Loading...
HomeMy WebLinkAboutPacket.pdf REGULAR MEETING – 7:00 P.M. – CIVIC THEATER/COUNCIL CHAMBERS AT 13777 FRUITVALE AVENUE PLEDGE OF ALLEGIANCE ROLL CALL REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov’t. Code 54954.2, the agenda for this meeting was properly posted on February 13, 2009) COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non-Agendized Items Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. Oral Communications - Council Direction to Staff Instruction to Staff regarding actions on current Oral Communications. Communications from Boards and Commissions Council Direction to Staff Instruction to Staff regarding actions on current Communications from Boards & Commissions. ANNOUNCEMENTS CEREMONIAL ITEMS 1. Appointment of Planning Commissioner and Oath of Office Recommended action: Adopt the attached resolution appointing one member to the Planning Commission and direct the City Clerk to administer the Oath of Office. SPECIAL PRESENTATIONS 2. Presentation on Communities of Faith Recommended action: AGENDA REGULAR MEETING SARATOGA CITY COUNCIL Wednesday, February 18, 2009 1 Accept presentation on the Communities of Faith service activities. CONSENT CALENDAR The Consent Calendar contains routine items of business. Items in this section will be acted in one motion, unless removed by the Mayor or a Council member. Any member of the public may speak to an item on the Consent Calendar at this time, or request the Mayor remove an item from the Consent Calendar for discussion. Public Speakers are limited to three (3) minutes. 3. Review of Accounts Payable Registers Recommended action: That the City Council accepts the Check Registers for Accounts Payable cycles: January 27, 2009 January 29, 2009 February 05, 2009 4. Treasurer’s Report for the Month Ended December 31, 2008 Recommended action: The City Council review and accept the Treasurer’s Report for the month ended December 31, 2008. 5. Review and accept the FY 2007/08 Comprehensive Annual Financial Report (CAFR) Recommended action: Review and accept the FY 2007/08 Comprehensive Annual Financial Report (CAFR) 6. Adoption of the Ordinance Amending the Regulations Related to Fences, Walls, and Hedges Recommended action: Staff recommends the City Council waive the Second Reading and adopt the Ordinance amending the Regulations Related to Fences, Walls, and Hedges. 7. Agreements to Relocate the Equestrian and Pedestrian Trail Recommended action: Approve the two Agreements to Relocate the Equestrian and Pedestrian Trail with Parker Ranch Homeowners Association and Saratoga Country Club, respectively. Authorize the City Manager to execute the same. 8. Landscaping & Lighting Assessment District LLA-1; Resolutions initiating renewal of the District for FY 09-10. Recommended action: 1. Move to adopt the Resolution describing improvements and directing preparation of the Engineer’s Report. 2. Move to adopt the Resolution appointing the Attorney’s for the District. 9. American Recovery and Reinvestment Act of 2009 (ARRA) Funding for the Saratoga Avenue Overlay and Rehabilitation Project. Recommended action: Adopt resolution supporting the American Recovery and Reinvestment Act of 2009 (ARRA) for the Saratoga Avenue Overlay and Rehabilitation Project. 2 PUBLIC HEARINGS Applicants/Appellants and their representatives have a total of ten minutes maximum for opening statements. Members of the public may comment on any item for up to three minutes. Applicant/Appellants and their representatives have a total of five minutes maximum for closing statements. Items requested for continuance are subject to Council’s approval at the Council meeting 10. FY 2009/10 Community Development Block Grant and Community Grant Funding Applications Recommended action: 1. Conduct the Public Hearing and accept public testimony presentations from applicants. 2. Continue the Public Hearing to March 4th and make a decision regarding allocations. 11. Ordinance Regarding Terms for City Commissions Recommended action: 1. Introduce and waive the first reading of the attached ordinance (Attachment A) after opening the public hearing, accepting public testimony, and closing the hearing. 2. Direct staff to place the second reading and adoption of the ordinance on the consent calendar for the next regular Council Meeting. 3. Direct staff to use proposed alternative interim term lengths (as indicated in Attachment B) during future Commission recruitments until Commission terms are fully staggered in 2012. 4. Continue the Public Hearing to March 4th and make a decision regarding allocations. OLD BUSINESS None NEW BUSINESS 12. Proposed Vehicle Impact Fee related to Refuse Vehicles Recommended action: Accept report and direct the City’s representative to the West Valley Solid Waste Management Authority (WVJPA) to convey the Council’s direction to the WVJPA. ADHOC & AGENCY ASSIGNMENT REPORTS Mayor Chuck Page Hakone Foundation Executive Committee Peninsula Division, League of California Cities SSC Cities Association Board SCC Cities Association Selection Committee Valley Transportation Authority PAC West Valley Sanitation District West Valley Mayors and Managers Association Council Finance Committee Council Finance Standing Committee City School Ad-Hoc 3 Vice Mayor Kathleen King Hakone Foundation Board West Valley Flood Control Zone & Watershed Advisory Committee SSC Cities Association Executive Board SCC Cities Association – Joint Economic Development Policy Committee (JEDPC) City School Ad-Hoc Councilmember Jill Hunter Historical Foundation Library Joint Powers Association Santa Clara County Valley Water District Commission Village AdHoc Councilmember Howard Miller Chamber of Commerce KSAR Santa Clara County Emergency Council West Valley Solid Waste Joint Powers Association Council Finance Standing Committee Councilmember Susie Nagpal ABAG Comprehensive County Expressway Planning Study Policy Advisory Board (PAB) County HCD Policy Committee SASCC Sister City Liaison Village AdHoc CITY COUNCIL ITEMS CITY MANAGER’S REPORT ADJOURNMENT Council will adjourn the Regular Council Meeting and proceed to the Administrative Conference Room for Closed Session. ANNOUNCEMENT OF CLOSED SESSION ITEMS Conference with Legal Counsel – Anticipated Litigation: Significant exposure to litigation pursuant to Government Code 54956.9 (b) (1 Item) In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, California 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City website at www.saratoga.ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. 4 In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting, please contact the City Clerk at (408) 868-1269. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II) Certificate of Posting of Agenda: I, Ann Sullivan, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council of the City of Saratoga was posted on February 13, 2009, at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and was available for public review at that location. The agenda is also available on the City’s website at www.saratoga.ca.us Signed this 13th day of February 2009 at Saratoga, California. Ann Sullivan, CMC City Clerk 5 NOTE: To view current or previous City Council meetings anytime, go to the City Video Archives at www.saratoga.ca.us 3/4 Regular Meeting – Joint Meeting with School Districts: Saratoga Union Elementary School District; Los Gatos-Saratoga Union High School District; Cupertino School District; Campbell School District Moreland School District; Fremont High School District; Sacred Heart; St. Andrews, and Campbell Union High School District 3/18 Regular Meeting – Joint Meeting with Supervisor Liz Kniss 4/1 Regular Meeting – Joint Meeting with Library Commission and Friends of the Saratoga Libraries 4/15 Regular Meeting – Joint Meeting with Youth Commission 5/6 Regular Meeting – Joint Meeting with Mt. Winery 5/20 Regular Meeting – Joint Meeting with Montalvo Arts 6/3 Regular Meeting – Joint Meeting with Parks and Recreation Commission 6/17 Regular Meeting – Joint Meeting with HOA Presidents 7/1 Regular Meeting – 7/15 Regular Meeting – Joint Meeting with SASCC 8/5 Regular Meeting – Joint Meeting with Saratoga Ministerial Association 8/19 SUMMER RECESS – NO COUNCIL MEETING 9/2 Regular Meeting – Joint Meeting with Hakone Foundation 9/16 Regular Meeting – Joint Meeting with West Valley Board of Trustees 10/7 Regular Meeting – Joint Meeting with Traffic Safety Commission 10/21 Regular Meeting – Joint Meeting with Historical Foundation & Heritage Preservation Comm. 11/4 Regular Meeting – Saratoga Village Development Council 11/18 Regular Meeting - CITY OF SARATOGA CITY COUNCIL MEETING CALENDAR 2009 6 12/1 Council Reorganization 12/2 Regular Meeting - 12/16 Regular Meeting - 7 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson PREPARED BY: Ann Sullivan, City Clerk DIRECTOR: Dave Anderson SUBJECT: Appointment of Planning Commissioner and Oath of Office RECOMMENDED ACTION: Adopt the attached resolution appointing one member to the Planning Commission and direct the City Clerk to administer the Oath of Office. REPORT SUMMARY: The attached resolution appoints Mary-Lynne Bernald to the Planning Commission to fill the remaining term for the seat vacated by Susie Nagpal in December 2008. The term for this position will expire on April 1, 2011. Upon direction from the City Council the Oath of Office will be administered by the City Clerk and signed by the new Commissioner. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Appointment would not be made to Planning Commission. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Update City’s Official Roster. ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda. 8 ATTACHMENTS: Attachment A – Resolution of Appointment Attachment B – Oath of Office 9 RESOLUTION 09 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPOINTING ONE MEMBER TO THE PLANNING COMMISSION WHEREAS, City Council conducted interviews on February 4, 2009 and appointed one new member to the Planning Commission to fill the seat vacated by Susie Nagpal in December 2008; and WHEREAS, the term for this position will expire on April 1, 2011. NOW, THEREFORE, the City Council of the City of Saratoga hereby resolves that the following appointment was made to the Planning Commission: MARY-LYNNE BERNALD The above and foregoing resolution was passed and adopted at an adjourned meeting of the Saratoga City Council held on the 18th day of February 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Chuck Page, Mayor ATTEST: ____________________________ Ann Sullivan, City Clerk 10 STATE OF CALIFORNIA COUNTY OF SANTA CLARA I, Mary-Lynne Bernald, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter. __________________________ Mary-Lynne Bernald, Member Planning Commission Subscribed and sworn to before me on This 18th day of February 2009. __________________________ Ann Sullivan, CMC City Clerk 11 12 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson PREPARED BY: Ann Sullivan, City Clerk DIRECTOR: Dave Anderson SUBJECT: Presentation on Communities of Faith RECOMMENDED ACTION: Accept presentation on the Communities of Faith service activities. REPORT SUMMARY: This year marks the first annual Saratoga Serves, a week of service opportunities provided by the Saratoga Ministerial Association to help those in need around the community and around the world. They expect over 700 individuals to contribute their time and skills in reaching out and helping others. If anyone is interested in finding out more about this service, please go to SaratogaServes.org Scott Wheelwright, member of the Saratoga Ministerial Association will provide the short presentation. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: None ADVERTISING, NOTICING AND PUBLIC CONTACT: 13 Posting of the agenda. ATTACHMENTS: None 14 Dave Anderson Melanie Whittaker Mary Furey RECOMMENDED ACTION: That the City Council review and accept the Check Registers for the following Accounts Payable payment cycles: REPORT SUMMARY: Attached are the Check Registers for: Date Ending Check No. 02/05/09 111490 111519 29 204,318.69 02/05/09 01/29/09 111489 01/29/09 111441 111489 48 365,245.50 01/29/09 01/22/09 111440 01/27/09 111439 111440 2 56,224.16 01/22/09 01/15/09 111438 AP Date Check No. Issued to Dept.Amount 01/27/09 111440 Public Works 56,223.16 01/29/09 111466 Public Safety & Human Resources 330,022.46 02/05/09 111497 Public Works 124,169.76 02/05/09 111514 Various 49,480.71 The following are Accounts Payable checks that were voided or manually issued: AP Date Check No.Amount 1/27/2009 111439 (1.00) 1/27/2009 111440 (56,223.16) Accounts Payable January 27, 2009 CRW Industries Shute Mihaly & Weinberger Void - Clear AP Holds Issued to Description B&B Landscape Void - Clear AP Holds Various Monthly Services - Legal Fees / City Attorney / Litigation County of Santa Clara Office of the Sheriff General Monthly Law Enforcement CRW Industries North Campus Improvement N Campus Improvements Fund Purpose CRW Industries North Campus Improvement N Campus Improvements Prior Check Register Accounts Payable Accounts Payable The following is a list of Accounts Payable checks issued for more than $10,000 and a brief description of the expenditure: SUBJECT: Review of Accounts Payable Check Registers. January 29, 2009 February 5, 2009 Type of Checks Date Starting Check No. Ending Check No.Total Checks Amount Checks Released DEPARTMENT:Finance & Administrative Services CITY MANAGER: PREPARED BY:DEPT. DIRECTOR: SARATOGA CITY COUNCIL MEETING DATE:February 18, 2009 AGENDA ITEM: 15 The following is a list of cash reduction by fund: Fund #AP 01/27 AP 01/29 AP 02/05 Total 111 General 345,923.72 63,677.72 409,601.44 231 Village Lighting 26.51 26.51 241 Arroyo de Saratoga Landscape 85.00 85.00 242 Bonnet Way Landscape 127.00 127.00 243 Carnelian Glen 135.00 135.00 244 Cunningham/Glasgow Landscape 145.00 145.00 245 Fredericksburg Landscape 132.00 132.00 246 Greenbriar Landscape 179.00 220.00 399.00 247 Kerwin Ranch Landscape 101.94 340.00 441.94 248 Leutar Court Landscape 85.00 85.00 249 Manor Drive Landscape 160.00 160.00 251 McCartysville Landscape 215.00 215.00 252 Prides Crossing Landscape 450.00 450.00 253 Saratoga Legends Landscape 363.00 363.00 254 Sunland Park Landscape 340.00 340.00 255 Tricia Woods Landscape 37.00 37.00 271 Beauchamps Landscape 85.00 85.00 272 Bellgrove Landscape 1,985.00 1,985.00 273 Gateway Landscape 391.85 391.85 274 Horseshoe Landscape/Lighting 320.00 320.00 276 Tollgate LLD 90.00 90.00 411 CIP Street Projects 4,659.03 3,867.50 8,526.53 412 CIP Parks Projects 4,344.75 4,344.75 413 CIP Facility Projects 56,223.16 1,674.86 124,779.15 182,677.17 421 Tree Fine Fund 1,416.00 1,416.00 431 Grant Fund - CIP Streets 1.00 1.00 611 Liability/Risk Mgt 4,179.61 4,179.61 621 Office Stores Fund 76.93 56.11 133.04 622 Information Technology 203.90 543.90 747.80 623 Vehicle & Equimpent Maint 832.60 78.92 911.52 624 Building Maintenance 5,040.54 2,056.28 7,096.82 632 139.37 139.37 56,224.16 365,245.50 204,318.69 625,788.35 ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: N/A ATTACHMENTS: Check Registers in the A/P Checks By Period and Year report format IT Equipment Replacement TOTAL Fund Description 16 17 18 19 20 21 22 23 24 25 26 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Ann Xu, Accountant DEPT HEAD: Mary Furey, Director SUBJECT: Treasurer’s Report for the Month Ended December 31, 2008 RECOMMENDED ACTION The City Council review and accept the Treasurer’s Report for the month ended December 31, 2008. REPORT SUMMARY California government code section 41004 requires that the City Treasurer (the Municipal Code of the City of Saratoga, Article 2-20, Section 2-20.035, designates the City Manager as the City Treasurer) submit to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. Section 41004. Regularly, at least once each month, the City Treasurer shall submit to the City Clerk a written report and accounting of all receipts, disbursements, and fund balances. He shall file a copy with the legislative body. The following attachments provide various financial data and analysis for the City of Saratoga’s Funds collectively as well as specifically for the City’s General (Operating) Fund, including an attachment from the State Treasurer’s Office of Quarterly LAIF rates from the 1st Quarter of 1977 to present. FISCAL IMPACT Cash and Investments Balance by Fund As of December 31, 2008, the City had $160,142 in cash deposit at Comerica bank, and $14,991,585 on deposit with LAIF. Council Policy on operating reserve funds, adopted on April 20, 1994, states that: for cash flow purposes, to avoid occurrence of dry period financing, pooled cash from all funds should not be allowed to fall below $2,000,000. The total pooled cash balance as of December 31, 2008 is $15,151,727 and exceeds the minimum limit required. Cash Summary Unrestricted Cash Comerica Bank 160,142$ Deposit with LAIF 14,991,585$ Total 15,151,727$ 27 CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION The City would not be in compliance with Government Code Section 41004. ALTERNATIVE ACTION N/A FOLLOW UP ACTION N/A ADVERTISING, NOTICING AND PUBLIC CONTACT N/A ATTACHMENTS A – Cash Balances by Fund B – Change in Total Fund Balances by Fund C – Cash and Investments by CIP Project D – Change in Total Fund Balances by CIP Project E – Local Agency Investment Fund (LAIF) Quarterly Apportionment Rates 28 ATTACHMENT A The following table summarizes the City’s total cash and investment balances by Fund. Fund Types Fund Description Cash & Investment Balance at December 31, 2008 General General Fund Reserved: Petty Cash Reserve 1,300$ Designated: Designated for Operations 2,808,164$ Designated for Economic Uncertainty 1,300,000$ Designated for Development Services 782,380$ Designated for Environmental Services 679,917$ Designated for Uncollected Deposits 289,454$ Designated for Carryforward 58,386$ Undesignated:1,788,625$ Special Revenue Landscape and Lighting Districts 203,142$ CDBG Federal Grants -$ SHARP Program 116,476$ Capital Project Street Projects 2,157,675$ Park and Trail Projects 1,433,601$ Facility Improvement Projects 930,911$ Administrative Projects 188,743$ Tree Fund 95,537$ CIP Grant Fund 42,432$ Gas Tax Fund 362,077$ Debt Service Library Bond 210,194$ Internal Service Equipment Replacement 54,400$ IT Replacement 339,860$ Facility Maintenance 180,120$ Equipment Maintenance 30,327$ Information Technology Services 141,621$ Office Stores Fund 35,120$ Liability/Risk Management 98,098$ Workers Compensation 82,327$ Trust/Agency Library Fund 699,316$ KSAR - Community Access TV 41,524$ Total City 15,151,727$ 29 ATTACHMENT B CHANGES IN TOTAL FUND BALANCE The following table presents the ending Fund Balances for the City’s major fund types as at December 31, 2008. This table excludes Trust and Agency funds where the City acts merely as a third party custodian of an outside party’s funds. Fund Description Fund Balance 07/01/08 Increase/ (Decrease) Jul-Nov Current Revenue Current Expenditure Transfers Fund Balance 12/31/08 General Undesignated Unreserved Balance 2,216,238 (2,257,944) 2,145,377 1,561,534 542,138 Reserved Fund Balance: Petty Cash Reserve 1,300 - - - 1,300 Designated Fund Balances:- - Designated for Operations 2,808,164 - - - 2,808,164 Designated Economic Uncertainty 1,500,000 (200,000) - - 1,300,000 Designated for Development 782,380 - - - 782,380 Designated for Environmental 679,917 - - - 679,917 Designated for Uncollected Deposits 289,454 - - - 289,454 Designated for Carryforward 58,386 - - - 58,386 Special Revenue Landscape/Lighting Districts 209,821 (49,020) 57,713 15,368 203,147 CDBG Federal Grants - - - - - SHARP Loan 93,877 (67) 1,555 - 95,365 Capital Project Street Projects 2,432,995 (133,327) - 72,124 - 2,227,544 Park and Trail Projects 1,497,834 (191,232) - (85,599) - 1,392,201 Facility Improvement Projects 994,315 (103,838) - 9,925 - 880,552 Administrative Projects 219,841 (19,603) - 6,100 - 194,139 Tree Fund 129,566 (28,767) - 3,412 - 97,387 Grant Fund - 172,047 - 68,939 - 103,108 Gas Tax Fund - 114,732 87,901 29,369 - 173,264 Debt Service Library Bond 853,620 (651,291) 7,891 - 210,219 Internal Service Fund Equipment Replacement 98,109 (23,792) - 19,918 54,399 Technology Replacement 316,310 25,379 - 1,829 339,859 Building Maintenance 101,361 151,600 60 77,936 175,085 Equipment Maintenance 13,412 46,188 - 16,801 42,800 Information Technology Services 122,541 52,357 - 33,277 141,621 Office Stores Fund 32,616 5,468 - 2,964 35,120 Liability/Risk Management 128,689 (30,666) - (75) 98,099 Workers Compensation 47,736 36,721 618 2,748 82,327 Total City 15,628,482 (3,085,056) 2,301,115 1,836,568 - 13,007,974 30 ATTACHMENT C CASH AND INVESTMENTS BALANCES BY CIP PROJECT The following table details the cash balances for each project in the Streets, Parks & Trails, Facility Improvements, and Administrative Project Program Funds. CIP Funds/Projects Cash & Investment Balance at December 31, 2008 Street Projects Traffic Safety 11,757 Highway 9 Safety Project 82,460 Annual Street Resurfacing Project 386,240 Sidewalks Annual Project 120,075 Saratoga Sunnyvale Road Resurfacing (114,321) Traffic Signal @ Verde Vista Lane 90,000 Fourth Street Bridge 100,000 Highway 9 and Oak Place Pedestrian Sign (16,188) Quito Road Bridge Replacement Design 9,730 Quito Road Bridge Construction 115,726 Village Newsrack Enclosure 23,384 Village Façade Program 19,430 Solar Power Radar Feedback Signs 24,158 El Quito Area Curb Replacement 37,552 Sobey Road Culvert Repair 150,000 Village Trees & Lights at Sidestreets 31,965 Village Pedestrian Enhancement 115,000 Prospect Road Median 201,556 City Entrance Sign/Monument 23,788 Village-Streetscape Impv 540,665 Saratoga-Sunnyvale ADA Curb Ramps (2,525) Saratoga-Sunnyvale/Gateway Sidewalk 57,224 Pedestrian Refuge @ Quito/McCoy 150,000 Total Street Projects 2,157,675$ Parks & Trails Hakone Garden Koi Pond 50,000 EL Quito Park Improvements 118,209 Wildwood Park - Water Feature/Seating 7,199 Historical Park Landscape 37,200 Hakone Garden Retaining Wall & D/W 142,829 Hakone Garden Upper Moon House Foundation 125,000 Wildwood Park Improvement (4,543) DeAnza Trail (77,802) Kevin Moran Improvements 1,013,599 West Valley Soccer Field (51,412) Park/Trail Repairs 21,130 Heritage Orchard Path 6,153 Trail Segment #3 Repair 7,912 Teerlink Ranch Trail 22,242 CIP Allocation Fund 15,885 Total Parks & Trails 1,433,601$ Facility Improvements Civic Center Landscape 13,385 Warner Hutton House Improvements 5,868 Facility Projects 39,735 Fire Alarm at McWilliams & Museum 11,371 North Campus Improvements 379,790 North Campus - Bldg Removal 75,000 City Hall - Cool Roofs 44,000 Multi-Purpose Room Fund 250,000 Corp Yard Solar Project 100,000 McWilliams House Improvement 10,000 Historical Park Fire Alarm System 1,762 Total Facility Improvements 930,911$ Administrative Projects Financial System Upgrade 8,516 Document Imaging Project 66,623 CDD Document Imaging Project 54,604 Website Development Project 50,000 KSAR Equip Upgrades 9,000 Total Administrative Projects 188,743$ Tree Fund Tree Fund 95,537$ CIP Grant Fund CIP Grant Fund 42,432$ Gas Tax Fund Gas Tax Fund 362,077$ Total CIP Funds 5,210,975$ 31 ATTACHMENT D FUND BALANCES BY CIP PROJECT The following table details the fund balances for each project in the Streets, Parks & Trails, Facility Improvements, and Administrative Project Program Funds. CIP Funds/Projects Fund Balance 07/01/08 Increase/ (Decrease) Jul-Nov Current Revenue Current Expenditure Transfers Fund Balance 12/31/08 Street Projects Traffic Safety 11,757 (3,148) - 3,850 4,759 Highway 9 Safety Project 82,460 (12,331) - - 70,129 Annual Street Resurfacing Project 782,980 (113,894) - 52,898 616,188 Sidewalks Annual Project 46,436 - - 2,709 43,728 Saratoga Sunnyvale Road Resurfacing (178,292) - - - (178,292) Traffic Signal @ Verde Vista Lane 90,000 - - - 90,000 Fourth Street Bridge 100,000 - - - 100,000 Quito Road Bridge Replacement Design 9,730 - - - 9,730 Quito Road Bridge Construction 115,726 - - - 115,726 Village Newsrack Enclosure 23,384 (77) - - 23,307 Village Façade Program 19,430 - - - 19,430 Solar Power Radar Feedback Signs 24,158 - - - 24,158 El Quito Area Curb Replacement 37,553 - - - 37,553 Sobey Road Culvert Repair 150,000 - - - 150,000 Village Trees & Lights at Sidestreets 31,965 - - - 31,965 Village Pedestrian Enhancement 115,000 (2,763) - 6,578 105,659 Prospect Road Median 201,556 (1,114) - 6,090 194,352 City Entrance Sign/Monument 23,788 - - - 23,788 Village-Streetscape Impv 540,665 - - - 540,665 Saratoga-Sunnyvale ADA Curb Ramps (2,525) - - - (2,525) Saratoga-Sunnyvale/Gateway Sidewalk 57,224 - - - 57,224 Pedestrian Refuge @ Quito/McCoy 150,000 - - - 150,000 Total Street Projects 2,432,995 (133,327) - 72,124 - 2,227,544 Parks & Trails Hakone Garden Koi Pond 50,000 - - - 50,000 EL Quito Park Improvements 118,209 (5,900) - 7,887 104,422 Wildwood Park - Water Feature/Seating 7,199 - - - 7,199 Historical Park Landscape 37,200 - - - 37,200 Hakone Garden Retaining Wall & D/W 142,829 - - - 142,829 Hakone Garden Upper Moon House 125,000 - - - 125,000 Wildwood Park Improvement (4,543) - - - (4,543) DeAnza Trail (77,802) (10,992) - 7,899 (96,693) Kevin Moran Improvements 982,259 (41,210) - 354 940,695 West Valley Soccer Field (58,507) (7,528) - - (66,035) Park/Trail Repairs 21,130 (9,390) - 927 10,813 Heritage Orchard Path 6,153 (6,153) - - - Trail Segment #3 Repair 7,912 - - - 7,912 Teerlink Ranch Trail 22,242 (7,392) - - 14,850 CIP Allocation Fund 118,552 (102,667) - (102,667) 118,552 Total Parks & Trails 1,497,834 (191,232) - (85,599) - 1,392,201 Facility Improvements Civic Center Landscape 13,384 - - 2,561 10,823 Warner Hutton House Improvements 5,868 - - - 5,868 Facility Projects 39,735 17,529 - 6,839 50,425 Fire Alarm at McWilliams & Museum 11,371 - - - 11,371 North Campus Improvements 443,195 (121,367) - 525 321,303 North Campus - Bldg Removal 75,000 75,000 City Hall - Cool Roofs 44,000 44,000 Multi-Purpose Room Fund 250,000 250,000 Corp Yard Solar Project 100,000 100,000 McWilliams House Improvement 10,000 10,000 Historical Park Fire Alarm System 1,762 - - - 1,762 Total Facility Improvements 994,315 (103,838) - 9,925 - 880,552 Administrative Projects Financial System Upgrade 8,516 (4,982) - - 3,534 Document Imaging Project 92,325 (9,343) - - 82,981 CDD Document Imaging Project 60,000 (2,279) - 6,100 51,622 Website Development Project 50,000 - - - 50,000 KSAR Equip Upgrades 9,000 (2,998) - - 6,002 Total Administrative Projects 219,841 (19,603) - 6,100 - 194,139 Tree Fund Tree Fine Fund 129,566 (28,767) - 3,412 97,387 CIP Fund CIP Grant Fund - 172,047 - 68,939 103,108 Gax Fund Gas Tax Fund - 114,732 87,901 29,369 173,264 Total CIP Funds 5,274,550 (189,988) 87,901 104,268 - 5,068,194 32 ATTACHMENT E 33 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Review and accept the FY 2007/08 Comprehensive Annual Financial Report (CAFR). RECOMMENDED ACTION: Review and accept the FY 2007/08 Comprehensive Annual Financial Report (CAFR). REPORT SUMMARY: The City’s external auditor’s Vavrinek, Trine, Day & Co, LLP (VTD) conducted an audit in accordance with generally accepted auditing standards. These standards require that they plan and perform the audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement. In conjunction with the audit, the City’s financial data and schedules were compiled as a Comprehensive Annual Financial Report (CAFR) which presents the City of Saratoga’s financial condition, results of operations and current economic condition, for the fiscal year ended June 30, 2008. The 2007/08 CAFR received an unqualified opinion from the City’s external auditors, VTD. An unqualified opinion indicates the financial data of the City is fairly presented according to general accounting principles. Additionally, VTD reviewed the City’s internal controls, and found no reportable material weaknesses. A material weakness is a significant deficiency which could lead to a material misstatement of the financial statements. The auditors informed staff they do not issue management letters on Internal Controls unless the City’s internal control structure is found to have reportable material weaknesses. The City has applied for the Government Finance Officers Association (GFOA), Certificate of Achievement for Excellence in Financial Reporting for the FY 2007/08 CAFR. Staff will inform Council of the award status once notified. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: None FOLLOW UP ACTION: Notify Council of CAFR Award status ADVERTISING, NOTICING AND PUBLIC CONTACT: N/A ATTACHMENTS: 34 Attachment A – CAFR Document 35 CITY OF SARATOGA CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR 2007/08 36 37 SARATOGA, CALIFORNIA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2008 City Council Ann Waltonsmith..........................................................................................................Mayor Chuck Page............................................................................................................Vice-Mayor Kathleen King..............................................................................................Council Member Jill Hunter.....................................................................................................Council Member Aileen Kao....................................................................................................Council Member Prepared under the direction of : David Anderson, City Manager Finance & Administrative Services Department 38 ii 39 CITY OF SARATOGA TABLE OF CONTENTS JUNE 30, 2008 iii INTRODUCTORY SECTION Principal Officials of the City Letter of Transmittal 3 GFOA Certificate of Achievement for Excellence in Financial Reporting 7 Organization Chart 8 FINANCIAL SECTION Independent Auditors' Report 11 Management's Discussion and Analysis 13 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 26 Statement of Activities and Changes in Net Assets 27 Fund Financial Statements Governmental Funds - Balance Sheet 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 29 Statement of Revenues, Expenditures, and Changes in Fund Balance 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets 31 Fiduciary Funds - Statement of Net Assets 32 Notes to Financial Statements 33 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Information 55 Modified Approach for City Streets Infrastructure Capital Assets 57 SUPPLEMENTARY INFORMATION Non-Major Governmental Funds 61 Combining Balance Sheet 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 64 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Streets and Roads Special Revenue Fund 66 Lighting and Landscaping Assessment City Special Revenue Fund 67 Community Development Block Grant Special Revenue Fund 68 Library Bond Debt Service Fund 69 Park Development Capital Projects Fund 70 Library Expansion Capital Projects Fund 71 Fiduciary Funds 73 Combining Statement of Fiduciary Net Assets – Agency Funds 74 Combining Statement of Changes in Assets and Liabilities – Agency Funds 75 Capital Assets Used in the Operation of Governmental Funds 77 Comparative Schedules by Source 79 Schedule by Function and Activity 80 Schedule of Changes by Function and Activity 82 40 CITY OF SARATOGA TABLE OF CONTENTS JUNE 30, 2008 iv Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Improvement Capital Projects Fund 83 STATISTICAL SECTION Statistical Section – (Unaudited) Net Assets by Component 88 Changes in Net Assets 89 Governmental Activities Tax Revenues by Source (Modified Accrual) 90 Fund Balances of Governmental Funds 91 Changes in Fund Balances of Governmental Funds 92 Direct and Overlapping Government 93 Assessed Value and Estimated Actual Value of Taxable Property 94 Principal Property Taxpayers 96 Property Tax Levies and Collections 98 Ratios of Outstanding Debt by Type 99 Ratios of General Bonded Debt Outstanding 100 Direct and Overlapping Governmental Activities Debt 101 Legal Debt Margin Information 102 Demographic and Economic Statistics 103 Principal Employers 104 Full-Time Equivalent City Government Employees by Function 106 Operating Indicators by Function 107 Capital Asset Statistics by Function 108 41 1 INTRODUCTORY SECTION 42 CITY OF SARATOGA ELECTED OFFICIALS AND ADMINISTRATIVE PERSONNEL As of June 30, 2008 CITY COUNCIL * Ann Waltonsmith - Mayor Chuck Page - Vice Mayor Kathleen King Jill Hunter Aileen Kao CITY STAFF Dave Anderson – City Manager Barbara Powell – Assistant City Manager Cathleen Boyer – City Clerk Mary Furey – Finance & Administrative Services Director John Livingstone – Community Development Director John Cherbone – Public Works Director Michael Taylor – Recreation & Facilities Director CITY ATTORNEY Richard S. Taylor – Shute, Mihaly & Weinberger INDEPENDENT AUDITOR Vavrinek, Trine, Day & Co., LLP, CPA * Council reorganization was completed on December 4, 2007 2 43 C ITY OF S ARATOGA C ITY H ALL 13777 F RUITVALE A VENUE S ARATOGA, C ALIFORNIA 95070 (408) 868-1200 3 December 19, 2008 Honorable Mayor and City Council, The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30, 2008, is hereby submitted as mandated by applicable statutes. These statutes require that the City of Saratoga annually issue a report on its financial position and activity, and that an independent firm of certified public accountants audit this report. Responsibilities for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City's management. The information in this report is intended to present the reader with a comprehensive view of the City's financial position and the results of its operations for the fiscal year ending June 30, 2008, along with additional disclosures and financial information designed to enable the reader to gain an understanding of the City's financial activities. This report was prepared as described in Government Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussions and Analysis-for State and Local Governments (GASB 34). This GASB Statement requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Comprehensive Annual Financial Report is organized in three sections: 1. Introductory Section - The introductory section, includes the table of contents, letter of transmittal, a list of the City of Saratoga's elected officials and City administrative personnel, an organization chart and the Government Finance Officers Association's (GFOA's) of the United States and Canada Certificate of Achievement for Excellence in Financial Reporting to the City of Saratoga for its CAFR for the fiscal year ending June 30, 2008. 2. Financial Section - The financial section includes the independent auditors' opinion, management's discussion and analysis, the basic financial statements, notes to the financial statements, combining statements of non-major funds, and required supplemental information. 3. Statistical Section - The statistical section includes both financial and non-financial data about the City. This information has been updated in accordance with the new GASB 44. THE REPORTING ENTITY AND ITS SERVICES The City, incorporated in 1956, is located 40 miles south of San Francisco in the Santa Clara Valley. The City currently covers a land area of approximately 12 square miles and contains a population of 31,592 as reported by the Department of Finance. The City is a general law city of the State of California and operates under a council-manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three additional council members. City Council members are elected at-large for staggered four-year terms. The Mayor is selected annually by 44 4 the City Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the City's seven advisory commissions, and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the policies and ordinances of the City Council, overseeing the daily operations of the City, and recommending appointments of the City's department directors to the City Council. The City provides a limited range of services including public safety, development regulation, public works, community and recreation activities and events, and general administrative functions. The City supports privatization and has supplemented its work force through numerous contracts with others. Contracted services include, but are not limited to, public safety, infrastructure maintenance, engineering services, legal services, and recreation activities. The City is also committed to citizen participation in the evaluation, expansion, and enhancement of services. Saratoga residents who wish to assist the City Council in forming government policy may do so by serving on an advisory commission. The commissions all act in an advisory capacity to the City Council, and are comprised of the Heritage Preservation Commission, Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission, and Youth Commission. The financial reporting entity (the City) includes all the fund activity of the primary government, as well as all of its component units. Component units are legally separated entities for which the City is fully accountable. The City's Saratoga Public Financing Authority (PFA) component unit which provided financial oversight of local bond obligations was finalized in FY 2005/06. The Authority's final financial report was issued in FY 2006/07. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data of the City. Accordingly, the operations of the Landscaping and Lighting Assessment Districts are reported in the City's financial statements. ECONOMIC CONDITIONS AND OUTLOOK The financial structure of Saratoga with its mostly built-out residential neighborhoods and limited commercial development means that the two largest sources of revenue for cities—property tax and sales tax—account for a smaller proportion of revenue than in other cities with minimal growth expected in future years. In addition, while proposition 1A protects the city from further ongoing unrestrained state takes of tax revenues, the potential exists under the state's current budget crisis. The city may see shortfalls of unprotected State or County based funding or temporary borrowings of property tax revenues permitted under Proposition 1A. With this in mind the city continues to restrict operations to minimal services and prepare for funding impacts. Capital improvements will continue to be funded with development fees, residual funding, and grant moneys as funding level allows. On a positive note the City began receiving a significant increase in property tax revenues due to the passage of Assembly Bill 117. This legislation, effective with the 2006/07 fiscal year, increased the property tax percentage allocated to the City as a result of the Tax Equity Allocation (TEA) formula. Assembly Member Cohn sponsored the bill which resulted from a joint effort of the City of Saratoga, Santa Clara County and 3 other affected cities – Cupertino, Monte Sereno and Los Altos Hills. While the TEA legislation restored the cities to the full "low tax" level of 7%, the State required the cities to continue to remit the County's ERAF rate on these funds so that the bill would have no effect on the State budget. The ERAF rate the County remits is 47.7%, compared to the City of Saratoga's rate of 17.14%, resulting in a significant impact to the revenues received. Financial Information and Major Initiatives Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that 45 5 adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the City is also responsible for guaranteeing that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by the City's management. The City has practiced a passive approach to investments and maintains flexibility by managing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City's investment policy. The goals of the City's investment policy are safety, liquidity and yield. In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, capital projects funds and debt service funds are included in the annual appropriation. The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount) is at the fund level. The City also maintains an encumbrance accounting system as another method of maintaining budgetary control. Encumbered amounts lapse at year-end with the exception of the Capital Improvements Projects, which are multiple-year projects. However, outstanding encumbrances of a material nature are reviewed by the responsible department and in some cases a recommendation is made to the City Council to take action by Resolution to re-appropriate these funds into the following year's budget. The FY 2007/08 budget focused on maintaining the status quo level of services in anticipation of a leveling of the City's base revenue sources with the weakening economy. Departmental budgets were held or reduced to non-expansive levels. The City also prepared for a significant take by the State due to the publicity of the State's struggle with their budget. With the anticipation of decreasing resources, the FY 2007/08 budget process focused on operational efficiencies to streamline services, aligning fees with services provided to the public, and strengthening the organization's tracking and communication of City operations. OTHER INFORMATION Independent Audit – California law requires cities to prepare an annual audit by an independent certified public accountant. In addition to meeting the requirements set forth in statutes, the audit was also designed to meet the requirements of the federal Single Audit Act of 1984, as amended, and the related U.S. Office of Management and Budget's Circular. Generally accepted auditing standards set forth in the General Accounting Office's Government Auditing Standards were used by the auditors in conducting the engagement. The auditor's unqualified report is included in the financial section of this report. Vavrinek, Trine, Day & Co., LLP Certified Public Accountants performed the City's Fiscal Year 2007/08 financial audit. Awards – The City was awarded a certificate for its early implementation of GASB 34. Additionally, the Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement to the City for its Excellence in Financial Reporting on the CAFR for the fiscal year ended June 30, 2007. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. 46 The Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to meet the Certificate of Achievement program's requirements, and plan on submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements – This CAFR represents the culmination of numerous hours of hard work expended by many individuals in the Finance & Administrative Services Department. In particular, we would like to express our appreciation to Robert Edris, Sr. Accountant, Ann Xu, Accountant, Julie Ingraham, Karen Caselli, and Melanie Whitaker, Accounting Technicians. Furthermore, we would like to thank Vavrinek, Trine, Day & Co. CPA's for their helpful assistance in the preparation of this report. Finally, we would like to give credit to the City Council for their ongoing interest and support in planning, conducting and advising on the operations of the City in a responsible and progressive manner. Respectfully submitted, 6 Dave Anderson Mary Furey City Manager Finance and Administrative Services Director 47 7 48 8 49 9 FINANCIAL STATEMENTS 50 10 51 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • PALO ALTO 11 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga (the City) as of and for the year ended June 30, 2008, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga, as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga, as of June 30, 2008, and the respective changes in financial position, thereof and the respective budgetary comparison for the General Fund and each major Special Revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2008, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit. 52 12 The required supplementary information, such as management's discussion and analysis, and the required supplementary information as listed on the table of contents, is not a required part of the basic financial statements, but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, and combining individual non- major fund statements and schedules, and statistical section listed in the table of contents, are presented for purposes of additional analysis and is not a required part of the basic financial statements. The combining, individual non-major fund statements and schedules, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. Pleasanton, California December 23, 2008 53 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 13 INTRODUCTION The following provides a narrative overview and analysis of the fiscal operations during the fiscal year ended June 30, 2008 for the City of Saratoga. The Management Discussion and Analysis is to be read in conjunction with the annual Transmittal Letter and the Basic Financial Statements. FISCAL YEAR 2007/08 FINANCIAL HIGHLIGHTS • The City's total net assets were $125,468,072 (reference pg #17). • Total City revenues, including program and general revenues were $22,660,539 while total expenses were $19,815,778 (reference pg #18). • Governmental program revenues were $7,397,944, while Governmental program expenses were $19,815,778 (reference pg #18). • General Fund revenues were $18,823,155, while General Fund expenditures were $16,561,663 (reference pg #21). THE BASIC FINANCIAL STATEMENTS The Basic Financial Statements are comprised of 1) Government-wide (City-wide) Financial Statements, and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different perspectives of the City's financial activities and financial position. Government-Wide Financial Statements provide a longer-term view of the City's activities as a whole, and comprise the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on a full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City's revenues and all its expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The Statement of Activities explains in detail the change in Net Assets for the fiscal year. All of the City's activities are required to be grouped into government activities and business-type activities. The entire amount in the Statement of Net Assets and the Statement of Activities are also required to be separated into governmental activities or business-type activities in order to provide a summary of these two activities of the City as a whole. In the case of the City of Saratoga, there are no business-type activities as of June 30, 2008. Fund Financial Statements report the City's operations in more detail than the government-wide statements and focus primarily on the short-term activities of the City's general fund and other major funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt, and other long-term amounts. Major funds account for the major financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major funds are explained below. 54 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 14 The Government -Wide Financial Statements Government-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The Statement of Net Assets and the Statement of Activities present information about the following: Governmental Activities - All of the City's basic services are considered to be governmental activities, 4including general government, community development, public safety, transportation, and, culture and leisure. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer and recreation program fees. Business-Type Activities - This category includes enterprise activities such as water, sewer, and utilities. Unlike governmental services, these services are fully supported by charges paid by users based on the amount of services they use. The City of Saratoga does not have any business-type activities at this time. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds - The City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities are not presented in the governmental fund financial statements. Unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near-term financing requirements. Fiduciary Funds – These funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds are not reflected in the government-wide financial statements because these resources are not available to support the City's programs. The City maintains one such fund, the Community Access Television Fund, which acts as trustee for the CATV Foundation Board for investment purposes. Notes to the Financial Statements Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found immediately following the fund financial statements. 55 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 15 REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information follows the basic financial statements and includes a budgetary comparison schedule that includes reconciliation between the statutory fund balance for budgetary purposes and the fund balance for the General Fund as presented in the governmental fund financial statements. SUPPLEMENTARY INFORMATION Combining and individual fund statements and schedules are included to provide information for non- major governmental funds, special revenue funds, fiduciary funds, and uses of capital assets. An un- audited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as an indicator of the City's financial position. The City's Total Net Assets increased $2,844,761, from $122,623,311 in FY 2006/07 to $125,468,072 in FY 2007/08. The most significant portion of the City's net assets $109,818,151 or 87.6% accounts for its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.;) less any related debt used to acquire those assets that are still outstanding. These capital assets represent infrastructure which provides services to the citizens, consequently, these assets are not available for future spending. $9,709,681 or 7.6% of the City's net assets is unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. $5,940,240 or 4.8% of the City's net assets are subjected to external restrictions on how they may be used. Of these restricted net assets, $4,768,478 is restricted for capital projects, $853,619 is for repayment of long-term debt and $318,143 is restricted for housing activities. 56 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 16 NET ASSETS 2008 2007 Assets Current assets 18,463,116$ 17,551,165$ Non-current assets 85,003 98,336 Capital assets 123,413,151 121,992,246 Total Assets 141,961,270 139,641,747 Liabilities Current liabilities 2,859,025 3,083,213 Long-term debt 13,634,173 13,920,327 Total Liabilities 16,493,198 17,003,540 Net Assets Investment in capital assets, net of related debt 109,818,151 108,102,246 Restricted for Capital Projects 4,768,478 4,337,666 Restricted for Debt Service 853,619 746,557 Restricted for Special Projects 318,143 844,003 Unrestricted 9,709,681 8,607,837 Total Net Assets 125,468,072$ 122,638,309$ Governmental Activities 57 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 17 STATEMENT OF CHANGES IN NET ASSETS Increase Functions/Programs 2008 2007(Decrease) Program Revenues Charges for services 5,532,622$ 2,641,316$ 2,891,306$ Operating grants and contributions 150,564 2,154,998 (2,004,434) Capital grants and contributions 1,714,758 1,282,454 432,304 Total Program Revenues 7,397,944 6,078,768 1,319,176 General Revenues Property taxes 8,378,168 5,772,084 2,606,084 Voter approved debt 1,112,515 270,823 841,692 Sales taxes 1,057,977 994,680 63,297 Local taxes 693,950 1,099,174 (405,224) Franchise fees 1,625,414 1,187,010 438,404 Motor vehicle in-lieu 148,865 176,771 (27,906) Intergovernmental revenues 840,557 673,626 166,931 Investment earnings 1,056,891 2,812,875 (1,755,984) Other revenues 348,258 131,951 216,307 Total General Revenues 15,262,595 13,118,994 2,143,601 Expenses General and intergovernmental services 6,292,527 4,532,488 1,760,039 Public safety services 4,165,945 3,844,330 321,615 Environmental services 441,875 487,243 (45,368) Public works 4,883,909 5,938,148 (1,054,239) Community services 1,285,739 1,436,964 (151,225) Community development services 2,032,217 1,992,790 39,427 Interest on long-term debt (Unallocated)713,566 767,983 (54,417) Total Expenses 19,815,778 18,999,946$ 815,832$ Increase in Net Assets 2,844,761 Net Assets, Beginning of Year 122,623,311 Net Assets, End of Year 125,468,072$ Governmental Activities As shown in the above Statement of Changes in Net Assets schedule, the net change in revenues from the prior fiscal year for governmental activities from general revenues was an increase of: $2,143,601. The net change in program revenues from the prior year was an increase of $1,319,176 for a total increase in revenues of $3,462,777. The net change in expenses from the prior year was $815,529, resulting in an increase in Net Assets of $2,844,761. 58 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 18 An analysis and graphical representation of the changes in revenues and expenditures by type of significant events follows: CHART OF REVENUE INCREASE OR (DECREASE) Total Revenues by Cateogory $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Charge for Services Op Grants & Contrib Capital Grants & Contrib Property Taxes Voter Approved Debt Sales TaxesLocal Taxes Franchise Fees Motor Vehicle in Lieu Intergovt'l Revenues Investment Earnings Other Revenues FY 2007/08 FY 2006/07 Increases in Revenues • An increase of $2,891,306 in the Charge for Services is primarily due to the initial increase resulting from establishing citywide Internal Service Funds which charge prorated fees back to departments for services and expenses. • An increase of $2,606,084 in Property Tax revenues is due in part to the continuing rise in property tax assessment values resulting from real estate turnover. Additional revenues are comprised of a categorization shift in the financial report allocation from the prior fiscal year. • Voter Approved Debt revenues reflect actual property assessment receipts for the City's 2001 G.O. Library Improvement Bond. The $841,692 increase is attributed to a report categorization change from the prior year. • An increase of $216,307 in Other Revenues is again a result of changes in revenue categorization. Other Revenues includes miscellaneous reimbursements, rebates, publication sales, and fines. Decreases in Revenues • The decrease of $2,004,434 in Operating Grants reflects a change in revenue reporting categorization from the prior year. As of FY 2007/08, operating grants are restricted to reflect funding received for use in the annual operating budget, and for this year include the State's annual SLESF/COPS grant, and CDBG grants for operating budget expenses. • The decrease of $1,755,984 in investment earnings from the prior year is again primarily a change in revenue reporting categorization. FY 2007/08 category of investment earnings are restricted solely to interest earned from the City's excess cash flow invested in LAIF. Interest rate declines contributed to an 8% drop in the amount of interest earned from the prior fiscal year. 59 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 19 • Local Taxes reflect a decrease of $405,224. In FY 2007/08, Local Taxes are limited to Business License Tax, Transient Occupancy Tax, and Construction Tax. The decrease in this report reflects a change in the categorization of revenue from the prior year. CHART OF EXPENDITURE INCREASE OR (DECREASE) Total Expenditure by Category 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 General and Intergov'tl Services Public Safety Services Environmt'l Services Public WorksCommunity Services Community Development Interest on Long Term Debt FY 2007/08 FY 2006/07 The net change in expenditures for Governmental Activities was an increase of $887,034. Expenditures with significant events include: Increases in Expenditures • A $1,760,039 increase in General and Intergovernmental Services from the prior year is primarily from the establishment of Internal Service Funds and their resulting service charges to departments. • Public Safety Services increased $321,615 is primarily due to an increase in officer service levels. A School/Neighborhood Resource Officer was added in FY 2007/08. Decreases in Expenditures • Public Works expenditures decreased by $1,054,239 due to changes in financial structures from the prior year. All capital improvements are now classified within the Capital Projects Funds instead of within the Public Works Operating Budget. MAJOR FUNDS: CHANGE IN FUND BALANCE Included in the Major Funds are the General Fund, the Capital Improvement Funds and the Other Governmental Funds. The Other Governmental funds include twenty-five Lighting and Landscape Assessment Districts, the Community Development Block Grant Funds, the Library Bond Debt Service Fund, and the Library Building Capital Improvement Fund. The net change of the Major Funds fiscal year transactions is a net increase of $1,865,861. General Fund - As shown in the following Major Funds table, the net change in the General Fund's Fund Balance was an increase of $1,235,337. A net operating gain resulted from increases in various tax and service revenues, and expenditures coming in less than budget. 60 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 20 Revenues are budgeted conservatively based upon the prior year experience and specific information, while expenditures are limited at anticipated program needs at not-to-exceed projected revenue levels. Revenues increased by $2,690,935 from the prior year primarily due to increases in property taxes and the establishment of the Internal Service Fund charges. MAJOR FUNDS Other CapitalGovernmental GeneralImprovementFunds Fund Balance, Beginning of Year 9,161,279$ 3,444,025$ 2,484,198$ Total Revenues 18,823,155 2,261,688 1,677,545 Total Expenditures (16,561,663) (3,523,306) (1,430,243) Transfer In 171,564 2,033,696 35,554 Transfer Out (1,197,719) (141,554) (901,541) Fund Balance, End of Year 10,396,616$ 4,074,549$ 1,865,513$ Net Change in Fund Balance 1,235,337$ 630,524$ (618,685)$ Capital Improvement Project Fund - As shown in the table above, the net change in the Capital Improvement Fund was an increase of $630,524. The Capital Improvement Project Fund received numerous significant grants and donations, including a $505,064 Proposition 1B street resurfacing grant, $358,364 in STP street surfacing grant, $168,768 in a Safe Route to Schools grant for street improvements, $620,096 in several VTA grants, $150,285 in donations for rehabilitating a community facility, and various smaller grants for improvement projects. As a result, revenues increased by $1,973,208 from the prior year. As expected with increased grant funding, expenditures also increase by $1,432,353, leaving a resulting net operating increase of $630,524. Other Governmental Funds - As shown in the table, there was a net decrease of $618,507 in this group of funds. The Community Development Block Grant (CDBG) and the Lighting District Funds accounted for the bulk of the decrease in fund balance. Total revenues decreased by $1,113,527, in large part from categorization changes from the prior year, but also from a decrease in intergovernmental revenues and investment earnings. Expenditures also reflect a decrease due to categorization changes, most notably in the budgetary change of Public Works expenditures. GOVERNMENTAL FUNDS – BUDGETARY HIGHLIGHTS Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information Section along with a comparison to actual activity for the year ended. Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with no impact to the fund's bottom line may be approved by the City Manager. The following tables compare total Governmental Funds budget amounts to actuals. With respect to transfers, the table below shows a significant variance between budget and actuals. This variance was due to the closing of inactive funds per the Council's approval to correctly align the financial structure effective with the FY 2007/08 budget. The original and adjusted budget amounts include transfers approved in relation to the City's operating/capital budgeted operations, while actual transfers include transfers to close funds. 61 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 21 OriginalAdjustedFiscal Year BudgetBudgetActualsVariance Transfers in 2,194,170$ 3,160,491$ 2,240,814$ (919,677)$ Transfers out 992,057$ 1,627,736$ 2,240,814$ 613,078$ This second table shows the adopted and adjusted budget in comparison to actuals. For FY 2007/08 actual revenues, excluding intergovernmental, were more than estimated due to the City's policy of budgeting revenues conservatively. As a result of changes in the Capital Improvement Plan budgeting process, budgeted expenditures include carryforward Capital Improvement Plan (CIP) project balances in order to incorporate total appropriations into project funds. This resulted in an increase in budgeted expenditures for FY 2007/08 only. As a result, actual CIP expenditures are much lower than budgeted. BUDGET TO ACTUALS FISCAL YEAR JUNE 30, 2008 Adjusted Budget AdoptedAdjusted to Actual BudgetBudgetActualVariance Source of Funds Property taxes 8,960,555$ 8,963,755$ 9,443,435$ 479,680$ Other local taxes 1,720,900 1,720,900 1,831,227 110,327 Franchise fees 1,604,335 1,604,335 1,621,518 17,183 Motor vehicle in-lieu 235,400 235,400 148,865 (86,535) Intergovernmental 9,549,857 9,658,857 2,269,890 (7,388,967) Investment earnings 885,883 865,883 923,780 57,897 Other revenue 450,744 450,744 669,575 218,831 Charge for services 5,722,026 5,793,026 5,854,276 61,250 Transfers in 2,179,170 3,145,491 2,240,814 (904,677) Total Source of Funds 31,308,870$ 32,438,391$ 25,003,380$ (7,435,011)$ Use of Funds General and intergovernmental 5,781,773$ 5,370,153$ 4,082,504$ 1,287,649$ Public safety 3,964,467 3,964,467 4,165,945 (201,478) Environmental services 465,035 505,035 440,683 64,352 Public works 4,817,610 4,835,810 4,276,332 559,478 Community services 2,250,508 2,250,508 1,262,415 988,093 Community development 2,507,673 2,507,673 2,025,433 482,240 Capital outlay 13,751,501 13,751,501 4,245,959 9,505,542 Debt service 1,021,106 1,021,106 1,015,941 5,165 Transfers out 1,792,258 1,627,736 2,240,814 (613,078) Total Use of Funds 36,351,931$ 35,833,989$ 23,756,026$ 12,077,963$ CAPITAL ASSETS The City of Saratoga elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting in which eligible infrastructure capital assets are not required to be depreciated if the following requirements are met: 62 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 22 • The City manages the assets using an asset management system which requires that the City (1) perform an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate the annual amount to preserve the assets at the established condition assessment level. • The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City policy is to achieve an average Pavement Condition Index (PCI) rating of 70 for all streets. The City achieved the 70 rating with 86% of streets rated as Excellent to Good, 13% of streets are rated as "Poor", and 1% of streets are rated as "Very Poor". The City spent $1,691,466 to maintain and preserve eligible infrastructure assets. For more detailed information on Capital Assets activity, please refer to Note F in the section entitled "Notes to the Basic Financial Statements" and "Required Supplementary Section". As of June 30, 2008, the City had $123,413,151 invested in a variety of capital assets, as reflected in the following schedule, which represents an increase of $1,420,905 or slightly more than a 1% increase from the prior year. CAPITAL ASSETS AT YEAR END NET OF DEPRECIATION ` 2008 2007 Land 9,887,095$ 9,887,095$ Buildings and structures 18,739,078 19,229,732 Machinery and equipment 470,217 445,910 Infrastructure 86,571,890 87,631,191 Construction in progress 7,744,871 4,798,318 123,413,151$ 121,992,246$ Governmental Activities The following reconciliation summarizes the changes in Capital Assets: CHANGES IN CAPITAL ASSETS 2008 2007 Beginning Balance 121,992,246$ 121,270,370$ Addition: Building and structures - 2,564,228 Construction in progress 3,338,920 2,220,878 Infrastructure 517,473 3,446,423 Machinery and equipment - 408,694 Retirements: Construction in progress (392,364) (5,943,381) Depreciation (2,043,124) (1,974,966) Ending Balance 123,413,151$ 121,992,246$ Governmental Activities Additional information on Capital Assets is included in note 5 to the financial statements. 63 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2008 23 DEBT ADMINISTRATION The net change in outstanding debt for the City of Saratoga is a decrease of $271,154. During the fiscal year, the City did not enter into any new debt structures. OUTSTANDING DEBT AT YEAR END 2008 2007 2001 General Obligation Bond 13,595,000$ 13,890,000$ Compensated absences 488,599 464,753 Total Outstanding Debt 14,083,599$ 14,354,753$ Governmental Activities The current portions of long-term debt ($310,000 and $295,000 for 2008 and 2007, respectively), are classified as current liabilities in the City's Statement of Net Assets. 2001 General Obligation Bond - During the fiscal year, the City made debt service payments that include a principal reduction of $295,000 on the City's 2001 General Obligation $15,000,000 bond issue. Claims Payable - The City is a member of a pooled liability assurance network with the Association of Bay Area Governments. This JPA provides coverage for claims against the City, and any known liabilities at year end are included in the financial statements. Additional information on Outstanding Debt can be found in Note 6 to the financial statements. ECONOMIC FACTORS In September 2006, the City received a significant increase in new property tax revenues on an annual basis due to the passage of Assembly Bill 117. This legislation effective with FY 2006/07 increases the amount of property taxes allocated to the City as a result of the TEA (Tax Equity Allocation) formula. Assembly Member Cohn sponsored the bill which resulted from a joint effort of the City of Saratoga, Santa Clara County and the 3 other affected cities - Cupertino, Monte Sereno and Los Altos Hills. These cities are referred to as "no/low tax cities" and will have restored a proportionate share of the property taxes which they lost to special legislation in 1989. This resulted in a permanent increase in general fund property taxes to approximately 5.45% of the 1% ad valorem tax property owners pay. The economy of the City and its major initiatives for the fiscal year are discussed in the accompanying Transmittal Letter. REQUEST FOR FINANCIAL INFORMATION This financial report is designed to provide a general overview of the City of Saratoga's finances for all of Saratoga's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Administrative Services Department, 13777 Fruitvale Avenue, Saratoga, California 95070. 64 24 65 25 BASIC FINANCIAL STATEMENTS 66 CITY OF SARATOGA STATEMENT OF NET ASSETS JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 26 Primary Government Governmental Activities ASSETS Current Assets: Cash and investments 15,698,155$ Restricted cash and investments 1,901,682 Receivables: Accounts 714,799 Interest 125,543 Loans 13,333 Prepaid items 9,604 Total Current Assets 18,463,116 Noncurrent Assets: Loans receivable 85,003 Capital Assets: Non-depreciable 63,265,798 Depreciable, net 60,147,353 Total Capital Assets 123,413,151 Total Noncurrent Assets 123,498,154 Total Assets 141,961,270 LIABILITIES Current Liabilities: Accounts payable 800,269 Accrued payroll 288,166 Other payable 216,727 Interest payable 296,690 Deposits payable 718,914 Unearned revenue 28,925 Claims payable 59,908 Long-term debt - due within one year 449,426 Total Current Liabilities 2,859,025 Noncurrent Liabilities: Long-term debt - due in more than one year 13,634,173 Total Liabilities 16,493,198 NET ASSETS Investment in capital assets, net of related debt 109,818,151 Restricted for: Capital projects 4,768,478 Debt service 853,619 Special projects 318,143 Total Restricted 5,940,240 Unrestricted 9,709,681 Total Net Assets 125,468,072$ 67 CITY OF SARATOGA STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 27 Net (Expense) Revenue and Changes in Net Assets Primary OperatingCapital Government Charges for Grants andGrants and Governmental Functions/Programs ExpensesServicesContributionsContributionsTotalActivities Primary Government: Governmental Activities: General and intergovernmental services6,292,527$ 1,787,186$ -$ -$ 1,787,186$ (4,505,341)$ Public safety 4,165,945 410,822 100,000 - 510,822 (3,655,123) Environmental services 441,875 - - - - (441,875) Public works 4,883,909 313,410 - - 313,410 (4,570,499) Community services 1,285,739 910,795 50,564 - 961,359 (324,380) Community development services 2,032,217 2,110,409 - 1,714,758 3,825,167 1,792,950 Interest on long-term debt (unallocated)713,566 - - - - (713,566) Total 19,815,778$ 5,532,622$ 150,564$ 1,714,758$ 7,397,944$ (12,417,834) General Revenues: Taxes: Property taxes 8,099,071 Special assessments 279,097 Voter approved property tax 1,112,515 Sales taxes 1,057,977 Local taxes 693,950 Franchise taxes 1,625,414 Motor vehicle in-lieu 148,865 Total taxes 13,016,889 Intergovernmental 840,557 Investment earnings 1,056,891 Other revenues 348,258 Total General Revenues 15,262,595 Change in Net Assets 2,844,761 Net Assets - Beginning of Year 122,623,311 Net Assets - End of Year 125,468,072$ Program Revenues 68 CITY OF SARATOGA GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 28 Other Total Capital Governmental Governmenta l GeneralImprovementFunds Funds ASSETS Cash and investments 11,316,622$ 4,381,533$ -$ 15,698,155$ Restricted cash and investments 53,167 - 1,848,515 1,901,682 Receivables: Accounts 456,121 229,575 29,103 714,799 Interest 115,338 - 10,205 125,543 Loans - - 98,336 98,336 Prepaid items 8,054 1,550 - 9,604 Total Assets 11,949,302$ 4,612,658$ 1,986,159$ 18,548,119$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 424,417$ 353,720$ 22,132$ 800,269$ Accrued payroll 288,166 - - 288,166 Deposits payable 718,914 - - 718,914 Other payable 32,338 184,389 - 216,727 Deferred revenue 28,943 - 98,336 127,279 Claims payable 59,908 - - 59,908 Total Liabilities 1,552,686 538,109 120,468 2,211,263 Fund Balances: Reserved for: Petty cash 1,300 - - 1,300 Debt service - - 853,619 853,619 Unreserved, designated for: Operations 2,808,164 - - 2,808,164 Economic uncertainty 1,500,000 - - 1,500,000 Construction in progress 1,200,000 - - 1,200,000 Community development services 782,380 - - 782,380 Environmental services 679,917 - - 679,917 Unreserved, undesignated, reported in: General Fund 3,424,855 - - 3,424,855 Special revenue funds - - 318,143 318,143 Capital projects funds - 4,074,549 693,929 4,768,478 Total Fund Balances 10,396,616 4,074,549 1,865,691 16,336,856 Total Liabilities and Fund Balances 11,949,302$ 4,612,658$ 1,986,159$ 18,548,119$ Major Funds 69 CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 29 Total Fund Balances - Total Governmental Funds 16,336,856$ Amounts reported for governmental activities in the statement of net assets were different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows: Non-depreciable capital assets 63,265,798 Depreciable capital assets, net 60,147,353 Total Capital Assets 123,413,151 Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet.(296,690) Long-term r eceivables were not current available resources and therefore, were offset by a deferred revenue amount equal to the net receivable in the governmental funds.98,354 Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows: General obligation bonds (13,595,000) Compensated absences (488,599) Total Long-Term Liabilities (14,083,599) Net Assets of Governmental Activities 125,468,072$ 70 CITY OF SARATOGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 30 Other Tota l Capital Governmenta l Governmenta l Genera l ImprovementFunds Funds REVENUES: Property taxes 7,922,815$ -$ 1,520,620$ 9,443,435$ Other local taxes 1,831,227 - - 1,831,227 Licenses & permits 1,670,769 - - 1,670,769 Fines & forfeiture 343,744 - - 343,744 Intergovernmental - State 321,908 1,272,272 47,247 1,641,427 Intergovernmental - Other 69,834 656,930 50,564 777,328 Franchise fees 1,621,518 - - 1,621,518 Use of money and property 878,932 - 44,848 923,780 Other revenue 163,261 148,126 14,444 325,831 Current service charges 3,999,147 184,360 - 4,183,507 Total Revenues 18,823,155 2,261,688 1,677,723 22,762,566 EXPENDITURES: Current: General and intergovernmental services4,082,504 - - 4,082,504 Public safety 4,165,945 - - 4,165,945 Environmental services 440,683 - - 440,683 Public works 3,869,812 - 406,520 4,276,332 Community services 1,254,633 - 7,782 1,262,415 Community development services 2,025,433 - - 2,025,433 Capital outlay 722,653 3,523,306 - 4,245,959 Debt service: Principal - - 295,000 295,000 Interest and fiscal charges - - 720,941 720,941 Total Expenditures 16,561,663 3,523,306 1,430,243 21,515,212 REVENUES OVER (UNDER) EXPENDITURES 2,261,492 (1,261,618) 247,480 1,247,354 OTHER FINANCING SOURCES (USES): Transfers in 171,564 2,033,696 35,554 2,240,814 Transfers out (1,197,719) (141,554) (901,541) (2,240,814) Total Other Financing Sources (Uses)(1,026,155) 1,892,142 (865,987) - Net Change in Fund Balances 1,235,337 630,524 (618,507) 1,247,354 FUND BALANCES: Beginning of year 9,161,279 3,444,025 2,484,198 15,089,502 End of year 10,396,616$ 4,074,549$ 1,865,691$ 16,336,856$ Major Funds 71 CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 31 Net Change in Fund Balances - Total Governmental Funds 1,247,354$ Amounts reported for governmental activities in the Statement of Activities and Changes in Net Assets were different because: Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period. 3,464,029 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. (2,043,124) Certain revenues were recorded as deferred revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Governmental-Wide Statement of Activities and Changes in Net Assets under the full accrual basis. (102,027) Long-term compensated absences and claims payables were reported in the Government-Wide Statement of Activities and Changes in Net Assets, but they did not require the use of current financial resources. Therefore, long-term compensated absences and claims payable were not reported as expenditures in governmental funds. Compensated absences (23,846) Repayment of bond principal was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Assets. Long-term debt repayments 295,000 Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the change in accrued interest from prior year.7,375 Change in Net Assets of Governmental Activities 2,844,761$ 72 CITY OF SARATOGA FIDUCIARY FUNDS STATEMENT OF NET ASSETS JUNE 30, 2008 The accompanying notes are an integral part of these financial statements. 32 Agency Funds ASSETS Cash and investments 38,365$ Interest receivable 296 Total Assets 38,661$ LIABILITIES Deposits payable 38,661$ 73 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 33 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Saratoga, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City was incorporated as a municipal corporation in 1956 under the general laws of the State of California, and had a population of 31,592 at June 30, 2008. The City is a largely residential community located in the foothills of the Santa Cruz Mountains. The City operated under the Council-Manager form of government, with five-elected Council members served by a full-time City Manager and staff. At June 30, 2008, the City's staff comprised 54 full-time and 2 part-time employees, and numerous recreation seasonal employees who were responsible for the following City provided services: • Public Safety - The City provides round-the-clock police services under a contract with the County Sheriff's offices. Emergency management and Fire services are provided by special district. Code enforcement and inspection services are provided by 1 City employee. • Public Works/Maintenance - The City builds and maintains its parks, streets, curbs, gutters, and related public property with a force of 24 employees. Major projects may be contracted out to reduce costs. • Community Development - Zoning administration, plan checking and advance planning services are provided by 16 employees. • Culture, Recreation and Community Support services are provided by a total of 6 employees. • General Government services are provided by a total of 10 employees. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize their legal separateness from the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entity is reported as blended component unit: Lighting and Landscaping Assessment District - The Lighting and Landscaping Assessment District (the District) was established in 1980, for the levy and the collections of assessments upon the several lots or parcels of land in the District, and for the construction or installation of improvements, including maintenance. The District is reported as a blended component unit of the City because it has the same Governing Board as the City. The activity for the District has been included in the accompanying basic financial statements and no separate financial statements are issued. 74 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 34 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-Wide Financial Statements The City's government-wide financial statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental activities for the City. Fiduciary activities of the City are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: • Charges for services • Operating grants and contributions • Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Assets have been eliminated. The following interfund activities have been eliminated: • Transfers in/Transfers out Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria. The following funds are major funds: General Fund The General Fund is used to account for all of the general resources of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of the City which are not accounted for in another fund. 75 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 35 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Capital Improvement Capital Projects Fund This fund accounts for resources used for the major capital acquisition and construction activities. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits and parking meter revenues are not susceptible to accrual because they are usually not measurable until received in cash. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the combined balance sheet and revenue is recognized. Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds represent agency funds. Agency funds do not have a measurement focus, although they do have a basis of accounting. An accrual basis of accounting is used to record the financial transactions. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: 76 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash, Cash Equivalents and Investments, Continued • Interest Rate Risk • Credit Risk o Overall o Custodial Credit Risk o Concentrations of Credit Risk • Foreign Currency Risk Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates. D. Restricted Cash and Investments Certain restricted cash and investments are held by a fiscal agent for the redemption of bonded debt and for acquisition and constitution of capital and special projects. E. Interfund Transactions Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers. F. Capital Assets Capital assets, which include land, buildings, improvements, furniture, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), were reported in the applicable governmental activities in the government-wide financial statements. Capital assets were recorded at historical cost or estimated historical cost if actual cost was not available. Donated assets were valued at their fair market value on the date of donation. City policy has set the capitalization threshold for reporting capital assets at $10,000. The City has chosen the Modified Approach for reporting the streets subsystem of infrastructure capital assets. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Buildings and structures 40 years Machinery and equipment 5 to 10 years Infrastructure 15 to 50 years 77 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 37 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Capital Assets, Continued In June 1999, GASB issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the City has included the value of all infrastructures into its basic financial statements. The City defines infrastructure as the basic physical assets that allow the City to function. The City defines infrastructure as the basic physical assets including the street system, park and recreation lands and improvements system; storm water conveyance and drainage system, buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. The City elected to use the Modified Approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned a physical assessment of the streets condition as of June 30, 2005. This condition assessment will be performed every 2 years. The next condition assessment is scheduled for March 2009. A Pavement Condition Index (PCI) was assigned to each street segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the physical characteristics of a new street. The following conditions were defined: Condition Rating Excellent 80 - 100 Very Good 70 - 79 Good 50 - 69 Poor 25 - 49 Very Poor 0 - 24 The City's policy relative to maintaining the street assets is to achieve an average rating of 70 for all street segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2001, and has completed an internal update for June 30, 2005. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. 78 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 38 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Interest Payable In the government-wide financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. H. Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities. I. Compensated Absences In the government-wide financial statements, compensated absences are recorded as incurred and the related expenses and liabilities are reported. In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. Only the amounts which become due at June 30 are reported in the fund financials statements as a liability. J. Long- Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. K. Fund Balances In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balances represent tentative management plans that are subject to change. 79 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 39 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Fund Balances, Continued City Council has designated an amount for operations, which it has defined as being equal to the greater of one-quarter of the total budgeted General Fund appropriations for the current budget year or $2,808,164. The designation is increased annually by an amount equal to the interest the City earned on an equivalent amount of cash and investments. City Council has designated $1,500,000 for economic uncertainty. CIP designation is for future Capital Improvement Projects. Community development services designation is for development services that includes zoning administration, inspection services, and development regulation programs. Environmental services is designated for the environmental fees collected from surcharges on garbage bills and tipping fees at the landfills and associated grants related to integrated waste management and storm water management. Equipment Replacement is designated for the maintenance and replacement of the City's tools, equipments, and vehicles. Information technology is designated for the support, maintenance, replacement and upgrade of existing computer network. Facility Improvement is designated for the maintenance and improvement of City's facilities. L. Net Assets In the governmental-wide financial statements, net assets are classified in the following categories: • Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. • Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. • Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." M. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. 80 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 40 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Property Tax and Special Assessments County tax assessments included secured and unsecured property taxes, and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed. Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1. Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31. O. Use of Estimates The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. P. New GASB Pronouncements GASB Statement No. 45 - In June 2004, GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions. This Statement establishes standards for the measurement, recognition, and display of other post employment benefits expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of State and local governmental employers. This Statement is not effective for the City until June 30, 2009. The City has not determined its effect on the financial statements. GASB Statement No. 48 - In September 2006, GASB issued Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. This Statement addresses accounting and financial reporting standards for transactions where governments exchange an interest in their expected cash flows from collecting specific receivables or specific future revenues for immediate cash payments. This Statement establishes criteria and reporting standards regarding the exchange as either a sale or collateralized borrowing, resulting in a liability. The City has implemented with no effect on the financial statements. GASB Statement No. 49 - In November 2006, GASB issued Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations. This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. This Statement is not effective for the City until June 30, 2009. The City has not determined its effect on the financial statements. 81 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 41 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. New GASB Pronouncements, Continued GASB Statement No. 50 - In May 2008, GASB issued Statement No. 50, Pension Disclosures-an amendment of GASB Statements No. 25 and No. 27. This Statement more closely aligns the financial reporting requirements for pensions with those for other post employment benefits (OPEB) and, in doing so, enhances information disclosed in notes to financial statements or presented as required supplementary information (RSI) by pension plans and by employers that provide pension benefits. The City has implemented with no significant effect on the financial statements. GASB Statement No. 51 - In June 2008, GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible Assets. This Statement establishes accounting and financial reporting standards for many different types of assets that may be considered intangible assets, including easements, water rights, timber rights, patents, trademarks, and computer software. This Statement is not effective until June 30, 2010. The City has not determined its effect on the financial statements. GASB Statement No. 52 - In November 2007, GASB issued Statement No. 52, Land and Other Real Estate Held as Investments by Endowments. This Statement establishes consistent standards for the reporting of land and other real estate held as investments by essentially similar entities. This Statement is not effective until June 30, 2009. The City has not determined its effect on the financial statements. GASB Statement No. 53 - In June 2008, GASB issued Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. This Statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by State and local governments. This Statement is not effective until June 30, 2010. The City has not determined its effect on the financial statements. NOTE 2 - CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average month-end cash and investment balances in these funds. The City has the following cash and investments at June 30, 2008: GovernmentalFiduciary Activities Funds Total Cash and investments 15,698,155$ 38,365$ 15,736,520$ Restricted cash and investments 1,901,682 - 1,901,682 Total 17,599,837$ 38,365$ 17,638,202$ Statement of Net Assets 82 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 42 NOTE 2 - CASH AND INVESTMENTS, Continued The City's Cash and Investments at June 30, 2008, in more detail: Cash and cash equivalents: Petty cash 1,300$ Demand deposit 296,801 Total Cash and Cash Equivalents 298,101 Investments: Local Agency Investment Fund (LAIF)17,340,076 Total Cash and Investments excluding fiscal agent 17,638,177 Cash and investments with fiscal agents 25 Total Cash and Investments including fiscal agents 17,638,202$ A. Cash Deposits The carrying amounts of the City's cash deposits were $296,801 at June 30, 2008. Bank balances before reconciling items were $352,906 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City's name is discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC). The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 83 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 43 NOTE 2 - CASH AND INVESTMENTS, Continued B. Investments Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized: • Securities of the U.S. Government or its agencies. • Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings and loan companies. • Negotiable Certificates of Deposit. • California Local Agency Investment Fund. • Investment-grade obligations of State, local governments or public authorities. • Money market mutual funds. • Passbook savings account and demand deposits. The City has complied with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools. The City's investments are recorded at fair value. C. External Investment Pool The City's investments with LAIF at June 30, 2008, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: • Structured Notes - debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. • Asset-Backed Securities - the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. As of June 30, 2008, the City had $17,340,076 invested in LAIF which had invested 2.29 percent of the pool investment funds in Structured Notes and Asset-Backed Securities. The LAIF fair value factor of 0.99950219 was used to calculate the fair value of the investments in LAIF. 84 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 44 NOTE 2 - CASH AND INVESTMENTS, Continued D. Risk Disclosures Interest Rate Risk The City's investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. At June 30, 2008, the City had the following: Investment Maturities in Years Fair Less Than Value One Year State of California - Local Agency Investment Fund (LAIF)17,340,076$ 17,340,076$ Credit Risk As of June 30, 2008, the City's investments in external investment pools are unrated. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Of the City's investments, $25 of securities is held by the investment's counterparty, the trustee for the bonds, not in the name of the City as of June 30, 2008. NOTE 3 - LOANS RECEIVABLE The City had the following loans receivable as of June 30, 2008: Balance BalanceDue withinDue more July 1, 2007AdditionsDeletionsJune 30, 2008One YearThan 1 Year Housing Rehabilitation Loan Program 112,780$ -$ (14,444)$ 98,336$ 13,333$ 85,003$ T he City administers a housing rehabilitation program called the Saratoga Housing Assistance and Rehabilitation Program (SHARP) using Housing and Community Development Act funds. Under the SHARP, individuals with incomes below a certain level and corporations building rental housing for low and-moderate income tenants are eligible to receive low interest loans, secured by deeds of trust, for construction work on their properties. Federal funds received by the City are deposited with a commercial bank. Upon approval of loans, the bank disburses the funds, arranges for and collects repayments. At June 30, 2008, the City had outstanding SHARP loans of $98,336. In the Governmental Fund Financial Statements, these loans have been offset by deferred revenue as they are not expected to be repaid immediately. In the Government-Wide Financial Statements, the amount of deferred revenue was recognized as revenues. 85 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 45 NOTE 4 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS Transfers In/Out Transfers for the year ended June 30, 2008, were as follows: Other GeneralCapitalGovernmental Transfers Out FundImprovementFundsTotal General Fund -$ 1,197,719$ -$ 1,197,719$ Capital Improvement 141,554 - - 141,554 Other Governmental Funds 30,010 835,977 35,554 901,541 Total 171,564$ 2,033,696$ 35,554$ 2,240,814$ Transfers In The above transfers resulted from the normal course of the City's operations. 86 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 46 NOTE 5 - CAPITAL ASSETS Capital assets activity for the year ended June 30, 2008, consisted of the following: Balance Balance July 1, 2007AdditionsRetirementsReclassificationJune 30, 2008 Governmental Activities: Capital assets, not being depreciated: Land 9,887,095$ -$ -$ -$ 9,887,095$ Construction in process 4,798,318 3,338,917 - (392,364) 7,744,871 Infrastructure: Street pavement system 45,241,465 - - 3,084,574 48,326,039 Total Capital Assets, not being depreciated 59,926,878 3,338,917 - 2,692,210 65,958,005 Capital assets, being depreciated: Buildings and structures 23,066,577 - - - 23,066,577 Machinery and equipment 1,835,003 125,112 - - 1,960,115 Infrastructure: Bridges 1,563,654 - - - 1,563,654 Signs and lights 1,124,376 - - 207,013 1,331,389 Drainage system 39,855,914 - - 14,679 39,870,593 Sidewalks 14,578,824 - - (2,913,902) 11,664,922 Total capital assets, being depreciated 82,024,348 125,112 - (2,692,210) 79,457,250 Accumulated depreciation: Buildings and structures (3,836,846) (490,653) - - (4,327,499) Machinery and equipment (1,389,093) (100,802) - - (1,489,895) Infrastructure: Bridges (917,175) 763 - - (916,412) Signs and lights (640,165) (27,040) - - (667,205) Drainage system (9,686,922) (1,046,291) - - (10,733,213) Sidewalks (3,488,779) (379,101) - - (3,867,880) Total accumulated depreciation(19,958,980) (2,043,124) - - (22,002,104) Total capital assets, being depreciated, net 62,065,368 (1,918,012) - (2,692,210) 57,455,146 Governmental Activities Capital Assets, Net 121,992,246$ 1,420,905$ -$ -$ 123,413,151$ Primary Government Depreciation Expense by Function: General Government 1,420,223$ Public Works 599,231 Community Services 21,655 Community Development 2,015 Total Depreciation Expense 2,043,124$ 87 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 47 NOTE 5 - CAPITAL ASSETS, Continued In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-Wide Statement of Net Assets. The City elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its pavement system. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the "Modified Approach" is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the Basic Approach whereby accumulated depreciation and depreciation expense have been recorded. NOTE 6 – LONG-TERM DEBT A summary of the City's long-term debt transactions for the year ended June 30, 2008, is presented below: Balance BalanceDue WithinDue In More DescriptionJuly 1, 2007AdditionsRetirementsJune 30, 2008One Yearthan One Year General Obligation Bonds: 2001 Library Bonds13,890,000$ -$ (295,000)$ 13,595,000$ 310,000$ 13,285,000$ Compensated absences464,753 23,846 - 488,599 139,426 349,173 Total 14,354,753$ 23,846$ (295,000)$ 14,083,599$ 449,426$ 13,634,173$ Classification General Obligation 2001 Library Bonds - Original Issue $15,000,000 On May 1, 2001, the City issued General Obligation Bonds Series 2001 in the amount of $15,000,000. The proceeds of the bonds were used to improve, renovate, and expand the Saratoga Community Library. The bonds are payable from and secured by certain property taxes within the City. Interest on the bonds ranges from 5 percent to 6 percent and is payable on February 1 and August 1 of each year, commencing February 1, 2002. Principal is due annually beginning on August 1, 2002, in amounts ranging from $60,000 to $940,000. The bonds mature on August 1, 2031, and are subject to redemption prior to maturity at redemption prices ranging from 100 percent to 101 percent of par. The bonds may be called for redemption beginning on or after August 1, 2011, at the option of the City. At June 30, 2008, the outstanding balance of the bonds was $13,595,000. The annual debt service requirements on these bonds are as follows: Year Ended PrincipalInterestTotal 2009 310,000$ 702,756$ 1,012,756$ 2010 330,000 683,556 1,013,556 2011 350,000 663,156 1,013,156 2012 370,000 641,556 1,011,556 2013 395,000 620,581 1,015,581 2014-2018 2,205,000 2,782,656 4,987,656 2019-2023 2,685,000 2,176,806 4,861,806 2024-2028 3,465,000 1,387,841 4,852,841 2029-2033 3,485,000 377,606 3,862,606 Total 13,595,000$ 10,036,516$ 23,631,516$ 88 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 48 6. LONG-TERM DEBT, Continued Compensated Absences The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been accrued and amounts to $488,599 at June 30, 2008. The compensated absences liability will generally be liquidated through the General Fund. NOTE 7 - RISK MANAGEMENT The City participates in the following public entity risk pools: ABAG Plan Corporation (ABAG PLAN) covers general liability claims in an amount up to $7,000,000. The City has a deductible or uninsured liability of up to $25,000 per claim. Once the City's deductible is met ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2008, the City contributed $130,951 for current year coverage and received no refund of prior year excess contributions. The ABAG Workers' Compensation Pool Insurance Authority (ABAG POOL) covers workers' compensation claims up to the statutory limit. The City has no deductible for these claims. During the fiscal year ended June 30, 2008, the City contributed $189,811 for current year coverage. The City's contributions to each risk pool equal the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions of insurance settlements that exceeded insurance coverage for the past three years. The workers' compensation and general liability claims payable of $59,908 reported at June 30, 2008, are based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the basic financial statements indicates that it is probable that a liability has been incurred at the date of the basic financial statements and the amount of the loss can be reasonably estimated. Changes in the claims liability amounts were as follows: Fiscal Year Claims and Claims PayableChanges inClaimsClaims Payable Year Ended July 1, 2007EstimatesPaymentsJune 30, 2008 2006 -$ 92,957$ -$ 92,957$ 2007 92,957$ -$ (54,262)$ 38,695$ 2008 38,695$ 21,213$ -$ 59,908$ The General Fund has been used in the prior years to liquidate the liability for claims and judgments. Each risk pool is governed by a board consisting of representatives from member municipalities. The board controls the operations of each risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. 89 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 49 NOTE 7 - RISK MANAGEMENT, Continued The following represents summary audited financial information of ABAG Plan Corporation for the fiscal year ended June 30, 2007 (most recent available): Total Assets 43,306,059$ Total Liabilities 20,606,784$ Net Assets 22,699,275$ Total Revenues 8,368,584$ Total Expenses 9,211,526$ Net Decrease in Net Assets (377,217)$ The following represents summary audited financial information of ABAG Comp Shared Risk Pool for the fiscal year ended June 30, 2008: Total Assets 5,531,065$ Total Liabilities 3,443,668$ Net Assets 2,087,397$ Total Revenues 17,528,967$ Total Expenses 17,171,720$ Net Increase in Net Assets 357,247$ Audited financial information for each risk pool may be obtained from ABAG at P.O. Box 2089, Oakland, California 94604-2089. NOTE 8 - RETIREMENT PLANS Pension Plan Plan Description - The City contributes to the California Public Employees' Retirement System (CalPERS), a cost-sharing multiple-employer defined benefit plan. CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS act as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of CalPERS' annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95811. 90 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 50 NOTE 8 - RETIREMENT PLANS, Continued Funding Policy - Active plan members are required by State statute to contribute for miscellaneous employees 7 percent (7%) of their annual covered salary. The City employer makes the contributions required of City employees on their behalf and for their account, which amounted to $358,139 for the year ended June 30, 2008. The City employer is required to contribute for fiscal year 2007/08 at an actuarially determined rate of 11.73 percent of annual covered payroll for miscellaneous employees. Annual Pension Cost - For fiscal year 2007/08, the City's annual pension cost was $538,526. The required contribution was determined as part of the June 30, 2005, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 12 percent (12%) investment rate of return (net of administrative expenses), (b) projected annual salary increases ranging from 3.25 percent to 14.45 percent for miscellaneous employees depending on age, service, and type of employment, and (c) 3.25 percent per year payroll growth adjustments. Both (a) and (b) included an inflation component of 3.00 percent. The actuarial value of CalPERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three-year period. CalPERS unfunded actuarial accrued liability (or surplus) is amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 2005, was 20 years for miscellaneous employees for prior and current service unfunded liability. Three-Year Annual Pension Costs Trend Information for CalPERS Annual Pension CostAPCNet Pension Fiscal Year (APC)ContributedObligation 2006 397,304$ 100%-$ 2007 465,232 100%- 2008 538,526 100%- NOTE 9 - NET ASSETS A. Investment in Capital Assets, Net of Related Debt As of June 30, 2008, the investment in capital assets, net of related debt consisted of the following: Capital assets, net 123,413,151$ 2001 General Obligation Library Bonds (13,595,000) Investment in Capital Assets, Net of Related Debt 109,818,151$ B. Restricted Net Assets As of June 30, 2008, the restricted net assets consisted of the following: CapitalDebtSpecial ProjectsServiceProjectsTotal Restricted net assets 4,768,478$ 853,619$ 318,143$ 5,940,240$ Restricted For 91 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 51 NOTE 10 - JOINT POWERS AGREEMENTS The City is a member of the Santa Clara County Traffic Authority (Traffic Authority), which consists of various cities in the San Francisco Bay area. The Traffic Authority was formed in 1985, by a joint exercise of powers agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of financing highway capital improvements within the County to serve transportation needs. Financial statements may be obtained from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose, California 95110. The City is also a member of other Joint Powers Authorities (JPA) but has had no material transactions with them. These JP A's are governed by boards consisting of representatives from their members. The boards control the operations of each JP A, including selection of management and approval of operating budgets, independent of any influence by its members beyond their representation on the board. NOTE 11 - EXCESS EXPENDITURES OVER APPROPRIATIONS There were no excess of expenditures over appropriations in individual funds during the fiscal year 2008- 2009. NOTE 12 - COMMITMENTS AND CONTINGENCIES A. Lawsuits The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. B. Federal and State Grant Programs The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. No cost disallowance is expected as a result of these audits; however, these programs are subject to further examination by the grantors. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 92 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 52 NOTE 12 - COMMITMENTS AND CONTINGENCIES, Continued C. Commitments The City had several outstanding contracts or planned construction projects as of June 30, 2008. These projects are evidenced by contractual commitments with contractors and include: OriginalCommitment Vendor CommitmentRemaining George Bianci Construction 598,747$ 57,811$ Town of Los Gatos 90,000 49,200 G, Bartolotto& Co 773,667 84,573 Schaaf & Wheeler Corporation 6,000 2,019 Colony Landscape Maintenance 195,000 8,645 Solectric Electric Contractors 14,100 4,020 Cal-West Lighting & Signal 9,600 9,600 MPA Design, Inc 68,000 13,656 Furlo & Furlo 30,000 22,242 Metro PCS 11,473 11,473 CRW Industries 838,080 299,456 2,634,667$ 562,695$ As of June 30, 2008, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City. 93 53 REQUIRED SUPPLEMENTARY INFORMATION 94 54 95 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2008 55 NOTE 1 - BUDGETARY INFORMATION Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective uses of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees, and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance. The City does not adopt an annual budget for the Capital Improvement Capital Projects Fund. The Capital Improvement Capital Projects Fund is budgeted on the project length basis. The City adopts an annual budget for Park Development and Library Expansion Capital Projects funds. The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: a. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. b. Public hearings are conducted to obtain taxpayer comments. c. The budget is legally enacted through passage of a resolution. d. The City Manager may authorize transfers of budget amounts within a fund. However, any revisions that increase the total budgeted expenditures of any fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval. e. Formal budgetary integration in the form of legally adopted budgets is employed as a management control device for all funds except the agency funds. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted expenditures reported are as amended by supplemental appropriations of the City Council. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, special revenue and capital projects funds. Unexpended and unencumbered appropriations of these governmental funds automatically lapse at the end of the fiscal year. 96 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2008 56 NOTE 1 - BUDGETARY INFORMATION, Continued The following are the budget comparison schedules for General Fund. Budget Comparison Schedule, General Fund Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 5,348,374$ 6,284,272$ 9,161,279$ 2,877,007$ RESOURCES (INFLOWS): Property taxes 7,503,000 7,503,000 7,922,815 419,815 Other local taxes 1,483,100 1,483,100 1,831,227 348,127 Licenses & permits 1,416,740 1,416,740 1,670,769 254,029 Fines & forfeiture 230,000 230,000 343,744 113,744 Intergovernmental - State 364,000 400,000 321,908 (78,092) Intergovernmental -Other 25,544 25,544 69,834 44,290 Franchise fees 1,599,335 1,599,335 1,621,518 22,183 Use of money and property 782,350 782,350 878,932 96,582 Other revenue 43,200 83,800 163,261 79,461 Charges for services 4,879,719 4,934,719 3,999,147 (935,572) Transfer in 195,761 618,330 171,564 (446,766) Amount available for appropriation 23,871,123 25,361,190 28,155,998 2,794,808 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: General and intergovernmental services5,017,735 5,171,225 4,082,504 1,088,721 Public safety 4,160,259 4,160,259 4,165,945 (5,686) Environmental services 465,035 465,035 440,683 24,352 Public works 3,929,652 3,944,652 3,869,812 74,840 Community services 1,394,828 1,394,828 1,254,633 140,195 Community development services 2,298,881 2,298,881 2,025,433 273,448 Capital outlay 888,311 888,311 722,653 165,658 Transfer out 400,000 1,050,321 1,197,719 (147,398) Total charges to appropriations 13,536,966 19,373,512 17,759,382 1,614,130 FUND BALANCES - ENDING 10,334,157$ 5,987,678$ 10,396,616$ 4,408,938$ Budgeted Amounts 97 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2008 57 NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets that allow the City to function and those resources utilized primarily by the public and provides future economic benefits for a minimum of two years. Infrastructure can be defined as assets that are immovable and of value only to the government. Major infrastructure system includes the street system, park and recreation lands and improvements system; storm water conveyance and drainage system, buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems. The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: • The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. • The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City commissioned a physical assessment of the streets conditions as of June 30, 2007. The study assists the City by providing current inspection data used to evaluate current pavement condition. This helps to maintain a City-defined desirable level of pavement performance while optimizing the expenditure of limited fiscal resources. The entire pavement network within the City is composed of approximately 140 centerline miles of pave surfaces. The City's road system can be grouped by function class and includes 23.4 centerline miles of arterial, 23.3 centerline miles of collector, and 93.3 miles as residential. A visual survey of all pavement segments was conducted to assess the existing surface condition of each of the individual pavement segments. Upon completion of the study, a Pavement Condition Index (PCI) was calculated for each segment in the City's pavement network to reflect the overall pavement condition. Rating between 0 and 100, a PCI of 0 would correspond to a badly deteriorated pavement with virtually no remaining life. A PCI of 100 would correspond to a pavement with proper engineering design and construction at the beginning of its life cycle. 98 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2008 58 NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS, Continued The following conditions were defined: Condition Rating Excellent 80 - 100 Very Good 70 - 79 Good 50 - 69 Poor 25 - 49 Very Poor 0 - 24 The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of June 30, 2008, the City's street system was rated at a PCI index of 70 on the average with the detail condition as follows: Percent of Condition Streets Excellent to Good 86% Poor 13% Very Poor 1% The City expended $1,691,466 on street maintenance for the year ended June 30, 2008. These routine maintenance expenditures delayed deterioration. The budget required to maintain and improve the current level of overall condition through the year 2011 is a minimum of $6,000,000. ($2,000,000 projected budget each year for the years ending June 30, 2009, 2010 and 2011.) A schedule of estimated annual amount calculated to maintain and preserve its streets at the current level compared to actual expenditures for street maintenance for the last five years is presented below: Fiscal ActualGeneralGas TaxTotalPCI YearBudgetExpendituresFundFundFundedIndex 2000-012,520,255$ 801,160$ 205,309$ 595,851$ 801,160$ - 2001-023,529,420 2,214,717 1,631,855 582,862 2,214,717 - 2002-032,207,922 1,553,674 974,514 579,160 1,553,674 - 2003-041,961,844 1,489,667 907,327 582,340 1,489,667 70 2004-051,800,000 2,609,648 1,478,216 1,131,432 2,609,648 70 2005-061,156,547 1,030,382 353,652 676,730 1,030,382 70 2006-072,026,404 1,156,889 19,899 970,818 990,717 70 2007-082,246,152 1,691,466 1,252,709 438,757 1,691,466 70 Funded By As of August 2008, approximately 40 percent of the City's streets were rated below the average standard of 70. The City will continue to rehabilitate these segments of the streets. Total deficiencies (deferred maintenance) identified in the Pavement Management System at the end of a five-year period (2007-2011) amounted to approximately $11,600,000 for all streets with an expected annual budget of $1,000,000. 99 59 SUPPLEMENTARY INFORMATION 100 60 101 NON-MAJOR GOVERNMENTAL FUNDS 61 Special Revenue Funds Streets and Roads - This fund, closed in FY 2007/08, accounted for revenues and expenditures received from the Federal Government, under I.S.T.E.A. and State, Street and Highway Code Sections 2105, 2106, 2107, and 2107.5. The allocations are to be spent for street maintenance or repairs; a limited amount may be spent for engineering. Lighting and Landscaping Assessment District - This fund accounts for revenues and expenditures associated with development of the City. Community Development Block Grant - This fund accounts for grant funds received from the Federal Government for the purpose of developing viable urban communities and for the City's rehabilitation loan program. Debt Service Fund Library Bond - Santa Clara County lease revenues are accumulated in this fund to pay annual principal and interest payments on the 2001 Library Bond. Capital Projects Funds Park Development - This fund, closed in FY 2007/08, accounted for resources used for the acquisition and construction of major capital facilities by the City, primarily the acquisition and construction of various City parks. Library Expansion - This fund accounts for resources used for the construction of the City's library. 