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HomeMy WebLinkAbout05-06-2015 City Council Agenda PacketPage 1 of 2 AGENDA SPECIAL MEETING SARATOGA CITY COUNCIL MAY 6, 2015 SPECIAL MEETING – 5:00 P.M. – ADMINISTRATIVE CONFERENCE ROOM, CITY HALL, 13777 FRUITVALE AVENUE 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. ADJOURN TO CLOSED SESSION – 5:00 P.M. CONFERENCE WITH LABOR NEGOTIATORS (Gov’t Code 54957.6) Agency Designated Representatives: City Manager James Lindsay, City Attorney Richard Taylor, Human Resources Manager Monica LaBossiere Employee Organizations: Saratoga Employee Association; Saratoga Management Organization CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): (2 potential cases) CALL JOINT MEETING TO ORDER – 6:00 P.M. 1. Saratoga Area Senior Coordinating Council Recommended Action: Informational Only ADJOURNMENT 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, CA 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. In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at 408/868-1269. Notification 24 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] Page 2 of 2 Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for public review on May 1, 2015 at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and on the City’s website at www.saratoga.ca.us. Signed this 1st day of May 2015 at Saratoga, California. Crystal Bothelio, City Clerk     City of Saratoga  CITY COUNCIL JOINT MEETING Meeting Discussion Topics      Joint Meeting with Saratoga Area Senior Coordinating Council  May 6, 2015 | 6:00 p.m.  Saratoga City Hall | Administrative Conference Room      6:00 p.m.  Saratoga Area Senior Coordinating Council  Updates and News  6:45 p.m. Other Remarks & Wrap Up   Dinner is provided during the Joint Meeting.     The Regular City Council Meeting begins at 7:00 p.m. in the Civic Theater.  Joint meeting attendees are invited to attend the Regular Meeting and share  an overview of the joint meeting with the public during Oral Communications.     Table of Contents Agenda 3 Foster Care/Resource Parent Appreciation Month Staff Report 8 Attachment A - Proclamation 9 City Council Meeting Minutes Staff Report 10 Attachment A - Minutes for the Special Meeting on April 13, 2015 11 Attachment B - Minutes for the Special and Regular City Council Meeting on April 15, 2015 15 Review of Accounts Payable Check Registers Staff Report 23 04/14/2015 Check Register 24 04/21/2015 Check Register 31 04/28/2015 Check Register 36 Treasurer’s Report for the Month Ended March 31, 2015 Treasurer’s Report for the Month Ended March 31, 2015 41 Transportation Development Act (TDA) Article 3 Application for the Saratoga Avenue Walkway Project Council Report TDA-Article 3 15-16 48 Resolution TDA-Article 3 15-16 50 Village Creek Trail Design: Budget Resolution, Design Contract, Trail Easement Acceptance Staff Report 56 Attachment A - Village Creek Trail Site Plan 59 Attachment B - Budget Resolution 60 Attachment C - Design Contract with Alta Planning and Design 61 Attachment D - Offer to Dedicate Pedestrian Trail Easement 81 Attachment E - Resolution Accepting Offer to Dedicate Pedestrian Trail Easement 89 Attachment F - Certificate of Acceptance 91 Resolution of Support for Senate Bill 16 Staff Report 92 Attachment A - Resolution of Support for SB 16 93 Attachment B - SB 16 Text 94 Resolution of Support for Senate Bill 321 Staff Report 113 Attachment A - Resolution of Support for SB 321 114 Attachment B - SB 321 Text 115 Attachment C - SB 321 Analysis 119 Ordinance Amending Article 16-60 - Early Warning Fire Alarm System 1 Staff Report 122 Draft Ordinance 124 Wildland Interface Map 133 Amendment to Lease Agreement with Hakone Foundation Staff Report 134 Attachment A - Letter from Hakone Foundation (March 24, 2015)136 Attachment B - Fourth Amendment to Hakone Lease Agreement 137 The Effects of Drought Stress on Trees Citywide Staff Report 138 Attachment-Photos 139 Council Resolution to Adopt Memorandum of Understanding for the Saratoga Employee Association (“SEA”) July 1, 2015 to June 30, 2019 Staff Report 161 Attachment A - Resolution 163 2 Page 1 of 5 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 The agenda for this meeting was properly posted on May 1, 2015 REPORT FROM CLOSED SESSION 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. Foster Care/Resource Parent Appreciation Month Recommended action: Present the proclamation declaring May 2015 as Foster Care/Resource Parent Appreciation Month. SPECIAL PRESENTATIONS None AGENDA REGULAR MEETING SARATOGA CITY COUNCIL MAY 6, 2015 3 Page 2 of 5 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. 