers of the five jurisdictions agreed to adopt a uniform
ordinance relating to animal issues. The proposed ordinance was
developed by including the provisions from each jurisdiction's
existing ordinance and standardizing requirements among
municipalities. A uniform fee schedule was also developed. Both of
these items are included as attachments to this report
The major changes to the City of Saratoga's Chapter 7 will be:
- Inclusion of provisions regarding beekeeping
Technical changes which designate the City Manager and
his /her designee as those having primary responsibility
for animal control issues, as opposed to the previous
ordinance which designated Santa Clara County staff and
official
- Establishes new licensing procedures, including the
licensing of cats
FISCAL IMPACT:
For 1994 -95 fiscal year, the costs to the agencies will be divided
based on each agency's percentage of total population. In future
years, rates will be reviewed and perhaps modified based on actual
use by each agency.
The first -year program costs will be:
Field Services $150,000
Shelter /Veterinary $ 60,000
TOTAL (All Cities) $210,000
First -year expenses to the City of Saratoga are projected to be:
Share of.Program (21 %) $44,100
Projected licensing $100,400
revenue
NET COST $33,700
Saratoga Animal Control Services Program - Page 5, March 16, 1994
Central Animal Hospital and the Humane Society have agreed to
charge the same fees on a pro -rated basis for the last three months
of the 1993 -94 fiscal year.
Expenditures for animal control services from July 1, 1993, through
February 1994, are $35,215. Expenditures for the remainder of this
fiscal year are estimated at $11,025. The current budget is
$36,000, therefore an appropriation resolution for $10,240 is
required. The fiscal year 94 -95 operating budget for animal
control services is estimated to be $44,100 which will be offset by
an estimated $10,400 in license fees.
ALTERNATIVES
1. Continue the current interim arrangements being provided by
each of the West Valley Cities.
2. Negotiate a contract for the City of Saratoga individually
with either or both of the service providers. This
alternative is not recommended because it would result in
significantly higher costs to the City. .
3. Apply for inclusion in the agreement between the cities of San
Jose, Santa Clara and Milpitas. The costs for this alternative
exceeded the current proposed contract agreements between the
West Valley Cities, with no revenue rebate from licensing.
4. Contract with the City of Palo Alto for animal services. This
alternative was not seriously considered due to the
geographical distance between Palo Alto and the cities to be
served.
CONCLUSION
Agreements with the Humane Society, Central Animal Hospital, a
letter of agreement between the West Valley agencies, fee
schedules, and the uniform ordinance have been adopted by the
Councils of the Cities of Campbell, Cupertino, Monte Sereno and the
Town of Los Gatos. In order to finalize the contracts to begin
implementation of this new program by April 1, 1994, the'City of
Saratoga's Council needs to approve the recommendations made at the
opening of this report.
Prepared b :�1 Approved b
P Y PP : Y
Paula Reeve Ha 4y Peacock
Public Services Assistant City Manager
SARA/TOGA CITY COUNCIL /I
EXECUTIVE SUMMARY NO. Z(425 AGENDA ITEM
MEETING DATE: March 16, 1994 CITY MGR. APPROVAL
ORIGINATING DEPT: City Manager
SUBJECT: Hakone Foundation Agreements
Recommended Motion: Direct the Mayor and City Clerk to execute
the following agreements on behalf of the City:
1. Trust Agreement
2. The Lease Agreement
3. The Management and Operations Agreement once final drafts are
approved as to form by the City Attorney
Report Summary: A new set of agreements is proposed to replace the
existing Trust Agreement and the Interim Agreement which expire on
April 1, 1994, covering the operation of Hakone Gardens by the
Hakone Foundation. These new agreements are: 1) a Trust
Agreement, 2).a Lease Agreement which leases the Cultural Exchange
Center Building to the Foundation for 10 years at $1 a year, and 3 )
a Management and Operations Agreement which gives the Foundation
exclusive rights to manage and operate the Gardens for an annual
fee of $51,267 plus one -half of all electrical utility costs.
Fiscal Impacts: City would receive about $56,000 in revenue
annually versus $23,300 received currently from loan interest
payments. City would cancel current loan of $376,250, $356,�A'o of
which is due on January 1, 1996. _T
Advertising, Noticing and Public Contact: Frequent meetings with
Board of Trustee representatives were held.
Consequences of Not Acting on the Recommended Motions: Other
arrangements to operate the Gardens would have to be made either
with the Foundation, another operator, or by City staff.
Follow Up .Actions:
1. Execute Agreements.
2. Prepare loan cancellation agreements for meeting of April 12th
with Board of Trustees.