102 CITY OF SARATOGA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2008 62 Lighting andCommunity LandscapingDevelopment StreetsAssessmentBlock and RoadsDistrictGrant ASSETS Restricted cash and investments -$ 228,689$ 83,454$ Receivables: Accounts - 963 24,040 Interest - 2,302 827 Loans - - 98,336 Total Assets -$ 231,954$ 206,657$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ 22,132$ -$ Deferred Revenue - - 98,336 Total Liabilities - 22,132 98,336 Fund Balances: Reserved for: Debt service - - - Unreserved, undesignated, reported in: Special revenues funds - 209,822 108,321 Capital projects funds - - - Total Fund Balances - 209,822 108,321 Total Liabilities and Fund Balances -$ 231,954$ 206,657$ Special Revenue 103 63 Debt Service Total Other LibraryParkLibraryGovernmental BondDevelopmentExpansionFunds 845,505$ -$ 690,867$ 1,848,515$ 4,100 - - 29,103 4,014 - 3,062 10,205 - - - 98,336 853,619$ -$ 693,929$ 1,986,159$ -$ -$ -$ 22,132$ - - - 98,336 - - - 120,468 853,619 - - 853,619 - - - 318,143 - - 693,929 693,929 853,619 - 693,929 1,865,691 853,619$ -$ 693,929$ 1,986,159$ Capital Projects 104 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2008 64 Lighting andCommunity LandscapingDevelopment StreetsAssessmentBlock and RoadsDistrictGrant REVENUES: Property taxes -$ 453,173$ -$ Intergovernmental - State - 2,180 - Intergovernmental - Other - - 50,564 Use of money and property - 12,913 4,288 Other - - 14,444 Total Revenues - 468,266 69,296 EXPENDITURES: Current: Public works - 406,520 - Community services - - - Debt service: Principal - - - Interest and fiscal charges - - - Total Expenditures - 406,520 - REVENUES OVER (UNDER) EXPENDITURES - 61,746 69,296 OTHER FINANCING SOURCES (USES): Transfers in - - - Transfers out (438,337) (168,000) (50,564) Total Other Financing Sources (Uses)(438,337) (168,000) (50,564) Net Change in Fund Balances (438,337) (106,254) 18,732 FUND BALANCES: Beginning of year 438,337 316,076 89,589 End of year -$ 209,822$ 108,321$ Special Revenue 105 65 Debt Service Total Other LibraryParkLibraryGovernmental BondDevelopmentExpansionFunds 1,067,447$ -$ -$ 1,520,620$ 45,067 - - 47,247 - - - 50,564 10,489 - 17,158 44,848 - - - 14,444 1,123,003 - 17,158 1,677,723 - - - 406,520 - - 7,782 7,782 295,000 - - 295,000 720,941 - - 720,941 1,015,941 - 7,782 1,430,243 107,062 - 9,376 247,480 - 35,554 - 35,554 - (244,640) - (901,541) - (209,086) - (865,987) 107,062 (209,086) 9,376 (618,507) 746,557 209,086 684,553 2,484,198 853,619$ -$ 693,929$ 1,865,691$ Capital Projects 106 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL STREETS AND ROADS SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2008 66 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING (1,067,200)$ (848,000)$ 438,337$ 1,286,337$ Amount Available for Appropriation (1,067,200) (848,000) 438,337 1,286,337 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Transfers out - - 438,337 (438,337) Total Charges to Appropriations - - 438,337 (438,337) FUND BALANCES - ENDING (1,067,200)$ (848,000)$ -$ 848,000$ Budgeted Amounts 107 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL LIGHTING AND LANDSCAPING ASSESSMENT DISTRICT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2008 67 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING (5,054)$ 48,353$ 316,076$ 267,723$ RESOURCES (INFLOWS): Property taxes 441,649 444,849 453,173 8,324 Intergovernmental - State - - 2,180 2,180 Use of money and property - - 12,913 12,913 Amount Available for Appropriation 436,595 493,202 784,342 291,140 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Public works 527,362 530,562 406,520 124,042 Transfer out - 120,000 168,000 (48,000) Total Charges to Appropriations 527,362 650,562 574,520 76,042 FUND BALANCES - ENDING (90,767)$ (157,360)$ 209,822$ 367,182$ Budgeted Amounts 108 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2008 68 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 96,618$ 131,915$ 89,589$ (42,326)$ RESOURCES (INFLOWS): Use of money and property - - 4,288 4,288 Other - - 14,444 14,444 Transfer in 208,399 208,399 50,564 (157,835) Amount Available for Appropriation 305,017 340,314 158,885 (181,429) CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Transfer out 516,787 516,787 50,564 466,223 Total Charges to Appropriations 516,787 516,787 50,564 466,223 FUND BALANCES - ENDING (211,770)$ (176,473)$ 108,321$ 284,794$ Budgeted Amounts 109 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL LIBRARY BOND DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2008 69 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 633,000$ 721,913$ 746,557$ 24,644$ RESOURCES (INFLOWS): Property taxes 1,015,906 1,015,906 1,067,447 51,541 Intergovernmental - State - - 45,067 45,067 Use of money and property - - 10,489 10,489 Amount Available for Appropriation 1,648,906 1,737,819 1,869,560 131,741 CHARGES TO APPROPRIATIONS (OUTFLOWS): Debt service: Principal 295,000 295,000 295,000 - Interest and fiscal charges 726,106 726,106 720,941 5,165 Total Charges to Appropriations 1,021,106 1,021,106 1,015,941 5,165 FUND BALANCES - ENDING 627,800$ 716,713$ 853,619$ 136,906$ Budgeted Amounts 110 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL PARK DEVELOPMENT CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2008 70 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 72,200$ 198,699$ 209,086$ 10,387$ RESOURCES (INFLOWS): Transfer in - - 35,554 35,554 Amount Available for Appropriation 72,200 198,699 244,640 45,941 CHARGES TO APPROPRIATIONS (OUTFLOWS): Transfer out 190,280 190,280 244,640 (54,360) Total Charges to Appropriations 190,280 190,280 244,640 (54,360) FUND BALANCES - ENDING (118,080)$ 8,419$ -$ (8,419)$ Budgeted Amounts 111 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL LIBRARY EXPANSION CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2008 71 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 785,400$ 683,921$ 684,553$ 632$ RESOURCES (INFLOWS): Use of money and property 15,000 15,000 17,158 2,158 Amount Available for Appropriation 800,400 698,921 701,711 2,790 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Community services 57,000 57,000 7,782 49,218 Total Charges to Appropriations 57,000 57,000 7,782 49,218 FUND BALANCES - ENDING 743,400$ 641,921$ 693,929$ 52,008$ Budgeted Amounts 112 72 113 FIDUCIARY FUND FINANCIAL STATEMENTS 73 Agency Funds Cable T. V. Trust - This fund accounts for funds of the Saratoga Community Access T.V. Foundation. Assessment Districts Bonds - This fund accumulates the monies for payment of bonds for Village Parking Districts No. 2 and No. 3, the Leonard Road Improvement District and the Saratoga Public Financing Authority which is financed by assessments placed on the County tax roll. 114 CITY OF SARATOGA COMBINING STATEMENT OF FIDUCIARY NET ASSETS AGENCY FUNDS JUNE 30, 2008 74 Total Cable T.V.AssessmentAgency TrustDistrict BondsFunds ASSETS Cash and investments 38,365$ -$ 38,365$ Interest receivable 296 - 296 Total Assets 38,661$ -$ 38,661$ LIABILITIES Deposits payable 38,661$ -$ 38,661$ 115 CITY OF SARATOGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED JUNE 30, 2008 75 Balance Balance July 1, 2007AdditionsDeductionsJune 30, 2008 Cable T.V. Trust Assets: Cash and investments 63,882$ 4,483$ (30,000)$ 38,365$ Accounts receivable 152 - (152) - Interest receivable 829 296 (829) 296 Total Assets 64,863$ 4,779$ (30,981)$ 38,661$ Liabilities: Deposits payable 64,863$ 4,779$ (30,981)$ 38,661$ Assessment District Bonds Assets: Cash and investments 1,230$ -$ (1,230)$ -$ Liabilities: Deposits payables 1,230$ -$ (1,230)$ -$ Total Agency Funds Assets: Cash and investments 65,112$ 4,483$ (31,230)$ 38,365$ Accounts receivable 152 - (152) - Interest receivable 829 296 (829) 296 Total Assets 66,093$ 4,779$ (32,211)$ 38,661$ Liabilities: Deposits payable 66,093$ 4,779$ (32,211)$ 38,661$ 116 76 117 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 77 118 78 119 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS COMPARATIVE SCHEDULES BY SOURCE JUNE 30, 2008 AND 2007 79 2008 2007 GOVERNMENTAL FUNDS CAPITAL ASSETS: Land and land improvements 9,887,095$ 9,887,095$ Buildings and structures 23,066,577 23,066,577 Machinery and equipment 1,960,112 1,835,003 Infrastructure 102,756,600 102,364,233 Construction in progress 7,744,871 4,798,318 Total Governmental Funds Capital Assets 145,415,255 141,951,226 Accumulated depreciation (22,002,104) (19,958,980) Total Governmental Funds Capital Assets, Net 123,413,151$ 121,992,246$ INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE: General Fund 116,778,672$ 116,056,016$ Special revenue funds 1,418,730 1,418,730 Capital projects funds 27,120,505 24,379,132 Donations 97,348 97,348 Accumulated depreciation (22,002,104) (19,958,980) Total Governmental Funds Capital Assets 123,413,151$ 121,992,246$ 120 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY JUNE 30, 2008 80 Land andBuildingsMachinery Land and and ImprovementsStructuresEquipment FUNCTION AND ACTIVITY General and intergovernmental services: Management services -$ 271,631$ 47,837$ Administrative services - 167,585 577,807 Intergovernmental services 118,184 3,096,786 67,606 Total General and Intergovernmental Services 118,184 3,536,002 693,250 Public safety: Police services - - 27,813 Code enforcement - - 22,548 Total Public Safety - - 50,361 Public works: Streets and sidewalks 134,695 30,628 606,118 Parks/open space 2,529,529 2,656,850 338,913 Total Public Works 2,664,224 2,687,478 945,031 Community services 5,362,223 2,543,198 227,811 Community development services 1,742,464 14,299,899 43,662 Total Governmental Funds Capital Assets 9,887,095 23,066,577 1,960,115 Accumulated depreciation - (4,327,499) (1,489,895) Total Governmental Funds Capital Assets, Net 9,887,095$ 18,739,078$ 470,220$ 121 81 Construction in InfrastructureProgressTotal -$ 115,676$ 435,144$ - - 745,392 - - 3,282,576 - 115,676 4,463,112 - - 27,813 - - 22,548 - - 50,361 102,756,597 4,748,536 108,276,574 - - 5,525,292 102,756,597 4,748,536 113,801,866 - 2,880,659 11,013,891 - - 16,086,025 102,756,597 7,744,871 145,415,255 (16,184,710) - (22,002,104) 86,571,887$ 7,744,871$ 123,413,151$ 122 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED JUNE 30, 2008 82 Governmental Governmental Funds Capital Funds Capital Assets Assets July 1, 2007AdditionsDeletionsJune 30, 2008 FUNCTION AND ACTIVITY General and intergovernmental services: Management services 362,205$ 72,940$ -$ 435,145$ Administrative services 620,283 125,109 - 745,392 Intergovernmental services 641,808 2,640,768 - 3,282,576 Total General and Intergovernmental Services 1,624,296 2,838,817 - 4,463,113 Public safety: Police services 27,813 - - 27,813 Code enforcement 22,548 - - 22,548 Total Public Safety 50,361 - - 50,361 Public works: Streets and sidewalks 107,489,974 2,494,604 (1,708,004) 108,276,574 Parks/open space 5,105,402 419,890 - 5,525,292 Total Public Works 112,595,376 2,914,494 (1,708,004) 113,801,866 Community services 10,768,300 1,163,741 (918,151) 11,013,890 Community development services 16,912,893 - (826,868) 16,086,025 Total Governmental Funds Capital Assets141,951,226 6,917,052 (3,453,023) 145,415,255 Accumulated depreciation (19,958,980) (2,043,124) - (22,002,104) Total Governmental Funds Capital Assets, Net 121,992,246$ 4,873,928$ (3,453,023)$ 123,413,151$ 123 CITY OF SARATOGA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2008 83 Variance with Final Budget ActualPositive OriginalFinalAmounts(Negative) FUND BALANCES - BEGINNING 3,444,025$ 3,444,025$ 3,444,025$ -$ RESOURCES (INFLOWS): Intergovernmental - State 2,354,301 2,354,301 1,272,272 (1,082,029) Intergovernmental - Other 6,747,957 6,707,957 656,930 (6,051,027) Other revenue 30,000 179,000 332,486 153,486 Transfer in 1,641,262 1,641,262 2,033,696 392,434 Amount Available for Appropriation 14,217,545 14,326,545 7,739,409 (6,587,136) CHARGES TO APPROPRIATIONS (OUTFLOWS): Capital outlay 14,091,003 14,690,003 3,523,306 11,166,697 Transfer out 20,000 141,000 141,554 (554) Total Charges to Appropriations 14,111,003 14,831,003 3,664,860 11,166,143 FUND BALANCES - ENDING 106,542$ (504,458)$ 4,074,549$ 4,579,007$ Budgeted Amounts 124 84 125 85 STATISTICAL SECTION 126 86 127 STATISTICAL SECTION (UNAUDITED) 87 This part of the City of Saratoga's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government' overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. 76-80 Revenue Capacity These schedules contain information to help the reader assess the governments most significant local revenue source, the property tax. 81-87 Debt Capacity These schedules present information to help the reader assess the afford ability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 88-90 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 91-93 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 94-96 128 CITY OF SARATOGA NET ASSETS BY COMPONENT LAST FOUR FISCAL YEARS (Accrual Basis of Accounting) (amounts expressed in thousands) 88 2005200620072008 Primary government Governmental activities Investment in capital assets, net of related debt 105,784$ 107,100$ 108,102$ 109,818$ Restricted 6,328 5,370 5,928 5,940 Unrestricted 6,789 9,955 8,593 9,710 Total primary government 118,901$ 122,425$ 122,623$ 125,468$ Fiscal Year Source: CAFR 129 CITY OF SARATOGA CHANGES IN NET ASSETS LAST FOUR FISCAL YEARS (Accrual Basis of Accounting) (amounts expressed in thousands) 89 2005200620072008 Expenses: Governmental activities: General and intergovernmental services 4,160$ 3,473$ 4,532$ 6,293$ Public safety 3,736 3,427 3,844 4,166 Environmental services 379 465 487 441 Public works 3,450 4,287 5,938 4,884 Community services 1,929 1,395 1,437 1,286 Community development services 2,349 2,226 1,993 2,032 Interest on long-term debt (unallocated)760 754 768 714 Total governmental activities expenses 16,763 16,027 18,999 19,816 Program revenues: Charges for services: General and intergovernmental services - 31 452 1,787 Public safety 141 122 - 411 Environmental services 504 509 - - Public works 8 12 257 313 Community services 757 1,008 604 911 Community development services 1,890 2,665 1,328 2,110 Operating grants and contributions 1,218 1,549 2,155 151 Capital grants and contributions 865 1,568 1,282 1,715 Total governmental activates program revenues5,383 7,464 6,078 7,398 Net (expense) revenue and change in net assets(11,380) (8,563) (12,921) (12,418) General revenue and other changes in net assets Taxes: Property taxes 4,841 5,652 5,772 8,099 Special assessments 302 348 - 279 Voter approved property taxes 1,174 1,021 271 1,113 Sales taxes 1,011 988 995 1,058 Local taxes 1,143 1,288 1,099 694 Franchise taxes 995 1,040 1,187 1,625 Motor vehicle in-lieu 420 718 177 149 Total Taxes 9,886 11,055 9,501 13,017 Intergovernmental - - 673 841 Investment earnings 283 709 2,813 1,057 Other revenues 193 323 132 348 Total general revenues 10,362 12,087 13,119 15,263 Change in net assets (1,018) 3,524 198 2,845 Net assets - beginning of year 119,919 118,901 122,425 122,623 Net assets - end of year 118,901$ 122,425$ 122,623$ 125,468$ Fiscal Year Source: CAFR 130 CITY OF SARATOGA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST FOUR FISCAL YEARS (Accrual Basis of Accounting) (amounts expressed in thousands) 90 2005200620072008 Tax revenues: Property taxes 4,841$ 5,652$ 5,772$ 8,099$ Special assessments 302 348 - 279 Voter approved property taxes 1,174 1,021 271 1,113 Sales taxes 1,011 988 995 1,058 Local taxes 1,143 1,288 1,099 694 Motor vehicle in-lieu 995 1,040 1,187 1,625 Franchise taxes 420 718 177 149 Total tax revenues 9,886$ 11,055$ 9,501$ 13,017$ Fiscal Year Source: CAFR 131 CITY OF SARATOGA FUND BALANCES OF GOVERNMENTAL FUNDS LAST FOUR FISCAL YEARS (Modified Accrual Basis of Accounting) (amounts expressed in thousands) 91 2005200620072008 General fund: Reserved -$ 1$ 64$ 1$ Unreserved 6,979 10,378 9,097 10,395 Total general fund 6,979$ 10,379$ 9,161$ 10,396$ All other governmental funds: Reserved Debt service funds 855$ 865$ 746$ 854$ Unreserved, reported in: Special revenue funds 201 919 844 318 Capital project funds 5,322 3,586 4,338 4,768 Total all other governmental funds 6,378$ 5,370$ 5,928$ 5,940$ Fiscal Year Source: CAFR 132 CITY OF SARATOGA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST FOUR FISCAL YEARS (Modified Accrual Basis of Accounting) (amounts expressed in thousands) 92 2005200620072008 Revenues: Property taxes 6,304$ 7,022$ 6,043$ 9,443$ Other local taxes 1,862 2,275 2,121 1,831 Licensed and permits 100 79 1,340 1,671 Fines and forfeitures 162 259 396 344 Intergovernmental - state 1,375 2,660 3,631 1,641 Intergovernmental - federal 90 - - - Intergovernmental - other 671 976 629 777 Franchise fees 1,294 1,041 1,187 1,622 Use of money any property 664 752 2,813 924 Other revenues 153 1,719 151 326 Current services charges 3,093 2,715 900 4,184 Total tax revenues 15,768 19,498 19,211 22,763 Expenditures: Current: General and intergovernmental services 3,238 3,346 3,806 4,083 Public safety 3,731 3,423 3,824 4,166 Environmental services 379 462 444 441 Public works 2,220 3,039 5,270 4,276 Community services 1,875 1,210 1,381 1,262 Community development services 1,990 1,847 1,962 2,026 Capital outlay 1,777 2,908 2,130 4,246 Debt service: Principal 255 270 280 295 Interest and fiscal charges 766 760 774 721 Total expenditures 16,231 17,265 19,871 21,516 Excess of revenues over (under) expenditures (463) 2,233 (660) 1,247 Other financing sources (uses): Transfers in 2,492 499 3,422 2,241 Transfers out (2,492) (499) (3,422) (2,241) Total other financing sources (uses)- - - - Net change in fund balances (463)$ 2,233$ (660)$ 1,247$ Debt as a percentage of noncapital expenditures7.06%7.17%5.94%5.62% Fiscal Year 133 CITY OF SARATOGA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST FOUR FISCAL YEARS 93 2005200620072008 General 1.00000 1.00000 1.00000 1.00000 County Retirement 0.03880 0.03880 0.03880 0.03880 County Library 0.00240 0.00240 0.00240 0.00240 City of Saratoga 0.01484 0.01170 0.00955 0.01130 Campbell School District 0.05290 0.05120 0.05080 0.04750 Cupertino Elementary School District 0.03600 0.03500 0.02890 0.03370 Moreland Elementary School District 0.06120 0.05610 0.05560 0.05690 Saratoga School District 0.03610 0.03560 0.03510 0.03630 Campbell Union High School District 0.01970 0.02240 0.01980 0.02850 Fremont Union High School District 0.02680 0.02600 0.02430 0.02410 Los Gatos-Saratoga Joint Union High School District0.04090 0.03710 0.06510 0.03450 Foothill-DeAnza Community College District 0.01290 0.01190 0.03460 0.01130 West Valley-Mission Community College District - 0.01400 0.01260 0.01180 Saratoga Fire District 0.00170 0.00520 0.00490 0.00530 Santa Clara Valley Water District - State Water Project0.00860 0.00690 0.00700 0.00670 Santa Clara Valley Water District - Zone W-1 0.00060 0.00090 0.00020 0.00400 Fiscal Year Source: California Municipal Statistics, Inc. 134 CITY OF SARATOGA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST FOUR FISCAL YEARS (amounts expressed in thousands) 94 Fiscal Year EndedResidentialCommercialIndustrial VacantOtherUnsecured June 30PropertyPropertyPropertyInstitutionalPropertyPropertyProperty 20057,114,095$ 166,071$ 8,746$ 33,509$ 70,276$ 35,127$ 42,965$ 20067,883,965 177,149 8,921 38,027 90,611 32,858 46,874 20078,467,894 187,142 9,099 45,706 107,228 39,536 39,764 20089,025,628 208,369 9,281 50,590 110,656 49,023 35,775 Source:1 HdL Coren & Cone, Santa Clara County Assessor 2007/08 Combined Tax Rolls Other property includes: Irrigated, Dry Farm, Recreational Government, and Miscellaneous 2 California Municipal Statistics, Inc. 135 95 Total2 TotalLess:Total Taxable1 Direct AssessedTax ExemptAssessedTax PropertyReal PropertyValueRate 7,470,789$ (76,932)$ 7,393,857$ 1.0560 8,278,405 (133,951) 8,144,454 1.0529 8,896,369 (140,859) 8,755,510 1.0508 9,489,322 (159,369) 9,329,953 1.0525 136 CITY OF SARATOGA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND FOUR YEARS AGO JUNE 30, 2008 (amounts expressed in thousands) 96 % of Total Taxable Taxable Assessed Assessed Taxpayer ValueRankValue Cupertino Village Associates, LLC 33,535$ 10.36% Quito Village Group, LLC 17,658 20.19% John M. & Abby J. Sobrato 16,958 30.18% Gregpenn Properties, LLC 15,288 40.16% David L. House 15,134 50.16% San Jose Water Works 11,460 60.12% David J. & Terri E. Morrison 10,192 70.11% Argonaut Associates, LLV 10,102 80.11% Ashok Krishnamurthi 10,034 90.11% David C. & Roxanne N. Petterschmidt 9,812 100.11% Saratoga Office Center Partners, LLC Deloise A. Jordan Public Storage Props IX Inc Assessed Value 9,329,953$ 1 Earliest information available Source: HdL Coren & Cone, Santa Clara County Assessor 2008 Combined Tax Rolls 2008 137 97 % of Total Taxable Taxable Assessed Assessed ValueRankValue 16,640$ 20.23% 8,872 90.12% 9,904 40.13% 9,606 50.13% 11,427 30.15% 9,173 70.12% 19,300 10.26% 9,020 80.12% 8,530 100.12% 7,393,858$ 20051 138 CITY OF SARATOGA PROPERTY TAX LEVIES AND COLLECTIONS LAST FOUR FISCAL YEARS 98 Fiscal YearTotal Tax Collections in EndedLevy for Subsequent June 30Fiscal YearAmountPercentageYearsAmountPercentage 20054,972,875$ 4,839,668$ 97.3%133,207$ 4,972,875$ 100.0% 20065,243,038 5,112,766 97.5%130,272 5,243,038 100.0% 20076,032,558 6,040,230 100.1%(7,672) 6,032,558 100.0% 20088,108,364 8,106,743 100.0%- 8,106,743 100.0% Collected within the Fiscal Year of the Levy Total Collections to Date Source: City of Saratoga Note: Information on this schedule is not provided from the County of Santa Clara. An estimate has been used for the total tax levy for the fiscal year based upon collections of prior year property taxes in the next fiscal year. 139 CITY OF SARATOGA RATIOS OF OUTSTANDING DEBT BY TYPE LAST FOUR FISCAL YEARS (amounts expressed in thousands) 99 2005200620072008 Governmental activities General obligation bonds 14,440$ 14,170$ 13,890$ 13,595$ Total primary government 14,440$ 14,170$ 13,890$ 13,595$ Percentage of Personal Income 1 0.00%0.00%N/AN/A Per capita2 468 460 443 430 Fiscal Year Source: CAFR Note: 1Bureau of Economic Analysis - personal income information only available through 2006. San Jose-Sunnyvale-Santa Clara region. 2Population information from California State Controller's Office. 140 CITY OF SARATOGA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST FOUR FISCAL YEARS (amounts expressed in thousands, except per capita amount) 100 2005200620072008 General obligation bonds 14,440$ 14,170$ 13,890$ 13,595$ Less: Amount available in debt service fund(855) (865) (747) (854) Total primary government 13,585$ 13,305$ 13,143$ 12,741$ Percentage of actual taxable value of property 0.18%0.16%0.15%0.14% Per capita1 440 431 419 403 Fiscal Year Source: CAFR 1Population information from California State Controller's Office. 141 CITY OF SARATOGA DIRECT AND OVERLOAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2008 (amounts expressed in thousands) 101 Estimated EstimatedShare of DebtPercentageOverlapping OutstandingApplicable 1 Debt Direct and Overlapping Tax and Assessment Debt: Foothill-De Anza Community College District 484,814$ 1.811%8,780$ West Valley Community College District 86,325 11.676%10,079 Campbell Union High School District 143,980 5.510%7,933 Fremont Union High School District 132,000 3.852%5,085 Los Gatos-Saratoga Joint Union High School District65,100 41.077%26,741 Campbell Union School District 104,347 6.897%7,197 Cupertino Union School District 128,130 6.439%8,250 Moreland School District 72,492 12.777%9,262 Saratoga Union School District 52,537 86.250%45,313 Saratoga Fire Protection District 5,419 97.615%5,290 City of Saratoga 13,595 100.000%13,595 Santa Clara Valley Water District Benefit Assessment165,020 3.680%6,073 Total Direct and Overlapping Tax and Assessment Debt 153,598 Overlapping General Fund Debt: Santa Clara County General Fund Obligations 895,655 3.680%32,960$ Santa Clara County Pension Obligations 389,485 3.680%14,333 Santa Clara County Board of Education Certificates of Participation 15,445 3.680%568 Santa Clara County Vector Control District Certificates of Participation 4,275 3.680%157 Foothill-De Anza Community College District Certificates of Participation 27,685 1.811%501 Los Gatos-Saratoga Joint Union High School District Certificates of Participation 3,795 41.077%1,559 Cupertino Union School District Certificates of Participation 2,375 6.439%153 Saratoga Union School District Certificates of Participation 6,890 86.250%5,943 Midpeninsula Open Space Park District General Fund Obligations 104,840 6.490%6,804 Total Overlapping General Fund Debt 62,978 Combined Total Debt 2 216,576$ 1 Percentage of overlapping agencies assessed valuation located within boundaries of the City. 2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc. 142 CITY OF SARATOGA LEGAL DEBT MARGIN INFORMATION LAST FOUR FISCAL YEARS (amounts expressed in thousands) 102 2005200620072008 Debt Limit 1,120,618$ 1,241,761$ 1,334,455$ 1,423,398$ Total net debt applicable to limit 13,585 13,305 13,143 12,741 Legal debt margin 1,107,033$ 1,228,456$ 1,321,312$ 1,410,657$ Total net debt applicable to the limit as a percentage of debt limit 1.21%1.07%0.98%0.90% Legal debt margin calculation Assessed value 7,393,857$ 8,144,454$ 8,755,510$ 9,329,953$ Add back: exempt real property 76,932 133,951 140,859 159,369 Total assessed value 7,470,789$ 8,278,405$ 8,896,369$ 9,489,322$ Debt limit (15% of total assessed value)1,120,618$ 1,241,761$ 1,334,455$ 1,423,398$ Debt applicable to limit: General obligation bonds 14,440$ 14,170$ 13,890$ 13,595$ Less: Amount available in debt service fund(855) (865) (747) (854) Total net debt applicable to limit 13,585 13,305 13,143 12,741 Legal debt margin 1,107,033$ 1,228,456$ 1,321,312$ 1,410,657$ Fiscal Year Source: CAFR 143 CITY OF SARATOGA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST FOUR FISCAL YEARS 103 PersonalPer Capita FiscalCityIncomePersonalLaborUnemployment YearPopulation1 (in millions)2 Income3 Force 4 Rate4 2005 30,850 224,702$ 50,373$ 12,600 2.5% 2006 30,835 240,484 N/A 12,700 2.1% 2007 31,352 N/A N/A 12,900 2.3% 2008 31,592 N/A 73,848 13,100 3.2% Source: 1 State of California Controllers Office 2 Bureau of Economic Analysis – San Jose, Sunnyvale, Santa Clara region 3 Claritas Inc. 4 State of California Employment Development Department 144 CITY OF SARATOGA PRINCIPAL EMPLOYERS LAST FOUR FISCAL YEARS 104 Percentage Percentage of Total City of Total City Employer EmployeesRankEmploymentEmployeesRankEmployment Gene's Fine Foods 85 1 1.39%85 1 1.39% Safeway 65 2 1.06%65 2 1.06% Saratoga Country Club 65 3 1.06%65 3 1.06% 24 Hour Fitness 20 4 0.33%30 4 0.49% Longs Drug 20 5 0.33%20 6 0.33% Classic Car Wash 20 6 0.33%20 7 0.33% Harmonie European Day Spa20 7 0.33%20 8 0.33% Hinshaw, Draa & Marsh 20 8 0.33%20 9 0.33% Jakes of Saratoga 20 9 0.33% Bella Saratoga 18 100.29%20 100.33% Windemere SVP 27 5 0.44% Total City Employment2 6,129 6,129 2008 2007 Source: City of Saratoga 1 Earliest information available 2 Current information unavailable 145 105 Percentage Percentage of Total City of Total City EmployeesRankEmploymentEmployeesRankEmployment 85 11.39%85 11.39% 65 21.06%65 21.06% 65 31.06%65 31.06% 30 40.49%30 40.49% 20 60.33%20 60.33% 20 70.33%20 70.33% 20 80.33%20 80.33% 20 90.33%20 90.33% 20 100.33%20 100.33% 27 50.44%27 50.44% 6,129 6,129 2006 20051 146 CITY OF SARATOGA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPOLYEES BY FUNCTION LAST FOUR FISCAL YEARS 106 2005200620072008 Function General government 12.65 10.75 11.00 13.00 Public works 20.80 20.75 21.75 22.75 Community development 13.00 13.00 14.00 14.00 Parks and recreation 10.30 10.35 10.60 10.60 Total 56.75 54.85 57.35 60.35 Fiscal Year Source: City of Saratoga Budget Document 147 CITY OF SARATOGA OPERATING INDICATORS BY FUNCTION LAST FOUR FISCAL YEARS 107 2005200620072008 Function Public safety Part 1 crimes1 463 426 425 381 Total incidents 42,011 40,567 39,663 41,243 Police reports 1,767 1,659 1,767 1,941 Public Works Street resurfacing (miles)N/A 5 14 N/A Street lights repaired 2 3 3 12 Potholes filled (sq. ft.)N/A5,000 5,000 7,000 Community Development Total permit valuation ($000)74,668 94,485 69,935 70,442 Parks and Recreation Classes, trips (enrollment) community events5,192 5,260 4,606 4,740 Sports programs (e.g. basketball, softball)470 473 515 591 Child care programs (enrollment)200 163 159 225 Day/summer camps (enrollment)301 287 205 242 Teen/youth council (enrollment)2,506 3,798 2,221 94 Dance program (four quarters)412 452 211 42 Senior center (enrollment/attendance days)22,312 22,591 18,515 17,826 Fiscal Year Source: City of Saratoga various records 1 Part 1 Crimes are the following as reported to DOJ: homicide, rape, robbery, burglary, assault, theft, auto theft, and arson. 148 CITY OF SARATOGA OPERATING INDICATORS BY FUNCTION LAST FOUR FISCAL YEARS 108 2005200620072008 Function Public safety Police Station 1 1 - - Fire Station Saratoga Fire District 1 1 1 1 Central Fire District 1 1 1 1 Public Works Street Miles - Private 13 13 13 13 Street Miles - Public 137 137 137 137 West Valley Sanitation District Number of Connections 8,601 8,621 8,651 8,651 Length of Sewer Lines 120 120 127 127 Cupertino Valley Sanitation District Number of Connections 2,118 2,118 2,915 2,927 Length of Sewer Lines 36 36 36 36 Parks and Recreation Parks Acreage 81 81 81 81 Parks 15 15 15 15 Fiscal Year Source: City of Saratoga various records 149 150 151 1 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: Christopher A. Riordan, AICP DIRECTOR: John F. Livingstone, AICP SUBJECT: Adoption of the Ordinance Amending the Regulations Related to Fences, Walls, and Hedges (CONSENT ITEM) RECOMMENDED ACTION: Staff recommends the City Council waive the Second Reading and adopt the Ordinance amending the Regulations Related to Fences, Walls, and Hedges. REPORT SUMMARY: On February 4, 2009, the City Council conducted a public hearing, introduced the ordinance, and voted to place the ordinance on consent for adoption. REPORT SUMMARY: The following is a summary of topics being addressed with the update related to fences, walls and hedges: Topic Current Approach and Problem Proposed Changes Definitions The code currently does not define hedges and does not distinguish walls from retaining walls. The regulations use the terms interchangeably throughout the subsection, requiring assumptions and interpretations. The definition of fence will include walls (other than walls of a building and retaining walls). Definitions for hedge and retaining wall have been added. Height Measurement Fences are currently measured from the lower elevation points and include the height of any retaining walls. A property owner with the higher grade on one side of a property line is thus allowed a shorter fence than a property owner on the opposite side. Where, for example, a 4- The proposed language will measure fence height from the higher of two properties. Some language has been removed for consistency purposes. Retaining walls will be measured from the lower elevation of two properties and the 5-foot maximum height for retaining walls has not been 152 2 Topic Current Approach and Problem Proposed Changes foot grade differential exists between two properties, a property owner with the higher elevation point is allowed only 2- foot high fence if the maximum fence height is 6-feet. changed. Fence Height The code currently permits fences to a maximum height of 6-feet. However, fences are frequently constructed to be 6- feet in height with 2-feet of lattice on top. These fences are not allowed by code and create code enforcement issues. The proposed changes would allow a 6- foot tall solid fence with additional 2-feet of lattice for a maximum of 8-feet. The proposed changes would also allow fencing composed of wrought iron or wire to a maximum height of 8-feet. Fence Exception Currently, any variation to code regulations requires a variance. Variances are reserved for situations where a hardship exists. The update would establish a fence exception process allowing property owners to request the Planning Commission approve a modification to regulations for a particular situation where a hardship may not exist, but where deviation from the code is allowed. Green Fences The code currently does not regulate the height of trees or other natural landscaping, even when planted in a linear pattern creating a boundary similar to that of a fence. A definition of hedges has been added to the code in lieu of the term “green fences,” which is not used in the proposed language. The proposed language will exempt hedges from height restrictions, except for street and driveway intersections. Driveway Intersections The code currently does not limit the height of fences near driveway intersections. The proposed update will add a height requirement of 3-feet for fences and other elements located within a 12-foot by 12- foot triangle near driveway intersections for projects triggering design review. Pedestrian Entry Elements The current code does not regulate the number or the size parameters of entry elements. The proposed language suggests a height maximum of 8-feet, and a 5-foot maximum for both width and depth. There are no limits on the number of entry elements. Existing Non- Conforming Fences Fences legally established prior to a particular date are currently exempt from some limitations within the code. Given that many fences do not require building permits, it is difficult to determine when a fence was legally constructed. Specific dates have been eliminated and the term “legal” has been added to ensure that the section applies only to legally constructed fences. Removal of more than half of a legal fence or element will require the replacement structure to comply with code requirements or require review via a 153 3 Topic Current Approach and Problem Proposed Changes fence exception. Height and Materials Within Hillside Districts Currently, wire fencing (other than chain link, barbed wire or galvanized wire) with 4-inch openings to allow for the passage of wildlife is permitted. The code specifies that the wire must be black or otherwise colored to blend with the terrain. With the exception for recreational courts, chain link fencing in the hillside district is currently prohibited. The code has been modified to permit fencing that delineates the area of enclosure in hillside properties to be composed of the same materials and heights that are permitted elsewhere, including chain link. The height and materials for fencing outside the area of enclosure have also been specified. Area of Enclosure for Hillside Properties Hillside properties are currently permitted a maximum of 4,000 square feet of fence enclosure. Common practice is to enclose a larger area with the goal of allowing for the passage of wildlife. The code exempts recreational courts from the enclosure requirement, even though recreational courts are permitted to be as large as 7,200 square feet. The code will be modified to allow a 6,000 square foot or 15 percent of the gross site area, whichever is greater, enclosure that may be fenced with the same material and maximum heights as stipulated elsewhere in the City. However, outside the area of enclosure, fencing must be no taller than 3- feet and consist only of split rail, stone, or stucco. Additionally, recreational courts are no longer exempt from the enclosure requirement. Chain Link Fencing Material Chain link fencing is commonly used in many areas of the City, but is prohibited in the hillside district. The ordinance has been revised to allow chain link fencing in the hillside districts within the allowed enclosure area. Swimming Pool Fences (Building Regualtions) Chapter 16 (Building Regulations) of the City code regulates fences required around pools. This update will reference that section of the City code. Swimming Pool Fences (Hillside District Enclosures) The code currently limits the square footage of enclosure within the hillside district to 4,000 square feet, but exempts the area needed to fence a pool from the square footage maximum. Therefore, since the building code requires properties with a pool to be enclosed, a fence may surround the property and inadvertently enclose more than 4,000 square feet. The proposed language will require fencing for pools in hillside districts to follow the contour of the pool with no more than 10-feet of distance between the water line of the pool and fence. Only properties that already have a 6,000- square foot enclosure for another purpose are subject to this requirement. Enclosure Maximum with Hillside Districts Currently there is no requirement for a minimum distance in-between two fences to be considered not enclosed. This section was included in the Planning Commission draft Ordinance but has been removed for the City Council based on the Commission’s intent. 154 4 Topic Current Approach and Problem Proposed Changes Agricultural Uses Parcels with agricultural uses are subject to the maximum 6,000 square foot enclosure requirement. The proposed language includes and exemption which excludes fencing around the immediate perimeter of an agricultural use from the enclosure limitation. Front Yard / Side Yard Fencing The City has numerous lots (i.e. flag lots) that do not have frontage on a street, but are still required to adhere to a 3-foot maximum height for fences in the front setback area. This is particularly applicable when the front lot line of a lot abuts a side lot line of an adjacent lot. Where the adjacent lot may be permitted a fence that is 6-foot solid with 2-foot lattice, the subject property may be limited to a 3-foot fence along the same property line. The proposed language adds a provision that allows the maximum fence height for a side yard or a rear yard be allowed within the front setback area of the lot that would otherwise be limited to 3-feet in height. Solid 8-foot Fence An 8-foot fence or wall is currently permitted for certain arterial streets and for fencing adjacent to commercial properties. Since the proposed language would permit 6-foot solid fence with 2-foot lattice on other properties, language regarding the permitted 8-foot solid fence needs to be clarified. The phrase “solid or other type of fence permitted by this Article” has been added to existing language for clarification. Parker Ranch The Parker Ranch subdivision has specific fencing requirements; however the code does not reference these regulations. The regulations describing Parker Ranch fencing requirements will be referenced in the proposed language. FISCAL IMPACTS: The ordinance may lead to a decrease in fence complaints to the City’s Code Enforcement staff thereby reducing staff time spent on enforcement and reductions in City Attorney costs. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Fence Ordinance would remain unchanged and would continue to be difficult to interpret for both staff and the public. ALTERNATIVE ACTION: Deny the proposed resolution and provide staff with direction. FOLLOW UP ACTION: This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within 15 days after its adoption. 155 5 ADVERTISING, NOTICING AND PUBLIC CONTACT: Notice of this meeting was properly posted. ATTACHMENTS: A. Proposed Ordinance Amending the Regulations Related to Fences, Walls, and Hedges. 156 1 ORDINANCE __________ An Ordinance Amending the Saratoga Municipal Code to amend and clarify existing provisions of the City Code regarding fences, walls, and hedges Findings 1. The City of Saratoga wishes to update the rules and standards applicable to fences, retaining walls, and similar structures in the City of Saratoga. 2. The Planning Commission of the City of Saratoga considered a range of amendments to the City Code, conducted four public meetings including a noticed public hearing at which public testimony and all written materials were considered, and on November 12, 2008 recommended that the City Council adopt a Negative Declaration and the proposed amendments to the City Code. 3. The City Council has adopted a resolution pursuant to the California Environmental Quality Act (CEQA) adopting a Negative Declaration and finding no evidence that the amendments contained in this ordinance may have a significant adverse effect on the environment. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. Articles 15-06 and 15-29 of the Saratoga City Code are hereby amended as set forth in Attachment A. Words shown in bold underlined text (example) are added to the code and words shown in strikeout (example) are added to the code. Words in standard font are unchanged from the existing Code. Sections within an Article that are not included in Attachment A are unchanged from the existing Code. Section 2. Severance Clause. The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Section 3. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. 157 2 The foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 4th day of February, 2009, and was adopted by the following vote following a second reading on the 18th day of February, 2009: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: ATTEST: _________________________________ _____________________________ Chuck Page, Ann Sullivan, MAYOR OF THE CITY OF SARATOGA CLERK OF THE CITY OF SARATOGA APPROVED AS TO FORM: __________________________________ Richard Taylor, CITY ATTORNEY 158 1 Attachment A Amendments to Saratoga City Code Articles 15-06 and 15-29 Article 15-06 DEFINITIONS 15-06.261 Fence. “Fence” means any structural device, other than a wall of a building, forming a physical barrier by means of glass, wood, masonry, metal, chain, brick, stake, plastic, concrete block, wrought iron, wire, or other similar materials. A wall, other than a wall of a building or a retaining wall, is considered a fence. 15-06.341 Height of fence s, walls and hedges. "Height of fences, walls and hedges" means a vertical line from the highest point of the fence (including lattice or similar material), wall or hedge to a point directly below at either the natural grade or the finished grade, at the owners choice. whichever grade is lower. Where a fence is constructed upon, or approximately parallel to and within two feet of the top of a retaining wall, the height of the fence shall be the vertical distance measured from the top of the fence to the bottom of the retaining wall in the manner prescribed herein. Where there are differences in grade between adjacent properties, the fence height is measured from the property with the higher grade unless a different measurement standard applies pursuant to another section of this Code. (grade) (grade) 15-06.xxx Hedge. “Hedge” means a series of trees or other natural landscaping planted in a linear and uninterrupted pattern such that a boundary is created. The natural landscaping must be able to stand on its own and shall not require supports upon maturity. A hedge is not a fence. 