2. City Council Meeting Minutes Recommended action: Approve the City Council minutes for the Special Meeting on April 13, 2015 and the Special and Regular City Council Meeting on April 15, 2015. 3. Review of Accounts Payable Check Registers Recommended action: Review and accept check registers for the following accounts payable payment cycles: 4/14/2015 Period 10 4/21/2015 Period 10 4/28/2015 Period 10 4. Treasurer’s Report for the Month Ended March 31, 2015 Recommended action: Review and accept the Treasurer’s Report for the month ended March 31, 2015. 5. Transportation Development Act (TDA) Article 3 Application for the Saratoga Avenue Walkway Project Recommended action: Adopt resolution supporting the Metropolitan Transportation Commission’s Transportation Development Act Article 3 Pedestrian/Bicycle Grant Application for the Saratoga Avenue Walkway Project. 6. Village Creek Trail Design: Budget Resolution, Design Contract, Trail Easement Acceptance Recommended action: 1. Approve budget adjustment. 2. Approve Professional Design Services Contract with Alta Planning and Design in the amount of $26,144 for design services, authorize the City Manager to execute the same and authorize staff to approve additional costs up to 10% of the contract amount ($2,600) as a project contingency. 3. Approve Resolution accepting Offer to Dedicate Pedestrian Trail Easement from Mr. and Mrs. Rosenfeld and authorize the City Manager to sign the Certificate of Acceptance. 7. Resolution of Support for Senate Bill 16 Recommended action: Adopt resolution of support for Senate Bill 16. 8. Resolution of Support for Senate Bill 321 Recommended action: Approve resolution of support for Senate Bill 321. 4 Page 3 of 5 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. 9. Ordinance Amending Article 16-60 - Early Warning Fire Alarm System Recommended action: Conduct public hearing; introduce and waive the first reading of the attached ordinance updating Article 16-60 of the City Code; and direct staff to place the ordinance on the Consent Calendar for adoption at the June 3, 2015 City Council meeting. OLD BUSINESS None NEW BUSINESS 10. Amendment to Lease Agreement with Hakone Foundation Recommended action: Approve amendment to lease agreement with Hakone Foundation to reduce the number of members of the Board of Trustees from fifteen to nine. 11. The Effects of Drought Stress on Trees Citywide Recommended action: Receive report. 12. Council Resolution to Adopt Memorandum of Understanding for the Saratoga Employee Association (“SEA”) July 1, 2015 to June 30, 2019 Recommended action: Staff recommends the City Council approve the proposed Memorandum of Understanding (MOU) and adopt Council Resolution to Adopt Memorandum of Understanding for the Saratoga Employee Association (“SEA”) July 1, 2015 to June 30, 2019. CITY COUNCIL ASSIGNMENT REPORTS Mayor Howard Miller Cities Association of Santa Clara County Council Finance Committee Valley Transportation Authority (VTA) Policy Advisory Committee VTA Board West Valley Cities Alternate West Valley Mayors and Managers Association West Valley Solid Waste Management Joint Powers Authority Vice Mayor Manny Cappello Architecture 101 Ad Hoc Committee Council Finance Committee Hakone Foundation Board Santa Clara County Housing and Community Development (HCD) Council Committee Saratoga Area Senior Coordinating Council (SASCC) 5 Page 4 of 5 West Valley Sanitation District Council Member Emily Lo Hakone Foundation Board & Executive Committee KSAR Community Access TV Board Santa Clara County Library Joint Powers Authority Council Member Mary-Lynne Bernald Architecture 101 Ad Hoc Committee Association of Bay Area Governments Cities Association of Santa Clara County-Legislative Action Committee Cities Association of Santa Clara County-Selection Committee Saratoga Historical Foundation Saratoga Sister City Organization Council Member Rishi Kumar Santa Clara County Expressway Plan 2040 Policy Advisory Board Santa Clara Valley Water District Commission Saratoga Chamber of Commerce & Destination Saratoga Saratoga Ministerial Association CITY COUNCIL ITEMS CITY MANAGER’S REPORT ADJOURNMENT 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, CA 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. 