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HomeMy WebLinkAbout05-13-1997 City Council Minutes MI~u~E8 - SArATOgA CITY COUNCIL TIME: Tuesday, May 13, 1997 - 5:30 p.m. PLACE: Warner Hutton House, 13777A Fruitvale Avenue, and Senior Day Care Center, 19655 Allendale Avenue TYPE: Adjourned Regular Meeting/Joint Meeting with Youth Commission 1. Roll call The meeting was called to order at 5:30 p.m. in the Warner Hutton HoUse. Councilmembers jacobs, Shaw, and Wolfe and Mayor Moran were present; Councilmember Bogosian was absent. Staff members present were Interim City Manager Perlin, Recreation Director Pisani, Recreation Supervisors Tucker and Macon. Youth Commissioners present were Sarah Adolphson, Tennaz Altafi, Nicole Behnke, Angel Cheng, Jennifer Chen, Sydney Cohn, Sheeva Ghassemi, Brian Luskey, Dave Mount, and Laura Prolo. Eric Fanelli was also present. 2. Report of City Clerk on Posting of agenda Mr. Perlin reported that pursuant to Government Code 54954.2, the agenda for this meeting was properly posted on May 9. The notice of adjournment from the May 7 Council meeting was properly posted on May 3. Oral Communications from the Public on Non-Agendized Items - None. 4. Joint Meeting with Youth Commission A. Youth Commission Overview Commissioner Adolphson stated that the twelve members of the Youth Commission represent all Saratoga schools. Their purpose is to communicate youth issues to the Council, and their goal is to provide activities for teens. The Commission meets once per month. The commissioners go through training and work on committees. They also attended a two-day conference called Yak Attack. Commissioner Altafi described the Yak Attack as a Conference of Youth Commissions throughout the Bay Area held at San Mateo High School It included information exchange, debates, Brown Act information, etc. B. Warner Button House Afterschool Program Commissioner Luskey reported that the program had been ended two years ago due to budget cuts. Since the Council agreed to reopen it this year, the Commission has raised funds to cover half the cost of keeping the House open. The House provides many programs and activities. It is no longer viewed by youths as a day care center and serves up to 58 users per day. It is the most successful Teen Center in the Bay Area at the lowest cost. C. Middle School Dances Commissioners Behnke and Ghassemi reported that the Commission has sponsored five middle school dances, grossing $1200 per dance with $650 in expenses. 250 teens attend, which is way up. The next dance is June 6. Tickets are $4 in advance, $5 at the door. The Commission had a canned food drive at the November dance. They keep track of attendance by school. Teens like the dances at the Community Center because of the better atmosphere and music. D. Music Fest Commissioner Cheng reported that the Music Fest was originally funded by the Chamber of Commerce seven years ago. There were 400 to 500 attendees last year. The Commission sold tie-dyed T-shirts. The feel this event can be dropped next year because of the amount of work City Council Minutes 2 May 13, 1997 necessary relative to the amount of money it raises. E. Boneyard and Togapalooza Eric Fanelli spoke as a resident of Saratoga who is not a member of the Youth Commission. He talked about the Boneyard, stating that he volunteers his time to help put it on. Funding will be cut for next year, but hopefully can be restored in future years. F. Co-Sponsored Activities Recreation Director Pisani described co-sponsored activities, including the Saturday night gymdrop-ins at Saratoga High School. They average approximately 100 attendees per event. Recreation Supervisor Tucker stated that the City has also started co- sponsoring a mountain biking club at the high school. G. Fundraislng Effort 1996-97 Sydney Cohn gave further information on fundraising. Donations from parents total $5945, and $1000 was donated by PG&E. They also sponsored a golf tournament and sold pate at the Farmers Market. The goal was $8400, and they raised $9510.25. Many Chamber of Commerce members also donated to the effort. H. 8chool Resource Officer Jennifer Chen spoke as the representative to the School Resource Officer Committee. She stated that Deputy Atlas is well liked by the teens. He is well respected but not threatening. He works better in the middle schools. Between the SRO and the Youth Commission, the Commission is more of a priority for funding. I. Non-Profit]"Friends of the Warnet Button House" Update Commissioner Mount reported that a non-profit corporation called Friends of the Warner Hutton House has been set up. All the papers have been filed and a tax-exempt foundation now exists. The Foundation can fund improvements to the House, scholarships, etc. First the initial Foundation board needs to be appointed by the City Council. It will adopt by-laws but requests some staff support. Joan Pisani has the names of potential board members. Ron Adolphson has agreed to serve as Treasurer. Council support is needed at this-time. The City Council discussed the information provided by the Youth Commission. The Council needs further information as to the goals and objectives of the Friends of the Warner Hutton House. They also need to know to what extent the City will need to be involved with staff support. There was consensus that the Council favors the concept but is not ready to c~mmit itself until further details are available. The Foundation should be run by parent volunteers, not City staff. J. Attic Conversion Commissioner Luskey reported that the Youth CommisSion wishes to renovate the attic, putting in air conditioning, floor support, emergency exits, and computer equipment. The Library is still .too crowded after school, and additional study space is needed. Parks and Recreation funds could be used to pay for the plans., at a cost of approximately $4,000 to $5,000. Construction cost estimate is up to $75,000. The Heritage Commission approves of the project. The project may increase staffing needs. The Rotary Club has expressed interest in supporting theproject. K. Goals for 1997-98 Commissioner Chen requested support for the Youth Commission and 50% of the costs for the Warner Hutton House ($11,500), all but $1,000 of which is for staff. The Music Fest, the Boneyard and ski trips can be cut because they do not raise any money. They wish to keep dances and develop plans for attic renovation. The Commission feels that the fundraising goal for next year is attainable. City Council Minutes 3 May 13, 1997 The Mayor recessed the meeting at 6:40 p.m. for dinner. 