Attachments:
1. Staff report dated March 16, 1994
2. Trust Agreement
3. Lease Agreement
4. Management and Operations
5. April 27, 1993 Minutes
6. November 9, 1993 Minutes
7. January 19, 1994 letter to
8. March 10, 1994 letter from
Agreement
Paul Bowlin
Gladys Armstrong
r
A
13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 867 -3438
COUNCIL MEMBERS:
March 16, 1994 Karen Anderson
Ann Marie Burger
To: City Council Willem Kohler
Victor Monia
Karen Tucker
From: City Manager
Subject: Hakone Foundation Agreements
Recommended Action:
Direct the Mayor and City Clerk to execute the following agreements
on behalf of the City:
1. The Trust Agreement
2. The Lease Agreement
3. The Management and Operations Agreement once final drafts
are approved as to form by the City Attorney
Background:
Last April the City Council met with the Trustees of the Hakone
Foundation and reached a general understanding that the various
agreements between the Foundation and the City should be redrafted
to reflect the current nature of the relationship and Foundation
operations. At the Fall meeting of the Council and the Trustees,
these matters were discussed in greater detail and a general plan
of action was formulated which would 1) cancel some of the existing
agreements; 2) create interim agreements which would remain in
effect until April 1, 1994; and 3) have a complete set of new
agreements presented to the City Council on March 16th to become
effective on April 1, 1994, once executed by both parties. For
reference both sets of minutes from these meeting are attached.
Since the November 9th meeting there have been several meetings and
written correspondence between the City and the Foundation
leadership to work out the various agreements. The personnel
involved from the City have been the City Manager and
Councilmembers Burger and Monia. Personnel involved from the
Foundation have been Trustees Armstrong, Bowlin and Tauchi. What
is being presented to the City Council for consideration are three
agreements which reflect the sum total of this effort. However,
these final drafts are not necessarily agreed to in total by either
party. Rather, they should be viewed as City - oriented documents
which have taken into account as many of the Foundation's views as
possible, in the spirit of compromise while still protecting the
interests of the City.
Discussion:
There are three documents, the Trust Agreement, the Lease Agreement
and the Management and Operations Agreement.
Printed on recycled paper.
Hakone Foundation Agreements - March 16, 1994 Page 2
The first agreement lays out the basic nature of the relationship
between the City and the Foundation. It follows the form and
content of the original Trust Agreement entered into in December
1984, but adds a section on the Establishment and Use of the
Operating Fund (Section 6); sets the size of the Board of Trustees
at not less than nine and creates terms of 4 years ( Section 4 ) ;
sets forth the use of both the Trust Fund and the Operating Fund
(Sections 7 and 9); adds a section regarding the submittal and
approval of a Business Plan (Section 15); and establishes how the
City is to use the assets of the Foundation should the Agreement be
terminated and the Board of Trustees dissolved (Section 18).
The Lease Agreement is basically a standard form agreement which
leases the Cultural Exchange Center building to the Foundation for
ten years at $1 a year plus the monthly fee for the right to manage
and operate Hakone Gardens contained in the Management and
Operations Agreement.
The Management and Operations Agreement grants to the Foundation
the exclusive right to operate the Gardens for a period of ten
years. In exchange the Foundation is to pay a fee of $4,272.25 a
month. This amount represents the monthly payment of principal and
interest at 6.5% it would take to repay all outstanding loans from
the Citv over a. ten year period. In addition the agreement
requires that one -half of the electric bill be paid by the
Foundation. The Foundation shall be responsible for weekend and
holiday staffing at the Gardens. It shall have the right to make
alterations, additions and improvements to the property and its
buildings of up to $5,000 without prior City approval. However,
this assumes that 1) any such improvements are a part of the
approved master -plan, and 2) all necessary permits will have been
secured from the City and a Notice of Non Responsibility posted and
recorded on behalf of the City by the Foundation for any such
project undertaken. The Foundation has the right to enter into
agreements with other clubs or organizations for improvement and
enhancement of the Gardens. It shall also submit to the .City prior
to each April its business plan and budget for the ensuing fiscal
year.
The City, on its part, shall keep fire and extended coverage
policies on all improvements, repair and maintain the property,
confer before performing alterations or repairs to buildings or
improvements. The City has the right to use the property for City
activities with at least ten days notice. City shall pay all
utility costs except for 505 of the electricity. City will also be
responsible for complying with the disabled access requirements.
City will provide liability insurance coverage with the Foundation
being an "additional covered party."
Hakone.Foundation Agreements - March 16, 1994 Page 3
On its part the Foundation is requested to amend its by -laws to
include provisions relating to:
1. Priority of Foundation purposes
2. A process for nominating Trustees for City Council
consideration
3. Disbursement signature authority
4. How the Board will comply with the requirements of the
Brown Act regarding the holding and noticing of meetings
5. Deposit and investment.of funds received
(See my letter of January 19th to Trustee Bowlin, attached for
reference.)
