HomeMy WebLinkAbout03-16-1994 City Council Minutes MINUTES
SARATOGA CITY COUNCIL
TIME: Wednesday, March 16, 1994 - 7:30 p.m.
PLACE: Civic Theater, 13777 Fruitvale Ave.
TYPE: Regular Meeting
Pledge of Allegiance
1. ROLL CALL
Councilmembers Present: Burger, Kohler, Anderson, Monia Mayor Tucker
Staff Present: City Manager Peacock, City Attorney ~iback, City
Engineer Perlin, Finance Director Shrivel
Mayor Tucker thanked Pepsi Cola for supplying the drinks
2. CEREMONIAL ITEMS
A. Resolution commending Jameson for service on Finance Advisory
Committee
B. Resolution reappointing Koen and appointing Raiswell to
Finance Advisory Committee
MONIA/KOHLER MOVED TO ADOPT A RESOLUTION REAPPOINTInG KOEN AND
APPOINTING RAISWELL TO THE FINANCE ADVISORY COMMITTEE. ~ASSED 5-0.
C. Administration of Oath of Office to Koen and Liswell
Mr. Raiswell took the Oath of Office; since Mr. Koen was not present,
he will take the oath at a later date.
3. ROUTINE MATTERS
A. Approval of Minutes - 3/2~ 3/8~ 2/2 (verbatim mrtion)
BURGER/MONIA MOVED TO APPROVE THE MINUTES OF 3/2, AS PRE~NTED. PASSED
5-0.
Regarding the minutes of 3/8, Councilmember Anderson sta'~ed she would
like the minutes clarified as to what the expectation was of the joint
committee.
ANDERSON/BURGER MOVED TO TABLE THE MINUTES OF 3/8 UNTIL TH MINUTES ARE
CLARIFIED. PASSED 5-0.
Councilmember Monia stated he will discuss his understa! |ing of this
committee under Council Items.
ANDERSON/MONIA MOVED TO APPROVE THE VERBATIM MINUTES OF THE 2/2
MEETING. PASSED 5-0.
B. Approval of Warrant List
ANDERSON/BURGER MOVED TO APPROVE THE WARRANT LIST. PASSI~D 5-0.
C. Report of City Clerk on Posting of Agenda
Pursuant to Government Code 54954.2, the agenda for thi~ meeting was
properly posted on March 11.
4. CONSENT CALENDAR
A. Previously-Discussed Items
1. Ordinance adding Sections 6-15.150 and 6-15.160 to the
city Code relating to Regulation of the Storage and
Display of Spray Paint Containers and Marker Pens
(second reading and adoption)
Staff recommends that the City Council adopt the ordin[nce by title
only, waiving further .reading.
City Council Minutes 2 March 16, 1994
MONIA/BURGER MOVED TO ADOPT THE ORDINANCE BY TITLE NLY, WAIVING
FURTHER READING. PASSED 5-0.
B. New Items
1) Planning Commission ~ctions, 3/8 - Note ~d file.
2) Bicycle Advisory Committee Minutes, 1/2. - Note and
file.
3) Youth Commission Minutes,'1/19 - Note and file.
4) Library Commission Minutes~ 2/23 - Note a ~d file.
5) Public Safety Commission Minutes, 2/14 ~ ote and file.
8) Approval of Sole Source Purchase for Fle:ko-Fill Crack
Filler from Bacon-Western in the amount o $9,118.98.
10) Resolution transferring funds to variouf accounts in
connection with Refunding of Parking Dist ict #3 Bonds
and Leonard Road Project
The Councilmembers requested the removal of the following items:
Burger #6, Monia #7, Kohler #9.
MONIA/ANDERSON MOVED TO APPROVE THE CONSENT CALENDAR WITH tHE EXCEPTION
OF ITEMS 6, 7, AND 9. PASSED 5-0.