5. Budget Workshop a. Presentation on Proposed 1997-98 and 1998-99 Budgets The meeting was reconvened at 7:10 p.m. in the Adult Day Care Center. Mayor Moran stated that the draft budget was available to the public at City Hall for review. Interim City Manager Perlin noted that the budget was still being revised and that it was the first to use some of the capabilities of the new computer system and to incorporate the staff reorganization. Finance Director Fil projected transparencies showing various aspects of the proposed budget and the reorganization. Mayor Moran asked if it would be correct to say that, in effect, unusually large revenues due to new construction were being used to pay off the debt from the City Hall remodeling. Mr. Fil replied that the situation could be so viewed, in the sense that a one-time increase is being used for a one-time project. Parks and Recreation Commissioner Marianne Swan asked if Park Development Fund revenues from new construction were being used to pay off City Hall. Mr. Fil replied that the principal remained untouched in the Park Development Fund, but that the interest could be used to ,offset park maintenance costs. Councilmember Jacobs pointed out that the interest is not a dependable source of income because when the Park Development Fund has been expended there is no more interest. Mr. Fil stated that the interest on the Fund would be about $55,000 per year at current rates, assuming a fund balance of $1 million. Councilmember Shaw asked why the staff took the risk of delaying pavement management, which could result in greater costs over the long term. Mr. Perlin replied that the calculations needed more analysis to see how much greater the costs might be. He stated he would get more exact figures on the long-term costs. Mayor Moran asked if reserve money could be used for pavement management. Mr. Fil stated that reserves could be used to retain pavement management at previous levels, but that would reduce the reserves so that only the contingency fund would be left for unexpected expenses. He felt the current $2 million reserve was a satisfactory amount and should be maintained. He also noted that the proposed budget is conservative and assumes a moderate growth in the economy. However, if growth is less than expected, the reserve could be reduced. He recommended approving the budget as presented and reevaluating it later if circumstances made that necessary. Another factor is the Tax Equity Allocation money which might be forthcoming. If the rulings are in our favor, we should have another $729,000 which could be used for pavement management. Councilmember Jacobs noted that the question is philosophical: whether to pay off debt or maintain previous standards. Mayor Moran agreed and stated that the Council had made the decision to pay off the debt. Mr. Perlin stated that although the Council has decided to reduce pavement management funding, the reduction will not become effective immediately. Pavement management is done in two-year cycles, and the current cycle must be completed before reductions can be made. The financial situation can be re-evaluated at that time. Mr. Fil then pointed out other noteworthy items in the budget, including the fact that the PG&E franchise fee will go down because their rates are being reduced. He also explained indirect cost allocations. The Recreation budget can be viewed as a profit and loss statement because revenues and expenditures show up in Fund 40. City Courtell Minutes 4 May 13, 1997 Mr. Perlin then listed budget changes that had occurred since theApril 22 meeting, including the $51,000 increase in TEA; reduction of construction tax by $16,000; increase in wireless communication lease revenues because of the Metricom agreement just approved; and others. b. Council Direction to Staff Mayor Moran said she would like a separate program for Civic Theater improvements to be funded by the theater ticket surcharge. Councilmember Jacobs questioned the validity of the Recreation Department estimates for camps. Recreation Director Pisani replied that the department has made plans to attain $287,000 in revenue. Mr. Fil stated that the Council will consider a resolution increasing fees at the time the budget is approved. Discussion ensued as to time spent by Recreation Department staff promoting facility rentals and how the rental revenues should be accounted for. Parks and Recreation Commissioner Marianne Swan stated that we have to balance the needs of youth programs and those of outsiders who want to rent a facility. Mayor Moran felt that we must work cooperatively, but the budget must be clarified to separate rental income and park income. Parks and Recreation Commissioner Kay Whitney stated that facility rentals required a specialist. Mayor Moran asked'that the staff look at accountability for facility rentals within the Recreation Department. Mr. Perlin stated that the budget could show it in both ways, and nothing substantial would change except the accounting. Mr. Fil suggested~ creating a program called Facilities Rental. All direct and indirect costs will be based on a time-of-use estimate. The program could be in a new Fund 41. Mrs. Pisani feared that removing facilities rentals from Recreation will hamper cost recovery in the Department. Mr. Perlin pointed out that if Mrs. Pisani's calculations were