15-06.xxx Height of retaining wall. "Height of retaining wall" means a vertical line from the highest point of the retaining wall to a point directly below the lowest natural grade unless a different measurement standard applies pursuant to another section of this Code. 159 2 15-06.xxx Retaining Wall. ”Retaining Wall” means a structural device constructed and erected to resist lateral pressure from earth or to retain soil. --End of Amendments to Article 15-06-- Article 15-29 FENCES, WALLS AND HEDGES 15-29.010 Height restrictions. (a) General regulations.General regulation. Except as otherwise specified in this Article, no fence or wall shall exceed six feet in height. A building permit shall be required for any fence more than six feet in height (including lattice or similar material). Height maximums and permitted materials for fences shall be as follows: (1) Solid fences. Except as otherwise specified in this Article, no solid fence shall exceed six feet in height. However, up to two feet of lattice (or similar material) that is at least twenty-five percent open to the passage of light and air may be added to the top of a solid fence. A solid fence taller than six feet shall not be permitted unless approved by the Planning Commission through the exception process detailed in 15- 29.080, or approved by the Community Development Director pursuant to sections 15-29.030, 15-29.040, or 15-29.050 of this Chapter. (2) Open fences. Except as otherwise specified in this Article, open fencing, such as wrought iron, wire material, split rail, chain link, or other similar fencing shall not exceed eight feet in height. With the exception of chain link fencing, open fencing shall have openings sufficient to allow the unobstructed passage of a sphere having a diameter of four inches. For chain link fencing, the opening shall be two inches at minimum and no slats are allowed in any opening. (b) Front setback area. No fence located within any required front setback area shall exceed three feet in height. (c) and eExterior side setback area of reversed corner lots. No fence or wall located within any required exterior side setback area of a reversed corner lot shall exceed three feet in height. (d) The height limitations do not apply to the following circumstances: Exceptions to these height limitations are as follows: (1) A fence or wall lawfully constructed prior to March 20, 1987, may extend to a height not exceeding six feet, if such fence or wall does not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to or from adjacent properties; provided, however, that upon the destruction or removal of more than one-half of the length of such nonconforming fence or wall, any replacement fence or wall shall not exceed three feet in height. (2) (1) Wrought iron entrance gates within the front setback area, designed with openings to permit visibility through the same, may extend to a height not exceeding five feet, and shall be located a minimum of twenty feet from the edge of street pavement. 160 3 (3) (2) Safety railings that are required by the Uniform California Building Code shall be excluded from the height requirements of this Section. (3) Pedestrian entryway elements, such as arbors and trellises, when attached to a fence within a front setback area or within an exterior side setback area, may be permitted to a maximum height of eight feet, a maximum width of five feet, and a maximum depth of five feet. (4) On any lot where the front setback area, or a portion thereof, of the subject property: (1) does not have street frontage as defined by Article 15-06.290 and (2) the front lot line, or a portion thereof, of the subject property abuts the side or rear setback area of an adjacent property, the maximum permitted fence height for a side or rear setback area shall be permitted within the front setback area of the subject property where it abuts the side or rear setback area of an adjacent property. (d) (e) Street intersections. No fence, wall or compact, hedge, retaining wall, entryway element, pilaster, gate, or other similar element located within a triangle having sides fifty feet in length from a street intersection, as measured from intersecting curblines or intersecting edges of the street pavement where no curb exists, shall exceed three feet in height above the established grade of the adjoining street. (f) Driveway Intersections. No fence, hedge, retaining wall, entryway element, pilaster, gate, or other similar element located within a triangle having sides twelve feet in length from either side of a driveway where it intersects with edge of pavement shall exceed three feet in height above the established grade of the adjoining street. Protected trees described in section 15-50.050 of this Code are not subject to this requirement. (g) Vehicular Obstructions. No fence, hedge, retaining wall, entryway element, or any other similar element shall constitute an obstruction as provided for in City Code Section 10-05.030. Edge of pavement Property Line 161 4 (h) (d) Recreational courts. Fencing around recreational courts shall comply with the regulations contained in Section 15-80.030(c) of this Chapter. (i) (e) Pilasters. Pilasters constituting a part of a fence, in reasonable numbers and scale in relationship to the nature and style of the fence, may extend to a height of not more than two feet above the height limit applicable to the fence containing such pilasters, but in no case shall the height of pilasters exceed eight feet. If pilasters within the front setback area are attached to a wrought iron entrance gate, the pilasters are permitted to a maximum height of seven feet. (j) (f) Light fixtures. The height of a fence shall not include light fixtures mounted thereon at the entrance of driveways and sidewalks leading into a site. Not more than two such light fixtures shall be installed at each driveway and sidewalk entrance. (k) Swimming Pool Fences. Fences required for swimming pools are governed by City Code Sections 16-75.010 and 15-29.020(e). (l) (g) Retaining walls. No retaining wall shall exceed five feet in height. Notwithstanding the foregoing, no retaining wall located in a front or exterior side setback area shall exceed three feet in height. (h) Fencing adjacent to commercial districts. The Community Development Director may issue a special permit to allow a fence up to eight feet in height where such fence is installed along a rear setback area or interior side setback area of a residential site which abuts a commercial district. The Community Development Director may impose such conditions deemed appropriate to mitigate any visual or other adverse impacts of the fence, including, but not limited to, requirements with respect to the design and materials of the fence and landscape screening. Applications for a special permit under this subsection shall be filed with the Community Development Director on such form as he shall prescribe, and shall be accompanied by a processing fee in such amount as established from time to time by the City Council. 15-29.020 Fencing within hillside districts. In addition to the regulations set forth in Section 15-29.010 of this Article, fences and walls located within an HR or R-OS district shall comply with the following regulations: (a) (c) Area of Enclosure. Except for fencing which constitutes part of a corral, no fencing on a single site shall encompass or enclose an area in excess of six thousand square feet or 15 percent of the gross site area, whichever is greater, unless approved by the Planning Commission. The fencing shall meet the requirements stipulated in 15-29.010 of this Article. “Encompass and enclose,” as used in this section, shall mean to surround an area with a continuous fence or a fence. (b) Fencing Outside Area of Enclosure. Except for fencing which constitutes part of a corral or fencing required by the Building Code for swimming pools, fencing outside the area of enclosure shall not exceed three feet in height, and shall be split rail fencing, stone wall, or stucco. 162 5 (a) Length of solid fences and walls. Solid fences and walls, having no openings to permit visibility through the same, shall not have a length exceeding sixty feet, as viewed from any street or adjacent property. This restriction shall not apply to retaining walls. (c) (b) Parallel retaining fences and walls. Parallel retaining fences and walls shall be separated by a horizontal distance of not less than five feet. Where two or more fences or retaining walls are approximately parallel to each other and separated by a horizontal distance of thirty feet or less, the combined height of such fences or walls shall not exceed ten feet. (d) Wildlife trails. No fence shall unreasonably impede the movement of wildlife animals utilizing an established trail or migratory route which crosses the site. (c) Area of enclosure. Except for fencing around recreational courts and fencing which constitutes part of a corral, no fencing on a single site shall encompass or enclose an area in excess of four thousand square feet (excluding the area of any pool) unless approved by the Planning Commission, which approval may be granted in any of the following cases: (1) Where the Planning Commission finds and determines that the visibility of the fence from public streets and adjacent properties will substantially be reduced by the topography, landscaping or other features of the site. (2) Where the Planning Commission finds and determines that the fence is required for safety reasons. (3) Where an exemption from the restriction against fencing enclosure has been granted by the Planning Commission for a “designated neighborhood area,” as hereinafter defined, in response to a petition for such exemption signed by the owners of lots comprising not less than sixty percent of the designated area. Before granting such exemption, the Planning Commission shall conduct a public hearing on the petition, with notice thereof sent by mail at least ten days prior to the date of the hearing to all persons owning property located within the designated neighborhood area and within five hundred feet from the boundaries of such area. As a condition for granting an exemption, the Planning Commission may establish alternative rules concerning the enclosure of sites in the designated neighborhood area, including, but not limited to, rules pertaining to the amount of enclosure, the design and type of fencing, and mitigation of visual impacts; provided, however, in no event shall such rules permit enclosure of more than sixty percent of the gross site area, or the installation of any solid fences or walls, or use of any fencing material having exposed sharp points, or the installation of any fencing within an area dedicated as open space. The term “designated neighborhood area,” as used in subsection (c)(3) of this Section, means a geographic portion of a hillside zoning district, as designated by the Planning Commission, consisting of not less than ten lots which are contiguous to each other. Lots which are separated only by a street shall be considered contiguous. If a petition for exemption is presented by owners of any lots shown on a recorded subdivision or tract map, the Planning Commission may, in its discretion, require that all of the lots shown on such map be included within the designated neighborhood area. Additional contiguous lots may be annexed to an existing designated neighborhood area upon application by the property owner and approval by the Planning Director, based upon his determination that the additional lot has similar topography, visibility, or other features shared by the lots within the designated neighborhood area. 163 6 (d) Wildlife trails. No fence shall unreasonably impede the movement of wildlife animals utilizing an established trail or migratory route which crosses the site. (e) Wire fences. Wire fencing, other than chain link, barbed wire or galvanized wire, shall be permitted only if the space between the wire is sufficient to allow the unobstructed passage of a sphere having a diameter of four inches and the wire is black or otherwise colored to blend with the terrain. Chain link fencing shall be permitted only for recreational courts and shall similarly be colored to blend with the terrain. No barbed wire fencing shall be allowed except as permitted by Section 15-29.050 of this Article. (e) Swimming Pool Fences within hillside districts. When a fence already encompasses or encloses six thousand square feet or more on a single site, and a swimming pool fence is required for a swimming pool that is not located within the area of enclosure as described in Article 15-29.020(a), an additional area around the swimming pool may be enclosed with a fence, provided the swimming pool fence follows the contour of the pool with no more than ten feet of distance located between the fence and edge of water. (f) The provisions of this Section shall not apply to any property located within and constituting a part of Tract 7763, as shown on the subdivision map thereof recorded in the office of the County Recorder. (g) Any property located within and constituting a part of Tracts 6526 and 6528 (Parker Ranch Subdivision), as shown on the subdivision map thereof recorded in the office of the County Recorder shall meet the regulations stipulated in Resolution FE-90-001 or successor amendments. (h) 15-29.030 Fencing adjacent to commercial districts. The Community Development Director may issue a special permit to allow a solid fence, or other type of fence permitted by this Chapter, fence up to a maximum of eight feet in height where such fence is installed along a rear setback area or interior side setback area of a residential site which abuts a commercial district. The Community Development Director may impose such conditions deemed appropriate to mitigate any visual or other adverse impacts of the fence, including, but not limited to, requirements with respect to the design and materials of the fence and landscape screening. Applications for a special permit under this subsection shall be filed with the Community Development Director on such form as he shall prescribe, and shall be accompanied by a processing fee in such amount as established from time to time by the City Council. 15-29.030 15-29.040 Fencing to mitigate noise from certain arterial streets. (a) For the purpose of noise mitigation, a solid fence, or other type of fence permitted by this Article, exceeding the height otherwise prescribed in this Article as the limit for such fence may be located within any required setback area abutting Prospect Road, Saratoga/Sunnyvale Road, Quito Road, the portion of Saratoga Avenue between Fruitvale Avenue and Lawrence Expressway or the portion of Cox Avenue between Saratoga/Sunnyvale Road and Saratoga Avenue, upon the issuance by the Community Development Director of a fence permit and subject to the following provisions: 164 7 (1) Where the fence is located within an exterior side setback area or rear setback area abutting one of the arterial streets specified herein, the fence shall not exceed eight feet in height at the property line, plus one additional foot in height for each additional five feet of setback from the property line, up to a maximum height of ten feet if the fence is still located within a required setback area. (2) Where the fence is located within a front setback area abutting one of the arterial streets specified herein, the fence may be located no closer than ten feet from the front property line and shall not exceed eight feet in height, plus one additional foot in height for each additional five feet of setback from the front property line in excess of ten feet, up to a maximum height of ten feet if the fence is still located within the required front setback area. (3) Where a street line is located within a site, the location and setback of the fence as specified in subsections (a)(1) and (2) of this Section shall be determined by the street line rather than the property line. (4) The applicant shall landscape and permanently maintain an area parallel to and along the entire exterior side of the fence facing the street, in accordance with a landscape plan approved by the Community Development Director. All or any portion of such area may be located within the public right-of-way, subject to approval by the Community Development Director. The landscaped area required herein shall be not less than five feet in width, except that where the available space between the fence and the interior edge of the sidewalk, or the edge of the street pavement where no sidewalk exists, is less than five feet, the Community Development Director may approve a landscape area of not less than two feet. Prior to issuance of the fence permit, a landscape maintenance agreement shall be executed by the applicant and recorded in the office of the County Recorder, which agreement shall constitute a covenant running with the land. (5) The design of the fence shall be subject to approval by the Community Development Director, based upon a finding that the fence is compatible with existing or proposed structures on the site and upon neighboring properties. (6) No permit shall be issued if the Community Development Director finds that the fence will constitute a hazard for vehicular or pedestrian traffic or will otherwise be detrimental to the public health, safety or welfare. (b) Applications for a fence permit under this Section shall be filed with the Community Development Director on such form as he shall prescribe, and shall be accompanied by a processing fee in such amount as established from time to time by resolution of the City Council. 15-29.040 15-29.050 Fencing adjacent to scenic highways. In addition to the regulations set forth in Section 15-29.010 of this Article, fences adjacent to State designated scenic highways shall comply with the following requirements: (a) Fence permit. No person shall construct any fence or wall which faces and is located within one hundred feet from the right-of-way of a State designated scenic highway without first obtaining a fence permit from the Planning Director. Application for such permit shall be submitted to the Planning Director on such form as he shall prescribe, and shall be accompanied by a processing fee in such amount as established from time to time by resolution of the City Council. 165 8 (b) Setback. No fence or wall shall be constructed within fifteen feet from the property line abutting the right-of-way of a scenic highway. The Planning Director may require this minimum setback to be increased to a maximum of one hundred feet if he determines that such increased setback is necessary to preserve the scenic qualities of the highway. (c) Color, material and design. Fences or walls adjacent to scenic highways may be constructed of wood, stone, stucco, masonry, wrought iron or similar material, but no chain link, plastic or wire fencing shall be permitted. The design, color and materials of the fence or wall shall be subject to approval by the Planning Director, based upon a finding that the fence or wall will not adversely affect the scenic qualities of the highway and will be compatible with the natural terrain. (d) Landscape screening. The applicant shall landscape and permanently maintain an area parallel to and along the entire length of the exterior side of the fence or wall facing the scenic highway, in accordance with a landscape plan approved by the Planning Director. Such landscape plan shall provide for the planting of trees and vegetation that are native to the area, fast growing, and require little or no maintenance. The Planning Director shall not approve the landscape plan unless he finds that the proposed landscaping will effectively screen the fence from public view and enhance the visual appearance of the scenic highway. Prior to issuance of the fence permit, a landscape maintenance agreement shall be executed by the applicant and recorded in the office of the County Recorder, which agreement shall constitute a covenant running with the land. (e) Height. The height of any fence or wall adjacent to a scenic highway shall comply with the regulations set forth in Section 15-29.010 of this Article; provided, however, where the applicant demonstrates to the satisfaction of the Planning Director that his property is subjected to greater noise impacts from the scenic highway as compared generally with other properties located adjacent to such highway, the Planning Director may approve a fence or wall not exceeding eight feet in height. As a condition of such approval, the Planning Director may require increased setbacks and landscaping to mitigate the visual impact of the higher fence or wall. (f) Exemption. This Section shall not apply to a fence lawfully constructed prior to March 20, 1987, if such fence does not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to or from adjacent properties; and provided further, that upon the destruction or removal of more than one-half of the length of such nonconforming fence, any replacement fence shall comply with the permit requirement and restrictions specified in this Section. 15-29.050 15-29.060 Barbed wire and electrified wire prohibited. No fence or wall constructed or installed within the City shall contain barbed or electrified wire unless approved by the Planning Commission, based upon a finding that the barbed or electrified wire is necessary for security purposes and that measures will be taken, when appropriate, to mitigate any adverse impacts of such wire. 15-29.060 15-29.070 Fences adjacent to heritage lanes. 166 9 In addition to the regulations set forth in Section 15-29.010 of this Article, fences adjacent to a designated heritage lane shall comply with the following requirements: (a) Fence permit. No person shall construct any fence or wall which faces and is located within fifty feet from the right-of-way of a designated heritage lane, and which exceeds three feet in height, without first obtaining a fence permit from the Community Development Director. Application for such permit shall be submitted and processed in the manner provided in Article 13-20 of the City Code. If the Heritage Commission recommends issuance, the Community Development Director shall issue the permit in accordance with those recommendations and any condition related but not limited to the design standards set forth in subsections (c), (d), (e) and (f) of this Section and pursuant to the process prescribed in Article 13-20. (b) Supporting data. The level of detail of the supporting data required by Section 13-20.030 shall be determined by the Community Development Director to allow adequate review of the proposed fence or wall. (c) Setback. No fence or wall which exceeds three feet in height shall be constructed within the required setback area fronting a heritage lane. This minimum setback may be required to be increased to a maximum of fifty feet upon the finding that such increased setback is necessary to preserve the historic qualities of the heritage lane. (d) Color, material and design. Fences or walls adjacent to a the heritage lane may be constructed of wood, stone, masonry, wrought iron or similar material. The design, color and materials of the fence or wall shall be approved based upon a finding that the fence or wall will not adversely affect the historic qualities of the lane and will be compatible with the design and materials of existing buildings on the site and structures on adjacent properties. (e) Height. The height of any fence or wall adjacent to the a heritage lane shall comply with the regulations set forth in Section 15-29.010 of the City Code. (f) Landscaping. The applicant shall landscape and maintain an area within the right-of-way, parallel to and along the entire length of the exterior side of a fence or wall in excess of three feet in height and facing the heritage lane, in accordance with a landscape plan approved by the Community Development Director. Such landscape plan shall provide for the planting of trees and vegetation that are native to the area and require little or no maintenance. The landscape plan may be approved by the Community Development Director upon the finding that the proposed landscaping will effectively blend the fence with its environment and enhance the visual appearance of the lane. (g) Exemption. This Section shall not apply to a fence lawfully constructed prior to September 16, 1992, if such fence does not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to or from adjacent properties; and provided further, that upon the destruction or removal of more than one-half of the length of such nonconforming fence, any replacement fence shall comply with the permit requirement and restrictions specified in this Section. 167 10 15-29.080 Exemption for Agricultural Uses. Fencing around the immediate perimeter of an orchard, vineyard, equestrian facility or similar agricultural use is exempt from this Article. This exemption applies to raising of fruit and nut trees, vegetables and horticultural specialties, but does not include nurseries, greenhouses or storage of landscaping equipment, products or supplies for commercial uses. 15-29.090 Fence Exceptions. (a) The owner(s) of a fence, or proposed fence, including any gates or pilasters attached thereto, may request that the Planning Commission grant an exception to the regulations regarding fences. The Planning Commission may grant this exception if all of the following findings are made: (1) The subject fence will be compatible with other similar structures in the neighborhood; (2) The entirety of the subject fence will be constructed of materials that are of high quality, exhibit superior craftsmanship, and that are durable; (3) The modification will not impair the integrity and character of the neighborhood in which the fence is located; (4) The granting of the exception will not be detrimental or injurious to the property, adjacent neighbors, or improvements in the general vicinity and district in which the property is located; and, (5) The granting of the exception will not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to and from adjacent properties. (b) For exceptions proposed in the HR or R-OS districts, the Planning Commission may grant the exception if, in addition to the findings made in subsection (a), it also makes all of the following findings: (1) The visibility of the fence from public streets and adjacent properties will substantially be reduced by the topography, landscaping or other features of the site; and, (2) The fence does not unreasonably impede the movement of wildlife animals utilizing an established trail or migratory route which crosses the site; and, (3) In the event the exception is to increase the area of enclosure pursuant to Section 15-29.020(a), the increased area of enclosure is required for safety reasons. (c) A public hearing on the application for exception approval under this Article shall be required. Notice of the public hearing shall be given not less than ten days nor more than thirty days prior to the date of the hearing by mailing, postage prepaid, to the applicant and to all persons whose names appear on the latest available assessment roll of the County as owning property within five hundred feet of the boundaries of the parcel which is the subject of the application. Notice of the public hearing shall also be published once in a newspaper having general circulation in the City not later than ten days prior to the date of the hearing. 168 11 (d) A decision or determination made by the Planning Commission under this Article may be appealed to the City Council in accordance with the procedure set forth in Article 15-90 of this Chapter. 15-29.100 Existing Legal Non-Conforming Fences, Pilasters, Entryway Trellises. This Article shall not require any modification to any fence, pilaster, entryway, or trellis that was in compliance with the City Code at the time it was built (for the purposes of this Article, a “Legal Non-Conforming Fence”). Upon destruction or removal of more than one-half length of a Legal Non-conforming Fence or any element thereof any new fence or element shall be constructed to meet height requirements as prescribed in this Article or be approved by an exception process described in section 15-29.080 of this Article. 15-80.030 Special rules for accessory uses and structures in residential districts. (c) Recreational courts. Subject to approval by the Community Development Director, recreational courts may be allowed, provided that such recreational courts shall comply with all of the following restrictions, standards and requirements: (1) The recreational court shall not exceed seven thousand two hundred square feet in area. (2) The recreational court shall not be illuminated by exterior lighting. (3) No direct opaque screening shall be utilized around any portion of the recreational court. (4) No fencing for a recreational court shall exceed ten feet in height. (5) No recreational court shall be located in a required front or side setback area. Such courts may be located within a required rear setback area, but no closer than fifteen feet from any property line. (6) The natural grade of the area to be covered by the recreational court shall not exceed an average slope of ten percent, unless a variance is granted pursuant to Article 15-70 of this Chapter. (7) The recreational court shall be landscaped, in accordance with a landscape plan approved by the Community Development Director, so as to create a complete landscaping buffer from adjoining properties within two years from installation. In addition, a bond, letter of credit or other security, in such amount as determined by the Community Development Director, shall be furnished to the City to guaranty the installation of the landscaping improvements in accordance with the approved landscaping plan. (8) The recreational court shall be designed and located to minimize adverse impacts upon trees, natural vegetation and topographical features and to avoid damage as a result of drainage, erosion or earth movement. (9) The recreational court shall be designed to preserve the open space qualities of hillsides, creeks, public paths, trails and rights-of-way on or in the vicinity of the site. - End of amendments to Article 15-29 - 169 Page 1 of 2 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Public Works CITY MANAGER: Dave Anderson PREPARED BY: Iveta Harvancik DIRECTOR: John Cherbone Senior Engineer PW Director SUBJECT: Agreements to Relocate the Equestrian and Pedestrian Trail RECOMMENDED ACTIONS: Approve the two Agreements to Relocate the Equestrian and Pedestrian Trail with Parker Ranch Homeowners Association and Saratoga Country Club, respectively. Authorize the City Manager to execute the same. REPORT SUMMARY: The City maintains an existing Equestrian and Pedestrian trail that runs through the Parker Ranch Open Space and through the Saratoga Country Club property. Parts of the Equestrian and Pedestrian trail extensively eroded and it is necessary to relocate the trail. A new proposed trail location was outlined (see Attachment 1) on both properties and reviewed by representatives of the Parker Ranch Homeowners Association and the Saratoga Country Club. Both the Parker Ranch Homeowners Association and the Saratoga Country Club agree with the proposed trail location and agree to grant the City a Right of Entry to the respective properties for trail construction. After the completion of construction of the relocated trail, the City will survey the new trail and prepare all necessary documents for the recordation of the new Pedestrian and Equestrian Trail Easement Agreements. In the attached Agreements, the Parker Ranch Homeowners Association and the Saratoga Country Club agree to execute the Easement Agreement when the trail survey is completed. The City has received donated funds for the trail construction and survey. The Pedestrian, Equestrian and Bicycle Trails Committee reviewed and approved executing the two Agreements to Relocate the Equestrian and Pedestrian Trail authorizing the City to relocate the Equestrian and Pedestrian trail as proposed on the attached site plan. Therefore, it is 170 Page 2 of 2 recommended that the City Council approve execution of the Agreements to Relocate the Equestrian and Pedestrian Trail and construction of the Equestrian and Pedestrian trail in the new location. FISCAL IMPACTS: No fiscal impact to the City. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The trail will not be relocated. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: The City Manager will execute the two Agreements to Relocate the Equestrian and Pedestrian Trail. The Equestrian and Pedestrian trail will be constructed in the new location. The new trail easement shall be accepted by the City by executing Equestrian and Pedestrian Trail Relocation Easement Agreements in the future, and the portion of the existing trail easement being abandoned shall be vacated. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: 1. Site Plan - Existing and Proposed Trail. 2. Agreement to Relocate the Equestrian and Pedestrian Trail with Parker Ranch Homeowners Association 3. Agreement to Relocate the Equestrian and Pedestrian Trail with Saratoga Country Club 171 172 173 174 175 176 177 AGREEMENT TO RELOCATE EQUESTRIAN AND PEDESTRIAN TRAIL THIS AGREEMENT is entered into effective ________ (“Effective Date”) by and among the Saratoga Country Club (hereinafter referred to as “Owner”) and the City of Saratoga (hereinafter referred to as “City”) with reference to property known as Assessor’s Parcel Number: 366-29-007 and identified as Parcel 7 on the Map attached hereto as Exhibit A, (the “Property”). WHEREAS, the City maintains an existing Equestrian and Pedestrian Trail that runs through the property; WHEREAS, the City accepted dedication of the easement recorded in document 11638439 for that portion of the existing Pedestrian and Equestrian trail that runs through the Property; WHEREAS, extensive erosion of the Equestrian and Pedestrian Trail make it necessary for the City to relocate such Trail; WHEREAS, the City retained a skilled trail builder to delineate an appropriate relocation of the Equestrian and Pedestrian Trail, the City and Owner desire to enter into the following agreement to relocate the Equestrian and Pedestrian Trail. NOW, THEREFORE, in consideration of the above RECITALS and the mutual promises and covenants of the parties hereto, it is agreed as follows: 1. NEW TRAIL LOCATION The parties hereby agree that the Pedestrian and Equestrian Trail may be relocated and constructed on the Property as generally delineated with a GPS system and mapped as shown in Exhibit A, attached hereto. 2. TRAIL RELOCATION FUNDING The City will fund the trail relocation with donated funds provided by voluntary donations of moneys by private donor(s) and the City does not request any funds from the Owner for the construction of the relocated Trail. 3. OWNER ALLOWS ENTRY ONTO PROPERTY The Owner agrees to allow the City and its respective officers, directors, governing members, employees, contractors, partners, insurers, attorneys, agents, successors and assigns of each of them access to the Property in order to perform the construction of the relocated Equestrian and Pedestrian Trail pursuant to the Right of Entry, attached as Exhibit B. 178 4. ABANDONMENT OF EXISTING EASEMENT After the completion of construction of the relocated Equestrian and Pedestrian Trail, Owner and the City agree to abandon the Easement recorded as document 11638439 for Saratoga Country Club upon completion of the relocated Trail across the Midpeninsula Regional Open Space District property. Abandonment of the Easement recorded as document 11638439 will not occur until the City has approved the construction of the relocated trail and the New Easement Agreement. 5. NEW EASEMENT AGREEMENT After the completion of construction of the relocated Equestrian and Pedestrian Trail, the City will survey the relocated trail and prepare all necessary documents for the recordation of a new Pedestrian and Equestrian Trail Easement Agreement. Owner agrees to execute such new Easement Agreement in favor of the City for the surveyed location of the relocated Equestrian and Pedestrian Trail under terms at least equivalent to those contained in the existing Easement Agreement. IN WITNESS WHEREOF, this agreement has been duly executed by the parties hereto on __________, 2___. Date __________ Owner ______________________________ Date__________________ City By: __________________________ _________________ (name) _________________ (title) 179 EXHIBIT B RIGHT OF ENTRY TO PERFORM RELOCATION AND CONSTRUCTION OF EQUESTRIAN AND PEDESTRIAN TRAIL ACROSS PROPERTY This grant of a RIGHT OF ENTRY TO PERFORM RELOCATION AND CONSTRUCTION OF EQUESTRIAN AND PEDESTRIAN TRAIL is entered into this ___ day of _______, 200__, by and between the CITY OF SARATOGA, a California municipal corporation (“the City”) and SARATOGA COUNTRY CLUB (“Owner”). A. Owner owns the fee title to certain real property, located within the boundaries of the City of Saratoga, APN 366-29-007. Said real property is more particularly shown in Exhibit “A” attached hereto and incorporated herein (“Property”). The Property includes land subject to a Pedestrian Equestrian Easement in which City holds a third party beneficiary interest. B. Construction of a relocated Equestrian and Pedestrian Trail has been agreed upon between the parties due to erosion of the existing location of the Trail. NOW, THEREFORE, in consideration of the facts recited above, and the mutual covenants, terms, conditions and restrictions contained herein the parties hereto agree as follows. 1. Grant of Right of Entry. In consideration of the work to be performed on behalf of the City by trail builder contractor and the trail builder contractor’s crew (collectively “trail builder contractor’s crew”), funded by voluntary donations of moneys by private donor(s), Owner grants to the City, and the trail builder contractor’s crew the Right of Entry to perform work in furtherance of the construction of a relocated Equestrian and Pedestrian Trail to the satisfaction of the City. The Right of Entry shall be over the Property more particularly described in Exhibit “A” and shall generally include entry in such locations, methods and manners deemed reasonable by the City for the construction of said relocated Trail. 