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HomeMy WebLinkAbout02-15-1984 CITY COUNCIL AGENDACITY OF SARATOGA 2 AGENDA BILL NO. Initial: ! 8J Dept. Hd. DATE: Feb. 7, 1984 (Feb. 15, 1984) C. Atty. DEPARTMENT: Community Development C. Mgr. SUBJECT: FINAL BUILDING SITE APPROVAL, SDR -1548, FRANK SCHNEIDER, PIERCE ROAD Issue Summary 1. The SDR -1548 is ready for Final Approval 2. All Bonds and Agreements have been submitted to the City 3. All requirements for City Departments and other agencies have been met. Recommendation Adopt resolution 1548 -2 attached, approving the Final Map of SDR -1548 and authorize execution of Building Site agreement. Fiscal Impacts None Exhibits /Attache ents 1. Resolution No. 1548 -2 2. Report.to Planning Commission 3. Copy of Tentative Map 4. Location Map 5. Status Report for Building Site Approval Council Action 2/15: Approved 5 -0. 0 RESOLUTION NO. 1548 -2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPROVING BUILDING SITE OF FRANK SCHEIDER The City Council of the City of Saratoga hereby resolves as follows: SECTION 1: The 1.782 acre parcel shown as Parcel A on the :. record of survey prepared by Kon Fon Ho,.'Civil.Engineer, and submitted to the City Engineer, City of Saratoga, be approved , as one (1) individual building site. The above and foregoing resolution was duly and regularly intro- duced and passed by the City Council of Saratoga at a regular meeting held on the 15th day of. February 19 84 by the following vote: AYES: NOES: ABSENT: ATTEST: CITY CLERK MAYOR MEMORANDUM CITY OF SARATOGA TO:' PLANNING COMMISSION FROM: DIRECTOR OF PUBLIC WORKS SUBJECT: Status Report for Building Site Approval All conditions for Building Site Approval SDR -1548 , Frank Schneider (have) (hxx %xxqjt) been met as approved-by the Planning Commissioh-.on September - =14, 1983 Listed below are the amounts, dates and City receipt numbers for all required items: Offer of Dedication yes Date Submitted 2 -3 -84 Record of Survey or Parcel Map N/A Date Submitted -- Storm Drainage Fee 1100.00 Date Submitted 2/6/84 Receipt #04020 All Required Improvement Bonds yPG Date Submitted 2/r,/g4 Receipt # All Required Inspection Fees $600.00 Date Submitted 2/6/84 Receipt #0402( Building Site Approval Agreement yes Date Signed 2/7/84 Park and Recreation Fee $1300.00 Date Submitted 2/6/8T Receipt #0402( It is, therefore, the Public Works Department recommendation that (a =dk- lx ;kmxk) (Final) Building Site Approval for Frank Schneider SDR -1548 be granted. If Conditional Building Site Approval is recommended, it shall become un- conditional upon compliance with the following conditions: Condition(s) Reason for Non - Compliance ROBERT_S.:SHOOK A of S � ' fATO GA �, IFpg •� REPORT TO PLANNING COMMISSION City of Saratog / *Revised: 9/14/83 APPROVED BY: V DATE: 9/1/83 DATE: Commission Meeting: 9 /14/83 SUBJECT: SDR -1548 & A -905, Frank & Priscilla Schneider, 13291 Pierce Rd., Tentative Building Site Approval and Design Review Approval - 1 Lot REQUEST: Building Site Approval and Design Review Approval to construct a two -story single family residence and swimming pool. OTHER APPROVALS REQUIRED: Building Permit PLANNING DATA: PARCEL SIZE: 1.8 Acres GENERAL PLAN DESIGNATION: Very Low Density Single Family ZONING: R -1- 40,000 cTTG nATA. SURROUNDING LAND USES: Single Family Residential SITE SLOPE: 10.3% SLOPE AT BUILDING SITE: 8% NATURAL FEATURES & VEGETATION: The Calabazas Creek riparian area extends across the northwest corner of the site. There are numerous mature trees around the perimeter of the lot and fruit trees, walnut, oak and other varieties dot the site. PROJECT CONSIDERATIONS: HISTORY: Site, with adjacent property to the east, received a tentative map for three 3') lots in 1973 (SDR -1050) but this approval has expired. The two adjacent sites received Building Site Approval in 1976 (SDR -1238 westerly parcel) and 1974 (SDR -1109 easterly parcel).. All the maps were conditioned for Pierce Road improve- ments (a 20 ft. half street on 30 ft. half- street dedication) but only SDR -1109 received Final Approval. GRADING REQUIRED: CUT: 350 Cu. Yds. FILL: 350 Cu. Yds. CUT DEPTH: 2.5 Ft. FILL DEPTH: 3 Ft. Report to Planning Commiss(_ 9/1/83 SDR -1548 & A -905, Schneider,-Fierce Rd. Page 2 SETBACKS: Front: 341 Ft. Rear: 78 Ft. Right Side: 41 Ft. Left Side: 113 Ft. HEIGHT: 27'6" SIZE OF STRUCTURE: First Floor: 2,611 sq. ft. Second Floor: 1,028 sq. ft. TOTAL: 3,639 sq. ft. (6,200 sq. ft. Design Review Standard) IMPERVIOUS COVERAGE: 14.5% (35 % allowable) COLORS & MATERIALS: The structure would be finished in natural shingle siding with brown concrete tile roofing. RELATIONSHIP WITH ADJACENT STRUCTURES: The subject property is a large corridor lot with the proposed building site located 340 ft. from street frontage. To the south, there is an existing single story residence fronting Pierce Road and to the east, a two -story residence adjoining the driveway area. Other adjacent residences are dis- tant and screened by trees. DRIVEWAY AND CIRCULATION: Central Fire has conditioned a turnaround within 150 ft. of residence. This will be reviewed by Central prior to issuance of building permit. GEOLOGY: The City Geologist's comments are attached. Report to Planning Commiss(_ 9/1/83 A -905 & SDR -1548, Schneider, Pierce Rd. Page 3 DESIGN REVIEW PROJECT CONSIDERATIONS: There is currently a small house and detached garage on the property which will be removed when the proposed residence is built. The proposal complies with setback,.height and impervious coverage.requirements for the zone. The structure maintains a low profile by having only a small second story element and a roof treatment for the front elevation which reduces the height impact. FINDINGS 1. Interference with Views and Privacy The proposed structure does not unreasonably interfere with the views or privacy of adjacent residences due to distance and the screening of mature trees. 2. Preserve the Natural Landscape The proposed building site is located on the mmNtr portion of the lot, thus °.grading is minimized. The Calabazas Creek riparian area and the majority of trees on the site will remain unaffected by the proposed construction. 3. Minimize Perception of Excessive Bulk The proposed residence is set back from the street and is visible only from several adjoining properties. Trees on and surrounding the site minimize any perception of bulk. 4. Compatible Bulk and Height The floor area of the proposed residence is within Design Review Standards and is compatible with other residences in the zone. It is similar in height to an adjacent two -story home and will not impair the solar access of adjacent properties. RECOMMENDATION: Staff recommends approval per the Staff Report dated 9/1/83, Exhibits "B -1 and C ", subject to the following condition: 1. With the exception of the building site and driveway areas, no tree over 20 inches in circumference as measured 24" from grade shall be removed without a tree removal permit. Report to Planning Commiss( ` C 9/1/83 SDR -1548 & A -905, Schneider, Pierce Rd. Page 4 BUILDING SITE APPROVAL PROJECT STATUS: Said project complies with all objectives of the General Plan, and all requirements of the Zoning and Subdivision Ordinances of the City of Saratoga. The housing needs of the region have been considered and have been balanced against the public service needs of its residents and available fiscal and environmental resources. A Categorical Exemption was prepared relative to the environmental impact of this project. Said determination date: August 26, 1983. The Staff Report recommends approval of the tentative map for SDR -1548 (Exhibit "B -1" filed August 31,. 1983) subject to the following conditions: I. GENERAL CONDITIONS Applicant shall comply with all applicable provisions of Ordinance No. 60, including without limitation, the submission of a Record of Survey or parcel map; payment of storm drainage fee and park and recreation fee as established by Ordinance in effect at the time of final approval; submission of engineered improvement plans for any street work; and compliance with applicable Health Dept. regulations and applicable Floor Control regulations and requirements of the Fire Department. Reference is hereby made to said Ordinance for further particulars. Site approval in no way excuses compliance with Saratoga's Zoning and Building Ordinances, nor with any other Ordinance of the City. In addition thereto, applicant shall comply with the following Specific Conditions which are hereby required and set forth in accord with Section 23.1 of Ordinance No. 60. II. SPECIFIC CONDITIONS - COMMUNITY DEVELOPMENT DEPARTMENT A. Pay Storm Drainage Fee in effect at the time of obtaining Final Approval. B. Submit "Parcel Map" to City for checking and recordation (pay required checking and recordation fees). (If parcel is shown on existing map of record, submit three (3) to -scale prints). C. Submit "Irrevocable Offer of Dedication" to provide for a 30 ft. half- street on Pierce Rd. * D. Improve Pierce Road to City Standards, including the following: 1. Designed structural section 20 ft. between centerline and flowline. 