6) Budget Adjustment Resolutions:
a) Resolution 93-25.9 transferring $2,750 from
Beauchamps Park Project to Parks Lan Acquisition
to Fund Appraisal for Nelson Propert
b) Resolution 93-25.10 transferring 34,700 from
Beauchamps Park Project to Hakone Water System
Project
Councilmember Burger addressed the headlines in the San Jose Mercury
News regarding Saratoga and Nelson Gardens. She stated ~he headlines
are misleading and the owner of this ]property approached the City. She
stated in her view, Nelson Gardens is not a major issue fcr the City in
this fiscal year. She expressed concern about spendinc money on an
item that she does not feel comfortable with. She ~tated she is
uncomfortable with the expenditure of any money at ~:his time on
property she is not sure the community at large needs or wants.
Councilmember Burger stated, although the Council did vot unanimously
in closed session on this issue, she has serious concern about going
forward and spending more money on open space at this ti: ~.
Councilmember Anderson stated if the majority of the Cou:lcil voted in
favor it is wise to vote for the appraisal.
MONIA/KOHLER MOVED TOAPPROVE ITEM 6 A & B OF THE CONSEN~ CALENDAR.
Councilmember Anderson stated the City is covering a $4'00 shortfall
because the Bamboo Society was unable to keeps its comm:.tment to the
city to preform the installation. She stated situations ike this make
her more cautious about other groups coming in..
THE ABOVE MOTION PASSED 5-0.
7) Final Map Approval for 3 lots at 14644 Stonerid Dr. (Owner,
Peterson) (SD93-003)
Councilmember Monia asked how in-lieu park fees are devt 3ped.
City Manager Peacock stated the price is set by the Counci each fiscal
year.
City Council Minutes 3 March 16, 1994
MONIA/BURGER MOVED TO APPROVE ITEM 7 OF THE CONSENT CALENDAR. PASSED
5-0.
9) City Financial Reports for February:
a) Treasurer,s Report
b) Investment Report
c) Financial Report
d) Business License Revenue to Date
Councilmember Kohler questioned the expenditures for QuaFry Creek.
Patricia Shriver, Finance Director, stated the expenses are year to
date and the money spent so far is money spent on the capLtal project.
City Manager Peacock stated the City has a contract wi~.h Harvey and
Associates and most of the money paid was for progress payments for the
entire year.
ANDERSON/KOHLER MOVED TO APPROVE ITEM 9 OF THE CONSENT CALENDAR.
PASSED 5-0.
5. COMMUNICATIONS FROM COMMISSIONS AND THE PUBLIC
A. REPORT FROM STAFF: FOLLOWUP ON PREVIOUS ORAL C~)MMUNICATIONS
- None.
B.ORAL COMMUNICATIONS
- None
C. WRITTEN COMMUNICATIONS
1) Tim Dunbar, Californians for Parks and Wz.ldlife 1994,
requesting endorsement of CALPAW ,94 Bon. Act
Staff recommends that the City Council support this endo sement.
ANDERSON/BURGER MOVED TO NOTE AND FILE.
City Manager Peacock stated if this passes the City will receive
additional funds.
The above motion was withdrawn.
MONIA/BURGER MOVED TO SUPPORT CALIFORNIANS FOR PARKS AND WILDLIFE 1994,
CALPAW '94 BOND ACT. PASSED 5-0.
6. OLD BUSINESS
A. Ordinance Mending Sections 2-10.130 and 2-05.030 relating to
Communications to the City Council at Meetings [irst reading
and introduction)
Staff recommends that the City Council introduce the ordi ance by title
only, waiving further reading.
Councilmember Monia stated he had several concerns about this
ordinance. He noted page 1, word "interest" should be 'interested".
Page 2 (iii) he does not believe this paragraph is necessary as it
would basically void due process. He stated this is not good policy
to have.