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, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council for the City of Saratoga was posted on May 1, 2015, 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 1st day of May 2015 at Saratoga, California. Crystal Bothelio, City Clerk 6 Page 5 of 5 NOTE: To view current or previous City Council meetings anytime, go to the City Video Archives at www.saratoga.ca.us 05/06 Regular Meeting – Joint Meeting SASCC 05/20 Regular Meeting – Joint Meeting with Mt. Winery and Montalvo Arts 06/03 Regular Meeting – 5:30 p.m. Joint Meeting with HOA’s in Senior Center, Saunders Room 06/17 Regular Meeting – Joint Meeting with Sheriff Office and County Fire 07/01 Regular Meeting – Study Session on FPPC Requirements 07/15 Meeting Cancelled 08/05 Meeting Cancelled 08/19 Regular Meeting – Joint Meeting Chamber of Commerce and Destination Saratoga 09/02 Regular Meeting – Joint Meeting TBD 09/16 Regular Meeting – Joint Meeting with Youth Commission 10/07 Regular Meeting – 5:30 p.m. Joint Meeting with Saratoga School Districts in Senior Center, Saunders Room 10/21 Regular Meeting – Joint Meeting with Historical Foundation 11/04 Regular Meeting – Joint Meeting with West Valley – Mission Community College Board of Trustees 11/18 Regular Meeting – Joint Meeting with Senator Beall Jr. or Assembly Member Evan Low 12/02 Regular Meeting – Joint Meeting with Hakone Foundation Board of Trustees 12/16 Regular Meeting – Council Norms Study Session Unless otherwise stated, Joint Meetings and Study Sessions begin at 6:00 p.m. in the Administrative Conference Room at Saratoga City Hall at 13777 Fruitvale Avenue. CITY OF SARATOGA CITY COUNCIL MEETING CALENDAR 2015 7 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Manager’s Office PREPARED BY: Debbie Bretschneider, Deputy City Clerk SUBJECT: Foster Care/Resource Parent Appreciation Month RECOMMENDED ACTION: Present the proclamation declaring May 2015 as Foster Care/Resource Parent Appreciation Month. BACKGROUND: The attached proclamation recognizes May 2015 as Foster Care/Resource Parent Appreciation Month in the City of Saratoga. Saratoga foster care pare Vithanage will be present to accept the proclamation. Quyen Vu, Resource Family the Santa Clara County Resource Family will also be present. ATTACHMENTS: Attachment A – Proclamation SARATOGA CITY COUNCIL City Manager’s Office Debbie Bretschneider, Deputy City Clerk Foster Care/Resource Parent Appreciation Month Present the proclamation declaring May 2015 as Foster Care/Resource Parent Appreciation The attached proclamation recognizes May 2015 as Foster Care/Resource Parent Appreciation Month in the City of Saratoga. Saratoga foster care parents Lisa Traxler and Kathleen Pollard Vithanage will be present to accept the proclamation. Quyen Vu, Resource Family recruiter, the Santa Clara County Resource Family will also be present. Present the proclamation declaring May 2015 as Foster Care/Resource Parent Appreciation The attached proclamation recognizes May 2015 as Foster Care/Resource Parent Appreciation Lisa Traxler and Kathleen Pollard recruiter, of 8 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF SARATOGA DECLARING MAY 2015 AS FOSTER CARE/RESOURCE PARENT APPRECIATION MONTH WHEREAS, there are more than 75,000 children in foster homes in the State of California, making California’s foster care system one of the largest in the nation; and WHEREAS, in Santa Clara County alone, there are over 1,300 children in out-of-home care and less than 400 licensed foster homes to help care for them; and WHEREAS, there is nothing more precious than the healthy growth and development of our youth, who will determine the future direction of our community; and WHEREAS, foster parents throughout Santa Clara County provide safe and loving homes for foster children in our community and are tireless advocates on their behalf; and WHEREAS, foster parents unselfishly give of themselves and their families and dedicate their live to the care of our community’s most vulnerable children; and WHEREAS, foster parents recognize that all foster children need and deserve meaningful connections with caring adults who can provide support and bonds that last a lifetime, and strive to help foster children build such relationships; and WHEREAS, throughout the month of May, hundreds of community events are being planned across the county to help retain, recruit, and support foster families; and WHEREAS, two Saratoga residents, Lisa Traxler and Kathleen Vithanage, provide Foster Care/Resource Parent households and offer needed support to children in need. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga does hereby proclaim and recognize the month of May 2015 as Foster Care/Resource Parent Appreciation Month and recognizes the need to support the families who embrace the often thankless responsibility of providing a home and family to children in need of affection, love, and security. WITNESS MY HAND AND THE SEAL OF THE CITY OF SARATOGA on this 6th day of May 2015. _________________________ Howard A. Miller, Mayor City of Saratoga 9 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Manager’s Office PREPARED BY: Crystal Bothelio SUBJECT: City Council Meeting Minutes RECOMMENDED ACTION: Approve the City Council minutes for the Regular City Council Meeting on April 1 BACKGROUND: Draft City Council minutes for each Council Meeting are taken to the City Council to be reviewed for accuracy and approval. Following City C legislative history and posted on the City of Saratoga website. The draft minutes are attached to this report for Council review and approval. FOLLOW UP ACTION: Minutes will be retained for legislative history a ATTACHMENTS: Attachment A - Minutes for the Special Meeting on April 13, 2015 Attachment B - Minutes for the Special SARATOGA CITY COUNCIL City Manager’s Office Crystal Bothelio, City Clerk City Council Meeting Minutes Approve the City Council minutes for the Special Meeting on April 13, 2015 and the Special April 15, 2015. Draft City Council minutes for each Council Meeting are taken to the City Council to be reviewed for accuracy and approval. Following City Council approval, minutes are retained for legislative history and posted on the City of Saratoga website. The draft minutes are attached to this report for Council review and approval. Minutes will be retained for legislative history and posted on the City of Saratoga website. Minutes for the Special Meeting on April 13, 2015 Minutes for the Special and Regular City Council Meeting on April 15, 2015 Special and Draft City Council minutes for each Council Meeting are taken to the City Council to be ouncil approval, minutes are retained for legislative history and posted on the City of Saratoga website. The draft minutes are attached to nd posted on the City of Saratoga website. , 2015 10 Page 1 of 4 MINUTES WEDNESDAY, APRIL 13, 2015 SARATOGA CITY COUNCIL SPECIAL MEETING BUDGET STUDY SESSION CALL TO ORDER Mayor Miller called the meeting to order at 6:02 p.m. in the City Hall Administrative Conference Room at 13777 Fruitvale Avenue in Saratoga, CA. ROLL CALL PRESENT Mayor Howard Miller, Vice Mayor Manny Cappello, Council Members Emily Lo, Mary-Lynne Bernald, Rishi Kumar ABSENT: None ALSO PRESENT: James Lindsay, City Manager Crystal Bothelio, City Clerk John Cherbone, Public Works Director Mary Furey, Finance & Administrative Services Director Erwin Ordoñez, Community Development Director Tony McFarlane, Finance Manager Monica LaBossiere, Human Resources Manager ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS None STUDY SESSION – 6:00 P.M. 1. Fiscal Year 2015/16 Budget Study Session Recommended Action: Council to review and provide consensus direction to staff on: 1) Draft FY 2015/16 Proposed Operating Budget 2) Revised FY 2015/16 Capital Project Funding Allocations 3) Updated Fiscal Policies City Manager James Lindsay provided an introduction and explained subtle changes in the City’s full time equivalent (FTE) levels produced through minor organization changes and voluntary reductions in hours. Furthermore, he noted that there will be increases in contract services for Fiscal Year 2015/16 due to temporary backfilling required for a position in Community Development and the City Manager’s Office. Mayor Miller commented that that the City of Saratoga’s total FTE levels have remained stable and will slightly decrease in Fiscal Year 2015/16, when many other cities are increasing their FTEs. 11 Page 2 of 4 General Fund Overview Finance and Administrative Services Director Mary Furey provided a summary of the General Fund. She explained that the City continues to see increases in property tax revenues. Additionally, Transient Occupancy Tax revenues have been strong and increases throughout the South Bay have been observed since the opening of Levi Stadium. Other revenue sources remain consistent. Finance and Administrative Services Director Mary Furey proceeded to provide information about significant General Fund expenditures, explaining how funding is pulled from reserves for transfer to the CIP, and how funding is added to reserves at year end. Mayor Miller commented on the proposed plan to restore funding in the Fiscal Stabilization Reserve. He noted that while the repayment plan seems aggressive, he feels it would be best to restore funding soon as the economy may decline again in the future. He also commented upon the proposed plan to pay the CalPERS Unfunded Accrued Liability (UAL). CalPERS provided a payment plan spread out over 30 years, but paying off the UAL in half the time results in significant savings for the City. City Manager James Lindsay thanked Finance and Administrative Services Director Mary Furey for her work on the UAL. He noted that she has been invited to give a presentation on what the City is doing to pay its UAL. Finance and Administrative Services Director Mary Furey concluded