2. Asphalt concrete berm. 3. Undergrounding existing overhead utilities. * E. Construct Storm Drainage System as shown on the "Master Drainage Plan" and as directed by the City Engineer, as needed to convey storm runoff to Street,. Storm Sewer or Watercourse, including the following: 1. Storm Sewer Trunks with necessary manholes. 2. Storm Sewer Laterals with necessary manholes. 3. Storm Drain Inlets, Outlets, Channels, etc. *Conditions D and E subject to Deferred Improvement Agreement. Report to Planning Commissc t` 9/1/83 SDR -1548 & A -905, Schneider, Pierce Rd. Page 5 F. Construct driveway approach 16 ft. wide at property line flared to 24 ft. at street paving. Use double seal coat oil and screenings or better on 6 in. aggregate base. G. Construct "Valley Gutter' across driveway or pipe culvert under driveway as approved by the City Engineer. H. Provide adequate sight distance and remove obstructions of view as required at driveway and access road intersections. I. Provide adequate sight distance and remove obstructions of view as required at driveway and access road intersections. J. Watercourses must be kept free of obstacles which will change, retard or prevent flow. K. Protective planting required on roadside cuts and fills. L. Obtain Encroachment Permit from the Dept. of Community Development for driveway approaches or pipe crossings of City street. M. Engineered Improvement Plans required for: 1. Street Improvements 2. Storm Drain Construction 3. Access Road Construction N. Pay Plan Check and Inspection Fees as determined from Improvement Plans. * 0. Enter into Improvement Agreement for required non - deferred improvements to be completed within one (1) year of recieving Final Approval. P. Post bond to guarantee completion of the required improvements. III. SPECIFIC CONDITIONS - DIVISION OF INSPECTION SERVICES. A. Plans to be reviewed by geotechnical consultant prior to building permit being issued per William Cotten review dated May 2, 1983. B. Detailed on -site improvement plans showing: 1. Grading (limits of cuts, fills; slopes, cross - sections, existing and proposed elevations, earthwork quantities) 2. Drainage details (conduit type, slope,�..outfall, location, etc.) IV. SPECIFIC CONDITIONS - CUPERTINO SANITARY DISTRICT A. Sanitary sewers to be provided and fees paid in accordance with requirements of Cupertino Sanitary District as outlined 'in letter dated August 4, 1983. V. SPECIFIC CONDITIONS - CENTRAL FIRE PROTECTION DISTRICT A. Construct driveway 14 feet minimum width, plus one foot shoulders using double seal coat oil and screening or better on 6 -inch aggregate base from public street or access road to proposed dwelling. Report to Planning Commiss� �,. 9/1/83 SDR -1548 & A -905, Schneider fierce Rd. Page 6 B. Construct a turnaround at the proposed dwelling site having a 32 foot inside radius within 150 ft. of all portions of the exterior walls of the first floor of the building. Other approved type turnaround must meet requirements of the Fire Chief. Details shall be shown on the building plans. * C. Roof covering shall be fire retardant as required by Fire. Marshall." - VI. SPECIFIC CONDITIONS - SANTA CLARA COUNTY HEALTH DEPARTMENT A. Sewage Disposal to be provided by sanitary sewers installed and connected by the developer to one of the existing trunk sewers of the Cupertino Sanitary District. Prior to final approval, an adequate bond shall be posted with said district to assure completion of sewers as planned. B. Domestic water to be provided by San Jose Water Works. VII. SPECIFIC CONDITIONS - PERMIT REVIEW DIVISION A. Design Review Approval required on project prior to issuance of permits. B. Any modifications to the Site Development Plan shall be subject to Planning Commission approval. C. Prior to issuance of building permits, individual structures shall be reviewed by the Permit Review Division to evaluate the potential for solar accessibility. The developer shall provide, to the extent feasible, for future passive or natural heating or cooling opportunities on /in the subdivision /building site. * D. Applicant shall submit plans for deck and landscaping for review by the Permit Review Division. VIII,. SPECIFIC CONDITIONS - SANTA CLARA VALLEY WATER DISTRICT A,. Dedicate right -of -way along entire creek frontage to Santa Clara Valley Water District. B. All grading adjacent to the SCVWD right -of -way to be done in accordance with sheets 20 -20B of said agency. Details of grading to include the cross - sectional view at the right -of -way and are to be shown on the Improvement Plans. Plans to be submitted to SCVWD for review and permit issuance prior to construction. C. Drainage system and any outfall structure details to be reviewed and- approved by SCVWD prior to Final Approval. D. Applicant shall, prior to Final Map Approval, submit plans showing the location and intended use of any existing wells to the SCVWD for review and certification. Approved: ) U P.C. Agenda: 9/14/83 Kathy K du Planner L nda Lauz Planner bWt CITY OF SARATOGA AGENDA BILL NO. S Sj DATE: 2/7/84 DEPARTMENT: City Clerk ----------------------------------------------- SUBJECT: RESOLUTIONS CONCERNING JUNE ELECTION Issue Summary State law requires.the attached resolutions to be adopted. Recommendation Adopt resolutions. Fiscal Impacts None. Initial: Dept. Hd. C. Atty. C. Mgr. 4 Exhibits /Attachments Resolution Calling Election on June 5, 1984. Resolution Requesting Consolidation of Election with Statewide Primary. Resolution Requesting Services of County Registrar for Election. Council Action 2/15: Approved 5 -0 (Resolutions 2122, 2123, and 2124). i • RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ORDERING ATM CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF SARATOGA ON JUNE 5, 1984'AND PROVIDING FOR GIVING OF NOTICE OF ELECTION RESOLVED, by the City Council of the City of Saratoga, County of Santa Clara, State of California, as follows: 1. A General Municipal Election hereby is called to be held in and for the City of Saratoga on Tuesday, June 5,1984, to elect two (2) Councilmembers, each for a full term of four (4) years. 2. The City Clerk be and hereby is authorized and directed to publish a Notice of the General Municipal Election in the form marked Exhibit "A ", attached hereto and incorporated herein by reference, and • within the time and in the mariner specified in the Government Code Section 22830. 3. The City Clerk be and hereby is authorized to publish all notices in the manner required by law, including the list of nominees, election of officers and polling places. The above and foregoing resolution was passed and adopted at a regular meeting of the City Council of the City of Saratoga held on the day of I , 1984, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor I EXHIBIT A NOTICE OF ELECTION • Notice is hereby given that a general municipal election will be held in the City of Saratoga on Tuesday, the 5th day of June, 1984, for the following officers: Two members of the City Council (each for a term of four (4) years. The precincts, polling places, and precinct board members shall be the same as those provided for the statewide primary election on the same date. The polls will be open between the hours of 7 a.m. and 8 p.m. Grace E. Cory Deputy City Clerk • • OR • RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA 'Its CONSOLIDATE ITS JUNE 1984 ELECTION WITH THE STATEWIDE PRIMARY WHEREAS, a General Municipal election will beheld on Tuesday, June 5, 1984, in the City of Saratoga, and.; WHEREAS, a primary election may be ordered to be held in another political subdivision on the same territory, or in territory that is in part the same; and WHEREAS, pursuant to Part 2.5 of Division 14 of the California Elections Code, this election may be consolidated with the General Municipal Election. NOW, THEREFORE,.BE IT RESOLVED that the City Council of the City of Saratoga requests the Governing Body of any such other political subdivision to partially or ocmpletely consolidate said