Should these agreements be executed, the City Council should, at
its next regular meeting thereafter, formally act to cancel all
debt the Foundation owes the City. At your scheduled April 12th
meeting with the Foundation, it should be prepared to present to
the Council a -
1) Business Plan for 1994 -95;
2) Budget for 1994 -95; and
3) a new set of by -laws for Council to accept.
Conclusion:
Should this initiative go forward, I believe it will result in
achieving what I believe "is the common interest of both parties, to
have the Foundation operate on a business -like basis with only the
necessary oversight of the City to assure that its fiduciary and
public interest responsibilities are preserved.
Should this initiative not go forward, then I believe it will be in
the best long -term interest of the City to either 1) find another
operator for Hakone, or 2) resume operations directly under the
supervision of the Recreation Director for management and the
Public Works Director for maintenance. Should that be the case and
I am so directed by Council, I will endeavor to have a plan before
the Council within 60 days (i.e. June 1, 1994).
Harry /R. Peacock, City Manager
jm
MINUTES
SARATOGA CITY COUNCIL
TIME: Tuesday, April 27, 1993 - 7:30 p.m.
PLACE: City Hall Administration Meeting Room, 13777 F uitvale Ave.
TYPE: Adjourned Regular.Meeting
1. Roll Call
Councilmembers Present: Burger, Kohler, Monia, Tucker, Mayor Anderson.
2. Report of City Clerk on Posting of Agenda
Pursuant to Government Code 54954.2, the agenda for thi meeting was
properly posted on April 23. The notice of adjournment from the April
21 Council meeting was properly posted on April 22.
3. Agreements between City and Foundation
Proposals from Foundation:
Term of Lease - should be for a fixed period of time but long term
rather than year to year. Agreements should be consolidated and
rewritten to reflect the actual nature of the relationship as it
currently exists but 30 -day cancellation should remain.
There are provisions of the agreements which the Foundation feels are
in conflict, but there were no specific presentations made in writing
with which to compare.
Paul Bowlin agrees to prepare a conflict comparison among the
agreements as a next step. Intent is to agree to remove s ch conflicts
once they are identified by both Council and Foundation.
4. Relationships with several organizations - should they be with the
Foundation or with the City?
Hakone to act as coordinating body and others to enter into agreements
with Hakone, not the City. Basic agreements to be amended to reflect
this and that City is not to assume any financial liabil ty system.
(Clerk's note: The following three items were discussed together.)
5. Proposals for transfer of costs and services rom City to
Foundation
6. Hakone Notes to City - write off or set payback
7. Hakone Foundation Rental Income
If the City closes two days, Monday and Tuesday are not the best time.
Payback on maintenance costs: Council wants budget and usiness plan
so there is some way to measure progress against proposals. Should
cover both components to some degree. Foundation agrees to do that,
then City shall make a decision of proportion.
It is acceptable to switch to quarterly P/L and Balance Sheet with
comparison to budget.
The quarterly P/L for the third quarter was.submitted.
8. Appointment of New Trustees
BURGER /TUCKER MOVED TO APPROVE APPOINTMENT OF ALLEN BREED, GEORGE
BULJAN, DAN CHRISTENSEN, DONALD LESSER, JAN MORGAN, FRANK RIDDLE, AND
JULIE RINEHARD AS MEMBERS OF THE HAKONE FOUNDATION BOARD OF
TRUSTEES. Passed 5 -0.
9. Report from Councilmember Monia on ABAG request for support for
resolutions addressing State cuts of Local Governments, Funds
(continued from 4/21 meeting)
City Council Minutes 2 �pril27, 1993
Councilmember Monia reported that no decision on sales tax extension
had been made by Santa Clara County Cities Association; t e matter was
held over to next month.
SCCCA is working up proposals to get to local press or problems of
cities.
It is felt that there is no doubt the State will take zt least $2.6
billion from the cities and counties.
There is a proposal floating around to take 4% of oper ting budgets
instead of 22% of property tax.
Saratoga would be worse off under such a scenario according to City
Manager Peacock.
10. Adjournment
The meeting was adjourned at 10:10 p.m. to 5:00 p.m. or
field trip with the City Geologist starting at the City
Respectfully submitted,
t
Harry R. Peacock
City Clerk
0
8
May 3 for a
call.
MINUTES
SARATOGA CITY COUNCIL
TIME: Tuesday, November 9, 1993 - 7:30 p.m.
PLACE: City Hall Administration Meeting Room, 13777 F uitvale Ave.
TYPE: Adjourned Regular Meeting /Joint Meetings with Parks and
Recreation Commission and Hakone Foundation
1. Roll Call
Councilmembers Anderson, Burger and Mayor Tucker re present;
Councilmembers Kohler and Monia were absent. wr
Parks and Recreation Commissioners Barnard, Clark, Crotty, Dutra,
Miller, Pierce and Swan were present.