City Attorney Riback stated this ordinance was created a: a result of
the City Council requesting that these particular prov/ions of the
municipal code conform to the new Brown Act. He stated thLs particular
paragraph is almost word for word from the Brown Act He added
whether this is in the municipal code or not, that option is still
available to the City Council at any time pursuant to the Brown Act
provisions. He stated it is appropriate to include this in the
municipal code, but not necessary.
City Council Minutes 4 March 16, 1994
Councilmember Monia stated he does~ not believe this paragraph is
necessary and people speaking at a committee level, shc.uld have the
opportunity to report on the final Council committee rep)rt.
Councilmember Anderson stated she would concur with Councilmember Monia
and believes members of the public would like to have th~ opportunity
to speak to the Council as a whole.
Councilmember Burger stated Saratog.] Council has always gone beyond
what is required by the State and does not believe this paragraph is
necessary.
Councilmember Monia addressed page 3 (f) and noted it is rot clear that
the public hearing can be re-opened. He believes a subs .antial issue
may come up during council discussions and would like to have the
opportunity to re-open the public hearing.
City Manager Peacock suggested adding the following wordir "unless the
City Council moves to re-open the public hearing."
Councilmember Monia addressed written communications o~l page 1; he
stated it should be made clear that the individual has the right to
read his written document into the record.
City Manager Peacock stated if the Council direct the letter to be read
into the record, he as the City Clerk, can read the letter.
Mr. Jeff Schwartz, San Marcos Rd., stated Councilmember Mcnia addressed
his concerns. He discussed the procedure of the hearings ]nd suggested
the Council have a study session to review how the meet.ngs are run.
He believes it is more efficient to have a motion before any discussion
so both Councilmembers and the public can speak to the m)tion.
City Manager Peacock stated the Council had previously ,]iscussed Mr.
Schwartz's suggestion last March and decided not tO rux the meeting
that way.
MONIA/BURGER MOVED TO INTRODUCE THE ORDINANCE AS AMENDED, ]Y TITLE ONLY
WAIVING FURTHER READING. PASSED 5-0.
B. Ordinance amending Section 2-10.110 of the City ~ode relating
to Reconsideration of Council Actions (first reading and
introduction)
Staff recommends that the City Council introduce the ordir]nce by title
only, waiving further reading.
MONIA/BURGER MOVED TO INTRODUCE THE ORDINANCE BY TITLE )NLY, WAIVING
FURTHER READING.
Councilmember Kohler asked the City Attorney the explain the motion to
reconsider as outlined in the ordinance.
City Attorney Riback stated a motion to reconsider can ~ake place in
two cases. One is were there is a motion to reconsider ~e passage of
an ordinance or resolution that has granted a discretior]ry approval.
Under these circumstance, as the existing ordinance is written, the
motion to reconsider may be made at the same meeting or at a recess or
adjourned meeting. The changed proposed is that tt~e motion to
reconsider can only be made at the meeting were the acthon is taken.
He stated the reason for this is, when someone receive~ an approval
that is a'property interest, it is potentially a problem if they rely
upon that approval to their detriment and take some action during the
period between the regular meeting and the adjourned me~ting only to
have the Council vote to reconsider at an adjourned meeting.
City Attorney Riback noted any other situation where acton is taken,
such as a denial, this motion for reconsideration can b. made at any
time. He stated in this case there has been no property interest
granted to a person upon which they can rely to their detriment by
having a reconsideration at some point in time.
City Council Minutes 5 March 16, 1994
Councilmember Monia asked whether there is any possible c( ~flict if the
Council verbally approves an item and at the next meeti2 g receives a
resolution which does not reflect what the Council appro'ed.
City Attorney Riback stated the action itself is not taker for approval
until the resolution comes back before the Council. {e noted the
action taken before the resolution is for internal purposes only.
City Manager Peacock stated the Council should be direc'~ing staff to
prepare a resolution of approval or denial for adoptior by the City
Council at the next meeting.
The above motion was carried. Passed 5-0.