elections and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, and BE IT FURTHER RESOLVED that the Saratoga City Council consents to such consolida- tion. • The above and foregoing resolution was passed and adopted by the City Council of the City of Saratoga at a regular meeting held on the 15th day of February, 1984, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. RESOLUTION REQUESTING SERVICES OF COUNTY REGISTRAR • 1984 GENERAL MUNICIPAL ELECTION June 8, 1984 WHEREAS, the City of Saratoga desires to avail itself of the services of the County Registrar of Voters for the General Municipal Election in the City of Saratoga for the year 1984, and the City of Saratoga deems it economical and satisfactory to request the same as hereinafter set forth. NOW, THEREFORE, the City Council of the City of Saratoga hereby resolves as follows: SECTION 1: Request is hereby made to the Board of Supervisors of the County of Santa Clara to permit the County Registrar. of Voters to render the services hereinafter specified to the City of Saratoga relating to the conduct of the 1982 General Municipal Election. SECTION 2: The City of Saratoga requests that the County Registrar of Voters perform the following services required by law for the conduct of the General Municipal Election for and in the City of Saratoga: • (a) Preparation of precinct registration listing (b) Preparation of sample ballot inserts (c) Preparation of indexes (d) Stuffing and mailing sample ballots (e) Furnishing of sample ballot envelopes SECTION 3: The City of Saratoga shall pay to the County of Santa Clara the actual cost of said services, such payment shall be made when all of the same are completed and upon presentation to the City of Saratoga a properly approved bill from the County. SECTION 4: The City Clerk of the City of Saratoga is hereby authorized and directed to do any and all acts, including the entering into any contract or contracts with the County of Santa Clara as may be necessary, in order to carry out the terms of this resolution. -_ I Passed and adopted at a regular meeting of the Saratoga City Council held on the 15th day of February, 1984, by the following vote: AYES: NOES: • ABSENT:. ATTEST: Mayor I CITY OF SARATOGA Initial: AGENDA BILL NO: — 5 8( Dept. Head: DATE: February 7, 1984 City Atty DEPARTMENT: Maintenance City Mgr ----------------------------------------------------------------------------------------- - - - - -- SUBJECT: Award of Contract - Apply Paint Coat to City Hall, Civic Auditorium, Community Center and Corporation Yard Issue Summary The City received bids on February 6, 1984 for the application of paint coat to four City buildings. Two bids were received. The lowest bid was from Joseph's Painting and Decorating, Inc. of San Jose in the amount of $29,530.00. The Engineer's Estimate of $24,000 was included in the 1983 -84 Capital Improvement Budget. The total cost of the project including engineering, inspections and contingencies will be approximately $32,000. Recommendation Award the contract to Apply Paint Coat to City Hall, Civic Auditorium, Community Center and Corporation Yard to Joseph's Painting and Decorating, Inc. in the amount of $29,530 and approve the resolution appropriating $8,000 to cover the amount not included in the budget. Fiscal Impact The 1983 -84 Capital Improvement Budget included $24,000 for this project. The total cost of the project including engineering, inspections and contingencies will be approximately $32,000. The additional $8,000 must be appropriated from Revenue Sharing funds. Exhibits /Attachments 1. Resolution No. 2. Bid Summary Council Action 2/15: Approved contract and adopted Resolution 2073.8 4 -1 (Mallory opposed). RESOLUTION NO. 2073. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA INCREASING APPROPRIATIONS AND AMENDING THE 1983 -84 FISCAL YEAR BUDGET WHEREAS, it is reocirmended that the following adjustment be made increasing the present budget appropriations: NOW, THEREFORE, BE IT RESOLVED, that the budget of the City of Saratoga adopted by Resolution 2073 be amended as follows: Transfer: $8,000.00 from general ledger account 21 -2905 general fund reserve for appropriation increases, to general ledger account 21 -2940 t.:. general,fund appropriations. Subsidiary: Fund 30 - Revenue Sharing Program 967 - Paint City Buildings Purpose: To increase appropriations to cover the low bid received. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the day of by the following vote: ' AYES: NOES: ABSTAIN: ATTEST: City Clerk Mayor City of Saratoga Community Development Department DATE: Fe 6th 1984_ BID'SUMMARY., TIME: 2; :3 0 R.M. 521eet I orf 1 PROJECT Apply Paint Coat To City Hall, Civic Auditorium, Community Ctr. .and Corporation Yard _ Eng. Estimate nit I'ric Amount JOSEPH'S PAINT iit Amount ICRYSTAL SPRINGS Unit Amount Unit I�7 .P Amount zF-iit Arriount to _ Description p Quantity. it 1 Apply Paint Coat to City Hall, Civic Auditorium, Community Ctr. and Corp'.. L.S. $26,110 L.S. $34,401.25 Yard L.S. L.S. F. -S-. $21,5531• 2. 3. Seal Floor Area 1894 S. F. 0.5. 947 0.75 1,420 0.62 1,174.28 Install Wallpaper 50 EA 30.0 1,500 40.0 2,000 62.53 3,126.50 TOTAL $24,000 $29,530 $38,702.03 CITY OF SiYZRI'0GA Initial: A=A BILL NO. Dept. Hd. DATE: February 7, 1984 C. Atty. DEPARTMEWr: Admin. Services C. Mgr. ; SUE 7ECT: Request for Rate Increases - Green Valley Disposal Company Issue Summary In March 1983 the City Council entered into a twenty (20) year-franchise agreement with Green Valley Disposal Company for garbage services. New service categories and rates were also approved at that time. In October 1983 Green Valley submitted a request for a rate increase on January 1, 1984 and July 1, 1984. Since October a rate review committee composed of one staff member from each of the cities involved (Saratoga, Los Gatos, Campbell, and Monte Sereno) has reviewed Green Valley's.1983 -84 and 84 -85 budget, revenues, expenditures and projections. The rate review committee concluded discussions during.the first week of February and is making uniform recom- mendations in the four cities involved to increase rates for residential, commercial and drop of box services. Recommendation Review background information and proposed rates. Hold the public hearing. Adopt Resolution No. approving rates for residential, commercial and drop off box services. Fiscal Impacts The City of Saratoga receives franchise fees collected by Green'Valley within the City of budget includes as estimated $118,800.00 from E:-.hibits /Attachments equal to 100 of gross revenues Saratoga. The 1983 -84 approved Green Valley Franchise fees. Background memo Resolution No. and new proposed rate schedules List of Attachments Correspondence Received Council Action 2/15: Consensus to refer to Finance Committee and continue public hearing to 3/7. 3/7: Agendized for study session 3/13; public hearing continued to 3/21. 3/21: Passed Res. 2129 giving temporary loo increase, 4 -1 (Mallory opposed). : ANXNV R� WHI uguw @a O&UMAU00Z 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3438 TO: Mayor and City Council DATE: February 7, 1984 FROM: Director of Administrative Services SUBJECT: Request for Rate Increases. - Green Valley Disposal BACKGROUND In March 1983 the City Council's of Saratoga, Los Gatos, Campbell and Monte Sereno entered into twenty (20) year agreements with Green Valley Disposal Company for garbage services and twenty (20) year agreements with Guadalupe Disposal for landfill space. Concurrent with approval of the new garbage franchise agreement the Saratoga City Council authorized new service .levels and revised rates. In October 1983 Green Valley submitted a request to the four cities for rate increases in January 1984 and in July 1984. Since October 1983 a rate review committee, composed of one staff member from each city, has been meeting to review Green Valley's budget,- revenues, expenditures and projections. The actual budget for 1982 -83 was approximately $5.3 million. Green Valley requested $7.8 million for 1983 -84. Following negotiations with the rate review committee, the 1983 -84 pro- jected budget figure was reduced to $6.5 million, and is pro- jected at $7.1 million for 1984 -85. The 1983 -84 projected budget of $6.5 million is almost 22% higher than the 1982 -83 budget. Areas of the 1983 -84 budget contributing most heavily to the increase were as follows: Franchise fees - up $158,000, based on higher.revenues projected Disposal costs - up $299,330, based on increase from $11 per ton to $13.20 per ton, effective July 1, 1983, and an overall increase