Staff members present: City Manager Peacock, Recreation Director
Pisani, Parks and Building Maintenance Superintendent Rizzo, Acting
City Attorney Steve Meyers.
2. Report of City Clerk on Posting of Agenda
Pursuant to Government Code 54954.2, the agenda for thi meeting was
properly posted on November 5. The notice of adjournment from the
November 3 Council meeting was properly posted on November 4.
3. Joint Meeting with Parks and Recreation Commission 7:30 p.m.
A. Parks and Trails Master Plan Priority List for Future
Capital Improvements Plan
The Council and Commission discussed the fact that the Kevin
Moran /Azule Park design and development was the first priority for
future improvements, including play equipment replacement. Several
neighbors expressed interest in future plans. A sign-up sheet was
passed for interested residents to be notified when the Commission
takes up the planning of this park complex.
Also discussed was the Hakone Entrance Road and the acquisition of the
Nelson property by the Community Foundation of Santa Clara Valley and
their desire to meet with the City on developing the ass t.
BURGER /ANDERSON MOVED TO ACCEPT PRIORITY LIST. Passed 3-0.
There was consensus to integrate the list into the CapitaL Improvement
Plan as money becomes available.
B. Structures in Trail Easements
The Council asked the Commission to survey trails for encroachments and
make recommendations to either remove, relocate or seek the appropriate
permit. The City Manager said that the City should be concerned from
a risk management perspective about the existence of illegal
encroachments.
BURGER /ANDERSON MOVED TO APPROVE THE SURVEY; IT IS COUNCIL POLICY TO
HAVE ENCROACHMENTS REMOVED, A PERMIT. SECURED, OR TRAIL MOVED. Passed
3 -0.
commissioner Crotty thanked those involved in the monthly creek cleanup
efforts. A fourth session is planned for November 13. ynbrook High
School and Youth Commissioners are now involved.
Councilmember Anderson asked that a trash can be put in Village Parking
District #1 next to the Wildwood Park Bridge. Parks and Building
Maintenance Supervisor Rizzo so noted.
4. Joint Meeting with Hakone Foundation - 8:30 p.m.
Mayor Tucker referred to a letter received from Counci member Monia
this date and asked all to read it before proceeding.
Hakone Foundation Board President Armstrong opened the presentation
City Council Minutes 2 No ember9, 1993 .
by noting that a majority of the Board was present.
A. Hakone Foundation Business Plan
Councilmember Anderson expressed concern that the Tr st Agreement
allows the Foundation to acquire "real property" and "gra ting options
to sell, lease, etc. real property," item 7b on the top f page 4.
Basic Issue #1 - Rewrite the trust agreement to ensure t at all Trust
monies remain to be used for Hakone if the Foundation is erminated or
the City must assign to a successor Foundation. The City ttorney said
this can be done. The Council agreed 3 -0.
Basic Issue #2 - The ownership of the Cultural Exchange Center is of
concern. There is no land lease, so the status of the building
provides an i:iipossible hurdle for fundraising because if it isn't on-
the Foundation's books, there is no positive balance sheet. So this
problem needs solution. There was consensus to deal with this through
lease back agreements and debt service payment.
Basic Issue #3 -- Prepare operations agreement based on revisions to the
first two agreements.
Basic Issue #4 - Write interim agreement (letter of unde standing) to
extend current agreements through March 31, 1994.
The staff is to report back to the Foundation and C uncil as to
progress in 30 days and timetable. Agree to consult with Hakone
president as progress is made.
5. Other Matters 10:00 p.m.
A. Teeter Plan Resolution (Presentation f om Finance
Committee at meeting)
ANDERSON /BURGER MOVED TO ADOPT THE RESOLUTION. Passed 3-0.
B. Ordinance amending Various Sections of Chapter 4 of the
City Code pertaining to Business Reg lations and
Business License Fees (continued from 1 /3) - Staff
report on amended proposal
BURGER/ ANDERS ON--44OVE D TO AUTHORIZE NOTIFICATION TO INCREASE TO $100
PLUS $10 PER EMPLOYEE, WITH A CAP OF $300, ALTERNATIVE APPROACH FOR
CONTRACTORS, AS SHOWN IN THE PROPOSED FEE SCHEDULE TO BE HEARD ON
JANUARY 5 WITH INFORMATIONAL MEETING ON DECEMBER 1. Passed 3 -0.
6. Adjournment
The meeting was adjourned at 10:55 p.m.
Respectfully submitted,
Harry R. Peacock
City Clerk
� o� SAlq�9
U ..r
gLIFOg�1
i
13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 867 -3438
COUNCIL MENIBERS:
Karen Anderson
Ann Mane Burger
January 19, 1994 Willem Kohler
Victor Monia
Karen Tucker
.Paul Bowlin
Hakone Foundation
P.O. Box 2324
Saratoga, CA 95070
Dear Paul:
Things to place in Foundation By -laws:
1. Priority of Foundation purposes (see top of page 2 of 12/14/93
Trust Agreement Draft).