C. Report from Finance Director on Legal Services cost through
February 1994
MONIA/ANDERSON MOVED TO APPROVE THE STATUS REPORT. PASSED 5-0.
7. NEW BUSINESS
A. Memo Authorizing Publicity for Upcoming Hearings Animal
Control;Paul Masson (Saratoga Avenue)
city Manager Peacock stated he has been informed by th~ Deputy City
Clerk that the Masson appeal has been filed. He state~ wide spread
mailing is necessary for this project. He noted they ill also put
notices in the Saratoga News and on KSAR.
Councilmember Anderson stated this project is impo rant to the
community, and the public at large should be noticed.
Councilmember Monia stated he would like a copy of the specific plan to
be available for the public at the hearing.
Councilmember 'Anderson asked if staff could find anoth~!r comparable
tract that is built so the Councilmembers could go visit it.
KOHLER/MONIA MOVED TO APPROVE THE PUBLICITY FOR UPCOM NG HEARINGS.
PASSED 5-0.
B. Animal Control Issues:
1) Ordinance amending Ch. 7, Article 20 of ~he City code
relating to animals and fowl (first reading and
introduction)
Staff recommends that the City Council introduce the ordi]ance by title
only, waiving further reading; set for hearing on April ~, 1994.
2) Agreements with Central Animal Hospital The Humane
Society of Santa Clara county, and the West Valley
Cities for Animal Control Services
Staff recommends that the City Council approve the agreel ents.
3). Resolution amending fee schedule
Staff recommends that the City Council adopt the resolution.
4) Resolution appropriating funds by amendin, budget
Staff recommends that the City adopt the resolution.
City Manager Peacock presented the staff report dated Ma2ch 16, 1994,
noting the City Council is being asked to introduce an amendment to the
Animal Control Ordinance and then have the hearing in thr~e weeks. He
stated after the hearing, if no significant changes they will adopt the
ordinance and if significant changes it will be brought back to the
Council for adoption on April 20. City Manager Peacock briefly
reviewed the negotiations with the proposed contractors a~d other West
City Council Minutes ~. March 16, 1994
Valley cities and noted this will be a cost savings to he City. He
reviewed the animal licensing.
In response to Councilmember Kohler's question, City Me ~ager Peacock
reviewed the cost savings by the City. He noted Cupertino will do
their own licensing, therefore their' costs are not inclu,|ed.
In response to Councilmember Burger's question, City Ma]~ager Peacock
stated the tags will be issued as part Of the licensing. ]e noted cats
will also be required to be licensed.
Councilmember Monia stated under the recommended motions required, #1
does not require public input. City' Manager Peacock sta'zed no.
City Manager Peacock stated they are! trying to unify the fees between
all the cities.
In response to Councilmember Kohler's question, City Ma]~ager Peacock
stated there may be a law passed at the State level which will require
cats to be inoculated for rabies.
MONIA/BURGER MOVED TO AUTHORIZE THE CITY MANAGER TO EXECU'?E AGREEMENTS
WITH CENTRAL ANIMAL HOSPITAL, THE HUMANE SOCIETY OF SANTA ~LARA COUNTY,
AND THE FIVE WEST VALLEY CITIES FOR ANIMAL CONTROL SERVICES. PASSED 5-
.
MONIA/BURGER MOVED TO INTRODUCE THE ORDINANCE AMENDING CHAPTER 7 BY
TITLE ONLY, WAIVING FURTHER READING, TO BE HEARD AT A PUBLIC HEARING ON
APRIL 6, 1994. PASSED 5-0.
MONIA/BURGER MOVED TO ADOPT A RESOLUTION AMENDING THE CURRENT FEE
SCHEDULE WHICH WILL NOT TAKE AFFECT UNTIL THE ORDINANCE IS APPROVED AND
WITH THE PROVISIONS PROVIDED IN THE CURRENT ORDINANCE. ~SSED 5-0.