of 28% in tonnage (Saratoga's tonnage increase was 400) Interest on Loans and Equipment /Depreciation - up $96,437 due to new equipment purchases and depreciation Equipment Variable Costs - up $88,000 due to increases in gas, diesel and oil, tires, truck parts, etc. Mayor and City Council February 7, 1984 Page Two Labor - up $68,052 due to negotiated salary increases Rent - up $8,847 due to increases in office and garage rents Related benefit costs - up $223,767 due to improved benefits under negotiated labor agreement and large increase in workers' compensation insurance. SUMMARY As a result of the time consumed reviewing Green Valley's budget the rate review committee did not think it feasible to recommend an increase in rates for January 1984. The committee reviewed 1983 -84 expenditures, revenues and projections, and projections for 1984 -85, and is recommending new rates to be effective March 1, 1984. The increases being recommended will be in effect for 16 months, (March 1, 1984 - July 1, 1985), however will be expected to cover a 24 month budget period (July 1, 1983 - July 1, 1985). The process followed by the rate review committee involved a division of Green Valley's budget into three cost centers - Residential, Commercial and Drop Off Boxes. Each cost center was further broken down among the four cities. Revenues needed to provide specified levels of service were then projected. As the Council may recall from previous discussions there is an industry wide practice among disposal companies of providing some subsidy to residential rates from commercial rates. This prac- tice has existed for many years among the four cities served by Green Valley. Saratoga has a lower level of commercial develop- ment than does Campbell and Los Gatos, and thus generates a lower amount through the commercial rates. One central issue of discussion among the four cities was an appropriate method of distributing the commercial revenues. Following a series of meetings which included the City Managers from the four cities, a method was agreed upon to distribute commercial revenues in order to produce the same percentage increase in rates in all four cities. In the case of Saratoga, the method agreed upon is the most favorable of those examined. As a result of this process all four cities are reviewing the same percentage increases. There is no obligation through the franchise for this type of approach but the rate reveiw committee and the City Managers from the four cities concluded it was the preferred approach. RECOMMENDATION The rate review committee recommends increasing residential revenues by 34 %, increasing commercial rates by 12% and drop off box rates by 10 %. Mayor and City Council February 7, 1984 Page Three As applied to Saratoga, an increase in residential revenues of 34% can result in an infinite variety of different rate struc- tures. The rate structure being recommended gives the lowest increase in rates,18.75 %, to single can users at the curb, and the highest increase, 40 %, to unlimited users at 130 ft. from the curb. In order to keep the single can users at the curb below the overall 34% increase, other rates must be slightly higher than 34 %. In summary, with the proposed residential rates the majority of single can users will experience an 18.75% increase. The majority of unlimited customers will experience a 35% increase. Rate comparison charts are included in the attachments for resi- dential, commercial and drop off box service. Patri is M. Aviles PMA:llc Attachments LIST OF ATTACHMENTS A - Residential Garbage Rate Comparisons B - City of Saratoga, Current Residential Rates C - City of Saratoga, Residential Census Information D - Commercial Rate Comparisons E - Drop Off Box Rate Comparisons F - City of Saratoga, Current Commercial and Drop Off Box Rates MATERIAL SUBMITTED BY GREEN VALLEY DISPOSAL COMPANY G - June 30, 1981 Financial Report H - June 30, 1982 Accountants' Report I - June 30, 1983 Financial Report J - Budget Summary 1983 -84 K - Budget Summary 1984 -85 L - Summary information on 1983 -84 budget in response to specific City Council questions f I RESIDENTIAL GARBAGE RATE COMPARISONS Citv Unlimited 1 can 2 cans 3 cans 4 cans Additional cans or Backvard service SARATOGA $11.50 -15.50 $4.75 -7.50 (proposed) curb -130 ft. curb -130 ft. (average Hard to serve Hard to serve Hard to serve Hard to serve Walkin /drive in over 4 cans) $7 -9.40 $8.40 -10.80 $10.15 -12.85 $12.15 -15.20 130 ft. - $6.70 SAN JOSE $6.20 curbside Backyard unlimited $18.44 CUPERTINO $5.40 curbside $7.30 curbside $9.90 curbside +$2.30 additional $7.30 backyard $9.60 backyard $12.20 backyard cans LOS ALTOS $7.00 curb to $8.20 curb to $12.25 curb to $15.70 curb to +$3.45 additional 100 ft. 100 ft. 100 ft. 100 ft. cans LOS ALTOS HILLS $7.95 curb to $11.55 curb to $15.30 curb to 100 ft. 100 ft. 100 ft. WOODSIDE $6.20 curb $9.10 curb $12.00 curb $14.90 curb +$2.90 can $9.15 100 ft. $9.85 100 ft. $12.75 100 ft. $15.65 100 ft. +$,75 each add'l 100 ft. MENLO PARK $6.68 backyard $8.36 curbside $18.42 backyard $24.29 backyard +$5.87 can $12.55 backyard HILLSBOROUGH $8.93 backyard $16.95 backyard $24.97 backyard $32.99 backyard +$8.02 can LAFAYETTE $7.95 curbside $12.05 curbside WALNUT CREEK $7.90 backyard $11.45 backyard $15.00 backyard $18.55 backyard +$3.55 can LIVERMORE $6.40 backyard $10.10 backyard $13.80 backyard $17.50 backyard +$3.70 can PORTOLA VALLEY $6.95 curb to $10.25 curb to $13.60 curb to $16.80 curb to +$3.20 can 100 ft. 100 ft. 100 ft. 100 ft. SAN CARLOS, FOSTER CITY $5.91 backyard $11.24 backyard -- $21.91 backyard GILROY, MORGAN HILL $4.50 +$.50 hard to serve r` r CITY OF SARATOGA Residential Rates (Effective Marc* 1, 1983) REGULAR i1 Can UNLIMITED 0. -. 5 Feet 4.00 8.50 6 - 30 Feet 5.00 9.75 31 - 130 Feet 6.00. 11.00 r Each HARD TO SERVE 1 Can 2'Cans 3 Cans 4 Cans 5 Cans Add'1 Can 0 - 5 Feet 5.50 6.25 7.50 9.00 11.00 2.50 ..; ' <' .6 -" 30 Feet 6.25. 7.25 8.50 10.00 1.2.00 2.50 31 - 130 Feet 7.00 8.00 9.50 11.25 13.25 3.00 CITY OF SARATOGA RESIDENTIAL CENSUS (number of customers) FLATLAND ONE CAN UNLIMITED* 0 -5 ft. 1358 5307 6 -30 ft. 122 668 31 -130 ft. 106 661 HARD TO SERVE 1 can 2 cans 3 cans 4 cans 5 cans 0 -5 ft. 94 208 75 17 1 6 -30 ft. 2 5 0 1 0 31 -130 ft. 7 20 6 2 0 NOTES: Total customers = 8,660 18.30 of customers have one can service 76.6% of customers have unlimited service 5% of customers are "hard to serve" * For Saratoga customers unlimited service averages 4 cans Gam, � MEDIAN 35.00 32.00 42.20 42.51 63.82 135.96 San Jose - Garbage only Sunnyvale and Mt. View own Landfill 1 Current rate 2 Proposed rate, 2/6/84. RATE COMPARISONS COMMERCIAL SERVICE _ ONE PICKUP PER WEEK _ JURISDICTIO14 1 YARD 1 1/3 YARD 1 1/2 YARD. 2 YARD 3 YARD 6 YARD MENLO PARK - - — — 80.88 267.42 LOS ALTOS — — 44.25 — 74.20 133.85 CUPERTINO — — 40.15 53.45 c 66.75 115.55 SAN JOSE 35.00 CAMPBELL S. LOS MONTEASERENp 32.002 - 45.21 63.71 127.552 35.85 50.70 71.40 142.85 SARATOGA SUNNYVALE - - - 35.98 49.50 86.37 MT. VIEW - - - 35.37 47.84 85.00 MEDIAN 35.00 32.00 42.20 42.51 63.82 135.96 San Jose - Garbage only Sunnyvale and Mt. View own Landfill 1 Current rate 2 Proposed rate, Green Valley (March 1, 1984) San Jose - BFI Morgan Hill Sunnyvale Cupertino, Woodside, Los Altos, Los Altos Hills DROP OFF BOX RATE COMPARISONS 15 yd. 16 yd. 18 yd. 20 yd. 30 yd. 40 yd. $110 $160 $180 $140 $160 $180 $104 $135 $166 $215.46 $286.24 $457.18 86.90 151.55 $193.95 azZZ -dv� 2E�- GREEN VALLEY DISPOSAL COMMERCIAL SERVICE RATES (Effective March 1, 1983) Pick Ups Per 1 1/3 Yd. 2 Yd. 3 Yd. 6 Yd. Week Bin Bin Bin Bin - 1 $ 32.00 $ 45.25- $ 63.75 $127.55 2 55.25 .79.65 115.85 231.75 3 78.35 114.25 167.90 335.80 4 101.45 148.85 220.00 439.85 5 124.75 183.55 272.00 544.00 6 147.75 271.95 324.00 648.00 i Extras 8.85 11.80 16.60 33.20 Compactor $7.00 per cubic yard GREEN VALLEY DISPOSAL DROP OFF BOX SERVICE RATES (Effective March 1, 1983) Frequency 18 Yd. 30 Yd. 40 Yd. Service of Pick Ups Box Box Box One Shots Per Week 100.00 $,145.00 $165.00 Extension Per Day 7.25 20.75 23.75 Extension Per Week •50.00 145.00 165.00 GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED FINANCIAL REPORT (A Compilation) JUNE 30, 1981 WILLIAM K. GRAFTON C6RTV190 PUSLIC ACCOUNTANT 1 �• G WILLIAM K. GRAF ON C[11TIIIED PUBLIC ACCOUNTANT , AMERICAN INSTITUTE Of CERTIFIED 202 E. MAIN STREET. SUIT[ 104 PUBLIC ACCOUNTANTS Lo[ GATOS. CALIFORNIA 95030 CALIFORNIA SOCIETY OF CERTIFIED 14081 395.1114 PUBLIC ACCOUNTANTS October 7, 1981 Green Valley Disposal Company, Inc. Los Gatos, CA 95030 The accompanying balance sheet of Green Valley Disposal Company, Inc., as of June 301 1981, and the related statements of operations, retained earnings and changes in financial position for the year then ended have been compiled by me. A compilation.is limited to,,presenting in the form of financial statements information that is the representation of management. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Certified Public Accountant GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED BALANCE SHEET (See Accountant's Compilation Report) JUNE 30, 1981 ASSETS CURRENT ASSETS Cash in bank Accounts receivable Prepaid expenses Total current assets PLANT AND EQUIPMENT Vehicles $ 871,517 Machinery 518,384 Bins and boxes 91,614 Office furniture and equipment 29,536 Yard improvements 38,122 Leased property under capital leases, less accumulated amortization (Note 2) 1;- 140; 489 2, 689, 662, Less accumulated depreciation 1,010,770 $ 4,735 333,382 18,660 356,777 1,678,892 . .$2,.0.35; 6,69 LIABILITHES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Note payable (Note 7) Accrued payroll taxes Obligations under capital leases (Note 2) Deferred income Total current liabilities _. LONG - .TERM.,DEBT.,... .obligat ion s:- .under capital leases (Note 2) $ 56,712 101,735 16,711 133,947 195,203 504, 308 1,039,203 STOCKHOLDERS' EQUITY Capital stock, common,. $10 par value, authorized 25,000 shares, 4,.000 issued and outstanding $ 40,.000 Capital paid in excess of par value "-99;784 Retained earnings. 352,374 492,158 . $2,035,669 The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON c[11T1F19D Punwe ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1981 J (See Accountant's Compilation Report) Residential Commercial Drop Box Total SERVICE AND BIN RENTAL Saratoga $ 588,755 $ 136,371 $177,496 $ 902,622 Los Gatos 455,994 432, 283 156,003 1,044,280 Campbell 370,152 728, 744, 208, 356 1;'307, 252 Monte Sereno 68,792 1,082 19,947 89,821 County and unassigned 466,679 112,006 180,841 759,526 Total service income $1,950,372 $1,410,486 $742,643: 4,103, 501 Less: Franchise payments 311,671 NET SERVICE INCOME 3,791,830 OPERATING EXPENSE Direct Costs Officers' salaries 257,260 Wages 1,253,347 Gas, oil and tires 317,672 Insurance 233,398 Repairs and maintenance - equipment ' 347,872 Supplies 33,326 Taxes and licenses 1 54, 150 Employees'- health_insurance 116,481 Rent - yard and garage 24,400 Utilities 8,062 Laundry and uniforms 12,735 ....Depreciation 255,330 Dump fees - Drop box 82,936 Dump fees - other 361,909 Pension plan 58,705 Equipment rental 1,662 Total direct costs 3,519,245 Administrative Costs Office salaries Postage Office, including maintenance Refunds, returned checks and claims Legal and accounting Advertising and promotion ..Dues-and ..subscriptions Rent - office Interest Equipment rental Total administrative expense Total operating expense LOSS BEFORE OTHER INCOME OTHER-INCOME, 'Interest. 81,773 25,561 53,739 43; 516 42,274 14,127 5,587 12,-720 72,366 49,316 400,979 3,920,224 (128, 394) NET LOSS $ (122,442) The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CENT1 ►19D PUBLlc ACCOuNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF RETAINED EARNINGS (See Accountant's Compilation Report) JUNE .30, 1.981 RETAINED EARNINGS Balance, beginning of year (adjusted to accrual) Less: Net loss Balance, end of year $474,816 122,442 $352,374 The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CamTmuc Pomoc ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF CHANGES IN FINANCIAL POSITION (See Accountant's Compilation Report) YEAR ENDED JUNE 30, 1981 FINANCIAL RESOURCES PROVIDED BY: Operations Net.. -loss _..$(122,_442) Items which did not require outlay of working capital during the year: Depreciation - equipment 186,114 Depreciation - capital leases 69,216 Working capital provided by operations $ 132,888 Proceeds from obligations under capital leases, net of $133,947 reclassified as .current 1,039,203 1,172,091 FINANCIAL RESOURCES APPLIED TO: Acquisition of plant and equipment 164,402 Acquisition of leased property under capital leases 1,209,705 Decrease in working capital as below $ 202,016 SUMMARY OF CHANGES IN WORKING CAPITAL COMPONENTS Increase (decrease) in Cash $ 17,066 Accounts receivable (37, 644) Prepaid expenses 18,660 Decrease (increase) in Accounts payable (1,887) Note payable (101, 735) Accrued payroll taxes (10, 361) ...Due.....to....affiliated_ company 80, 911 Obligations under capital leases (133, 947) Deferred income (33, 079) DecreaseAn--working. capital ......$(202,..016) The. notes to financial -statements- are- an­ integral - -part -of -- -this -statement. WILLIAM K. GRAYrON CERTIFIED PNeLIC ACCOu NTANT GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS (See Accountant's Compilation Report) JUNE 30, 1981 Note 1. Significant accounting policies a. The company maintains --its accounts-on the- cash basis, but for financial statement purposes they have been adjusted to a full accrual basis. b. Plant and equipment are carried at cost. Depreciation is computed predominantly by use of the straight -line method and also accelerated methods at varying rates reflecting the estimated useful lives of the assets. The estimated useful Fives are as follows: Automotive and trucks 5 - 10 years Machinery and equipment 7 - 10 years Office furniture and equipment 7 - 10 years c. Investment tax credits and new jobs tax credits are used to reduce the' tax provision`-in°-the year such - credits are claimed for income tax purposes. Note 2. Capital leases The following is an analysis of the leased property under capital leases, which are all for vehicles or periphery equipment: Vehicles $1,209,705 Less accumulated' amortization (Included in depreciation in the income statement) (69, 216) . $1,.1..40, 489 The following is a schedule by years of future minimum lease payments under capital leases together with the present value of -the net minimum 'lease payments ° -as- -of --June -30,- 1-981 : Year ending' June 30: 1982 $ 354,662 1983 354,662 1984 354,662 1985 354.662 .___1 -986 527,260 Net minimum lease payments 1', 945, 908 Less: Amount. representing interest 772,758 Present. value -of- net - .minimum .lease payments $1,173, 150 WILLIAM K. GRAFTON C[11TII1[D PUBLIC ACCOUNTANT 1 1 A GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS (See Accountant's Compilation Report) JUNE 30, 1981 Note 3. Pension, plan The company maintains a contributory target benefit pension plan for eligible employees. The contribution applicable to a particular year is the pension cost for that year.- --The° pension cost for the year ended June 30, 1981, was $58,705. Note 4 Tax credit carryforwards The company currently has an unused $14,921 New Jobs Tax credit carryforward from 1979, an unused Investment Tax credit of $140,459, and an NOL carryforward of $30,498. Note 5. Related party transactions Dump fees of $444,845 were paid to Guadalupe Rubbish Disposal Co., Inc., an affiliated company wholly owned by the shareholders of Green Valley Disposal Company, Inc.. Rental in the amount of $37,120 was also paid to Guadalupe Rubbish Disposal Co., Inc. for rental of a yard, garage and office. . Note 6. Return on investment The company's net return on investment, defined as the percentage of the company's net income to the total stockholders' equity at the end of the fiscal year, cannot be computed as the company incur.red a net loss and therefore incurred a loss on their investment. Note 7. Note payable This note represents a short -term obligation renewable at 90 day intervals, unsecured, which the company anticipates replacing with a lease contract in the near future. WILLIAM K. GRAFTON CCRTinEo PUBuc Acc OUMTANT John F.' PC W La� 'S GREEN VALLEY DISPOSAL COMPANY, INC. ACCOUNTANTS', REPORT. BALANCE SHEET, JUNE 30, 1982. STATEMENT OF INCOME AND RETAINED EARNI.NG.S YEAR ENDED JUNE 30, 1982. STATEMENT- OF-CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1982. NOTES TO FINANCIAL STATEMENTS. Certified Public Accountants • One Almaden Boulevard, Suite 1130, San Jose, California 95113 Jof l 1 F if, ACCOUNTANTS' REPORT The Board of Directors Green Valley Disposal Company, Inc.: We have examined the balance sheet of Green Valley Disposal Company, Inc. at June 30, 1982, and the related statements of income and retained earnings and changes in financial position for the year then ended. Our examina- tion was made. in accordance with generally accepted audit- ing standards, and accordingly included such tests of the accounting.records and such other auditing procedures as we considered necessary in the circumstances, except as indicated in the following paragraph. Because of limitations in the Company's accounting records for the previous year, it was not practicable to extend our auditing procedures to enable us to express an opinion on results of operations and changes in financial position for the year ended. June 30, 1982 or on the con- sistency of application of accounting principles with the preceding year. In our opinion, the .accompanying balance sheet presents fairly the financial position of Green Valley Disposal Company, Inc. at June 30, 1982 in conformity with generally accepted accounting principles. San Jose, California August 31, 1982 Certified Public AC Cot ifil;anIs • Of It, Alrn,iden F OLII(- tId. Suite 1 130, San Just:. Grlilunu.a 95 11:3 GREEN VALLEY DISPOSAL COMPANY, INC. BALANCE SHEET, JUNE 30, 1982 A S S E T S CURRENT ASSETS Cash............. $ 121,041 Accounts - rece- ivable, -net of allowance of 526,000....... 