her discussion of expenditures, noting that most expenditures remain stable with the possible exception of Santa Clara County Sheriff’s Office contract costs. Mayor Miller shared that he and City Manager James Lindsay met with Sheriff Laurie Smith and other representatives of the Sheriff’s Office about the proposed contract increases. The Sheriff’s Office will be reviewing the proposed increases and returning with options for constraining costs without impacting service levels. City Manager James Lindsay noted that the Sheriff’s Office will be providing final cost information to the City by the end of April. Finance and Administrative Services Director Mary Furey provided a detailed explanation of the Fiscal Stabilization Reserve, noting that the proposal is to add $500,000 to the reserve in Fiscal Year 2014/15, $250,000 in Fiscal year 2015/16, and $250,000 in Fiscal Year 2016/17. Finance and Administrative Services Director Mary Furey reviewed proposed expenditures in the Fiscal year 2015/16 Community Grants Program. She discussed grants issued to organizations, such as the Saratoga Area Senior Coordinating Council (SASCC), West Valley Community Services, and the Catholic Charities Ombudsman program. Mayor Miller explained how these grant funds were issued in the past through a competitive application process. He asked if the Council would like to continue planning for the grants through the budgeting process as opposed to conducting an application process. 12 Page 3 of 4 Council Member Cappello shared that West Valley Community Services is considering addition of a food pantry at the Senior Center for low income individuals and families. COUNCIL CONSENSUS: The City Council agreed to restore the Fiscal Stabilization Reserve funding as proposed by staff. The City Council also concurred with proposed public service grant funding allocations as presented by staff and declined to conduct a grant application process for these grant funds. Council directed staff to terminate grant payments to SASCC for adult daycare if SASCC stops offering these services in Fiscal Year 2015/16. Furthermore, if SASCC discontinues adult daycare services then the funding should be used for other purposes or remain in the General Fund. Total Fund Activity Finance and Administrative Services Director Mary Furey then discussed total fund activity. The City Council discussed the Hillside Stability Reserve and funding available in the event of a disaster, including funding that may come from the State or Federal governments. Capital Project Funding Finance and Administrative Services Director Mary Furey then proceeded to the Fiscal Year 2015/16 Capital Improvement Plan (CIP) Reserve Funding, providing a summary of proposed changes and new information received since the City Council’s study session on the capital budget in February. She noted recommended changes in funding sources for the Street Resurfacing Project, Finance Committee recommendations for reducing funding for the EV Stations project, Village Creek Trail Construction Grant Match, moving the Via Regina Trail project to the unfunded capital project list, and additional funding for Quarry Park Restrooms. Mayor Miller clarified that the Finance Committee recommendations may be adjusted as the Council sees fit. Finance and Administrative Services Director added that staff recommends that the Council supplement funding for the Street Resurfacing Project with General Fund money to address any funding shortfalls in the 2015/16 budget. Mayor Miller shared that the vehicle impact fee collected by the West Valley Solid Waste Management Authority for road damage in Saratoga caused by hauler vehicles is expected to increase and to be implemented over a two year period starting with Fiscal Year 2015/16. Finance and Administrative Services Director Mary Furey noted that CIP Reserve funding is less than originally expected and shared options for addressing the matter, including referring the matter to the Finance Committee for recommendation, using net operations to fully fund proposed capital project allocations, and identifying reductions to the proposed 2015/16 CIP allocations. Mayor Miller noted that the Prospect Center Furnishings Project, Warner Hutton House Storage Building, or Single Pane Window Replacement projects could be postponed. 