2. Process for Board to nominate trustees for Council to
consider.
3. Disbursement signature authority (see middle of page 3, 12/14
Draft) .
4. How Board meetings are publicly noticed and held, including
11---p committee of the whole (see top of page 4,12/14 Draft).
i�lr
5. Deposit and investment of funds received (see middle of page
5, 12/14 Draft).
Attached is a mark up of the Trust Agreement from our 1/18/94
meeting along with a retyped draft dated 1/19/94. I have noted in
red the four references above.
As for the operations agreement, my notes from yesterday indicate
the following
1. Term - 10 years.
2. Annual Payment for right to Operate $51,267.
3. Electric utility costs to be shared on a square foot of
building basis.
4. Staffing and maintenance of the park to be the responsibility
of the Foundation.
5. Tenant improvements shall not come from operating funds.
Printed on recycled paper.
W
Page 2
b. Tenant improvements in excess of $5,000 must be approved, in
advance., by the City Manager on behalf of the City.
7. The form of. the agreement shall be basically as previously
submitted on November 9, 1993..
If-you have any questions, let me know.
Sincerely,
/lam
Harry R. Peacock
City Manager
3m
Attachments:. Markup of 12 /14 /93- Revised Draft
1/19/94 Revised Draft
cc: Gladys Armstrong
John Tauchi
Vic Monia
Ann Marie Burger
,-// I
&4
Trustees
Gladys J. Armstrong
President
H. John Tauchi
Vice President
Jack Hickling
Secretary
Henry Yamate
Treasurer
Donald B. Miller
Past President
Allen Breed
Paul F. Bowfin
George Bi-�?jF n
Dane Christensen
Kay Duffy
W. Jeffrey Heid
Reiko 1wanaga
Jean Kva.rnme
E. Floyd Kvamme
Donald Y. Lesser
John Mallory
Susanne S. Mallory
Helen A. Metcalf
Ralph M.. Metcalf
Frances C. Miller
Jan Morgan
Frank Riddle
Julie Rinehart
Keiske Yawata
Yuko Yawata
Willem Kohler. _
City Council Liais,in
Honorary Board
William E. GlennoR.
Chairman
Donald B. Miller
Norman Mineta
Morihito Nagai
Yoshihiro Uchida
Kiyoshi Yasui
Aiko Tauchi
Chanoyu Consultant
Hakone Foundation
March 10, 1994
City Council of Saratoga
13777 Fruitvale Ave.
Saratoga, CA 95070
Dear Council Members,
FPO)
MAN t iJ X194
l
sAR. <'4`i1]"G4A
CT'Pb -CE
In response to your request as of 2/16/94 for:
1. A cash flow forecast based on projected income and expense.
We submit.:
A five year budget projection prepared by Treasurer, Henry
Yamate and the finance Committee, approved by the Trustees
on March 7, 1994.
Proposal for parking fee changes as approved by the City Council.
In response to your request as of 2 /16/94 for:
2. A proforma balance sheet.
We submit:
Proforma balance sheet as of 12/131/93 and 6/30/94 prepared by
Treasurer, 111enry Yamate and the Finance Committee, approved
by the Trustees on Mach 7, 1994.
Letter from David .4. Marion, Attorney at Law.
In response to your request as of 2/16/94 for:
3. A report comparing rental income before and after hiring staff
We submit:
Statistical report of rental income and salary as prepared by
Administration Mgr., Yvonne Lampshire, approved by the
Trustees on March 7, 1994.
Sincerely,
Gladys Armstrong, President
Hakone Foundation
Post Office Box 2324, Saratoga, California 95070 -0324 408/741 -4994
To: Board Of Trustees
From: Finance Committee
HAKONE FOUNDATION
FIVE YEAR BUDGET PROJECTION BEGINNING
WITH THE FISCAL YEAR ENDING JUNE 30,
1994 THROUGH JUNE 30, 1998
We have prepared the five year budget projection which is made part of the long term business plan
(Exhibit A) of Hakone Foundation.
The budget projections are based on the following assumptions:
1) A lease term of at least 10 years or more with the City of Saratoga.
2) All capital improvements made by Hakone Foundation are to remain as leasehold improvements on
the balance sheet of Hakone Foundation.
3) The affiliation agreement with Golden State Bonsai Collection -North will take place by April 1, 1994.
4) Annual payments of $51,267 for the next 10 years to the City of Saratoga should be classified as
repayment of the construction loan with interest. Renaming this payment under any other label would be
inconsistent with item 2 above.