353,639 Inventory ......................... ....,................ 152,905 Prepaid expenses and other ............................. 26,114 Total current assets ..................... 653,699 PLANT AND EQUIPMENT: Vehicles.. ............................... $2,160,890 Machinery ... ............................... 57,530 Bins and boxes.... ....................... 626,303 Office furniture and equipment ............. 32,975 Leasehold improvements ........... 0......... 76,858 2,954,556 Less accumulated depreciation and amortization ............................ 1,375,138 1,579,418 $2,233,117 L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q 'U I 'T Y CURRENT LIABILITES Accounts payable ....... ............................... $ 215,305 Accrued expenses. .... 0. ..... 59,912 Current portion of obligations under capital leases.... 227,508 Deferred revenue ........ ............................... 212,765 Total current liabilities................ 1715,490 OBLIG.ATLONS_UND.ER_.. CAP I -TAL LEASES, - NET. -OF .CURRENT PORTION.................. ...........0................... 1,150,37.2 STCKHOLDERS' EQUITY: .. Common stock, $10 par value,- -a-uthoriaed, 25,000 shares; issued and outstanding, 4,000 shares . . . . . . . . . . . . . . . . . . . . . 00 . . . . . . S 40,000 Additional paid -in capital................ 99,784 Retained earnings .......................... 227,471 367,255 $2,233,117 See accountants' report and notes to financial statements. GREEN VALLEY DISPOSAL COMPANY, INC. STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1982 REVENUE: Campbell ............... .................... $1,564,198 . Los Gatos .................................... 1,186,693 Saratoga............ ........... .......... 1,053,852 Unincorporated_. areas ...- ._......................... 684,595 Monte Sereno .. ............................... 97,483 4,586,821. Franchise fee .. ............................... 406,407 4,180,414 OPERATING EXPENSE: - Direct costs: Salaries, wages, and benefits .............. 1,787,661 Dump fees ... ............................... 509,555 Depreciation ............................... 446,021 Gas, oil and tires ................... .... 238,629 Repairs and maintenance - Equipment........ 102,351 Insurance ................................... 67,243 Supplies and other................ ....... .47,562. Taxes and licenses .......................... 32,602 Rent . and. utilit- ies ............................ 4.4,703 Total direct costs. ............... 3,276,327 General and administrative costs: Office salaries, wages, and benefits....... 343,639 P- rofessional fees .......................... 178,9.22 Interest .... ............................... 300,081 Postage and supplies ....................... 62,868 Bad debts ... ............................... 80,753 Legal and accounting ........................ 60,931 Advertising and promotion........... ..... 22,519 Equipment rental ........................... 44,829 Other ...................................... 64,680 Total general and administrative expense .............:............. 1,159,222 Total operating expense......... 4,435,549 (LOSS) BEFORE OTHER INCOME ..................... (255,135) OTHER INCOME: workers' compensation dividend ................ 71,808 Interest ...... ............................... 3,015 Other ......... ............................... 63,564 138,387 NET(LOSS)..... ..... .......................... (116,748) RETAINED EARNINGS, JUNE 30, 1981 ............... 344,219 RETAINED EARNINGS, JUNE 30,1982 ............... $ 227,471 See accountants' report and notes to financial statements. GREEN VALLEY DISPOSAL COMPANY, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1982 SOURCE OF FUNDS: Operations: Net loss ..... ............................... $(116,748) Add (deduct) items not affecting working capital: Depreciation .............................. 4460,021 Gain on sale of plant and equipment....... ,(919) Working capital provided by operations...... 328,354 Additions to obligations under capital leases ...... ............................... 400,018 Proceeds from sale of plant and equipment..... 8,200 736,572 APPLICATION OF FUNDS: Additions to plant and equipment.............. 361,983 Reduction in obligations under capital leases ....... ............................... 288,849 650,832 DECREASE IN WORKING CAPITAL DEFICIT............. $ 85,740 CHANGES IN COMPONENTS OF WORKING CAPITAL: Increase ,. (_de.cxeas.e) In:. Cash ......... ............................... $ 116,306 Accounts receivable...... .................... 20,257 Inventory., .............. * ... ... o .......... 152,905 Prepaid expenses and other .................. 7,454 296,922 Increase (decrease) in: Accounts payable... ............... 158,593 Note payable.... .................... o ....... (101,735) Accrued expenses ........................... 43,201 obligations unde. Current portion r . .of capital leases ............................ 93,561' Deferred revenue ............................ 17,562 211,182 Decrease in working capital deficit..... $ 85,740 See accountants' report and notes to financial statements. GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS NOTE: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Inventory Inventory consists of parts, tires, fuel, oil, and other operating supplies and is generally carried at the lower . of cost or market. Depreciation Plant and equipment are carried at cost. Depreciation is computed predominantly by use of the straight -line method over the following estimated useful lives: Vehicles ............................ 5 - 10 years Machinery ........................... 7 - 10 years Bins and boxes.. .................... 5 - 8 years Office furniture and equipment...... 7 - 10 years Leasehold improvements .............. 10 - 15 years The Company leases various vehicles and equipment under. capital leases. The leased equipment is amortized over the term of the lease, generally 5 years, using the straight-line-method. Deferred Revenue Green Valley Disposal Company, Inc. bills certain customers in advance of performing refuse collection services. The Company credits deferred revenue on those billings and recognizes the income as the service is performed. Income Taxes The Company reports income on the cash basis for income tax purposes. De.ferr.ed ,.income ..taxes are -pr.ov.ided . for the tax effect of timing differences between income for financial reporting purposes and for income tax purposes. Investment tax credits and new jobs tax credits are used to reduce the tax provision in the year such credits are claimed for income tax purposes. (Continued) 1. GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS 2. CAPITAL LEASES Vehicles and machinery include leased equipment of $1,219,712, net of accumulated.amortization of $381,998. Future minimum lease payments under capital and operating leases as of June 30, 1982 are as follows: 1983 . ............................... 1984.* . . . . . . . . . . . . . . so . . . . . . .. . . . . . 1985 ............................... 1986 ............................... 1987 ............................... Net minumum lease payments......... Less: Amount representing interest. Present value of net minimum . lease payments................... Less current portion ............... 3. PENSION PLAN Capital Operating. $ 505,08.8 $ 76,009 508,834 73,189 465,880 79,369 619,695 85,549 29,241 91,729 2,128,738 $405,845 750,858 Loss 1,377,880 227,508 $1,150,372 The Company, in conjunction with a related company, maintains a, . cont.r. i. butory-.targ.et..bene.f.i..t - -- pension .plan for substantial- ly all employees. Pension costs are funded entirely as they accrue. The pension cost for the year ended June 30, 1982, was $74,257. 