MONIA/ANDERSON MOVED TO APPROVE A RESOLUTION APPROPRIATING FUNDS.
PASSED 5-0.
City Manager Peacock acknowledged the hard work of Paula Reeve of his
staff on this project.
C. Agreements with Hakone Foundation: Trust Agr~ement, Lease
Agreement, and Management and Operations Agree]lent
City Manager Peacock presented the staff report noting the~e agreements
would replace the existing trust agreement and the inte]'im agreement
which expires April 1, 1994. Mr. Peacock reviewed each agreement as
outlined in the staff report. He also reviewed the fiscaL1 impact and
consequences of not acting on the recommended motions at outlined in
the staff report. He added the Foundation submitted doc~uments which
set forth a proforma balance sheet.
In response to Councilmember Burger's questions regarding the lease
agreement, City'Attorney Riback stated the cost for ADA re 'uirements is
included in the operations agreement.
Councilmember Burger asked if all lawful taxes, as addr ssed in the
lease agreement, include property taxes.
City Manager Peacock stated the possessory right includes the property
tax.
Councilmember Kohler asked is there any provision for reinxesting money
received from Hakone Gardens back into Hakone.
City Manager Peacock stated, as the agreements are ~ritten, the
obligation of the foundation is specific through the term of the
agreement. He stated there is no other provision for .roviding the
City with additional revenue.
In response to Councilmember Monia's question, City Ma ager Peacock
stated the trust agreement establishes two different kirds of funds,
City Councll Minutes 7 March 16, 1994
the trust fund and the operating fund.
Councilmember Anderson asked about the concept of the documents,
because her memory of the last meeting with Hakone, was '~hat the City
would explore the possibility of leasing Hakone Foundatio; the land and
affirm their ownership of the cultural center which ~ould justify
having a loan. They could then show the ownership of th, building in
documents they could use for fund raising.
City Manager Peacock stated after discussing the agreements with the
City Attorney, this is the best the City can do.
Councilmember Monia stated the objective was, if it c3uld be done
legally.
Councilmember Anderson addressed the Minutes dated Nove[~ber 9, 1993,
regarding the ownership of the Cultural Center.
Councilmember Monia stated what the Council is trying to ~ddress is to
relieve the debt on the balance sheet and it is his understanding that
these documents do that.
City Attorney Riback stated this was the cleanest~ method of
accomplishing the goal of getting the debt off the books nd showing an
asset. ~
Councilmember Burger stated it is her recollection, that e overriding
issue was Hakone Foundation's desire to carry the exchax~ge center on
its book as an asset for fundraising purposes.
The Council discussed the lease ownership of the Cultural Exchange
Center and the City Attorney stated what is before the C,>uncil is the
best the City can do. Councilmember Anderson stated she did not feel
the ownership issue was explored.
Mayor Tucker thanked Councilmembers Burger and Monia for working on
this. She noted she received a letter from Donald Miller dated March
16, 1994.
Mayor Tucker opened the meeting for public comment.
Mr. Henry Yamate, 13252 Glen Brae Dr., stated he is one of the original
trustees and has served as treasurer and trustee for ni~e years. He
noted Hakone has been paying the City approximately $30,~)00/year. He
stated Hakone Foundation is a separate corporation, the~ have a non-
profit status and under these laws they are restricted a:~ to how they
can collect and spend money. He noted the Cultural Ex~hange Center
cost Hakone $1.1 million, $700,000 was received in the fo~m of grants,
donations and contributions, $400,000 was borrowed as a construction
loan from the City of Saratoga. He added the foundation r]ised all the
funds to construct the building and noted the foundation Ls a separate
entity, but it was formed with an agreement of the City. Mr. Yamate
stated Hakone hired an attorney to get his legal opinio; on how they
could get the cultural exchange center on the books with~ut having to
say it owns the building. Mr. Yamate reviewed the lease t~ley have with
the City and noted as long as there is a lease and improve!.ents are put
on the property they have the right to us~ the improvements. He noted
the City does not acquire title until such time the lease~xpires. Mr.