13 Page 4 of 4 City Manager James Lindsay suggested moving the Warner Hutton House Storage Building to the unfunded capital project list and reducing funding to Prospect Center Furnishings to $14,000 to cover furnishing expenses that do not require additional storage capacity. COUNCIL CONSENSUS: The City Council accepted the Finance Committee’s proposal to reduce funding for the EV Stations project, Village Creek Trail Construction Grant Match, move the Via Regina Trail project to the unfunded capital project list, and add funding for Quarry Park Restrooms. The City Council also accepted staff’s recommendation to supplement funding for the Street Resurfacing Project with General Fund money to address any funding shortfalls in the 2015/16 budget. The City Council agreed to move the Warner Hutton House Storage Building to the unfunded capital project list and reduce funding for the Prospect Center Furnishings project to $14,000 or less to cover costs associated with furnishings that do not require storage. Staff was directed to provide an updated project cost estimate and scope as part of the proposed budget. Fiscal Policies Finance and Administrative Director Mary Furey reviewed proposed changes to the Fiscal Policies, including a new Facility Furniture, Fixtures, and Equipment Replacement Fund Policy and changes to the Facility Replacement Reserve. Vice Mayor Cappello noted that while the Facility Replacement Reserve might not be able to fully fund a significant facility replacement project, it would build a sizable reserve and help offset any bond funding that the City might need to fully fund a replacement project. Mayor Miller commented that he feels the City’s fiscal policies establish a good balance between saving and spending as well as planning for future funding needs. He asked that that the Council Members inform Finance and Administrative Services Director Mary Furey as soon as possible if they note any typos, errors, or clarifications for the fiscal policies. COUNCIL CONSENSUS: The City Council agreed to the proposed fiscal policy changes, including creation of a Facility Furniture, Fixtures, and Equipment Replacement Fund and maintaining the General Fund $300,000 Year-End Allocation to the Facilities Replacement Reserve, which is prioritized ahead of funding for capital projects. ADJOURNMENT Mayor Miller adjourned the meeting at 7:50 p.m. Minutes respectfully submitted: Crystal Bothelio, City Clerk City of Saratoga 14 Page 1 of 8 MINUTES WEDNESDAY, APRIL 15, 2015 SARATOGA CITY COUNCIL SPECIAL MEETING At 6:30 p.m. in the the Administrative Conference Room at Saratoga City Hall at 13777 Fruitvale Avenue, the City Council held a study session on future City Council training. Under Oral Communications on Non-Agendized Items, the following person requested to speak: Trish Cypher. On public comment on the study session topic of Future City Council Training, the following person requested to speak: Trish Cypher. SARATOGA CITY COUNCIL REGULAR MEETING Mayor Miller called the meeting to order at 7:04 p.m. and led the Pledge of Allegiance. ROLL CALL PRESENT Mayor Howard Miller, Vice Mayor Manny Cappello, Council Members Emily Lo, Mary-Lynne Bernald, Rishi Kumar ABSENT: None ALSO PRESENT: James Lindsay, City Manager Richard Taylor, City Attorney Crystal Bothelio, City Clerk John Cherbone, Public Works Director Mary Furey, Finance & Administrative Services Director Erwin Ordoñez, Community Development Director Adam Henig, Recreation Supervisor Nina Walker, Facility Coordinator Tony McFarlane, Finance Manager Christopher Riordan, Senior Planner REPORT OF CITY CLERK ON POSTING OF AGENDA City Clerk Crystal Bothelio reported that the agenda for this meeting was properly posted on April 9, 2015. COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non-Agendized Items Greg Giansiracusa addressed the City Council regarding his interest in adding an access point to Joe’s Trail from Via Real and Saratoga Creek. He requested that the City Council write a letter of support to San Jose Water about granting access to the tail from that location. Mayor Miller recommended that Greg Giansiracusa speak with Public Works Director John Cherbone regarding his request. A speaker shared information about Saratoga Talent Open Mic on Friday, April 17, 2015 at Blue Rock Shoot at 7:00 p.m. Jacky Lee encouraged the City Council to implement Community Choice Aggregation. 