2. Rights of Grantees. To accomplish the purpose of this Right of Entry, the following right is conveyed to the City: The City may exercise the Right of Entry 180 subject to the following condition. Entry shall be limited to the hours between __ a.m. and __ p.m. 3. Termination. This Right of Entry shall terminate upon completion of construction of relocated Equestrian and Pedestrian Trail to the satisfaction of the City. 4. Access Limitation. No right of entry or access by the general public to any portion of the Property is conveyed by this Right of Entry Agreement. 5. Hold Harmless. Owner shall hold harmless, indemnify and defend City and its respective officers, directors, governing members, employees, contractors, partners, insurers, attorneys, agents, the trail builder contractor crew and successors and assigns of each of them (collectively “Indemnified City Parties”) from and against all liabilities, penalties, costs, losses, orders, liens, charges, damages, expenses, causes of action, claims, demands or judgments, including, without limitation, reasonable attorneys’ fees, arising from or in any way connected with injury to or the death of any person or physical damage to any property, resulting from any act, omission, condition or other matter related to or occurring on or about the Property arising out of or related to the exercise or administration of this Right of Entry, due to Owner’s sole negligence or willful misconduct. City shall hold harmless, indemnify and defend Owner and its respective officers, directors, governing members, employees, insurers, attorneys, agents, and successors and assigns of each of them (collectively “Indemnified Owner Parties”) from and against all liabilities, penalties, costs, losses, orders, liens, charges, damages, expenses, causes of action, claims, demands or judgments, including, without limitation, reasonable attorneys’ fees, arising from or in any way connected with injury to or the death of any person or physical damage to any property, resulting from any act, omission, condition or other matter related to or occurring on or about the Property arising out of or related to the exercise or administration of this Right of Entry, due to the City’s sole negligence or willful misconduct. IN WITNESS WHEREOF, Owner and the City have executed this agreement effective as of the date first above written. FEE TITLE OWNER: [Insert name of Fee Title Owner] 181 Date_____________ ________________________________________ Signature Name:___________________________________ Title:____________________________________ CITY: THE CITY OF SARATOGA a California municipal corporation Date_____________ ________________________________________ Signature Name:___________________________________ Title: ___________________________________ 182 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: ______ ORIGINATING DEPT: Public Works CITY MANAGER: PREPARED BY: John Cherbone DEPT HEAD: John Cherbone SUBJECT: Landscaping & Lighting Assessment District LLA-1; Resolutions initiating renewal of the District for FY 09-10. ______________________________________________________________________________ RECOMMENDED ACTION(S): 1. Move to adopt the Resolution describing improvements and directing preparation of the Engineer’s Report. 2. Move to adopt the Resolution appointing the Attorney’s for the District. REPORT SUMMARY: Attached are two Resolutions the City Council must adopt to initiate the annual process of renewing the Landscaping & Lighting Assessment District LLA-1 for the upcoming fiscal year beginning on July 1. A brief summary of each Resolution is as follows: 1. Resolution describing improvements and directing preparation of the Engineer’s Report - This is the Resolution required under Streets & Highways Code Section 22622 to initiate the annual renewal process for the existing assessment district for the ensuing fiscal year. The Resolution references the proposed improvements to be provided by the district (Exhibit A), and directs the preparation of the Engineer’s Report required under S&H Code Section 22565. 2. Resolution appointing Attorneys - This Resolution appoints the City Attorney’s office as the attorneys for the District throughout the renewal process, and limits their fees in connection with this work to $500. The provisions of SB 919 (The Proposition 218 Omnibus Implementation Act) adopted by the State legislature in 1997, (Chapter 38, Stats. 1997), and which became effective on July 1, 1997, will be implemented during the renewal process if necessary. Procedurally this means that assessment ballots will be mailed to those property owners within the District whose initial proposed assessments are either 1) higher than in any previous year and 183 who have not previously voted on their assessments, or 2) higher than what was authorized via balloting conducted in a previous year. As in previous years, ballots will be separately tabulated at the close of the Protest Hearing for each Zone that may be voting. Only those ballots returned by the close of the Protest Hearing will count towards determining whether a majority protest exists. The following sets forth the tentative schedule for renewing the District for FY 09-10: February 18 - Council adopts Resolutions directing preparation of Engineer’s Report and appointing Attorneys. April 15 - Council receives Engineer’s Report. Council adopts Resolution of Intention preliminarily approving Engineer’s Report and assessments and setting date and time for Protest Hearing. April 30 - Notices with Proposition 218 ballots mailed to property owners, if required. May 6 - Notice of Protest Hearing published in Saratoga News. May 20 - Notice of Protest Hearing published in Saratoga News. June 3 - Council conducts Protest Hearing per Gov’t. Code Sec. 53753. Ballots are tabulated at the close of the Hearing. If appropriate, Council adopts Resolution confirming assessments for FY 09-10. June 17 - Backup date if needed. August 10 - Deadline for Engineer to transmit Assessment Roll to County Auditor. FISCAL IMPACTS: The costs associated with administering the Landscaping & Lighting Assessment District are recovered via the assessments levied against the properties, which receive special benefit from the services provided through the District. A detailed analysis of the proposed financing for the District in FY 09-10 will be provided in the Engineer’s Report. 184 CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): One or both of the Resolutions would not be adopted. This would delay initiating the process to renew the District for FY 09-10. ALTERNATIVE ACTION(S): None in addition to the above. FOLLOW UP ACTION(S): Work on the Engineer’s Report will begin. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional at this time. Eventually, notices and ballots will be mailed to certain property owners as required by law. Additionally, notices will be published in the Saratoga News as required. ATTACHMENTS: 1. Resolution describing improvements and directing preparation of the Engineer’s Report. 2. Exhibit A 3. Resolution appointing Attorneys. 185 1 RESOLUTION NO. A RESOLUTION DESCRIBING IMPROVEMENTS AND DIRECTING PREPARATION OF ENGINEER'S REPORT FOR FISCAL YEAR 2009-2010 CITY OF SARATOGA LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT LLA-1 RESOLVED, by the City Council of the City of Saratoga, California, as follows: 1. The City Council did, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the Streets and Highways Code of the State of California, conduct proceedings for the formation of the City of Saratoga Landscaping and Lighting Assessment District LLA-1 and for the levy and collection of assessments for fiscal year 1980 - 1981, and did, on June 18, 1980, pursuant to proceedings duly had, adopt its Resolution No. 950- D, a Resolution Overruling Protests and Ordering the Formation of an Assessment District and the Improvements and Confirming the Diagram and Assessments; 2. The public interest, convenience and necessity require, and it is the intention of said Council to undertake proceedings for the levy and collection of assessments upon the several lots or parcels of land in said District, for the construction or installation of improvements, including the maintenance or servicing, or both, thereof, for the fiscal year 2009-2010. 3. The improvements to be constructed or installed, including the maintenance or servicing, or both, thereof, are more particularly described in Exhibit "A" hereto attached and by reference incorporated herein. 4. The costs and expenses of said improvements, including the maintenance or servicing, or both, thereof, are to be made chargeable upon said District, the exterior boundaries of which District are the composite and consolidated area as more particularly shown on a map thereof on file in the office of the Clerk of the City of Saratoga to which reference is hereby made for further particulars. Said map indicates by a boundary line the extent of the territory included in said District and of any zone thereof and shall govern for all details as to the extent of the assessment district. 5. The Engineer of said City be, and is hereby, directed to prepare and file with said Clerk a report, in writing, referring to the assessment district by its distinctive designation, specifying the fiscal year to which the report applies, and, with respect to that year, presenting the following: 186 2 a) plans and specification of the existing improvements and for proposed new improvements, if any, to be made within the assessment district or within any zone thereof; b) an estimate of the costs of said proposed new improvements, if any, to be made, the costs of maintenance or servicing, or both, thereof, and of any existing improvements, together with the incidental expenses in connection therewith; c) a diagram showing the exterior boundaries of the assessment district and of any zones within said district and the lines and dimensions of each lot or parcel of land within the district as such lot or parcel of land is shown on the County Assessor's map for the fiscal year to which the report applies, each of which lots or parcels of land shall be identified by a distinctive number or letter on said diagram; and d) a proposed assessment of the total amount of the estimated costs and expenses of the proposed new improvements, including the maintenance or servicing, or both, thereof, and of any existing improvements upon the several lots or parcels of land in said district in proportion to the estimated particular and distinct benefits to be received by each of such lots or parcels of land, respectively, from said improvements, including the maintenance or servicing, or both, thereof, and of the expenses incidental thereto. 6. The Office of the Public Works Director of said City be, and is hereby, designated as the office to answer inquiries regarding any protest proceedings to be had herein, and may be contacted during regular office hours at the City Hall, 13777 Fruitvale Avenue, Saratoga, California 95070 or by calling (408) 868-1241. * * * * * * * * The above and foregoing resolution was passed and adopted at an adjourned meeting of the Saratoga City Council held on the __ day of ________, 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Chuck Page, Mayor ATTEST: ____________________________ Ann Sullivan, City Clerk 187 Exhibit A DESCRIPTION OF IMPROVEMENTS The design, construction or installation, including the maintenance or servicing, or both, thereof, of landscaping, including trees, shrubs, grass or other ornamental vegetation, statuary, fountains and other ornamental structures and facilities, and public lighting facilities for the lighting of any public places, including traffic signals, ornamental standards, luminaries, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, including the cost of repair, removal or replacement of all or any part thereof, providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; electric current or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; and the operation of any fountains or the maintenance of any other improvements. 188 RESOLUTION NO. A RESOLUTION APPOINTING ATTORNEYS FOR FISCAL YEAR 2009-2010 CITY OF SARATOGA LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT LLA-1 RESOLVED, by the City Council of the City of Saratoga, California, that WHEREAS, the City Council has determined to undertake proceedings for the levy and collection of assessments upon the parcels of land in the City of Saratoga Landscaping and Lighting Assessment District LLA-1 pursuant to the Landscaping and Lighting Act of 1972 for the construction or installation of improvements, including the maintenance or servicing, or both, thereof for the fiscal year 2009-2010; and WHEREAS, the public interest and general welfare will be served by appointing and employing attorneys for the preparation and conduct of said proceedings; NOW, THEREFORE, IT IS ORDERED, as follows: 1. That the law firm of Shute, Mihaly & Weinberger be, and it is hereby appointed and employed to do and perform all legal services required in the conduct of said proceedings, and that its compensation be, and it hereby is fixed at not to exceed $500.00. * * * * * * * The above and foregoing resolution was passed and adopted at an adjourned meeting of the Saratoga City Council held on the __ day of ________, 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Chuck Page, Mayor ATTEST: ____________________________ Ann Sullivan, City Clerk 189 Page 1 of 2 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Public Works CITY MANAGER: Dave Anderson PREPARED BY: Macedonio Nunez DIRECTOR: John Cherbone Associate Engineer SUBJECT: American Recovery and Reinvestment Act of 2009 (ARRA) Funding for the Saratoga Avenue Overlay and Rehabilitation Project. RECOMMENDED ACTION: Adopt resolution supporting the American Recovery and Reinvestment Act of 2009 (ARRA) for the Saratoga Avenue Overlay and Rehabilitation Project. REPORT SUMMARY: Background: With the national economy experiencing the greatest declines since the 1930’s, Congress and the President have been actively discussing a multi-billion dollar Federal economic stimulus act which will include significant funding for transportation infrastructure, including roadways, transit and aviation. President Obama has set a target date of mid –February for enactment of this bill. On Tuesday, February 10, the United States Senate passed an $838 billion economic recovery bill (H.R.1), The American Recovery and Reinvestment Act of 2009, by a 61-37 vote. Public Works staff will apply for ARRA funds for the Saratoga Avenue Overlay and Rehabilitation Project. Discussion: The Valley Transportation Agency (VTA) has developed a potential approval process and funding distribution procedures with regional and state agencies. One key and consistent element has been the need to provide local cities and Counties with a share of these funds in order to address their shovel ready projects, which tend to be local streets and roads repair. The VTA, as the congestion management agency for Santa Clara County, is responsible for nominating local streets and road projects to the Metropolitan Transportation Commission (MTC). MTC has provided VTA with a target of $30.4 million on February 6, 2009. Each city and County’s target has been calculated based on its percentage of MTC’s total projected cost of maintaining and reconstructing local streets and county roads over the next 25 years. The need based target percentage for the City of Saratoga is 2.7%, based on MTC’s 2005 survey which is $820,800. 190 Page 2 of 2 Resolutions are due to MTC prior to Caltrans' authorization (obligation) of the ARRA fund. MTC has given a 60 day period to obligate the funds through Caltrans, which staff is confident it can meet. FISCAL IMPACTS: The American Recovery and Reinvestment Act of 2009 do not require a local match. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The project will not be approved by MTC and the funds will be reallocated to other cities in Santa Clara County. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Resolution will be forwarded to the MTC. ADVERTISING, NOTICING AND PUBLIC CONTACT: N/A ATTACHMENTS: Attachment A – Resolution of Local Support authorizing the filing of an application with Metropolitan Transportation Commission (MTC) for the American Recovery and Reinvestment Act of 2009 (ARRA) Funding. 191 1 Resolution of Local Support American Recovery and Reinvestment Act of 2009 (ARRA) Funding Resolution No. Authorizing the filing of an application for federal American Recovery and Reinvestment Act of 2009 (ARRA) funding and stating the assurance to complete the project WHEREAS, The City of Saratoga (herein referred as APPLICANT) is submitting an application to the Metropolitan Transportation Commission (MTC) for approximately $820,800 in funding from the federal American Recovery and Reinvestment Act of 2009 (ARRA) for the Saratoga Avenue Overlay and Rehabilitation Project (herein referred as PROJECT) for the MTC Regional ARRA Program (MTC Resolution No. 3885) (herein referred as PROGRAM); and WHEREAS, pursuant to ARRA, and any regulations and/or guidance promulgated thereunder, eligible project sponsors wishing to receive Regional ARRA funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission (MTC) is the MPO for the nine counties of the San Francisco Bay region; and WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised applicable to federal ARRA fund delivery and has adopted (or is scheduled to adopt) in MTC Resolution No. 3885 such additional requirements as are necessary or appropriate to meet the obligations/award deadlines in the ARRA; and WHEREAS, APPLICANT is an eligible project sponsor for ARRA funds; and WHEREAS, as part of the application for ARRA funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: 1) that the sponsor understands that the ARRA funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional ARRA or other MTC-programmed funds; and 2) that PROJECT will comply with the procedures specified in MTC’s Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) and with all project- specific requirements as set forth in MTC’s Regional ARRA Program (MTC Resolution No. 3885); and PROJECT as described in the application, and if approved, as included in MTC's TIP; and 3) that PROJECT will comply with all the project-specific requirements as set forth in the federal ARRA and appropriate applicable regulations or guidance. NOW, THEREFORE, BE IT RESOLVED that APPLICANT is authorized to execute and file an application for funding under the American Recovery and Reinvestment Act of 2009 for PROJECT; and be it further RESOLVED that the APPLICANT by adopting this resolution does hereby state that: 1. APPLICANT understands that the ARRA funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the 192 2 APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional ARRA or MTC-programmed funds; and 2. APPLICANT understands the funding deadlines associated with these funds and will comply with the applicable provisions and requirements of the Regional ARRA Program (MTC Resolution No. 3885) and Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and 3. PROJECT will be implemented as described in the complete application and in this resolution and, if approved, for the amount programmed in the MTC federal TIP; and 4. PROJECT will comply with all the project-specific requirements as set forth in the ARRA and appropriate applicable regulations or guidance; and be it further RESOLVED that there is no legal impediment to APPLICANT making applications for the funds; and be it further RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and be it further RESOLVED that APPLICANT authorizes its Executive Director, General Manager, or designee to execute and file an application with MTC for ARRA funding for the PROJECT as referenced in this resolution; and be it further RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution and to include the PROJECT, if approved, in MTC's TIP. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 18th day of February, 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Chuck Page, Mayor ATTEST: _____________________________ Ann Sullivan, City Clerk 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION DATE: _January 20, 2009_________________ Please refer to the Application Instructions Sheet for details on the following questions. Please limit your answers to one paragraph per question 1) Applicant Organization/Agency Name: West Valley Community Services (WVCS) Agency Address: 10104 Vista Drive Cupertino 95014_ Executive Director: Naomi Nakano-Matsumoto_____________ _ Phone: 408-255-8033 x 301Fax: 408-366-6090 E-Mail: naomin@wvcommunityservices.org Agency is a Faith Based Organization: ____ Yes _X__ No 2) Program Title: Community Assistance Program (CAP)__________________________ Program Address: 10104 Vista Drive Cupertino 95014_ Contact Person/Title: Tricia Uyeda ___________________________ Phone: 408-255-8033 x 301Fax: 408-366-6090 E-Mail: triciau@wvcommunityservices.org 3) City of Saratoga/CDBG funds requested in the past: _$15,164_______ ______ 4) City of Saratoga/CDBG funds received in the past: __$ 15,164 ____________ 5) Program description and number of unduplicated clients served: ________________ WVCS is the only known community-based organization providing wrap-around basic family support services in the West Valley area serving Saratoga. The activities of the Community Assistance Program are: 1) To provide food on a weekly basis, preventing hunger for 40 lower income Saratoga residents; 2) To provide culturally relevant information, referrals and education about health and nutrition needs, and providing for specific dietary needs to 100% of the food pantry participants; 3) To provide rental and/or utility assistance to 5 households (10 individuals), through qualified case managers. 6) Program purpose and objectives: _ WVCS has served lower income Saratoga households for 33 years The objective of this program is to increase the quality of life for low-income Saratoga residents by creating and/or maintaining household sustainability: preventing hunger, evictions, utility cut-offs and homelessness for 40 individuals. Based on WVCS’ experience, Saratoga is a community where multiple needs exist. WVCS wants to continue to assist Saratoga households to stay in their homes, to stay warm and to have enough food to make it through each month. 7) Program management: ___________________________________________________ To ensure thorough and comprehensive services to extremely-low to low-income residents, the intake process includes client’s proof of income, residency, ID for all adults, rental agreement, and birth certificates for any children. Recertification is conducted annually. The management of the CAP is integrated and each staff member is cross-trained to ensure consistent and quality services. Employees 210 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION and volunteers are representative of the clientele served and speak many of the client languages. Three positions staff this project, Case Manager, Operations Manager, Program Director. In-kind positions include San Jose State University, College of Social Work Interns and community volunteers. 8) Agency description and experience: ________________________________________ WVCS is a private non-profit, community based agency that has been providing direct assistance and referral services to the community for more than 36 years. WVCS provides a continuum of basic needs, family services and housing services including: information and referrals, food, clothing, shelter, affordable housing, financial assistance, and case management. WVCS serves the West Valley communities of Los Gatos, Monte Sereno, Cupertino, West San Jose, and Saratoga. 9) Audit information: _______________________________________________________ The date of the most recent audit is June 30, 2008. There are no findings. 10) Sources of funds anticipated for this project: _________________________________ SOURCE ESTIMATED AMOUNT STATUS2 Saratoga $ 15,164.00 Application Pending Other Cities $ 97,827 Application Pending County $ 20,000 Secured Foundations $ 78,750 Committed Donations $ 38,000 Secured Federal (pending) $ 3,000 Application Pending ESTIMATED TOTAL PROJECT COST: $252,741.00 11) Budget: Please use the attached worksheet. 12) Performance Measurements: Please use the attached worksheet. 13) Outreach: ______________________________________________________________ WVCS conducts outreach in numerous ways. · WVCS produces a bi-annual newsletter called West Valley Community Action Newsletter (CAN) for all of our clients, donors, volunteers, vendors, and partners. We distribute our newsletter at health fairs and tabling events throughout the community as well as at the collaboration meetings in which WVCS participates. WVCS plans to publish West Valley CAN quarterly this year. All WVCS publications are available online. · WVCS’ 3 Community Engagement Specialists provide outreach & education to residents in the west valley region that we serve. · WVCS’s Parent Workshops provide outreach opportunities to families in the west valley region. 211 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION WVCS plans to work closely with CBOs serving Saratoga residents. WVCS has long-standing relationships with the United Way, Second Harvest Food Bank, local Kiwanis and Lions clubs. WVCS also plans to outreach with the Faith in Action Network, a group of synagogues and churches in the community to their congregations. 14) Leveraging: _____________________________________________________________ 2007-08 and 2008-09 TOTAL status Foundations United Way 64,000 2010 Salvation Army 50,000 Annually FIRST 5 536,784 2009 Housing Trust 12,500 annually Other Foundations 30,000 annually Government County of Santa Clara CalWORKS 25,000 annually County of Santa Clara SSA – One Time Funds 50,000 annually Federal FEMA/EFSP 15,500 annually Federal HUD 82,533 annually City of Cupertino CDBG 101,844 annually City of Cupertino General Funds 15,900 annually City of San Jose HTF 74,100 annually City of San Jose CDBG 42,807 annually City of San Jose ESG 18,581 annually City of Saratoga General Fund 15,164 annually Town of Los Gatos Housing Trust 13,000 annually City of Sunnyvale CDBG 8,000 annually 15) Cost / Benefit Analysis: ___________________________________________________ Total Program Cost Total Clients Served Cost Per Client Funding Requested % Total Cost $252,741 611 $414 $15,164 6% 16) Target Beneficiaries: _____________________________________________________ Saratoga Residents served % Total Clientele Low-Income Clients Served % Total Clientele 67 11% 611 100% 212 BUDGET AGENCY NAME: _West Valley Community Services_ Date Prepared: __January 20, 2009__ PROGRAM NAME: _Community Assistance Program ________ BUDGET WORKSHEET SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun SALARIES Personnel Benefits $1,872.00 $ 450.00 $1,872.00 $ 450.00 $1,872.00 $ 450.00 $1,872.00 $ 450.00 OFFICE EXPENSES Phone/Fax Travel utilities $ 372.00 $ 180.00 $ 615.00 $ 372.00 $ 180.00 $ 615.00 $ 372.00 $ 180.00 $ 615.00 $ 380.00 $ 180.00 $ 615.00 PROJECT EXPENSES Accounting $ $300.00 $ $300.00 $ $300.00 $ $300.00 TOTAL $3,789.00 $3,789.00 $3,789.00 $3,797.00 213 PERFORMANCE MEASUREMENTS AGENCY NAME: _West Valley Community Services_ Date Prepared: __January 20, 2009__ PROGRAM NAME: _Community Assistance Program ________ PERFORMANCE MEASUREMENT WORKSHEET GOAL: To increase the quality of life for lower income Saratoga residents by creating and/or maintaining household sustainability: prevent hunger, evictions, utility shut-offs and homelessness. OBJECTIVE (1): Provide food on a weekly basis. OUTCOME (1): By June 30, 2010, 100% of qualified Saratoga residents receiving food assistance will have food stability. 40 individuals to be served. OBJECTIVE (2): Provide rental and/or utility assistance on a on-time only basis. OUTCOME (2): By June 30, 2010, 80% of recipients will state that the assistance provided prevented eviction and/or utility shut-off. 10 individuals to be served. 214 FY 2009-2010 CITY OF SARATOGA CDBG SUPPLEMENTAL Name of Applicant Organization: _West Valley Community Services____________________________________ Name of Program: __Community Assistance Program___________________________________ Please complete the following questions in addition to the Standard Application to determine additional requirements for CDBG eligibility: 1. Please complete the following tables with the number of recipients for each category: Number of Unduplicated Beneficiaries City No. Campbell 24 Los Altos 5 Los Altos Hills Los Gatos 29 Monte Sereno 5 Morgan Hill Saratoga 67 Unincorporated Santa Clara County Outside the Urban County 1 Reported in HOUSEHOLDS 21 Total unduplicated beneficiaries 611 Number of Urban County unduplicated beneficiaries at or below current county-wide median income 2 Income Category No. 0-30% (Extremely low) 187 31-50% (Very Low) 41 51-80% (Low) 21 2. How does the purpose and objectives of the proposed program meet the Urban County’s CDBG funding objectives with regard to either the Urban County Priority Needs or the Urban County Non- Housing Community Development Needs as described in the Consolidated Plan3 ? WVCS’ Community Assistance Program meets the following objectives in the Urban County’s CDBG: Increase the available supply of housing affordable to lower income households. Increase housing opportunities for special needs households and the un-housed. Homeless Services 1 The Urban County includes the unincorporated portions of the County of Santa Clara and the cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga. 2 Based on the attached FY 2008 HUD Income Limits for Santa Clara County 3 The 2005-2010 Urban County Consolidated Plan is available online at http://www.saratoga.ca.us/ by clicking on the CDBG grant link under In The Spotlight on the right hand side of the webpage 215 FY 2009-2010 CITY OF SARATOGA CDBG SUPPLEMENTAL 216 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION DATE: January 20, 2009 Please refer to the Application Instructions Sheet for details on the following questions. Please limit your answers to one paragraph per question 1) Applicant Organization/Agency Name: Saratoga Area Senior Coordinating Council (SASCC) Agency Address: P.O. Box 3033, 19655 Allendale Avenue, Saratoga, CA, 95070 Executive Director: Susan Huff_________________ ________________________ Phone: 408-868-1255 Fax: 408-868-9546 E-Mail: shuff@sascc.org Agency is a Faith Based Organization: ____ Yes __X__ No 2) Program Title: Saratoga Adult Care Center (ACC) Program Address: 19655 Allendale Avenue, Saratoga, CA, 95070 Contact Person/Title: Susan Huff , Managing Director Phone: 408-868-1255 Fax408-868-9546 E-Mail: shuff@sascc.org 3) City of Saratoga/CDBG funds requested in the past: $34,000 in 08/09; $33,000 in 07/08; $37,284 in 06/07; $36,288 in 05/06; $36,288 in 04/05; 36,737 in 03/04; $35,667 in 02/03; $35,500 in 01/02 4) City of Saratoga/CDBG funds received in the past: $32,000 in 08/09; $32,000 in 07/08; $33,000 in 06/07; $36,681 in 05/06; $36,288 in 04/05; $35,366 in 03/04; $35,667 in 02/03; $34,500 in 01/02 5) Program description and number of unduplicated clients served: The Saratoga Adult Care Center is a Social Adult Day Program, which has provided a safe and stimulating environment for frail elders and respite for caregivers for the past 21 years. Since 1994, the program has been open Monday through Friday from 10 a.m. to 3 p.m., but since September of 2005, we have offered extended hours, from 8:30 a.m. to 5:30 p.m. This meets the needs of caregivers who are working outside the home, and demand for these extended has steadily grown. As the program serves mostly low-income elders, requests for funding are made to numerous sources in order to subsidize this fast-growing target population. Adult Day Care Services are an ideal way to care for the needs of frail seniors, often eliminating the need for institutionalized care and reducing care costs for both the families and the community as a whole. The ACC program will provide over 8,000 hours of paid services 217 to a minimum of 55 unduplicated participants (clients) over a one-year period. The participant profile changes throughout the year but the majority (73%) fall in the very low to extremely low income range. Fees are based on a sliding scale where less than 25% are able to pay the non-subsidized rate. 6) Program purpose and objectives: The purpose of the Adult Care Center is to enhance the quality of life for Saratoga Area Seniors via specific, ongoing supportive services, made available to lower-income participants. These services incorporate the following objectives: (1) Provide daily respite care to up to 24 frail and less independent participants from the West Valley Area of Santa Clara County. (2) Prevent or delay institutionalization of individuals who require considerable personal assistance. (3) Provide socialization, instruction and structured activities such as exercise, crafts, skill development and nutritious meals daily for the less independent elderly in a licensed care facility. (4) Continue to facilitate caregiver support groups twice monthly in cooperation with the Alzheimer’s Association and provide similar support services to local churches and civic organizations of the West Valley area. (5) Provide respite and improve quality of life for caregivers and eliminate or delay the high emotional and financial cost of custodial care. (6) Continue utilizing volunteer services to help contain Center costs. (7) Maintain maximum enrollment of approximately 38 participants each month. (8) Increase funding base through local resources, participant fees and fund raising events in an effort to reduce dependence on City and county funding. Due to the low-income status of the population served and the service-intensive nature of the program, becoming self-supporting is not feasible. The overall goal is to prevent or delay the institutionalization of the frail elderly, enable them to remain in their homes for as long as possible and improve the quality of life for the participants and their caregivers. This has remained our goal throughout our programs history and previous Saratoga CBDG funds has helped us achieve and maintain that goal along with the high quality of service that we provide to our clients. Our accomplishments over the past year, reached with the help of Saratoga CBDG funds are: · Supported all of the Adult Care’s ongoing efforts mentioned above to support families and participants · Allowed for the continuous operation of all of our programs, including our exercise programs, during the summer months when they are not subsidized by West Valley College. · Brought back social worker and support groups to further assist families of Adult Care. 218 · Prevented any reduction of staff or staff hours, so we could continue all of the programs and services for our clients. · Allowed us to host more social events for our members. · Minimized how much we had to draw from our Investment Fund, so that fund can continue to help sustain SASCC for the future. 7) Program management: The SASCC Board of Directors and the Adult Care Center Advisory Committee oversee and are responsible for the Saratoga Adult Care Center. The Center operates under the guidance of the Executive Director who works closely with the Adult Care Center Advisory Committee. A full time Program Manager is responsible for the day-to-day operations of the Center and reports directly to the Executive Director. The Adult Care Center employs two full-time and five part-time employees, (Program Manager, Program Assistants, Assistant Program Manager/Social Worker) providing services of approximately 8,000 hours per year. The Program Manager oversees activities, entertainment and projects. She is responsible for scheduling all activities, special events and classes for the participants. She directs the center, leads many of the activities and oversees the Administrative Assistant, Social Worker, and the Program Assistants, who also run activities and assist participants with projects, meals, toileting and any other special needs that may arise. Along with the Executive Director and the Social Worker, the Program Manager evaluates the needs of new potential clients, develops care plans, maintains ongoing progress reports, and works with families. The program provides exercise routines, memory training and stimulation through travelogues, crafts, music, a variety of entertainment, current events, discussions and directed conversation. Special adaptive exercises and physical skill training are focused on participants who need help with any disabilities (e.g. stroke, aphasia, Parkinson’s). Healthy snacks are provided and full nutritious meals are served daily prepared by the Saratoga-Los Gatos Assistance League. Volunteers and instructors assigned by West Valley College augment the activities and help keep expenses at a minimum. All of the staff at the Saratoga Adult Care Center is highly trained, each with many years of experience working with frail elders. Twenty volunteers supplement the seven paid staff and provide between 575 to 700 hours of service annually. The Executive Director, Program Manager, and Social Worker also maintain strong public relations with local, county and state senior organizations and participate in required trainings. They are involved with public speaking engagements, organizational networking and other important community events. These efforts have resulted in a highly visible program where there is frequently a waiting list for prospective participants. 219 8) Agency description and experience: The Saratoga Adult Care Center (ACC) is a major program component of the Saratoga Area Senior Coordinating Council (SASCC) incorporated as a non-profit organization in 1979. SASCC also operates the Saratoga Senior Center for more active, independent older adults. Recognizing the needs of the aging population, supported by a community assessment, SASCC opened the Saratoga Adult Care Center in January of 1988 as the first facility in Santa Clara County designed and built specifically as an adult care center. It provides much needed respite for caregivers and promotes a higher quality of life for the participants at much less cost to both family members and public agencies. The Saratoga Adult Care Center has steadily increased in number of days open from two at the onset to five full days weekly by February 1994. During this time, the average number of families served monthly increased from 9 to 42 at any one time, with well over 350 visits by participants each month. This increased utilization validates the need and demand for the service. The center serves approximately 18-22 participants per day. This assures each participant plenty of one-on-one time with our assistants and volunteers. Participants come from the surrounding areas of the West Valley Corridor, including Saratoga, Los Gatos, Santa Clara, Campbell, San Jose, Mountain View, Sunnyvale and Cupertino. The Saratoga Adult Care Center’s main objectives are to prevent or delay institutionalization of the frail elderly, enable them to remain in their homes for as long as possible and to improve the quality of life for the participants and their caregivers. The purpose of the Center is to meet the growing need for this service which will only accelerate as the population ages. Independent studies show that by the year 2010, Santa Clara County’s population of individuals 85 years of age and over is expected to double resulting in an increased need for services such as ours. The ACC Mission Statement and Financial Statement are attached on separate pages. 