4. INCOME TAXES The Company currently has net operating loss and tax credit carryovers as follows: $33,498 $178,717 $14,921 (Continued ) 2. .. ...........Amount.............. Net ......Year of..... Operating Investment New Jobs Origin Expiration Loss Tax Credit Tax Credit 1979 1994 $14,921 1980 1995 $119,615 1981 1996 $30,498 20,844 1982 1997 3,.000 38,258 $33,498 $178,717 $14,921 (Continued ) 2. GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STA'T'EMENTS The availability of these carryovers to the Company depends upon its generating .taxable income in future years.. 5.. RELATED PARTY TRANSACTIONS Dump fees of $509,555 were paid to Guadalupe Rubbish'Disposal Co., Inc., an affiliated company ,wholly owned by the share- holders of Green Valley Disposal Company, Inc. Rental in the amount of $31,800 was also paid to Guadalupe Rubbish Disposal Co., Inc. for rental of a yard, garage and office. The Company paid $5,500 to a shareholder for rent of shop facilities. In addition, Guadalupe advanced the Company.$100,000 during the year. The $100,000 plus interest of $900 was repaid prior to June 30, 1982. 6. FRANCHISE AGREEMENTS Green Valley Disposal Company, Inc. has exclusive agreements with the town. of Los Gatos and the cities of Campbell, Saratoga, Monte Sereno, and certain unincorporated areas of Santa Clara County to provide refuse collection services. The agreements Provide for payment to the towns of a percentag'o- of cash reCe ipts f.roin coo lection services. The crgr.vwmunt::3 for. a I. I. tIto aAC0,1s, U'xcr;pt= t. 1U un.i.ncc>ncC,r,AI'0d arias of Santa Clara County, expire December 31, 1982. The service in Santa Clara County is provided under a revocable permit. The Company is presently negotiating new franchise agreements. _ (Concluded) 3. GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED FINANCIAL REPORT (A Review) JUNE 30, 1983 WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT 292 E. MAIN STREET. SUITE 104 LOS GATOS, CALIFORNIA 95030 14081 395-1 1 14 WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT September 22, 1983 Board of Directors Green Valley Disposal Company, Inc. Los Gatos, CA 95030 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS . I have reviewed the accompanying balance sheet of Green Valley Disposal Company, Inc. as of June 30, 1983, and the related state- ments of income, retained, earnings, and changes in financial position for. the year then ended in accordance with standards established by the American Institute of Certified Public Accountants. All information included in the financial statements is the representation of the manage- ment of Green Valley Disposal Company, Inc.. A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially" less in scope than an examination in accordance with generally accepted. auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accord - ingly, l do not express such an opinion. Based on our review, we are not aware of any material modifica- tion that should be made to the accompanying financial statements in order for them to be in .conformity with generally accepted accounting principles. Certified Public countant GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED BALANCE SHEET (See Accountant's Review Report) JUNE 30, 1983 ASSETS CURRENT ASSETS Cash in bank $ 14,334 Accounts receivable, net of $47,000 allowance for doubtful accounts 637,694 Inventory 122,790 Prepaid expenses 22,057 Total current assets 796,875 PLANT AND EQUIPMENT Vehicles $2,160,890 Machinery 64,229 Bins and boxes 660,466 Office furniture and equipment 80,384 Leasehold improvements 90,508 3,056,477 Less. accumulated - depreciation and amortization 1,816,049 1,..240-,428 $2,037,303 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 312,328 Note payable, bank line of credit 95,000 Accrued vacation and sick pay 31,025 Accrued franchise fees 59,402 Obligations under capital leases - current (Note 2) 230,652 Deferred revenue 237,945 Total current liabilities 966,352 LONG - TERM - .DEBT, obligations .under capital leases ( Note 2) 926,639 STOCKHOLDERS' EQUITY Capital stock, common, $10 par value, authorized 25,000 shares, 4,000 issued and outstanding $40,000 Capital paid in excess of par. value 99,784 Retained earnings 4,528 144,312 $2,037,303 The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT Total service income $2,195,934 $1,888,255 $1,1121,887 Less: Franchise payments NET SERVICE INCOME OPERATING EXPENSE Direct Costs Officers' salaries Wages Gas, oil and tires Insurance Repairs and maintenance - equipment Supplies Taxes and licenses . Semi- annual cleanup Rent - yard and garage Utilities Laundry and uniforms Depreciation and amortization Dump fees - drop box Dump fees - other Pension plan Total direct costs Administrative Costs Office salaries Postage Office, including maintenance Damage claims Legal, accounting and programming Advertising and promotion - Dues, subscriptions- and -staff development Rent - office Interest Computer operations and supplies Bad debts Total administrative expense Total operating expense LOSS BEFORE OTHER INCOME OTHER INCOME, Interest Miscellaneous NET LOSS 5,206,076 438,789 4,767,287 204,556 1,544,685 268,693 308,227 240., 288 . 10,680 192,094 12,457 50,400 8,923 13,466 440,927 293,151 -­680, 234 56,346 4,325,127 87,227 29,574 28,047 4,252 93,061 13,544 1-1, 991 25,609 274,362 36,953 73,-937 678,557 5,003,684 (236,397) 1,041 12,413 $ (222,943) The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CERTIRI[O PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1983 (See Accountant's Review Report) Residential Commercial Drop Box . Total SERVICE AND BIN RENTAL Saratoga $ 720,931. $ 194,200 $ 226,492 $1,141,623 Los Gatos .505, 737 584,883 287,279 1,377,899 Campbell 447,524 972, 620 390,955 1,811,099 Monte Sereno 80,066 2,612 18,796 101,474 County and unassigned 441,676 133,940 198,365 773,981 Total service income $2,195,934 $1,888,255 $1,1121,887 Less: Franchise payments NET SERVICE INCOME OPERATING EXPENSE Direct Costs Officers' salaries Wages Gas, oil and tires Insurance Repairs and maintenance - equipment Supplies Taxes and licenses . Semi- annual cleanup Rent - yard and garage Utilities Laundry and uniforms Depreciation and amortization Dump fees - drop box Dump fees - other Pension plan Total direct costs Administrative Costs Office salaries Postage Office, including maintenance Damage claims Legal, accounting and programming Advertising and promotion - Dues, subscriptions- and -staff development Rent - office Interest Computer operations and supplies Bad debts Total administrative expense Total operating expense LOSS BEFORE OTHER INCOME OTHER INCOME, Interest Miscellaneous NET LOSS 5,206,076 438,789 4,767,287 204,556 1,544,685 268,693 308,227 240., 288 . 10,680 192,094 12,457 50,400 8,923 13,466 440,927 293,151 -­680, 234 56,346 4,325,127 87,227 29,574 28,047 4,252 93,061 13,544 1-1, 991 25,609 274,362 36,953 73,-937 678,557 5,003,684 (236,397) 1,041 12,413 $ (222,943) The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CERTIRI[O PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF RETAINED EARNINGS (See Accountant's Review Report) JUNE 30, 1983 RETAINED EARNINGS Balance, beginning of year Less: Net loss Balance, end of year $227,471 (222,94-3) $ 4,528 The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. UNAUDITED STATEMENT OF CHANGES IN FINANCIAL POSITION (See Accountant's Review Report) YEAR ENDED JUNE 30, 1983 FINANCIAL RESOURCES PROVIDED BY: Operations Net loss $(222,943) Items which did not require outlay of working capital during the year: Depreciation - equipment 124,858 Depreciation - capital leases 316,069 Working capital provided by operations $ 217,984 FINANCIAL RESOURCES APPLIED TO: Acquisition of plant and equipment 101,921 Reduction of obligations under capital leases 223,749 325,670 Decrease in working capital as below $(107,686) SUMMAR -Y• -OF GHANGES 1N WORK-ING••CAPITAL-•COMPONENTS Increase (decrease) in Cash $(106,707) Accounts receivable 284,055 Inventory (30, 115) Prepaid expenses (4,057) Decrease (increase) in Accounts payable (97, 023) Note payable (95, 000) Accrued expenses (30, 515) Obligations under capital.. leases - .current (3,144) Deferred income (25, 180) Decrease in working capital $(107,686) The notes to financial statements are an integral part of this statement. WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS ( See. Accountant's Review Report) JUNE 30, 1983 Note 1. Significant accounting policies a. The company maintains its