Yamate addressed the loan from the City and noted they halve paid this
loan monthly with interest. He stated he does not oelieve that
Hakone's proposals were considered when the agreement was established.
He added Hakone and the City need to negotiate.
Mr. Yamate reviewed the proforma balance sheet as outline~ in the staff
report. He believes the construction loan could be paid ~ff within 10
years.
Councilmember Burger stated she took the suggestions and :omments made
by Hakone and discussed these with the City Manager and .ty Attorney.
Councilmember Monia believes there were opportunities, ~fore tonight
City Council Minutes 8 March 16, 1994
for Hakone to raise their concerns.
Mr. Yamate stated, conceptually, the trust agreement is acceptable, but
it does not define who owns the building. He stat,~d the lease
agreement is so essential to the livelihood and long.~vity of the
foundation. He believes they should have the right to lease the entire
gardens and then they have something to negotiate with to Dther groups.
Councilmember Monia discussed putting the lease hold agreements on the.
books and asked what happens after 10 years.
Mr. Yamate stated they are following generally accepted accounting
principles and stated for tax and financial purposes the' are using a
32 year life for the cultural building.
Mr. Yamate reviewed the grant from the City to Hakone Fc ndation.
Councilmember Burger stated there is a split on the fou]]dation board
about whether or not these documents are acceptable a]~d it is her
understanding that many of the individuals who will s3eak at this
hearing are not pleased with the documents that have bee approved by
the Executive Committee and perhaps others on the Foun(ation Board.
She noted they are not dealing with failure of ,~ity Council
negotiations, but an end point that does not satisfy anyore on both the
Foundation Board and City Council.
Mr. Donald Miller, 14600 Wild Oak Way., made comments fr,)m his letter
presented to the Council at this meeting. He stated the ~oard has not
agreed to the documents, but agree in concept and made sllggestions to
modify them.
Ms. Kay Duffy, 20637 Leonard Rd., Secretary, Hakone Fou]ldation, read
and presented her letter into the record. She noted this is a personal
opinion.
Mr. Ralph Metcalf, 14150 Douglass Ln., Trustee of Hakon~! Foundation,
stated his recollection of events are as described by ~ouncilmember
Anderson. He stated the draft documents seem to deviate nore and more
from the general overall agreement made last fall. He noted he
concurred with the comments of the previous speakers. He ~tated in the
event the City wishes to proceed with these agreeme ~ts he would
recommend some changes.
Lease Agreement, Page 1, add the words "as leasehold impr,)vements,..."
after the words "...hire and take from the City..."; page 3 "$1.00"
should be changed to "$4272.25, representing principal an] interest on
lessee outstanding debt to lessor, secured to the leaseh~ld."
Management and Operations Agreement, Page 7, "$4272.2!U' should be
changed to "$1.00 per year and lawful. money of the United States." and
delete the remaining portion of the paragraph.
Mr. Metcalf stated he recommends to the president oj the Hakone
Foundation that none of these agreements be signed unil they are
modified along the lines of the previous speakers. He no~ed the Lease
Agreement is 10 pages long and has 22 paragraphs of restrictions.
Councilmember Burger stated it was her understanding fro]l the meeting
with Hakone Foundation that the Lease Agreement indicate the $1.00
amount.
Mr. John Tauchi, 20387 Miljevich Dr., stated the City Ma]~ager assured
them that changes would be reviewed. by himself and HaRone and this
opportunity was not realized. Consequently there was a meeting with
Councilmember Burger and they reviewed the major issues. ~e stated all
the changes made by the Hakone Foundation Board should be implemented.
He noted in the past Hakone have net lived up to the loan payment,
however they now have a viable plan and believe Hakone c~ln commit and
pay back the remaining loan within 10 years. He stated th.~ir financial
picture looks good at this point and asked for trust fro the Council
as opposed to so many restrictions.