9) Audit information: Please find attached a copy of our last Audited Financial Statements for the year ending June 30, 2008. 10) Sources of funds anticipated for this project: __________________ SOURCE ESTIMATE STATUS Saratoga CDBG Grant $35,000 Submitted and Pending Campbell Grant $ 5,000 To be submitted Feb. 2009 Fees $180,000 Ongoing St. Andrews $ 3,600 Receiving monthly checks Donations, restricted $ 9,000 Ongoing 220 Donations, unrestricted $ 10,000 Ongoing Annual Appeal $ 1,500 Received Fundraising Events $ 6,800 Ongoing Additional Private Foundation $ 35,000 Have researched and identified several that we will submit proposals to in 2009 Total: $285,900 11) Budget: Please see the attached worksheet. 12) Performance Measurements: Please see the attached worksheet. 13) Outreach: a) How SASCC informs Saratoga residents about its ACC program: In 2006 SASCC initiated a Community Outreach Initiative with the specific purpose to support activities to reach and involve additional elders and to increase community awareness and support of programs while growing and diversifying membership. To that end SASCC informs Saratoga residents about its programs through several different outreach methods. Approximately 700 copies of the agency’s newsletter that details all of the activities and programs at SASCC is sent out 12 times (monthly) per year to each member household and an additional resource list of 100, including churches, other senior centers, the local Chamber of Commerce, retirement communities and assisted living centers, libraries, local businesses, and other nonprofits supporting seniors. The agency also promotes its activities, programs and events through articles in the City Newsletter, the Saratogan, the Community newspaper, the Saratoga News and its updated website at www.sascc.org. SASCC has also developed a brochure for the public that describes its programs and outlines its, history, mission and volunteer opportunities. The brochure is given out in response to all new inquiries. The Executive Director and members of our Board of Directors and Advisory Committee also advocate and conduct outreach through networking to a broad range of community organizations including Asian-American groups, the Rotary Club, Kiwanis, Lions, Healthcare libraries, area recreation centers In addition, our Director is aligning with several peer organizations with the intention of collaborating for the benefit of seniors The target groups for outreach include: · Asian-American Elders as these families constitute 30% of the population of Saratoga and have recently begun to participate in the Senior Center; 221 · Other elders in Saratoga that are not SASCC members; · Elders that have joined SASCC but seldom participate in activities · Family members of participants or potential participants. Another important method of outreach is the many health screenings, free workshops and seminars that we host on a range of issues including legal matters, nutrition, flu shots, Eastern Medicine, vision and hearing screenings, insurance matters, etc. In addition the agency hosts many social activities to appeal to a broad range of interests. b) Additional outreach efforts SASCC will use to attract new Saratoga residents and sources drawn on to implement this outreach: · SASCC will focus on reaching out to all prevalent ethnicities in the community and has begun by initiating contact with Asian American community leaders to solicit ideas for reaching their constituent elders. Several suggestions which we plan to explore in order to better market our programs more broadly in the Saratoga community are: develop translated brochures; distribute brochures and event material at the local Farmers Market, develop a translated section in our Newsletter; and place articles in various ethnic community newspapers. In addition SASCC plans to have a broader distribution of its brochures through household mailings to every household in Saratoga. To achieve the above, SASCC plans to redesign its brochure in line with its website producing a very professional and cohesive marketing message. · The agency also plans to implement a new Member Resource Services program that will provide a broader range of assistances to seniors and their caregivers. · On January 23 we will launch our first Blue Ribbon Task Force (BRTF) committee orientation meeting. We have worked diligently in recruiting 15 highly proven, talented community leaders from a variety of backgrounds who have committed to help us move SASCC to the next step. We have provided these volunteers with a background of information, intended goals and objectives, and asked them to complete a survey which will provide valuable discussion points at our first meeting · In February, we will be launching our next big project: the Business Alliance Program (BAP). With this project will are seeking to identify and align with local area businesses who are interested in the welfare of the area seniors. The program is multi-leveled where a business owner may choose to sponsor SASCC, offer discounts to its members, or both. We anticipate that the efforts put into this program will grow over time into something of tremendous mutual benefit to SASCC members and our business community. The added benefit will of course be a growth in membership which will provide additional fees. · We are focusing on fewer but larger and more efficient fund-raising events in 2009. 222 c) The number of additional Saratoga residents ACC has served since SASCC applied for previous funding in 2008-2009: Nineteen new families have been served since the application for previous funding. 14) Leveraging: a) Total Amount of Funding Requested from All Organizations This Year: Organization Date Funds Requested Amount Requested Percentage of Total Cost Saratoga CDBG Jan. 20, 2009 $35,000 12% Campbell CDBG Feb. 12, 2009 $5,000 2% St. Andrews Jan. 15, 2009 $3,600 1% Dorothy Fund TBA $3,000 1% Rotary & Kiwanis TBA $6,000 3% Private Foundations TBA $35,000 12% b) Total Amount of Funding Received from All Organization Last Year: Organization Type of Funding Amount Received Percentage of Total Cost Saratoga CDBG Federal Grant $32,000 14% Campbell CDBG Federal Grant $4,000 2% St Andrews Donation $4,200 2% Dorothy Fund Private donors $6,500 3% 15) Cost / Benefit Analysis: We are requesting $35,000 to support a portion of the total operating costs of the Saratoga Adult Care Center program. Per the attached budget, operating costs include salaries, benefits, member programs and classes, food, supplies, training, audits, insurance, mileage, and necessary licenses and memberships. With intensive volunteer and fundraising efforts, this program creatively stretches its revenues. The budget is tightly controlled and the Finance Committee, the Board of Directors and the Executive Director review expenses monthly. Rent, utilities, and janitorial services are provided in-kind by the City of Saratoga. The City’s support remains as a significant factor in our organization’s success. Currently, 73% of the participants in the Adult Care Center have low or very-low incomes. On average, their daily payments are subsidized by $30.00. With the efficient use of limited resources, the cost of the program is factored at $11 per hour per participant. This is considerably less than in-home or nursing care for an individual who might otherwise require public support. Funds are requested from the City of Saratoga to partially underwrite the programs ad services to our participants. 223 16) Target Beneficiaries: Saratoga Residents Served* Percentage of Total Clientele Low-Income Clients Served Percentage of Total Clientele 18 34% Saratoga: 14 Total : 39 Sarat: 26 % of 53 Sarat: 36% of Total low income clients * 2008-2009 · The number of Saratoga residents served is 18 out of a total of 53 clients or 34% of our total number of clients. · The total number of Low Income clients that we serve from all locations is 39 out of 53 or 73%. · The total number of Low Income clients from Saratoga is 14 or 78% or our Saratoga resident clientele, and 26% of our total number of clients. · The low income clients served from Saratoga represent 36% of our total low-income client population. Total Program Cost Total Clients Served Cost Per Client Funding Requested Percentage of Total Cost $283,618 (55 families unduplicated per year) $5,5156.00 $35,000 12% 224 BUDGET AGENCY NAME: Saratoga Area Senior Coordinating Council Date Prepared: January 20, 2009 PROGRAM NAME: Saratoga Adult Care Center BUDGET WORKSHEET (EXPENSES) SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun Insurance $2,13S7.50 $2,137.50 $2,137.50 $2,137.50 Membership Subsidies (Fees) $5225.00 $5225.00 $5225.00 $5225.00 Fund Raising Expenses $312.50 $312.50 $312.50 $312.50 ACC Members Programs and Classes (Includes Lunches, Snacks & Supplies) $5,928 $5,928 $5,928 $5,928 Services (Includes Maintenance & Outreach) $1,262.50 $1,262.50 $1,262.50 $1,262.50 Administration $1,697.50 $1,697.50 $1,697.50 $1,697.50 Salary, Benefits & Taxes $52,991.50 $52,991.50 $52,991.50 $52,991.50 Health Insurance $1,350 $1,350 $1,350 $1,350 225 SARATOGA AREA SENIOR COORDINATING COUNCIL MISSION STATEMENT The purpose of the Saratoga Area Senior Coordinating Council is to provide quality services to local seniors of all ages, abilities, religions, social and economic backgrounds. Our primary objective is to involve community groups and individuals in senior related issues, to develop community responsibility, advocacy for problems facing our aging population, to assure that the needs of older adults are met and to improve the overall quality of their lives. 226 PERFORMANCE MEASUREMENTS AGENCY NAME: Saratoga Area Senior Coordinating Council Date Prepared: January 20, 2009 PROGRAM NAME: Saratoga Adult Care Center PERFORMANCE MEASUREMENT WORKSHEET GOAL: The Adult Care Center seeks to enhance the quality of life for Saratoga Area Seniors via specific, ongoing supportive services, made available to lower-income participants, to help keep the frail adult in his/her home & community and to provide respite to caregivers, regardless of income. OBJECTIVE (1): For FY 2009-2010 the Adult Care Center will provide over 8,000 hours of paid services to a minimum of 55 participants (clients) over a one year period. OUTCOME (1): To serve and improve the quality of life on a day to day basis for 55 unduplicated clients and their families. OBJECTIVE (2): For FY 2009-2010 the Adult Care Center will maintain a realistic balance of client days in each quarter to support programs. OUTCOME (2): Maintain client days at a minimum of 380 in each quarter. 227 FY 2009-2010 CITY OF SARATOGA CDBG SUPPLEMENTAL Name of Applicant Organization: Saratoga Area Senior Coordinating Council__________________________ Name of Program: Adult Care Center _ Please complete the following questions in addition to the Standard Application to determine additional requirements for CDBG eligibility: 1. Please complete the following tables with the number of recipients for each category: 2. How does the purpose and objectives of the proposed program meet the Urban County’s CDBG funding objectives with regard to either the Urban County Priority Needs or the Urban County Non-Housing Community Development Needs as described in the Consolidated Plan3? The purposes and objectives of SASCC’s Adult Care Program are directly related to the Urban County Non-Housing Community Development Needs which specify that there are needs for supporting the 1 The Urban County includes the unincorporated portions of the County of Santa Clara and the cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga. 2 Based on the attached FY 2008 HUD Income Limits for Santa Clara County 3 The 2005-2010 Urban County Consolidated Plan is available online at http://www.saratoga.ca.us/ by clicking on the CDBG grant link under In The Spotlight on the right hand side of the webpage Number of Unduplicated Beneficiaries City No. Campbell 6 Los Altos 1 Los Altos Hills Los Gatos 3 Monte Sereno Morgan Hill Saratoga 18 San Jose 19 Sunnyvale 2 Santa Clara 2 Unincorporated Santa Clara County Outside the Urban County1 2 Total unduplicated beneficiaries 53 Number of Urban County unduplicated beneficiaries at or below current county-wide median income2 Income Category No. 0-30% (Extremely low) 36 31-50% (Very Low) 10 51-80% (Low) 7 228 FY 2009-2010 CITY OF SARATOGA CDBG SUPPLEMENTAL operating expenses of organizations which provide supportive services “which address the needs of the frail elderly or persons with disabilities.” Through our program we work to prevent or delay institutionalization of the frail elderly, to enable them to remain in their homes for as long as possible and to improve the quality of life for the participants and their caregivers. The purpose of the Center is to meet the growing need for this service which will only accelerate as the population ages. Independent studies show that by the year 2010, Santa Clara County’s population of individuals 85 years of age and over is expected to double resulting in an increased need for services such as ours. Our services apply to the HUD Development Community Needs categories of Public Facility Senior Centers as our program is open to all and housed in a public Saratoga City public building and also to Public Senior Services which is ranked as a “High” priority need. 229 FY 2009-2010 CITY OF SARATOGA CDBG SUPPLEMENTAL 230 PERFORMANCE MEASUREMENTS DATE: January 20, 2009 Please refer to the Application Instructions Sheet for details on the following questions. Please limit your answers to one paragraph per question 1) Applicant Organization/Agency Name: Mid-Peninsula Housing Coalition Agency Address: 303 Vintage Park Drive, Suite 250 Foster City, CA 94404 Executive Director: Matthew O. Franklin Phone: (650) 356-2900, Fax: (650) 357-9765, E-Mail: pvillareal@midpen-housing.org Agency is a Faith Based Organization: ____ Yes __X_ No 2) Program Title: Pedestrian Safety Project Program Address: 18855 Cox Avenue, Saratoga, CA 95070 Contact Person/Title: Peter Villareal / Portfolio Manager Phone: (650) 356-2929 Fax: (650) 357-9765, E-Mail: pvillareal@midpen-housing.org 3) City of Saratoga/CDBG funds requested in the past: In July 1984, Mid-Peninsula Housing Coalition requested $274,000 from the City of Saratoga CDBG program to assist in the acquisition of Saratoga Court Senior Apartments. In 1989 and 1991, Mid-Peninsula Housing Coalition requested funds for the rehabilitation of the Sharmon Palms and The Palms projects located in the City of Campbell. The CDBG funds are currently being amortized and scheduled for repayment with new debt in 2009 or 2010. 4) City of Saratoga/CDBG funds received in the past: Mid-Peninsula Housing Coalition received $274,000 from the City of Saratoga CDBG program to assist in the acquisition of Saratoga Court Senior Apartments. Mid-Peninsula Housing Coalition received $200,000 for the Sharmon Palms and The Palms rehabilitation projects. 5) Program description and number of unduplicated clients served: The Pedestrian Safety Project involves the installation of new asphalt pavement with speed humps on the eastern half of a driveway that extends around the perimeter of Saratoga Court Senior Apartments. Saratoga Court Senior Apartments serves 25 unduplicated, very low-income senior residents living at 18855 Cox Avenue. 6) Program purpose and objectives: The proposed pedestrian safety improvements will help prevent auto traffic-related injuries for 25 unduplicated, very low-income senior residents. To achieve this, Mid-Peninsula Housing Coalition proposes repaving the eastern half of the perimeter driveway and installation of speed humps to temper automotive traffic that travels from Cox Avenue to Quito Park’s western parking lot. Given that the residents at Saratoga Court Senior Apartments earn less than 30% of the County of Santa Clara’s Area Median Income, most residents can only afford to travel on pedestrian routes and public transportation in the City of Saratoga. Therefore, pedestrian safety improvements are critical for seniors and other residents that live in and around the Saratoga Court Senior Apartments. 7) Program management: Mid-Peninsula Housing Management Corporation is the property manager of Saratoga Court Senior Apartments. 231 PERFORMANCE MEASUREMENTS 8) Agency description and experience: Mid-Peninsula Housing is a non-profit organization that develops high-quality affordable housing communities, professionally manages the properties in those communities, and provides services to residents. Our three affiliated corporations are Mid- Peninsula Housing Coalition, Mid-Peninsula Housing Management Corporation and Mid- Peninsula Housing Services Corporation. Between 1970 and the end of 2004, MPHC has designed, built or acquired and rehabilitated almost 5,500 units of affordable housing. During its history, MPHC has received extensive national, regional and local recognition for excellence and the quality of its housing. 9) Audit information: See enclosed 2007 financial audit of Mid-Peninsula Housing Coalition and Saratoga Court, Inc. owner of Saratoga Court Senior Apartments. 10) Sources of funds anticipated for this project: Source Amount Status Replacement Reserves To be determined If necessary City of Saratoga CDBG $50,450.00 Pending 11) Budget: Please see the proposed Asphalt Proposal and Contract for the driveway repaving. Budget Item Total Cost Demolish and remove approximately 4,988 sq.ft. of existing asphalt to a depth of 4” $27,927.00 Remove additional 2” of dirt spoils and off haul to 618 sq.ft. Install (3) #4 rebar continuous and pour 3000 PSI concrete gutter 7,726.00 Clean out all cracks ¼” and larger, approximately 1,500 sq.ft. Apply hot crack sealant. 1,575.00 Clean and prepare 16,890 sq.ft. Apply 2 coats of Tri- American TA 1000 oil emulsion sealer. 3,132.00 Contingency (10%) 4,036.00 General Conditions and Contract Administration (15%) 6,054.00 $50,450.00 232 PERFORMANCE MEASUREMENTS 12) Performance Measurements: Goal: To improve the quality of life and enhance the welfare and safety for 25 unduplicated, very low-income senior residents at an affordable housing project in the City of Saratoga. Objective: To increase pedestrian safety by installing speed reduction measures for 25 unduplicated, very low-income senior residents. Outcomes: To prevent auto traffic-related injuries to the 25 unduplicated, very low-income senior residents and neighboring church and school communities. 13) Outreach: Saratoga Court Senior Apartments has a project-based Section 8 contract with the Department of Housing and Urban Development which includes subsidized rent for 19 apartment units. Mid-Peninsula Housing Coalition maintains a closed waitlist for senior residents. All 19 units at Saratoga Court Senior Apartments are occupied. Any unit vacancy is filled using a closed waitlist. The closed waitlist is reopened if no available qualified residents are available on the waitlist. In the event the waitlist is reopened, Mid-Peninsula Housing Coalition will advertise available units through local resources such as City of Saratoga publications and community partners such as the Saratoga Area Senior Community Center (SASCC). 14) Leveraging: The Pedestrian Safety Project will be leveraging Community Block Development Grant program funds along with property replacement reserves to complete the necessary repaving of the perimeter driveway around Saratoga Court Senior Apartments. Mid-Peninsula Housing Coalition has been successful in completing over 94 projects to supply over 6,000 units of affordable housing across the Greater Bay Area from Napa County to Monterey County. Mid- Peninsula Housing Coalition has been developing and rehabilitating properties for over 35 years utilizing over $500 million of funding resources with the following partners: California Tax Credit Allocation Committee, Federal Home Loan Bank of San Francisco, California Department of Housing and Community Development, California Housing Financing Agency, Department of Housing and Urban Development, tax-exempt revenue bond issuances, and various other state, county, and municipal funding programs such as the Community Block Development Grant program. 15) Cost / Benefit Analysis: Total Project Cost Total Clients Served Cost Per Client Funding Requested % Total Cost $50,450.00 25 Seniors/30% of AMI $2,018 $50,450.00 100% 16) Target Beneficiaries: Saratoga Residents Served % Total Clientele Low-Income Clients Served % Total Clientele 25 Seniors/30% of AMI 100% 25 Seniors/30% of AMI 100% 233 PERFORMANCE MEASUREMENTS AGENCY NAME: Mid-Peninsula Housing Coalition Date Prepared: January 20, 2009 PROGRAM NAME: Pedestrian Safety Project BUDGET WORKSHEET SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun Driveway Repaving $50,450.00 234 PERFORMANCE MEASUREMENTS AGENCY NAME: Mid-Peninsula Housing Coalition Date Prepared: January 20, 2009 PROGRAM NAME: The Pedestrian Safety Project PERFORMANCE MEASUREMENT WORKSHEET GOAL: To improve the quality of life and enhance the welfare and safety for 25 unduplicated, very low-income senior residents at an affordable housing project in the City of Saratoga. OBJECTIVE (1): To increase pedestrian safety by installing speed reduction measures for 25 unduplicated, very low-income senior residents. OUTCOME (1): To prevent auto traffic-related injuries to the 25 unduplicated, very low-income senior residents and neighboring church and school communities. 235 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION DATE: _January 14, 2009 Please refer to the Application Instructions Sheet for details on the following questions. Please limit your answers to one paragraph per question 1) Applicant Organization/Agency Name: KSAR15, Saratoga Community Access Cable TV Foundation Agency Address: 14000 Fruitvale Avenue, Saratoga, California, 95070 Executive Director: Tom Moran, Chairman of the Board Phone: 408-741-2108 Fax: 408-867-9207 E-Mail: ksar@ksar15.org Agency is a Faith Based Organization: ____ Yes __X_ No 2) Program Title: KSAR - Saratoga High School Media Arts Mentoring Program Program Address: 14000 Fruitvale Avenue, Saratoga, California, 95070 Contact Person/Title: Bryan Knysh, Vice Chairman of the Board Phone: 408-205-4045 Fax: _________________ E-Mail: bryan@kidport.com 3) City of Saratoga/CDBG funds requested in the past: CDBG funds $0 4) City of Saratoga/CDBG funds received in the past: CDBG funds $0 5) Program description and number of unduplicated clients served: The KSAR15 Saratoga High School Media Arts Mentoring Program will provide three activities for the 2009-2010 school year: 1) Develop and teach three one hour classes to the students covering the following: a) creating content for television, b) roles and tasks of producing a television program, and c) script writing for television. 2) Coordinate student volunteer and internship activities at KSAR: getting students involved at KSAR and with KSAR programming (e.g., interviewing and camera work at Saratoga community events, film editing, etc.). 3) Media careers: review resumes, video reels/portfolios, mock interviews and KSAR shadowing program for students to see studio operations. The television media and production classes will be taught to the 120 Saratoga High School Media Arts Program (MAP) students. Volunteer and Internship programs will support 3 students per quarter for a total of 12 students per year. Career support will be provided to 12 students per year. This is a comprehensive program in that it provides students with classroom instruction on key skills related to a career in television production, provides real world experience through shadowing, volunteer activities and internships, then assists students in TV 236 career counseling through resume reviews, video reel reviews and mock interviews. 6) Program purpose and objectives: This program will be designed to provide the Saratoga High School Media Arts Program students with real world television and broadcast experience. The program will teach students key skills in TV production and give students the opportunity to get involved in TV production through a volunteer and Internship program. Lastly, the program will assist students in developing effective resumes and interview techniques to start a TV broadcasting career. 7) Program management: This program will be managed by Bryan Knysh, Vice Chairman – KSAR Board of Directors and KSAR staff member David Lee, Programming Coordinator. Currently, all KSAR staff are part-time employees. Both KSAR board members and staff will assist in the development and delivery of course materials. For example, KSAR staff member David Lee will be responsible for the television production class while board member Nann Miller will be responsible for the script writing class. Staff and board members will assist in the career mentoring. A KSAR staff member will coordinate the volunteer and internship programs. 8) Agency description and experience: KSAR15 Saratoga Community Access Television is a non-profit organization responsible for operating the Public, Educational, and Government Access channels for the community of Saratoga. Under the guidance of the Saratoga Community Access Cable Television Foundation, KSAR15 provides facilities, training and support to members of the community who wish to use this medium for the free expression of ideas. KSAR seeks to inform, educate, and entertain, and be available to all for the free expression of opinion. KSAR15’s mission is to provide an energetic medium of communication for Saratogans to express and view the diversified talents and interests within the community, being freely available to the Public, their schools, and their Government. 9) Audit information: See attached. 10) Sources of funds anticipated for this project: KSAR board involvement will be provided on a volunteer basis. Saratoga High School teacher involvement will be covered by the Saratoga High School as part of normal MAP activities. KSAR staff costs will be funded through this Saratoga Community Grant. 11) Budget: See attached worksheet. 12) Performance Measurements: See attached worksheet. 13) Outreach: KSAR is a community television station largely operated through the volunteer efforts of Saratoga residents. Volunteer efforts will continue to be a significant part of this program. In addition, KSAR has direct support of the Saratoga High School Media Arts Program teachers. These teachers will be involved in reviewing and approving all student programs developed and delivered by KSAR. The teachers will also be involved in scheduling and coordinating MAP student involvement in the program. 237 The program activities will be promoted by both KSAR15 and Saratoga High School MAP, including publicity through Saratoga News. Several Saratoga News and Mercury News articles have highlighted the MAP program already, and we expect to get continued coverage of the program. In addition, KSAR runs a weekly advertisement in the Saratoga News to promote its activities. This advertisement will on occasion highlight this program. This promotion will benefit KSAR, Saratoga High School, its students and the Saratoga community at large through developing and maintaining a strong community access television program. 14) Leveraging: This program is an extension of the KSAR video production and volunteer program in place today which is used to train and coordinate volunteer activities in the production of KSAR television programming. As a community operated, non-profit organization, the majority of Saratoga programming on KSAR is developed through these volunteer activities. KSAR board member participation in this project will be provided as volunteer work. Saratoga High School teacher time and costs in terms of planning, review and coordination with KSAR will be covered by Saratoga High School as part of normal MAP activities. KSAR staff salaries will be funded by this Saratoga Community Grant. 15) Cost / Benefit Analysis: The following table provides the cost benefit analysis for this project. It is estimated that the volunteer hours and teacher hours would be comparable to the KSAR staff time whose salaries will be covered by this grant. Total Program Cost Total Clients Served Cost per Client Funding Requested % of Total Cost $10,000 60 for 2008- 2009 school year, estimated 120 for 2009-2010 school year. a) Classes: $50 (estimated for 120 students in 2009- 2010 school year). b) Career counseling: 12 students, $160/student. c) Volunteer / Internships: 12 students, $175/student $4,617 46% (Covers KSAR salaries. SHS teacher and volunteer labor will cover the remaining 54% of project costs. 16) Target Beneficiaries: The target beneficiaries of this program are the 60 Saratoga High School Media Arts Program students for 2008-2009 school year, and an estimated 120 MAP students for 2009-2010 school year. These students are all Saratoga residents based on the Saratoga High School residency requirement. This program does not target any specific income level or social demographic, nor are we planning to solicit such information from students involved in the program. Saratoga Residents Served % Total Clientele Low-Income Clients Served % of Total Clientele 60 for 2008-2009 school year, estimated 120 for 2009-2010 school year. 100% Unknown Unknown 238 BUDGET AGENCY NAME: __KSAR_________________________ Date Prepared: 1/14/09 PROGRAM NAME: Saratoga High School Media Arts Mentoring Program The following budget covers KSAR staff hour costs estimated for this grant. It does not include volunteer or teacher effort associated with this program since these costs are not covered by this grant. BUDGET WORKSHEET (Hours) SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun 1) Class Planning, Development and Presentation a) Developing Creating Content for Television class 16 hours - Presenting Creating Content for Television class 3 hours b) Developing Television Production class 16 hours - Presenting Television Production class 3 hours c) Developing Script Writing class 16 hours - Presenting Script Writing class 3 hours 2) Media careers: Review resumes, review video reel/portfolio, mock interviews, KSAR staff shadowing. 36 hours (12 students @ 3 hours/student) 3) Student volunteer and internship program – activity planning, coordinating and supervision. 19.5 hours (1.5 hours/ week), 3 students per quarter 19.5 hours (1.5 hours/ week), 3 students per quarter 19.5 hours (1.5 hours/ week), 3 students per quarter 19.5 hours (1.5 hours/ week), 3 students per quarter 239 BUDGET WORKSHEET (Dollars) SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun 1) Class Planning, Development and Presentation a) Developing Creating Content for Television class $432.00 - Presenting Creating Content for Television class $81.00 b) Developing Television Production class $432.00 - Presenting Television Production class $81.00 c) Developing Script Writing class $432.00 - Presenting Script Writing class $81.00 2) Media careers: Review resumes, review video reel/portfolio, mock interviews, KSAR staff shadowing. $972.00 3) Student volunteer and internship program – activity planning, coordinating and supervision. $526.50 $526.50 $526.50 $526.50 Total $1,390.50 $1,120.50 $607.50 $1,498.50 Grant Year Total $4,617.00 240 PERFORMANCE MEASUREMENTS AGENCY NAME: __KSAR_________________________ Date Prepared: 1/14/09 PROGRAM NAME: Saratoga High School Media Arts Mentoring Program PERFORMANCE MEASUREMENT WORKSHEET GOAL: Prepare students in the Saratoga High School Media Arts Program for a career in Television Production OBJECTIVE (1): Instruction in real world activities associated with: production of television content; roles and tasks associated with operating a television studio; and, writing scripts for television programs. Classes will stress the importance of students learning core skills such as planning, scheduling, program direction, artistic direction, camera operation, lighting design, interviewing, effective speaking, journalism, etc. OUTCOME (1): Successful development and delivery of three one-hour classes on producing content for television, operating a television studio, and script writing for television. OBJECTIVE (2): Assist students in preparing for job applications including: reviewing and critiquing resumes, reviewing and critiquing video reels/portfolios, mock interviews and KSAR shadowing program for students to see studio operations. OUTCOME (2): Provide verbal and written reviews and critiques of student resumes, video reels and mock interviews for 12 students in preparing job applications and interviewing for careers in television production. OBJECTIVE (3): Establish volunteer and internship programs to provide students with hands on experience in aspects of running a community access television station. Teach students the basics of Community Access programming including program scheduling, loading and timing shows and dealing with producer’s questions. Teach students how to broadcast a new show including the required paperwork and assisting new producers. Students will learn how the KSAR Bulletin Board works, and how to design a Power Point slide, convert it to a JPEG file, and then convert the JPEG into a WMV file, and then load it onto the KSAR video server for broadcast. The students will be shown all aspects of shooting a live show in the KSAR Studio. The students will learn about three point lighting, how to OUTCOME (3): Establish an ongoing program to support up to 4 students in volunteer and internship positions throughout the year. 241 program and run the character generator, mic the talent, run the soundboard, operate a camera, and finally how to direct the entire production. This will also include having the students shoot a KSAR production of a local Saratoga event. The student will learn about the pre-production (writing questions for the interviews, designing a story), production (shooting the event), and post-production (editing the event). 242 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION DATE: January 26, 2009 Please refer to the Application Instructions Sheet for details on the following questions. Please limit your answers to one paragraph per question 1) Applicant Organization/Agency Name: Saratoga Foothill Club Historic Landmark Foundation (Foothill Club Foundation) Agency Address: Mailing: P.O. Box 2033, Saratoga, CA 95070; Location: 20399 Park Place, Saratoga Executive Director: Cindy Ruby, Foundation Chair Phone: 408-867-2715 Fax: 408-867-3124 E-Mail: crubyca@aol.com Agency is a Faith Based Organization: No 2) Program Title: ADA Improvements to Saratoga Foothill Clubhouse designed by Julia Morgan Program Address: same as above Contact Person/Title: same as above Phone: same as above Fax: same as above E-Mail: same as above 3) City of Saratoga/CDBG funds requested in the past: In May 2007 The Foothill Club Foundation requested a one-time community grant of $12,000 to replace the building’s furnace. 4) City of Saratoga/CDBG funds received in the past: In May 2007 The Foothill Club Foundation received $8600 to replace our furnace. 5) Program description and number of unduplicated clients served: Saratoga Foothill Club Historic Landmark Foundation requests a Saratoga Community Grant to improve disability access for the public to the historic Julia Morgan designed Saratoga Foothill Clubhouse, and to meet the standards of the Americans with Disabilities Act. This building was designed and built by Julia Morgan in 1915. We are committed to increased disabled access to the Clubhouse. It is used by Saratogans for community meetings as well as for rental events. We have a Public Lecture Series attended by many Saratogans. Approximately 3,000 people use the clubhouse each year. 6) Program purpose and objectives: Objective 1: We will begin the planning process by selecting an architect with experience in renovation of historic buildings to meet with our planning group and neighbors to improve access to our building’s entries and restrooms. Outcome: After interviews, we will contract with an architect to develop architectural plans to upgrade the ADA accessibility of the building. Objective 2: After neighborhood and community input, we will decide on an architectural plan to upgrade ADA accessibility at entrances/exits and restrooms, and submit plans for bids to determine the total costs of the project. 243 FY 2009-2010 CITY OF SARATOGA COMMUNITY GRANT & CDBG STANDARD APPLICATION Outcome: We will develop a fundraising plan to complete the ADA upgrades of the Foothill Clubhouse. 7) Program management: Our volunteer House and Grounds Chairman and the Board of the Saratoga Foothill Club will manage this project. 8) Agency description and experience: The Saratoga Foothill Club Historic Landmark Foundation was established in 2004 as a public benefit corporation under Section 501(c)(3) of the Internal Revenue Code to receive tax-deductible contributions to support our mission to preserve, maintain and enhance the Julia Morgan designed Foothill Clubhouse and grounds. To date we have completed structural and safety repairs, including electrical and HVAC upgrades, a new roof, and extensive renovating of woodwork. Tax ID # 54-2101739. 9) Audit information: The Foundation has not had a financial audit to date. 10) Sources of funds anticipated for this project: We are starting with architectural plans to help us determine the overall costs and scope of this project. We will submit grant applications, host fundraisers, and continue with our mail solicitation appeal to Club members and the Saratoga community. We know it will be a long-term project, but planning is the important first step. 11) Budget: $13,500 for a biddable set of architectural plans 12) Performance Measurements: See Item 6 above. 13) Outreach: Our Public Lecture Series is publicized monthly in the Saratoga News and the San Jose Mercury News. We hosted the 2008 City Council Candidates Forum last September, and public meetings are held in the clubhouse. Annually, the Saratoga Foothill Club presents the community’s Memorial Day Celebration and provides food baskets for low-income residents of Saratoga. Local community organizations such as the Saratoga Men’s Club, the National Charity League, and the Saratoga Federated Church meet in our Clubhouse. We have a website www.foothillclub.org and a catering company that markets our facility for wedding rentals and memorial services. 