correct, there should be a revenue surplus in the new Fund 41. That fund could then subsidize the Recreation Department just as the General Fund does now. Parks and Recreation Commissioner Swan expressed concern that the discussion tendedto pull the staff apart when the important thing is to work together. ! Councilmember Jacobs considered accountability as a management tool; the public has a right to the data. Councilmember wolfe favored working on this possibility even if it might not be ultimately adopted. In answer to Councilmember Shaw, Mr. Fil stated that the new system would be a burden on the staff because time and supplies, etc. would have to be broken out. Councilmember Shaw requested that the additional administrative burden also be estimated. Mr. Fil stated that the for May 27 meeting the staff would do a breakout based on reasonable estimates. At 9:05 Mayor Moran asked if anyone from the public wished to speak. Jack Mallory questioned what would happen to Saratoga streets in the long term if spending on pavement management is cut. Mr. Perlin stated that the staff expected to have more accurate numbers on that at the May 27 meeting. Councilmember Jacobs brought up the possibility that we may be able to cut back and still have adequate street maintenance. Mr. Perlin expressed the view that last year the City had almost reached a steady state, such that the streets could be maintained in good condition with a given amount of funding annually. However, if less than the given amount is put into street maintenance, the streets City Council Minutes 5 May 13, 1997 will gradually deteriorate. Another factor is the proposed relinquishment of Saratoga-Sunnyvale Road from the State to the City. This would add a significant financial liability to the City's maintenance obligations. Mayor Moran favored being more foresighted and putting money into capital projects, especially pavement management. Mr. Mallory rose again to object to budget cuts in code enforcement. He also felt the lack of City funding for the July 4 celebration was reprehensible. He asked what the Council's vision for the City was. Councilmember Jacobs responded that the vote against the Utility User Tax clearly showed that Saratogans wanted reduced services and administration. Mayor Moran said the vision was for a smaller, leaner, more efficient government. Councilmember Shaw felt it is too early to tell. Jim Ousley, Finance Advisory Committee Member, stated that the Committee had reviewed the budget. He felt the budget reflected well the consensus of the staff and the Council. He believed it was unfortunate that there were not enough funds for all capital improvement projects and pavement management, but that is the reality. He asked the Council to consider using "windfalls" for one-time projects or restoring services. He felt the Council now had a better understanding of the true cost of the Recreation Department, but the general public does not. He encouraged the Department to submit their long term plan to the Council in writing. As to the question of vision, he shared Mr. Mallory's concerns, but felt the process must be gone through. The new City Manager would have to be hired, and he or she would be involved in establishing the City's new vision. Councilmember Wolfe commented that the results of the open and free election told the Council that the City should not pay for the July 4 celebration. But he felt that the festivities would not be dimmed by lack of finances. Mayor Moran Wished to work further on park development. She asked that staff create a "placeholder" number in the budget for the priorities the Council agreed upon previously. Mr. Perlin stated that the Parks and Recreation Co~unission had revised the priorities and has a new list which would not increase the maintenance burden. He expected to include it in a memo to the Council this Friday. Mayor Moran responded that she wished the budget placeholder to be based on the current park priorities list which the Council had approved previously. Mayor Moran noted that they would next discuss the budget at the joint meeting with the Finance Advisory Committee on May 27. She then thanked the staff, in particular the Interim City Manager and the Finance Director. They had, under difficult circumstances, submitted a timely two-year budget which had accomplished what needed to be accomplished. 6. Self-Evaluation of Previous Meeting It was agreed that the meeting went well. 7. Agency Assignment Reports - None. 8. Other Mr. Perlin brought up the possibility of changing the Youth Commission interviews to June 10 rather than June 7. There was consensus to do so. City council Minutes 6 May 13, lgg7 It was agreed that the May 27 agenda would include only the joint meeting with the Hakone Foundation and the budget workshop and that the June 10 agenda would consist of Youth Commission interviews, the Miller Avenue issue, and the Team Saratoga presentation. In addition, Mr. Perlin stated that the Tax Equity Allocation bill being sponsored by the City is going forward in committee tomorrow. Senator Sher feels it will move through the committee without problems. The City has agreed to delete clarifying language from the bill; otherwise, the county would have opposed it. The City Attorney and the CoUnty Counsel will get an independent opinion on the implementation of the TEA reduction and abide by it. Councilmember Shaw asked about the Hakone Agreement, and Mr. Perlin stated that it is almost final. The Foundation meets tonight, and further discussions would be in order at the joint meeting with the Foundation on May 27. Mr. Perlin expects to include it in a memo to the Council this Friday. Mr. Perlin noted that the Council is still deciding on a recruitment firm for the permanent City Manager. Recruitment can proceed after firms have been interviewed and one selected. 9. Adjournment The meeting was adjourned at 9:50 p.m. Respectfully submitted, Larry I. 1 Interim City Manager