5) City of Saratoga will maintain its present level of repairs and general maintenance of Hakone
Gardens, including the Cultural Exchange Center Building.
JUSTIFICATION OF MAJOR ITEMS OF INCOME AND EXPENDITURES ARE LISTED BELOW.
INCOME
o Parking income:
Parking fees will be increased from $3 to $5 per car for week end traffic. Week day parking fee will
be $3. With the addition of the Bonsai exhibits for 94/95, we project about 8500 visiting autos based on a study
made by the Operations Committee. 50 parking spaces are available and expect to turn the spaces 3 to 4 times
daily. Some discussion may be in order to increase the turnover rate. Traffic will increase at a minimum rate
of 10% per year with maximum capacity in 97/98. We expect parking fees will also be increased during this
period. Detail of the traffic count is shown on Exhibit B.
o Rental income:
Rental income is based on past history. We are exploring the potential for rentals to industry during the
week days with a package concept. The concept provides for business meals, fax machines, copy machines,
T.V. videos, an entertainment program and a tour of the Gardens. In addition we have had many requests to
rent other parts of the Barden such as the upper house for weddings. Aggressive advertising in the local media
should help in marketing the rentals to its maximum.
o Gift shop income:
In the past we have calculated the gross profit margin at 30%. We have increased the margin to 40%
which is more in line with current operations.
EXPENDITURES
o Salaries:
Please note that we plan to hire an Executive Director in the 95 \96 year. This, position will be parttime,
hopefully, a young early out retired executive.
o Cultural Exchange Center repairs:
1 1/2% of the original cost of $1,000,000 should be set up for future repairs which includes on going
maintenance salaries. This is a National standard used in the real estate industry.. However in the proposed
Management and Operations agreement with the City, the City will provide for all maintenance and repairs.
The finance committee felt that some type of maintenance or repairs may not be performed by the City.
Therefor minimal amounts are budgeted in the business plan to assure ourselves that the CEC building will be
maintained with the highest standards.
o Repayment of construction loan and advances:
i
City proposes a 10 year pay off of the existing loans totaling $374,000. Monthly payments which
include principal and interest of $4,272 at 6 1/2% will start April 1, 1994. Annual payments will be $51,267
and if paid over the next 10 years will total $512,670. (Another reason to set up a capital fund raising
program).
o Sharing of utility charges (electricity only):
In the proposed management and operations agreement, Hakone Foundation will share in electricity costs
but not to exceed 50% of the total electricity bill.
o Expansion of gift shop:
Expansion plans are on hold for the fiscal year 93/94. However, the Gift Shop Committee anticipates
expansion in fiscal year 94/95.
Respectfully submitted,
Finance Committee
15 -FE�4 ~ 1
Hakone Foundation
Projected Business Plan
For the Five Years Ended June 30, 1998
Sources of income:
Parking and /or attendance fees
Rental income
Tea house
Charitable contributions
Restricted contributions
Membership income
Gift shop
Special projects
In -kind income
Reserve from prior year
Interest income
Miscellaneous
Total projected income
Expenses and other cash requirements:
Salaries:
Executive director
Administrative
Monitoring function
Parking attendant
Weekend employees
Administration expenses
Cultural exchange building repairs
Gift shop costs - 60% of sales
Garden & building improvements
Interest expense
Reduction of loan & interest pymts
Share 50: electricity
Restricted spending .
Accounting & audit
Artist in residence
Fundraising
Restricted contributions
other
Contingency
Total expenses and costs
( 1 ) - Discuss repair at 1 1/2 %.
R
- -- 93/94-
- -- 94/95 - -- - --
95/96 - --
96/97
97/98
15,000
50,000
57,200
60,000
72,000
55,000
63,000
71,000
74,000.
77,700
1,500
11500
11500
11500
1,500
20,000
2,500
6,500
11,500
16,500
0
5,000
27,000
20,000
15,000
.15,000
15,000
17,500
20,000
.23,000
12,000
12,000
15,000
20,000
25,000
10,000
5,000
10,000
21,000
20,000
10,000
1,000
1,000
1,000
1,000
15,000
16,000
0
0
0
1,500
1,500
1,500
1,500
1,500
4,900
5,000 - -
----- - - - - --
-- -5,000
-
5,000
-----
5,000
IS9,900
177,500
213,200
- - - - --
235,500
----- - - - - --
258,200
0
0
21,000
28,500
30,000
28,000
29,400
30,870
32,400
34,000
3,000
3,300
3,600
4,000
4,400
2,000
3,000
3,700
3,900
4,100
9,000
9,000
10,200
11,500
12,200
15,000
16,500
18,000
20,000
22,000
20,000
5,000 (1)
7,500
10,000
15,000
8,400
7,200
9,000
12,000
15,000
51500
8,000
10,000
10,000
10,000
23,500
0
0
0
O
6,000
51,267
51,267
51,267
51,267
O
4,500.