City Council Minutes 9 March 16, 1994
Ms. Sue Mallory, 12258 Kirkdale Dr., member of Hakon~! Foundation,
stated they are prepared to present to the Council on A])ril 12th the
by-laws. She stated they have specifics in the by-laws and believes
the Trust Agreement should be less restrictive. She believes this can
be a viable organization as members are committed.
Mr. Jeff Schwartz, San Marcos Rd., stated he does nct recall any
discussion where assets at Hakone Foundation would becom assets of a
private organization. He Stated his memory is that the City had no
intent to arrive at a situation were a City park has p~ [vate assets
sitting in the midst of the City park. Mr. Schwartz reviewed the
situation with the Cultural Exchange Center and noted ~lhat actually
happened was the City bailed Hakone out of a debt they could not
handle. He noted efforts from Hakone to pay debts hive met with
failure and the City must be careful. He noted the City nust consider
its financial position and protect City assets.
Councilmember Anderson stated she would like to see the documents
formed in a way that is satisfactory to both the City and Hakone
Foundation and see this as a model for the Nelson GardE!ns or future
parcels of land the City may acquire. She stated if the City does
acquire Nelson Gardens they do not have the funds to maintain this and
would look to the possibility that Nelson Gardens could he leased to a
group such as the Community Gardens for a $1:00 per year ]nd have some
public use. She stated a similar situation could be use] for Hakone.
She noted there are a number of safeguards to protect l.he City, but
expressed concern about improvements done on the site. S~e stated the
idea of leasing the entire garden and having a lease hold ownership of
the improvements does not bother her as a strategy. She ]ddressed the
donation of the Cultural Exchange Center and stated absent any
documentation it is questionable whether it belongs to the City, simply
because it sits on City ground.
In response to Councilmember Monia's question, City At~orney Riback
stated the City cannot give a gift of public assets or furds. He noted
whatever is purchased and put on City property, becomes City property,
unless there is something in writing that proves differeltly.
Councilmember Monia asked if the Hakone Foundation sees a benefit to
having a building as a lease, why doesn't the City lease the building
for a sum of $400,000 payable over 10 years with interes
City Manager Peacock stated the issue is the leasing the entire
site.
Mr. Henry Yamate stated the City owns the property a ~ the Hakone
Foundation has a lease which provides them with certain rights, one of
which is to authorize construction. He stated the blilding is a
leasehold improvement and Hakone have a right to use thi while there
is an existing lease.'
City Attorney Riback stated the lease that was prepared wa; intended to
provide a leasehold interest in the building to the F(undation and
there is no dispute over this. The lease provides for a lease hold
interest being conveyed from the City to the Foundation Tor a 10 year
period.
The Council stated it does not make any difference to t|~e City which
amount, $1.00 or $4200 is written.in the lease agreement
Councilmember Monia suggested that Hakone Foundation meet ~nd come back
with a report on April 12, 1994, as to which amount they prefer.
The Council discussed the leasehold on the building vs the entire
site.
City Attorney stated it is his understanding that the le~ ~e should be
for the Cultural Exchange Center and not for the entire ;ite, because
the management and operation agreement covers the entire 3ark and this
document deals with the concerns. relating to the park. ~e stated the
documents dealing with the building stand alone.
City Council Minutes 10 March 16, 1994
Councilmember Monia stated there is a disagreement on the Hakone Board
and they need to resolve the issues, but the Council should give
direction.
City Manager Peacock stated a loan cannot be secured on ~omething the
City does not own and this is the problem. He stated the issue is
whether the City writes the lease agreement to cover th! entire park
and, as a condition of the lease, the Hakone Foundation has to repay
the debt over a certain time period. From a management ~tandpoint he
has no problem with this.
Councilmember Burger stated that requests coming back from Hakone
Foundation should be at least a majority vote.