14) Leveraging: We are also applying for a professional services grant from the National Trust for Historic Preservation (due 2/1/09). Our fundraising activities to date have collected approximately $30,000 which would be used as a match for a Community Grant from the City of Saratoga. 15) Cost / Benefit Analysis: N/A 16) Target Beneficiaries: We hope to have a safe, accessible building for use by all members of the Saratoga and area communities, especially those with disabilities. 244 BUDGET AGENCY NAME: Saratoga Foothill Club Historic Landmark Foundation Date Prepared: January 26, 2009 PROGRAM NAME: ADA Improvements to Julia Morgan designed Building BUDGET WORKSHEET SPECIFIC ACTIVITIES Jul - Sep Oct - Dec Jan - Mar Apr - Jun Hire architect to develop plans for ADA upgrades to Saratoga Foothill Clubhouse. $13,500 Host meetings with neighbors, members of the community and club members to assess needs. X Architectural plan complete and finalized. X Submit plans for bid to determine total cost of ADA project. X 245 PERFORMANCE MEASUREMENTS AGENCY NAME: Saratoga Foothill Club Historic Landmark Foundation Date Prepared: January 26, 2009 PROGRAM NAME: ADA Improvements to Saratoga Foothill Clubhouse PERFORMANCE MEASUREMENT WORKSHEET GOAL: To improve disability access for the public to the historic Julia Morgan designed Saratoga Foothill Clubhouse, and to meet the standards of the Americans with Disabilities Act. OBJECTIVE (1): Start the planning process by hiring an architect with experience in renovation of historic buildings and the requirements of the Americans with Disabilities Act who will meet with our planning group and neighbors to improve access to our building’s entries and restrooms. OUTCOME (1): After interviews, contract with an architect to develop biddable plans to provide access to the Saratoga Foothill Clubhouse in compliance with Americans with Disabilities Act. 246 Community Grant Application – addendum Saratoga Foothill Club Historic Landmark Foundation 15. Cost/Benefit Analysis Total program cost Total served Cost per client Funding requested % Total cost +-$200,000 3000+/yr $.45 over 10 years $13,500 6% The total program cost of the architectural plan with ADA specifications is $13,500. This plan is a gateway to the eventual construction of ADA compliant entrances and restrooms, which may cost approximately $200,000. Approximately 3000+ people per year attend events in this historic Saratoga building, and because of the Public Lecture Series and memorial services, the building serves an older population who need better accessibility. Since accessibility is an ongoing benefit, over 10 years 30,000 people would use the clubhouse at a cost of less than $.50 per person for the cost of the architectural plan. Use of the Clubhouse does not lend itself to meaningful numerical assessment, but the bottom line is the need for compliance with current ADA requirements for buildings used by the public. It is the right thing to do, but also avoids the cost of a potential lawsuit when a guest sues over ADA non-compliance. The caterer handling our weddings reports that several brides liked the facility but had relatives or guests who need an ADA compliant facility. 16. Target Beneficiaries Saratoga Residents Served % Total Clientele 250 Foothill Club members 500 Public Lecture attendees/year +- 1000 attendees – Memorial Services Approx. Total 1750 Saratoga residents 50% (2000 attendees @ weddings) 247 Page 1 of 10 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: Cynthia McCormick, Assistant Planner DIRECTOR: John Livingstone SUBJECT: FY 2009/10 COMMUNITY DEVELOPMENT BLOCK GRANT AND COMMUNITY GRANT FUNDING APPLICATIONS RECOMMENDED ACTION: 1. Conduct the Public Hearing and accept public testimony presentations from applicants. 2. Continue the Public Hearing to March 4th and make a decision regarding allocations. BACKGROUND: Each year the City allocates grant funding to programs and services that benefit City of Saratoga residents. Changes to the FY 2009/2010 grant funding process have been implemented including combining the application process for both Community Grant Programs & Community Development Block Grant Program (CDBG) programs and adding evaluation criteria to help prioritize the increasing number of grant applications the City receives. Applicants for the City of Saratoga Community Grant Program do not have to meet CDBG eligibility requirements. CDBG proposals must comply with HUD and Urban County program eligibility requirements with priority given to projects that provide affordable housing and other housing related activities such as rehabilitation of affordable housing. However, CDBG funding has traditionally been available for non-housing public service projects which primarily serve lower income clients, and for public improvements to ensure compliance with the Americans with Disabilities Act (ADA). Last year the City received three requests for CDBG public service funds, totaling $54,164. The request exceeded the available funding by $21,432 and Council voted to fund the excess amount with money from the Council’s discretionary fund. Additionally, the City allocated $72,482 in CDBG funds for three public improvement projects: ADA accessible signals throughout the City, an ADA accessible ramp at the Historic Museum, and ADA Seating in the Civic Theater. As in previous years, $13,000 was provided to the County to administer the SHARP Loan program and $15,000 was allocated towards administration of the CDBG program. DISCUSSION: The availability of 2009-2010 fiscal year grant funds was publicized on the City Website and in the Saratoga News. Prior to the writing of this staff report, staff received seven (7) applications for Community Grant funding, three (3) of which are eligible for CDBG Public Service funding and one (1) of which is eligible for CDBG Rehabilitation funding. The City also received two (2) applications for CDBG ADA Public Improvement funding. 248 Page 2 of 10 Community Grant Funding In the past, Council Discretionary Funds have been used to supplement CDBG funds. Saratoga’s Community Grant funding was established to match the CDBG public service funding of $32,000. In addition, this year’s distribution will include a one-time carry forward of $22,068 of prior year Council Discretionary funds to bring the Community Grant distribution up to $54,068. The total amount of community grant funding requested for all applications is $126,231. However, requests from Saratoga Area Senior Coordinating Council (SASCC), West Valley Community Services (WVCS), and Catholic Charities may also be funded with CDBG Public Service funds as discussed below. Furthermore, a request from Mid-Pen may also be funded with CDBG Rehabilitation funds as discussed below. The three applications that are not eligible for CDBG funding include requests for 13,500 from the Saratoga Foothill Club Historic Landmark Foundation, $4,617 from the KSAR Saratoga High School Media Arts Mentoring Program, and $2,500 from the Shady Shakespeare Theater Company. The total requested from these three applications is $20,617. The maximum amount available for community grant funding is $54,068. CDBG Public Service Funding The three applications that are eligible for CDBG Public Service funding include requests for $35,000 from SASCC, $15,164 from WVCS, and $5,000 from Catholic Charities. All three agencies applied for and received funding last year. Last year for simplicity, the Council decided to fund SASCC with CDBG funds while West Valley Community Services and Catholic Charities were funded from the Council’s Discretionary funds. The total amount requested for these three applications is $55,164. The maximum amount available for CDBG public service funding is $32,000. CDBG Rehabilitation Funding and CDBG ADA Public Improvement Funding The Mid-Peninsula Housing Saratoga Court Pedestrian Safety Program is eligible for CDBG rehabilitation funding and is requesting $50,450. Two (2) applications are eligible for CDBG public improvement funding and include requests for $41,927 to implement Phase II of the Saratoga-Sunnyvale Road ADA curb ramp project and $4,464 to install an ADA automatic door in the City Hall public bathroom. The total amount requested is $96,841. The maximum amount available for FY 2009- 2010 CDBG public improvement and rehabilitation funding is $69,000. However, $8,150 in prior- year balance rollover CDBG funds may be transferred to Phase I of the Saratoga-Sunnyvale Road ADA curb ramp project to help off-set the costs of Phase II. SHARP / CDBG Administrative Funding Each year an additional $13,000 is allocated to Santa Clara County to administer the SHARP program and $15,000 is allocated for CDBG administration costs. 249 Page 3 of 10 1 SASCC, WVCS, Catholic Charities, and Mid-Pen Housing applied for both CDBG funds and Community Grant funds. For simplicity, these projects have been placed under the appropriate CDBG category. However they may also be funded by the Community Grant program. PRIMARY FUNDING CATEGORIES1 Agency Community Grant CDBG Public Service CDBG Rehabilitation CDBG Public Improvements SHARP Administration CDBG Administration TOTALS Foothill Club $13,500 $13,500 KSAR $4,617 $4,617 Shady Shakespeare $2,500 $2,500 Catholic Charities $5,000 $5,000 SASCC $35,000 $35,000 WVCS $15,164 $15,164 Mid-Peninsula Housing $50,450 $50,450 Recreation $4,464 $4,464 Public Works $41,927 $41,927 Community Development $15,000 $15,000 Santa Clara County $13,000 $13,000 Total Requested $20,617 $55,164 $96,841 $13,000 $15,000 $200,622 Total Available $54,068 $32,000 $69,000 $13,000 $15,000 $183,068 Surplus / (Deficit) $33,451 ($23,164) ($27,841) 0 0 ($17,554) 250 Page 4 of 10 FY 2009/10 APPLICATION SUMMARIES: Summaries of each application are listed below. Applications are provided in Attachment A. Additional information (e.g., audit, financial statements) are available upon request. Per previous Council discussion, priority will be given to agencies that primarily serve Saratoga residents and that seek matching funds from other sources. KSAR – Saratoga High School Media Arts Mentoring Program KSAR15, Saratoga Community Access Cable TV Foundation submitted a proposal for support of a Saratoga High School Media Arts Mentoring Program. The program helps students start a TV broadcasting career through classes in TV production skills, internship opportunities, and resume and interview techniques. The program will support 120 Saratoga students which is equal to 100% of the students in the program. The estimated cost per client is $83.33. The total cost to serve Saratoga residents is $10,000. The requested funding is $4,617 which is approximately 46% of the cost to run the program. In-kind donations include volunteer participation by KSAR board members and the time and costs associated with planning, review and coordination by Saratoga High School teachers. This project is being considered under the Community Grant program. It is not eligible for CDBG funding since it does not primarily serve low-income participants. Saratoga Foothill Club Historic Landmark Foundation The Saratoga Foothill Club Historic Landmark Foundation (Foundation) submitted a proposal to improve disability access to the Foothill Club Clubhouse. The clubhouse hosts 3,000 guests annually including approximately 1,500 Saratoga residents which represent 50% of the total guests served. The estimated cost per client is approximately $4.50. The total cost to serve Saratoga residents is $6,750. The requested funding is $13,500 which is 200% of the cost to serve Saratoga residents and 100% of the total cost of the project. In addition to club fundraisers, the Foundation will apply for a professional services grant from the National Trust for Historic Preservation. The Club has successfully leveraged approximately $30,000 which would be used as a match to any Community Grant funding. This project is being considered under the Community Grant program. It is not eligible for CDBG funding since it does not primarily serve low-income participants and because it is a private club which is not open to the general public. Shady Shakespeare Theater Company The Shady Shakespeare Theater Company submitted a proposal to help fund performances held in Sanborn County Park. The theater hosts 4,200 guests annually including approximately 294 Saratoga residents which represent 7% of the total guests served. The estimated cost per client is approximately $19.05. The total cost to serve Saratoga residents is $5,600. The requested funding is $2,500 which is 45% of the cost to serve Saratoga residents and 3% of the total cost of the project. Information regarding leveraged funds was not available at the time of this staff report but will be provided by the applicant at the Public Hearing. This project is being considered under the Community Grant program. It is not eligible for CDBG funding since it does not primarily serve low-income participants. CDBG Public Service Eligible Projects 251 Page 5 of 10 Catholic Charities – Long Term Ombudsman Program Catholic Charities submitted a proposal for continued support of the Long Term Ombudsman Program which provides advocacy for the rights of residents in long term care. The program serves 8,000 unduplicated clients annually including a minimum of 288 Saratoga residents which represent 3.6% of the total clients served. Catholic Charities estimates a cost per client of $26.68. The total cost to serve Saratoga residents is $7,684. The requested funding is $5,000 which is approximately 65% of the cost to serve Saratoga residents or 2.3% of the total budget to operate the program. Catholic Charities has successfully leveraged funding through donations and funding at the federal and city level. Catholic Charities continues to apply for CDBG funding from several other cities it serves. This program received grant funding from Saratoga for the first time last year. This program is eligible for both Community Grant and CDBG Public Service funding. SASCC - Adult Day Care Program Saratoga Area Senior Coordinating Council (SASCC) submitted its annual proposal for continued support of the SASCC Adult Day Care Center Program which provides respite care and social activities for frail elders and their caregivers. The program serves 55 unduplicated clients annually including 18 Saratoga residents which represent 34% of the total clients served. SASCC estimates a cost per client of $5,156. The total cost to serve Saratoga residents is $92,820. Their requested funding is $35,000 which is approximately 38% of the cost to serve Saratoga residents or 12% of the total budget to operate the Adult Care Center. SASCC has successfully leveraged funding through donations and annual fundraising efforts in addition to sliding-scale fees. SASCC intends to apply for CDBG funding from the City of Campbell from which 6 clients are served. This program has received CDBG funding from Saratoga for the past 8 years. This program is eligible for both Community Grant and CDBG Public Service funding. West Valley Community Services – Food Pantry and Emergency Rental/Utility Assistance West Valley Community Services (WVCS) submitted a proposal for continued support of its Community Assistance Program which provides food pantry and emergency rental/utility services. The program serves 611 unduplicated clients annually including approximately 67 Saratoga residents which represent 11% of the total clients served. The estimated cost per client is approximately $414. The total cost to serve Saratoga residents is $27,715. The requested funding is $15,164, which is approximately 55% of the cost to serve Saratoga residents or 6% of the total budget to operate the program. WVCS has successfully leveraged funding through donations and funding at the federal, county and city level. WVCS continues to apply for CDBG funding from several other cities it serves. This program has received grant funding from Saratoga for the past 2 years. This program is eligible for both Community Grant and CDBG Public Service funding. CDBG Rehabilitation Eligible Projects 252 Page 6 of 10 Mid-Peninsula Housing Coalition – Pedestrian Safety Program Mid-Peninsula Housing Coalition submitted a proposal for a Pedestrian Safety Program for the Saratoga Court Senior Apartments. The project includes repaving the driveway and installing speed bumps within the Apartment complex. The Apartments provide housing to 25 Saratoga seniors which equal 100% of the residents in the complex. Mid- Peninsula Housing estimates a cost per client of $2,018. The total cost to serve Saratoga residents is $50,450. The requested funding is $50,450 which is 100% of the cost to complete the project. Mid-Peninsula Housing has replacement reserves available to match Saratoga funds as necessary. Mid-Peninsula Housing has successfully leveraged funding through donations and funding at the federal, state, county, and city level. In 1984, the City allocated $274,000 to assist in the acquisition of the Apartments. In addition to Community Grant funding, this project is eligible for CDBG rehabilitation funding because it primarily serves very-low income participants on private property. CDBG Public Improvement Eligible Projects City of Saratoga Public Works Department – Saratoga-Sunnyvale Road Improvements The City of Saratoga Public Works Department has submitted an application for Phase II of the previously approved project to install ADA compliant curb ramp upgrades to Saratoga-Sunnyvale Road. The total amount requested is $41,927. City of Saratoga Recreation and Facilities Department – ADA Compliant Automated Door The City of Saratoga Recreation and Facilities Department submitted an application to install ADA compliant door openers and closers to improve bathroom access and egress for mobility impaired individuals using the public restrooms at City Hall. The amount requested is $4,464. Program Administration SHARP Revolving Housing Rehabilitation Loan Program At one time the City managed CDBG funds for low-income housing rehabilitation projects. The program is now administered by the Santa Clara County Housing and Community Development Department (HCD). HCD charges $13,000 per year to administer the program. The cost covers processing loan applications and paperwork, determining eligibility, and coordinating payments to the contractors doing the repair work. The maximum amount that may be allocated is $13,000. CDBG Program CDBG funds may be used to pay reasonable administration costs related to the planning and execution of community development activities assisted in whole or in part with funds provided under the CDBG program. Administration activities include preparing all related reports, contracts and correspondence; managing the annual CDBG allocation disbursement process, monitoring the grantees, and acting as a liaison between the City and the Urban County Program. The maximum amount that may be allocated is $15,000. 253 Page 7 of 10 COMMUNITY GRANT APPLICATION SUMMARIES Agency Total # of Clients # of Saratoga Residents Saratoga Residents % of total Total Cost of Project Cost per Client Total Cost to serve Saratoga residents Amount Requested Benefit / Cost Ratio2 Cost / Benefit Percent3 % of Matching Funds/ Resources Catholic Charities 8,000 288 4% $213,506 $26.68 $7,683.84 $5,000 1.54 65% 100% SASCC 53 18 34% $283,618 $5,156.6 9 $92,820.4 4 $35,000 2.75 36% 100% West Valley Community Services 611 67 11% $252,741 $413.65 $27,714.6 4 $15,164 1.83 55% 100% Mid- Peninsula Housing 25 25 100% $50,450 $2,018.0 0 $50,450.0 0 $50,450 1 100% 100% Foothill Club 3,000 1,500 50% $13,500 $4.50 $6,750 $13,500 0.5 200% 100% Shady Shakespeare 4,200 294 7% $80,000 $19.05 $5,600 $2,500 2.24 45% ? KSAR 120 120 100% $10,000 $83.33 $10,000.0 0 $4,617 2.17 46% 100% 2 The benefit/cost ratio is calculated by dividing the total cost to serve Saratoga residents by the total funds requested. The higher the number, the higher the benefit to Saratoga residents for every dollar requested. 3 The cost/benefit percent is calculated by dividing the total funds requested by the total cost to serve Saratoga residents. The higher the number, the lower the benefit to Saratoga residents for every dollar requested. 254 Page 8 of 10 255 Page 9 of 10 FISCAL IMPACTS: The CDBG funds for FY 2009/10 are federal Housing and Urban Development funds administered by Santa Clara County and allocated to participating cities. There is no impact from these recommendations on General City funds. The Community Grant funds have been budgeted for FY 2009/2010. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City’s FY 2009/10 CDBG allocation will remain with the County. Saratoga will not meet its goals related to providing continued housing assistance, rehabilitation and human services to low income and disabled residents in the City. ALTERNATIVE ACTION: NA FOLLOW UP ACTION: 1) Continue the Public Hearing to March 4th and make a decision regarding allocations. 2) Following the March 4th meeting, forward Council’s CDBG recommendations to the County of Santa Clara and execute contracts with agencies receiving funding. ADVERTISING, NOTICING AND PUBLIC CONTACT: The availability of grant funds was publicized on the City Website and in the Saratoga News. ATTACHMENTS: Attachment A – Applications Cc: Applicant agencies 256 Page 10 of 10 ATTACHMENT A Applications 257 Page 1 of 3 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Morrow DIRECTOR: Barbara Powell Administrative Analyst II Assistant City Manager SUBJECT: Ordinance Regarding Terms for City Commissions RECOMMENDED ACTION: 1. Introduce and waive the first reading of the attached ordinance (Attachment A) after opening the public hearing, accepting public testimony, and closing the hearing. 2. Direct staff to place the second reading and adoption of the ordinance on the consent calendar for the next regular Council Meeting. 3. Direct staff to use proposed alternative interim term lengths (as indicated in Attachment B) during future Commission recruitments until Commission terms are fully staggered in 2012. BACKGROUND: This ordinance would amend the City Code to allow the City Council to make Commission appointments for terms of more or less than four years to ensure that Commission terms are staggered so that roughly equal numbers of terms expire each year. Section 2-12.030(c) of the City of Saratoga Municipal Code states that: “the terms of the Commissioners shall be staggered such that each year the four year terms of approximately an equal number of the Commissioners shall expire. Where a Commission has seven Commissioners, the terms of two Commissioners shall expire each year except that in the year after the first six Commission terms have expired, only one term shall expire. The limitations set forth in this subsection (c) shall not apply to the Youth Commission”. Currently, none of the City’s Commissions are staggered in accordance with Code Section 2- 12.030(c). The proposed ordinance would allow the Council to facilitate compliance with the City’s term staggering rules. Adopting the proposed ordinance will prevent the possible loss of a significant portion of Commission membership in a single year due to term expirations, while also increasing the opportunities for residents to apply for positions on the City’s Commissions. Current Commission terms would not be affected by this ordinance. 258 Page 2 of 3 The proposed ordinance will also allow the Council to distribute Commission term expirations throughout the year. Currently, most Commissions end their terms in April—creating a burdensome recruitment and interview process at that time each year. Accordingly, staff is proposing that interim alternative term lengths be structured so that only one or two Commission end their terms at any given time. The Ordinance The attached ordinance would allow the Council to appoint Commissioners to terms of more or less than four years for the purpose of implementing Commission term staggering. Terms that are 4 years or longer would be considered a full term (subject to term limits) and terms that are shorter than 4 years would not be considered a full term (not subject to term limits). Interim Alternative Terms If the ordinance is approved, staff recommends that the Commission terms be structured so that: 1. For each Commission, the terms of an approximately equal number of Commissioners will expire each year; and 2. Commissioner terms be set to expire in January, April, and October. The attached table of Interim Alternative Commission Terms (Attachment B) would implement this structure. Under that table, no existing terms would be affected. No new terms would be longer than 4 years and 9 months or shorter than 2 years. The Heritage Preservation and Traffic Safety Commissioners would end their terms in January, Planning Commissioners would end their terms in April, and Library and Parks & Recreation Commissioners would end their terms in October. The table of Interim Alternative Commission Terms would take effect with appointments made after the ordinance takes effect (30 days after the second reading and adoption). By October 2012, all Commission terms would comply with the City’s term staggering requirements. Attachment C is a chart displaying how the realignment method will be implemented. The chart is organized by Commission and month and year of term expiration. - Blue indicates term expiration in January. - Red indicates term expiration in April. - Green indicates term expiration in October. FISCAL IMPACTS: There are no financial impacts. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The City’s Commission terms would not be staggered in accordance with the Municipal Code. Further, term expirations for all City Commissions would continue to occur in April, resulting in ongoing administrative challenges. 259 Page 3 of 3 ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Attachment A: Draft ordinance regarding terms for City Commissions Attachment B: Table of Interim Alternative Commission Terms Attachment C: Term Realignment Chart 260 Ordinance No. _____ 1 ORDINANCE _______ AN ORDINANCE REGARDING TERMS FOR CITY COMMISSIONS THE CITY COUNCIL OF THE CITY OF SARATOGA DOES ORDAIN AS FOLLOWS: Section 1. Findings. A. The City of Saratoga has established a number of commissions to advise the City Council in reviewing, establishing, and implementing City policy in a number of areas. Commissioners provide an invaluable service to the City and their participation in these civic affairs goes to the very heart of representative democracy at the local level. B. The City Council has established common requirements regarding qualifications, attendance, removal, vacancies, meetings, and rules of procedure for all City Commissions including provisions to promote even staggering of Commission terms. C. In order to allow flexibility in providing for even staggering of Commission terms the City Council may, from time to time, find it necessary to establish terms that are shorter or longer than the standard term or to extend an existing term. Therefore, this ordinance amends the Saratoga City Code to allow a Commissioner to be appointed to a term of greater or less than four years or have a term extended for not more than 30 months in order to facilitate compliance with the term staggering rules of the City Code. Section 2. Adoption. Section 2-12.030 of the Saratoga City Code regarding Commissioner terms is hereby amended as set forth below. Text to be inserted is shown in bold italics (example) and text to be deleted is shown in strikeout (example). 2-12.030 Term. (a) Each Commissioner shall serve a term of four years unless an alternate term is specified by the resolution or ordinance establishing the Commission. (b) No Commissioner shall serve more than two full consecutive terms on a single Commission. A partial term served as a result of an appointment to fill an unexpired term is not considered a full term. A Commissioner who has served two full consecutive terms 261 Ordinance No. _____ 2 on a Commission may not be reappointed to that Commission for at least one year following the expiration of his or her term. The limitations set forth in this Subsection(b) shall not apply to the Youth Commission. (c) For each Commission, the terms of the Commissioners shall be staggered such that each year the four year terms of approximately an equal number of the Commissioners shall expire. Where a Commission has seven Commissioners, the terms of two Commissioners shall expire each year except that in the year after the first six Commission terms have expired, only one term shall expire. The limitations set forth in this subsection (c) shall not apply to the Youth Commission. (d) Notwithstanding subsection (a) of this section and section 2-15.020 regarding Planning Commissioner terms, where the terms of Commissioners on a Commission do not comply with subsection (c) of this section, a Commissioner may be appointed to a term of greater or less than four years for the purpose of making the terms of the Commissioners on the Commission comply with subsection (c). No term shall be reduced after a Commissioner is appointed to serve the term, except as otherwise provided by this Code. For purposes of subsection (b) of this section, a term of less than four years established pursuant to this paragraph is not a full term and a term that is more than four years at the time of appointment pursuant to this subsection (d) is a single term. This paragraph shall be of no further force and effect after December 31, 2006. Section 3. Publication. This Ordinance shall be published once in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. [Continued on Next Page] 262 Ordinance No. _____ 3 The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Saratoga held on the ___ day of ___ 2009 and adopted by the following vote following a second reading on the ___ day of ___ 2009: AYES: __________________________________________ NOES: __________________________________________ ABSENT:________________________________________ __________________________________________ CHUCK PAGE MAYOR, CITY OF SARATOGA, CALIFORNIA ATTEST: ___________________________ ANN SULLIVAN CITY CLERK APPROVED AS TO FORM: ___________________________ RICHARD TAYLOR CITY ATTORNEY 263 Table of Interim Alternative Commission Terms Heritage Preservation Commission Position Current Term Ending Proposed Length of Next Term Proposed Expiration of Next Term HP-A 04/2010 3 years, 9 months 01/2014 HP-B 04/2010 3 years, 9 months 01/2014 HP-C 04/2010 4 years, 9 months 01/2015 HP-D 04/2010 4 years, 9 months 01/2015 HP-E 04/2011 4 years, 9 months 01/2016 HP- F 04/2012 4 years, 9 months 01/2017 HP-G 04/2012 4 years, 9 months 01/2017 Library Commission Position Current Term Ending Proposed Length of Next Term Proposed Expiration of Next Term LR-A 04/2009 3 years, 6 months 10/2012 LR-B 04/2009 4 years, 6 months 10/2013 LR-C 04/2009 4 years, 6 months 10/2013 LR-D 10/2011 3 years 10/2014 LR-E 10/2011 4 years 10/2015 Parks and Recreation Commission Position Current Term Ending Proposed Length of Next Term Proposed Expiration of Next Term PR-A 04/2009 4 years, 6 months 10/2013 PR-B 04/2009 4 years, 6 months 10/2013 PR-C 10/2012 2 years 10/2014 PR-D 10/2012 3 years 10/2015 PR-E 10/2012 4 years 10/2016 264 Planning Commission Position Current Term Ending Proposed Length of Next Term Proposed Expiration of Next Term PL-A 04/2009 3 years 04/2012 PL-B 04/2009 4 years 04/2013 PL-C 04/2009 4 years 04/2013 PL-D 04/2010 4 years 04/2014 PL-E 04/2010 4 years 04/2014 PL-F 04/2011 4 years 04/2015 PL-G 04/2011 4 years 04/2015 Traffic Safety Commission Position Current Term Ending Proposed Length of Next Term Proposed Expiration of Next Term TS-A 04/2010 3 years, 9 months 01/2014 TS-B 04/2010 3 years, 9 months 01/2014 TS-C 04/2011 3 years, 9 months 01/2015 TS-D 04/2010 3 years, 9 months 01/2015 TS-E 04/2011 4 years, 9 months 01/2016 TS- F 04/2011 4 years, 9 months 01/2016 TS-G 04/2012 4 years, 9 months 01/2017 265 Te r m  Ex p i r a t i o n   (b y  mo n t h  an d   ye a r )   Ap r    20 0 9   Oc t   20 0 9   Ja n   20 1 0   Ap r  20 1 0   Oc t   20 1 0   Ja n   20 1 1   Ap r  20 1 1   Oc t  20 1 1   Ja n   20 1 2   Ap r  20 1 2   Oc t  20 1 2   Ja n   13  Apr 13 Oct 13 Jan 14 Apr 14 Oct 14 Jan 15 Apr 15 Oct 15 Jan 16 Apr 16 Oct 16 Jan 17  He r i t a g e   Pr e s e r v a t i o n   (T e r m s  en d   Ja n u a r y )         HP ‐A  HP ‐B  HP ‐C  HP ‐D        HP ‐E  HP ‐F  HP ‐G       (A) (B)        (C) (D)    (E) (F)(G)                        Li b r a r y   (T e r m s  en d   Oc t o b e r )   LR ‐A  LR ‐B  LR ‐C               LR ‐D LR ‐E          (A )          (B) (C)   (D)    (E)                        Pa r k s  &  Re c r e a t i o n   (T e r m s  en d   Oc t o b e r )   PR ‐A  PR ‐B                PR ‐C PR ‐D  PR ‐E      (A) (B)   (C)      (D)         (E)                        Pl a n n i n g   (T e r m s  en d   Ap r i l )   PL ‐A  PL ‐  B  PL ‐  C        PL ‐D  PL ‐E      PL ‐F  PL ‐G           (A )   (B) (C)       (D) (E)   (F)(G)                        Tr a f f i c  Sa f e t y   (T e r m s  en d   Ja n u a r y )         TS ‐A  TS ‐B       TS ‐C  TS ‐D  TS ‐E  TS ‐F   TS ‐G   (A) (B)        (C) (D)  (E) (F) (G)     4 ye a r ,  9 mo n t h  te r m   3 ye a r ,  9 mo n t h  te r m 2 yearterm   4 ye a r ,  6 mo n t h  te r m   3 ye a r ,  6 mo n t h te r m   4 ye a r  te r m   3 ye a r  te r m   26 6 Page 1 of 6 SARATOGA CITY COUNCIL MEETING DATE: February 18, 2009 AGENDA ITEM: DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson PREPARED BY: Barbara Powell DIRECTOR: Assistant City Manager SUBJECT: Proposed Vehicle Impact Fee related to Refuse Vehicles RECOMMENDED ACTION: Accept report and direct the City’s representative to the West Valley Solid Waste Management Authority (WVJPA) to convey the Council’s direction to the WVJPA. BACKGROUND: The WVJPA is a four-member Authority representing the Cities of Campbell, Los Gatos, Monte Sereno and Saratoga, overseeing the operation of waste, recyclables and yard trimmings collection services. Howard Miller is Saratoga’s representative on the Authority Board. At its February 5, 2009 meeting the WVJPA Board considered a proposal to impose a Vehicle Impact Fee on West Valley Collection & Recycling (WVCR) related to road impacts resulted from its operations on surface streets. A provision for imposition of this fee was included in the franchise agreement with WVCR; however, to date, the fee has not been imposed, pending completion of a study of road impacts related to refuse collection activities. The study was completed in June 2007 by CSG Consultants, Inc. According to the study, the annual cost to Saratoga of road impacts related to refuse vehicles is $62,989. In accordance with the franchise agreement, WVCR would be able to recoup the cost of the Vehicle Impact Fee via a pass-through to residential and commercial customers. Since the calculated annual cost of road impacts related to refuse vehicle operation in Saratoga is fairly modest, an associated rate increase to recoup the Vehicle Impact Fee would be similarly modest. Examples for residential and commercial customers are illustrated below. Current residential and commercial collection rates are provided as Attachment “A”. Residential 35-Gallon Cart Rate Impact Current Rate Allocated on Route Days Allocated on Cost of Service Cost/Month Increase % of Increase Cost/Month Increase % of Increase $20.97 $.027 @ 1.3% $0.22 @ 1.0% 267 Page 2 of 6 Commercial 1.5 cubic yard/Once per week Rate Impact Current Rate Allocated on Route Days Allocated on Cost of Service Cost/Month Increase % of Increase Cost/Month Increase % of Increase $132.59 $2.11 @ 1.6% $2.17 @ 1.6% If so desired, the Vehicle Impact Fee could be phased in over a period of years, as illustrated in the examples below, which provide a 3-year time frame for implementation: Residential 35-Gallon Cart Rate Impact (3-year Implementation) Current Rate Allocated on Route Days Allocated on Cost of Service Cost/Month Increase % of Increase Cost/Month Increase % of Increase $20.97 $0.09 @ .4% $0.07 @ .3% Commercial 1.5 cubic yard/Once per week Rate Impact (3-year Implementation) Current Rate Allocated on Route Days Allocated on Cost of Service Cost/Month Increase % of Increase Cost/Month Increase % of Increase $132.59 $0.70 @ .5% $0.72 @ .5% Each member agency may independently implement the fee, and may independently determine whether the fee will be implemented all at once, or over a period of years. Resulting rate increases would be implemented beginning July 1, 2009. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The City of Saratoga would not receive Vehicle Impact Fees related to the impact of refuse vehicles on City streets. ALTERNATIVE ACTION(S): N/A 268 Page 3 of 6 FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Attachment “A” – Current Residential and Commercial Collection Rates 269 Page 4 of 6 Attachment “A” West Valley Collection & Recycling West Valley Cities Rates Saratoga Residential Regular: 20-gallon $ 16.07 35-gallon $ 20.97 65-gallon $ 41.94 95-gallon $ 62.91 Sr. Citizen: 20-gallon $ - 35-gallon $ - Low income 35 gal LG Only n/a Commercial Commercial-1.5 Yards 1 p/u per week $ 132.59 2 p/u per week $ 267.18 3 p/u per week $ 401.77 4 p/u per week $ 536.36 5 p/u per week $ 670.96 6 p/u per week $ 805.55 Extra Dump $ 30.60 Saturday Dump $ 31.06 Commercial-2 Yards 1 p/u per week $ 176.78 2 p/u per week $ 356.24 3 p/u per week $ 535.69 4 p/u per week $ 715.15 5 p/u per week $ 894.61 6 p/u per week $ 1,074.07 Extra Dump $ 40.80 Saturday Dump $ 41.41 Commercial-3 Yards 1 p/u per week $ 265.17 2 p/u per week $ 534.36 3 p/u per week $ 803.54 4 p/u per week $ 1,072.73 5 p/u per week $ 1,341.91 6 p/u per week $ 1,611.10 Extra Dump $ 61.19 Saturday Dump $ 62.12 Commercial-4 Yards 1 p/u per week $ 353.56 2 p/u per week $ 712.55 3 p/u per week $ 1,071.51 4 p/u per week $ 1,430.46 5 p/u per week $ 1,789.42 6 p/u per week $ 2,148.38 270 Page 5 of 6 Extra Dump $ 81.60 Saturday Dump $ 82.83 Commercial-6 Yards 1 p/u per week $ 530.34 2 p/u per week $ 1,068.71 3 p/u per week $ 1,607.08 4 p/u per week $ 2,145.46 5 p/u per week $ 2,683.83 6 p/u per week $ 3,222.20 Extra Dump $ 122.39 Saturday Dump $ 124.24 Commercial-Cans 1 $ 13.26 2 $ 26.52 3 $ 39.77 4 $ 53.03 5 $ 66.29 6 $ 79.55 7 $ 92.81 8 $ 106.07 9 $ 119.32 12 $ 159.10 13 $ 172.36 15 $ 198.87 18 $ 238.65 22 $ 291.68 27 $ 357.97 30 $ 397.75 34 $ 450.78 43 $ 570.11 50 $ 662.92 54 $ 715.95 Debris Box (cu. yds.) 8 $ 274.08 20 $ 469.54 30 $ 567.27 40 $ 665.00 Compactor (cu. yds.) 10 $ 469.54 12 $ 508.63 15 $ 567.27 16 $ 586.81 20 $ 665.00 25 $ 762.73 26 $ 782.27 28 $ 821.36 30 $ 860.46 36 $ 977.73 40 $ 1,055.91 FEL2CY Compactor 1 p/u per week N/A 271 Page 6 of 6 2 p/u per week N/A 3 p/u per week N/A FEL 3CY Compactor 1 p/u per week N/A 2 p/u per week N/A 3 p/u per week N/A FEL 4CY Compactor 1 p/u per week 453.43 2 p/u per week 911.97 3 p/u per week 1370.51 272