accounts on the accrual basis, but for tax return purposes they have been adjusted to a` cash basis, to be consistent with prior years. b. Plant and equipment are carried at cost. Depreciation is computed predominantly by use of the straight -line method and dlso accelerated methods at varying rates reflecting the, estimated useful Fives of the assets. The estimated useful lives are as follows: Vehicles 5 - 10 years Machinery 7 - 10 years Bins and boxes 5 - 8 years Office furniture and equipment 7' - t0 years Leasehold improvements 10 - 15 years c. Investment tax credits and new jobs tax credits are used to reduce the tax provision in the year such credits are claimed for income tax purposes. d. The company bills certain customers in advance of per- forming services and credits deferred revenue until recognizing the income as the service is performed. Note 2. Capital leases The fdllowing is an analysis of the leased property under capital leases, which are all for vehicles or periphery equipment: Vehicles $1,580,332 Less accumulated amortization (included in depreciation in the income statement) A724,712) 712) 5 855.620 WILLIAM K. GRAFTON CERTIFIED PUDOC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) JUNE 30, 1983 The following is a schedule by years of future minimum lease-payments under capital leases: together -with the present value of the net minimum lease payments as of June 30, 1983: Year ending June 30: 1984 $ 508,834 1985 465,880 1986 619,695 1987 29,241 Net minimum lease payments 1,623,650 Less: Amount representing interest 466,359 Present value of net minimum .lease payments 1,157,291 Less current portion 230,652 $ -926;639. The company operates in .leased premises under operating leases. with future minimum. lease payments as follows: 1984 1985 1986 1987 1988 Note 3.' Pension plan $ 73,189 79,369 85,549 91,729 98,352 $428, 188 The company, in connection with a related. company, maintains a contributory target benefit pension plan for eligible employees. The contribution applicable to a particular year is the pension cost for that year. The pension cost for the year ending June 30, 1983, was $56,346. WILLIAM K. GRAFTON CERTIFIED PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY, INC. NOTES TO FINANCIAL STATEMENTS ( See Accountant's Review Report) JUNE 30, 1983 Note 4.. Tax credit carryforwards The company currently has net operating loss and tax credit carryovers as follows: Note 5. Related party transactions Dump fees of $973,385 were paid or accrued to Guadalupe Rubbish Disposal Co., Inc., an- affiliated company wholly owned by the shareholders of Green Valley Disposal Company, Inc.. Rental in the amount of $61,609 was also paid or accrued to Guadalupe Rubbish Disposal Co., Inc. for rental of a yard, -garage and office. The company paid $9,000 to a shareholder for shop rent. M Note 6. Franchise agreements The company has exclusive agreements with the town of Los Gatos, and the cities of Campbell, Saratoga, Monte Sereno and certain unincorporated areas of Santa Clara County to provide refuse collection services. The agreements provide for payment to 'the towns of a percentage of cash receipts from - collection services;-- The agreements for -all -the areas except the unincorporated areas of Santa Clara County expire February, 2003. The service in Santa Clara County is pro- vided under a revocable permit. Note 7. Subsequent events As of the date of this report, the company is negotiating the retirement of 37.5$ of its outstanding stock and re- ducing its number of shareholders by the same percentage. WILLIAM K. GRAFTON CCRTIFIQO PUBLIC ACCOUNTANT Net Year of Operating Investment New Jobs Origin. Expiration Loss Tax Credit Tax Credit 1979 1994 $14,921 1980 1995 $119,615 1981 1996 $ 30,498 20,844. 1982 1997 3,000 38,258 1983 1998 141,915 8,827 I $175,413 $187,544 $14,921 Note 5. Related party transactions Dump fees of $973,385 were paid or accrued to Guadalupe Rubbish Disposal Co., Inc., an- affiliated company wholly owned by the shareholders of Green Valley Disposal Company, Inc.. Rental in the amount of $61,609 was also paid or accrued to Guadalupe Rubbish Disposal Co., Inc. for rental of a yard, -garage and office. The company paid $9,000 to a shareholder for shop rent. M Note 6. Franchise agreements The company has exclusive agreements with the town of Los Gatos, and the cities of Campbell, Saratoga, Monte Sereno and certain unincorporated areas of Santa Clara County to provide refuse collection services. The agreements provide for payment to 'the towns of a percentage of cash receipts from - collection services;-- The agreements for -all -the areas except the unincorporated areas of Santa Clara County expire February, 2003. The service in Santa Clara County is pro- vided under a revocable permit. Note 7. Subsequent events As of the date of this report, the company is negotiating the retirement of 37.5$ of its outstanding stock and re- ducing its number of shareholders by the same percentage. WILLIAM K. GRAFTON CCRTIFIQO PUBLIC ACCOUNTANT GREEN VALLEY DISPOSAL COMPANY SUMMARY.FY 1983 -84. BUDGET REVENUE OPERATING INCOME OTHER INCOME 5,653,416 5,000 NET LOSS $ 842,6811 ` 1) With nb increase With rate increase current rates. 2) REVENUE REDUCTION $1,869,421 $1,869,421 FIXED COSTS 861,139 861,139 EQUIPMENT VARIABLE 750,862 750,862 ADMINISTRATIVE COSTS 255,380 255,380 PERSONNEL COSTS 2,605 732 2,605,732 TOTAL 6,342,534 6,342,534 TAXES ON INCOME -0- -0- NET. PROFIT AFTER TAXES 158,563 158,563 TOTAL 6,501, -097 .6,501,097. REVENUE OPERATING INCOME OTHER INCOME 5,653,416 5,000 NET LOSS $ 842,6811 ` 1) Based on current rates. 2) Based on 34% increase effective 3 -1 -84 UT GREEN VALLEY,.DISPOSAL COMPANY SUMMARY FY 1984 -85 BUDGET With no increase With rate increase REVENUE,REDUCTION $ 1,981,586 $ 1,981,586 FIXED COSTS 912,807. 912,807 EQUIPMENT VARIABLE 795,914 79.5,914 ADMINISTRATIVE COSTS 270,703 270,703 PERSONNEL COSTS 2,762,076 2,762,076 TOTAL 6,723,086 6,723,086 TAXES ON INCOME 75,000 75,000 NET PROFIT AFTER TAXES 339,904 339,904 REVENUE OPERATING,INCOME OTHER INCOME TOTAL 7,137,990 7,137,990 5,653,416 6,804,623 5,000 5,000 r. NET LOSS $ 1,479,5741 $ 328,3672 1) Based on current rates. 2) Based on 34% increase effective 3 -1 -84. r SUMMARY INFORMATION ON 1983 -84 BUDGET EQUIPMENT PURCHASE 83/84 THE COMPANY WILL,PURCHASE 3 REFUSE VEHICLE,S,AND 2 SUPPORT ' VEHICLES TOTALING APPROXIMATELY $365,000.00. DEPRECIATION S EQUIPMENT IS DEPRECIATED ON THE STRAIGHT LINE METHOD. PERSONNEL COSTS PERCENTAGE INCREASE ` 82/83 - 83/84 SALARIES /WAGES 3.6% PAYROLL.TAXES 11.9% HEALTH INSURANCE 34.4% WORKERS-COMPENSA'TION 47.9% PENSION PLAN (INCLUDING ONE TIME COSTS) 166.2% TOTAL COMPENSATION 12.6% � CITY OF SARATOGA AGENDA BILL Np. S�0 DATE: Feb. 6'y 1984 (Feb. 15, 1984) DEPARTMENT: Community Development SUBJECT: No Parking Zone Along the End of Crisp Avenue Initial: Dept. Hd. C. Atty. C. Mgr. Issue Sumaty At its meeting of February 1, 1984 the City Council approved the establishment of a "No Parking Zone" at the easterly end of Crisp Avenue, as recommended by the Planning Commission at its meeting of November 9, 1983. Recommendation Approve attached resolution establishing a No Parking Zone at the easterly end of Crisp Avenue and authorize the installation of a sign regulating said No Parking Zone. Fiscal Impacts The initial cost of time and materials to install the No Parking sign ($50.00) plus the unknown cost of future maintenance, repair and replacement of said sign. Exhibits /Attachments 1. Resolution 2. Location Map Council Action 2/15: Approved Res. MV-157 5 -0. RESOLUTION NO. MV- RESOLUTION PROHIBITING PARKING c ON A PORTION OF CRISP AVENUE The City Council of the City of Saratoga hereby resolves as follows: SECTION I: Based upon an engineering and traffic study, the following designated portion of street in the City of Saratoga is hereby declared to be a congested area, and the following limit for parking of motor vehicles is hereby established for said portion of said street: Name of Street Description Parkinq Limit Cri.sp Avenue At the very end of Crisp NO PARKING Avenue 700± feet easterly ANYTIME of Granite Way and Granite Court • This section shall become effective at such time as the proper signs and /or markings are installed. The above and foregoing resolution was passed and adopted by the City Council of the City of Saratoga at a regular meeting held on the 15th day of February, 1984, by the following vote: AYES: NOES: ABSENT: ATTEST C7 CITY CLERK MAYOR t 40C4 T ON MAP o RE 50Z &r/0* IVO, MV- - SCA L E REOUCE-D P� 0 c�zv OFFICE 5 Dom. F °v