Councilmember Anderson stated if they cannot assume that 2he leasehold
improvement belongs to Hakone, the management contract, as written,
does leave the loan off the books and should improve th~!ir net worth
and this may be the best the City cain do.
It was a consensus of the Council that the amount ~.n the Lease
Agreement is Hakone's decision and also it is Hakone's decision whether
to lease the entire garden or the cultural exchange centaur.
Councilmember Burger stated the City needs to hear fro Hakone and
adjust the documents accordingly.
City Manager Peacock stated he would prefer that Hakone Fo ndation mark
the documents as to their changes.. He stated the Council should
decide, at this meeting, whether they have any interest i2 significant
changes to the draft trust ~greement.
Councilmember Monia stated he would have problems . hanging the
documents in its present form. He stated the City canno' ignore what
has happened in the past and believes the documents are air.
Councilmember Anderson stated she would like 'a copy ~f the lease
agreement dated January 1, 1988.
MONIA/ANDERSON MOVED TO TABLE THIS MATTER TO APRIL 12, 19!4. PASSED 5-
0.
Ms. Gladys Armstrong, President, Hakone Foundation, asfed that the
discussion this evening come to the Hakone Board in letter form from
the City Manager so they can respond 'specifically. s. Armstrong
addressed the Brown Act and asked if there would be a erson at the
March 24, 1994 meeting to talk about this.
City Manager stated he will send out the informaJ [on that is
publicized. City Attorney Riback stated he will provide audio-tape.
8. PUBLIC HEARINGS - None.
9. CITY COUNCIL ITEMS
A. Agency Assignment Reports
City Manager Peacock reported on KSAR and noted at thei meeting the
Foundation Board identified four or five initiatives that zhey believe
are important for the future of the board. They would 1.ke to make a
report to the City Council and the College on what they ~re doing and
their successes. He reported on the meeting with princ pals and key
staff people from most of the schools in the City on the distribution
of the monies from the franchise for school video equipmelt. He noted
this meeting went very well.
The City Attorney left at 11:00 p.m.
Mayor Tucker reported on the Cities Association meeting n{ting they had
an update from Sup. Dianne McKenna on MTC and update from Guy
Helmstetter from PG&E regarding clear air vehicles. The also took a
vote to send a letter to ABAG opposing AB398.
City Council Minutes 11 March 16, 1994
Councilmember Anderson asked Mayor Tucker to request th~it the Cities
Association send the same letter to Valerie Brown.
Mayor Tucker reported on the booking fee increase prc)osed by the
County and stated the Cities Association voted to send a ~etter to the
Board of Supervisors requesting no action until this is investigated
further. She noted the Mayor and Managers meeting update the library
issues.
B. General Council Items
1) Agenda items for April 12 meeting with Hake e Foundation
Board
2) Approval for Scheduling Library Commissi~ n Interviews
for 6:30 p.m. on March 22
city Manager Peacock stated the Council has a joint mee'~lng with the
Heritage Commission on March 22.
3) Meeting with Saratoga School Board re: s~hool traffic
safety
City Manager Peacock stated he will set up a meeting dat~.
In response to Councilmember Anderson's comments regarding traffic
safety, Mr. Peacock stated he does not believe that it is in the best
interest of traffic safety to create another crosswalk at an
uncontrolled intersection on Saratoga Avenue.
Councilmember Monia stated the School Board and City should list their
issues and then discuss these. He noted they need to star a dialogue.
Councilmember Anderson stated she would like to hear fro the Council
and where they stand.
The Council stated they want less traffic.
10. ADJOURNMENT
The meeting adjourned at 11:20 p.m. in memory of Mr. Peac ck's Father-
in-law and Councilmember Monia's Grandmother, to next me~ting at 6:30
p.m. on Tuesday, March 22, in Administration Meeting Room, 13777
Fruitvale Avenue.
Respectfully submitted,
Minutes Clerk