5,000
5,500.
6,000
10,000
16,000
10,000
0
0
10,000
8,000
8,000
8,000
81000
6,000
0
0
7,000
8,000
5,000
3,000
6,000
7,000
.8,000
0
5,000
7,000
10,000
15,000
O
0
p
0
0
8,500
8,333
----
12,063
- - - - --
14,433
15,233
159,900
177,500
-----
213,200
- - - - -- -----
235,500
- - - - --
258,200
r EXHIBIT A
Plan C
R
'e
R3
HAKONE FOUNDAT= ON
y PROPOSAL FOR PARKING FEE CHANGES
1/10/94
Summary of proposal:
�h;bJ
For weekend and holiday parking, we currently charge $3.00 per
car. We propose to change it to $5.00 per car, effective
3/1/94.
* For weekday parking, there is currently no charge. We propose
to charge $3.00 per car, effective 3/1/94.
* We continue to offer:
- Annual parking fee per car for Saratoga residents at
$10.00.
- Free parking to volunteers including the members of
the Hakone Foundation.
Summary of Benefit:
A comparison of the projected incomes from the proposed change
and the current fee for the next 5 years is as follows:
Benefit of the proposal
over the current fee
during 5 years $114,772
- -- Proposal - --
Current
Weekend
Weekday
Weekend
$5 /car
$3 /car
$3 /car
1993 -94
actual & projection
$25,573
2,400
$18,001
1994 -95
projection
39,500
$ 7,200
22,500
1995 -96
projection
471-000
7,200
27,000
1996 -97
projection
47,000
7,200
27,000
1997 -98
projection
47,000
7,200
27,000
$205,073
31,200
$121,501
Benefit of the proposal
over the current fee
during 5 years $114,772
Analysis - Weekend & Holiday Parking:
1993 -q4 Actual & Projection:
f No of cars $5 /car $3 /car
7/93 -
10/93 actual
----- - - - - --
2,462
- - - - - --
$ 7,387
- - - - - --
$ 7,387
12/93 -
2/94 projection
752
2,256
2,256
3/94 -
6/94 projection
3,786'
18,930
11,358
7,000
$28,573
$21,001
Less:
parking salary
3,000
- - - - - --
3,000
- - - - - --
$25,573
$18,001
The
projected number
of cars from
3/94 to 6/94
of
3,786 is the same as
the actual during 3/93 -
6/93.
1994 -95 projection
Less: Parking salary
No. of cars $5 /car $3 /car
----- - - - - -- - - - - - -- - - - - - --
8,500 $42,500 $25,000
3,000 3,000
$39,500 $22,500
Assumption:
- Parking fees are collected all year around.
- Bonsai Garden is completed by 11/94, and 1,500 Bonsai
club members visit the Gardens
a I
1995 -96 projection
Less: Parking salary
No. of cars $5 /car
10,000 $50,000
3,000
$47,000
$3 /car
$30,000
3,000
$27,000
Assumption:
- 2,000 Bonsai Club members and 1,000 bonsai interested
people visit the Gardens.
- This will continue during 1996 -97 and 1997 -98.
Analysis - weekday Parking:
We propose to set up a fee collection system during weekdays.
Basedion observations from time to time, 20 to 30 cars enter the
Gardens on a weekday. Even we make a conservative estimate of 10
cars which pay a $3.00 parking fee, a projected number of cars
paying the parking fee is an average of 200 per month and 2,400
per year. This estimate is in line with the number of people
made gate donations during 1993. Thus, projected incomes from
weekday parking for next 5 years are:
No. of cars $3 /car
1993 -94
projection (3/94 -6/94)
800
$ 2,400
1994 -95
projection
2,400
7,200
1995 -96
projection
2,400
7,200
1996 -97
projection
2,400
7,200
1997 -98
projection
2,400
7,200
Parking Attendant Salary:
Pay rate per hour:
Plus 22% NESCO fee
5.5 hburs per day (10:45 AM - 4:15 PM)
Salary per weekend
No. of weekends from March to October
(From November to February, weekend
patrollers also serve as parking
attendants.)
Projected parking attendant salary
$31,200
$ 6,50
1.43
.$7.93
$43.62
$87.24
34
$2,966.16 - - -> $3,000
Exhibit C
HAKONE FOUNDATION
PROFORMA BALANCE SHEET
As of As of
12 -31 -93 6 -30 -94
Assets:
Cash $ 85,200 93,700
Accounts receivable 7,500 7,500
Inventory 3,000 3,500
Investments 2,000 2,000
(1)Leasehold net of depreciation 1,118,800 1,098,200
Other 3,000 3,000
Total assets 1,219,500 1,207,900
Liabilities:
Accounts payable 5,000 6,000
City of Saratoga:
Construction loan 354,750 365,000
Seed money 20,000
Rental deposits 10,000 10,000
Deferred membership income 3,000 3,000
Fund balances:
Restricted & unrestricted 826,750 823,900
$ 1,219,500 1,207,900
(1) Includes construction of Cultural Exchange Center and the Kizuna -En Bamboo Gardens
DAVID A. MARION
ATTORNEY AT LAW
(408) 993 -8100 BANK OF AMERICA BUILDING, 6T- FLOOR
FAX (408) 993 -0173 i 101 PARK CENTER PLAZA
SUITE 601
SAN JOSE, CALIFORNIA 95113
February 16, 1994
Mr. Henry T. Yamate
Yamate & Sekigahama
95 South Market Street, Suite 400
San Jose, CA 95113
Re: The Hakone Foundation
Our File No. 42441001
Dear Henry:
OF COUNSEL
RICHARD C. DINAPOLI
ERIC P. NORLAND
GREGG L. KAYS
At your request I have reviewed, on behalf of The Hakone
Foundation ( "the Foundation "), a nonprofit trust created under that
certain Trust Agreement dated December 19, 1984 ( "the Trust
Agreement ") between William Glennon and you, as trustees, and the.,
City of Saratoga ( "City "), the following documents:
1. The Trust Agreement and the First Amendment (undated),
Second Amendment (approved August 3, 1988) and Third Amendment
(approved September 6, 1989) thereto.
2. Lease Agreement dated January 1, 1988 between City, as
lessor, and the Foundation, as Lessee ( "the Lease "), relating tc
certain real property described therein ( "the Real Property ").
� 1
3. Maintenance Agreement dated January 1, 1988 between
City and the Foundation, and amendments thereto dated September 20,
1989 and June 19, 1991.
4. Loan Agreements dated November 26, 1990 and December 5,
1990 between City, as lender, and the Foundation, as borrower, and
an Amendment to Loan Agreement dated October 21, 1992.
You have asked me to consider, on the basis of that review, whether
the Foundation is the owner of certain improvements, including but
not limited to the Cultural Exchange Center ( "the Improvements "),
erected on the Real Property, at the expense of the Foundation,
subsequent to January 1, 1988, the date on which the Lease was
executed. You have also asked for my views with respect to the
manner in which the Foundation's costs of constructing the
Improvements should be classified on the Foundation's financial
statements.
Mr. Yamate
February 16, 1994
Page Two ,
While there would be, in the case of a similar arrangement
between two parties dealing at arm's length, an inherent illogic
in a lessee agreeing to expend substantial sums in the construction
of improvements, to which it will not acquire legal title, on real
property which is subject to a lease which can be terminated by the
lessor on 30 days' notice, that analysis does not seem applicable
here. To the contrary, it seems clear to me that under the terms
of the Lease, particularly Section 7.5, the Foundation's interest
in the Improvements is only that of a lessee under the Lease, and
that that interest will terminate upon expiration of the Lease.
With respect to your second question, I believe that it would
be appropriate for the costs of constructing the Improvements to
be capitalized as "leasehold improvements" on the Foundation's
books. Since the Lease is of indefinite term, my guess is that the
period over which those costs should be amortized is the useful
life of the Improvements and that, if the Lease terminates prior
to the expiration of that period, the balance of the capitalized
costs should be expensed in the year of termination. You
understand that I am not an expert in accounting and that the
conclusions expressed in this paragraph do not constitute a legal
opinion.
Please let me know if you have any questions with respect to
the foregoing discussion or if there are other issues which you
would like me to consider.
+' 1
Sin rely,
I
David A'. Marion
DAM/
Statistical Report as requested by City of Saratoga
Rental Income BEFORE Hiring Staff
1991 $24,950.
Rental Income AFTER Hiring Staff
1992 $48,280.
1993 $48,329.
1994 (Booked to date) $33,657.
Total Sales (23 months) $130,266.
Salary
Total Salary (23 months) $32,981.
Administration Managers salary (above) is distributed according to percentage
of time in the following categories.
38% Promotion, marketing, presentation, coordination, tele-
marketing with potential renters, caterers, & musicians.
19% Rental accounting: accounts receivable, banking, refunds
of deposit, rental record keeping.
27% Hakone Foundation Trustee secretarial /clerical support.
8% * * Volunteers: record keeping of hours, meetings, corre-
spondence, gift shop.
6% * * * Reservations & maintain calendars for docent led group
tours and rentals.
2% Scheduling employees for events, parking, maintenance,
janitorial.
100%
* Formerly City Staff /Finance Dept.
* * Formerly City Staff /Volunteer Program
* * * Formerly City Staff /Public Works
Respectfully submitted by
Yvonne Lampshire, Administration Mgr.
3/1/94