15 Page 2 of 8 Oral Communications - Council Direction to Staff None Communications from Boards and Commissions None Council Direction to Staff None ANNOUNCEMENTS Council Member Kumar shared information about a number of upcoming community events, including a pancake breakfast at the Saratoga Fire Station on April 18, Saratoga High School Music Boosters pancake breakfast on May 3, a Safety Forum hosted by State Senator Jim Beall, Saratoga Hindu Temple activities, and a creek cleanup for Boy Scouts and Girl Scouts. Council Member Bernald announced Architecture 101 on April 29, the Association of Bay Area Governments spring general assembly, and a presentation at the Saratoga Historical Museum on the Pan-Pacific International Exposition on April 18. She also shared that the Saratoga Sister City group will be sending a letter of appreciation to the Mayor of Muko, Japan, who is leaving office after 12 years of service. Council Member Bernald also provided information about a group she met with that is interested in promoting art in Saratoga. Council Member Lo shared information about Arbor Day on April 21 and the Rotary Art Show on May 2 and 3. Mayor Miller provided additional information about Arbor Day and shared that the City’s Recreation Department is offering a number of programs for all ages and interests, including Gym for Toddlers. More information can be found in the City’s Recreation Activity Guide. CEREMONIAL ITEMS 1. Proclamation Declaring April 15, 2015 as National Bookmobile Day Recommended action: Present the proclamation to representatives of the Santa Clara County Library District. Mayor Miller presented the proclamation to representatives of the Santa Clara County Library District. 2. Proclamation Declaring April 2015 as Safe Digging Month Recommended action: Read and present the proclamation to representatives of Pacific Gas & Electric Company. Mayor Miller presented the proclamation to Anthony Lin, PG&E Government Relations Representative. 16 Page 3 of 8 SPECIAL PRESENTATIONS 3. Special Presentation from San Jose Water Company Recommended action: Receive presentation from San Jose Water Company on current drought conditions and water conservation measures. Mayor Miller invited John Tang with the San Jose Water Company to give a presentation on the drought and water conservation. John Tang, San Jose Water Company Vice President – Government Relations & Corporate Communications, provided a presentation on the drought and the Governor’s executive order to conserve water. Council Member Bernald requested that the City Council consider revisiting the City’s water efficient landscaping ordinance to identify opportunities to further conserve water. Vice Mayor Cappello concurred. Council Member Kumar requested that the City create a page on the drought with information about rebates and other resources on conserving water. Mayor Miller noted that the City has a page on the drought, but it could be updated with more current information. City Manager James Lindsay agreed to have the page updated within the next few weeks when there is more clarity about how water conservation measures will be implemented locally. Mayor Miller also proposed that a presentation from the Santa Clara Valley Water District be added to a future Council agenda once the water conservation regulations are determined. Vice Mayor Cappello concurred. CONSENT CALENDAR 4. City Council Meeting Minutes Recommended action: Approve the City Council minutes for the Special and Regular City Council Meeting on April 1, 2015. CAPPELLO/KUMAR MOVED TO APPROVE THE CITY COUNCIL MINUTES FOR THE SPECIAL AND REGULAR CITY COUNCIL MEETING ON APRIL 1, 2015. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 17 Page 4 of 8 5. Review of Accounts Payable Check Register Recommended action: Review and accept check register for the following accounts payable payment cycle: 4/1/2015 Period 10 CAPPELLO/KUMAR MOVED TO ACCEPT CHECK REGISTER FOR THE FOLLOWING ACCOUNTS PAYABLE PAYMENT CYCLE: 4/1/2015 PERIOD 10. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 6. Treasurer’s Report for the Month Ended February 28, 2015 Recommended action: Review and accept the Treasurer’s Report for the month ended February 28, 2015. CAPPELLO/KUMAR MOVED TO ACCEPT THE TREASURER’S REPORT FOR THE MONTH ENDED FEBRUARY 28, 2015. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 7. Landscaping and Lighting Assessment District LLA-1; Preliminary Approval of Engineer's Report and Adoption of Resolution of Intention for FY 15-16 Recommended action: 1. Move to adopt the resolution granting preliminary approval of the Engineer's Report for FY 15-16 for renewing the Landscaping and Lighting Assessment District LLA-1. 2. Move to adopt the resolution of intention. RESOLUTIONS NO. 15-018 & 15-019 CAPPELLO/KUMAR MOVED TO ADOPT: 1) THE RESOLUTION GRANTING PRELIMINARY APPROVAL OF THE ENGINEER'S REPORT FOR FY 15-16 FOR RENEWING THE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT LLA-1; AND 2) THE RESOLUTION OF INTENTION. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 8. Fruitvale Avenue Landscape Median Project – Budget Amendment Recommended action: Adopt resolution amending the FY 2014/2015 Budget to accept and appropriate a refund for the Fruitvale Avenue Landscape Median Upgrade Project. RESOLUTION NO. 15-020 CAPPELLO/KUMAR MOVED TO ADOPT RESOLUTION AMENDING THE FY 2014/2015 BUDGET TO ACCEPT AND APPROPRIATE A REFUND FOR THE FRUITVALE AVENUE LANDSCAPE MEDIAN UPGRADE PROJECT. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 18 Page 5 of 8 9. AB 939 and Household Hazardous Waste Agreements with Santa Clara County Recommended action: Authorize the City Manager to sign the Agreement for Countywide Assembly Bill 939 Implementation Fee and Santa Clara County Household Hazardous Waste Collection Program Agreement with a $52,684.21 augmentation for Fiscal Year 2015/16. Council Member Lo removed this item from the Consent Calendar to request additional information about household hazardous waste. Mayor Miller invited public comment on the item. No one requested to speak. LO/BERNALD MOVED TO AUTHORIZE THE CITY MANAGER TO SIGN THE AGREEMENT FOR COUNTYWIDE ASSEMBLY BILL 939 IMPLEMENTATION FEE AND SANTA CLARA COUNTY HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM AGREEMENT WITH A $52,684.21 AUGMENTATION FOR FISCAL YEAR 2015/16. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. PUBLIC HEARINGS 10. Proposed Fee Schedule Update for FY 2015/16 Recommended action: Open the public hearing, listen to public testimony and close public hearing. Adopt the resolution approving the fee schedule for Fiscal Year 2015/16. Tony McFarlane, Finance Manager, presented the staff report. Mayor Miller noted that a supplemental attachment was provided with additional information about the proposed rate increases for rental of some City facilities. Mayor Miller invited public comment on the item. No one requested to speak. Adam Henig, Recreation Supervisor, and Nina Walker, Facility Coordinator, addressed Council questions regarding proposed increases to rental rates for several City facilities. RESOLUTION NO. 15-021 CAPPELLO/LO MOVED TO ADOPT THE RESOLUTION APPROVING THE FEE SCHEDULE FOR FISCAL YEAR 2015/16. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. The Council further directed staff to research opportunities to increase facility utilization whether through tiered rates or other means, such as making posting information about facility availability on the City’s website, and present findings to the Finance Committee. In 19 Page 6 of 8 the meantime, staff was also directed to include information about current use of rental spaces in the Council’s Weekly Newsletter. OLD BUSINESS None NEW BUSINESS 11. Review of Nonconforming Structure Regulations Recommended action: Provide direction to the Planning Commission on potential ordinance modifications for Nonconforming Structures. Community Development Director Erwin Ordoñez presented the staff report. Mayor Miller invited public comment on the item. No one requested to speak. CAPPELLO/BERNALD MOVED TO DIRECT THE PLANNING COMMISSION TO REVIEW EXISTING REGULATIONS FOR NONCONFORMING STRUCTURES AND RETURN WITH A PROPOSED ORDINANCE THAT WILL: 1) OVERTIME BRING NONCONFORMING STRUCTURES INTO CONFORMANCE; 2) PROVIDE RELIEF FOR HISTORIC BUILDINGS; 3) ALLOW THE MAJORITY OF NONCONFORMING STRUCTURE REVIEWS TO BE HANDLED ADMINISTRATIVELY; 4) DISTINGUISH BETWEEN INTERIOR AND EXTERIOR REMODELING WORK IN ORDER TO PREVENT INTERIOR ONLY REMODELS FROM TRIGGERING THE REQUIREMENT THAT NONCONFORMING STRUCTURES BE MADE TO COMPLY WITH CURRENT STANDARDS; 5) ALLOW EXCEPTIONS WHEN STRUCTURES ARE NOMINALLY WITHIN A REQUIRED SETBACK AND PROPOSED CONSTRUCTION WOULD CREATE INCONSISTENCY IN THE BUILDING APPEARANCE; 6) AND CONSIDER ALTERNATIVE METHODOLOGIES OR THRESHOLDS THAT MAY BE EASIER TO UNDERSTAND AND ACHIEVES THE SAME OVERALL GOAL, SUCH AS A METHODOLOGY BASED ON SQUARE FOOTAGE. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. 12. Authorization to Participate in Community Choice Energy South Bay Technical Feasibility Study Recommended action: Approve resolution authorizing participation in the Community Choice Energy South Bay Technical Feasibility Study. City Clerk Crystal Bothelio presented the staff report. Mayor Miller invited public comment on the item. No one requested to speak. 20 Page 7 of 8 RESOLUTION NO. 15-022 LO/KUMAR MOVED TO APPROVE RESOLUTION AUTHORIZING PARTICIPATION IN THE COMMUNITY CHOICE ENERGY SOUTH BAY TECHNICAL FEASIBILITY STUDY. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. CITY COUNCIL ASSIGNMENT REPORTS Mayor Howard Miller Council Finance Committee – during the last meeting, the Committee received a preview of the information shared at the Budget Study Session and last minute change to the proposed budget. Hopefully, the City will be sending out a press release soon on the CalPERS Unfunded Accrued Liability payment and the City’s plans to pay it off. Vice Mayor Manny Cappello Vice Mayor Cappello shared he, City Manager James Lindsay, and the City Manager of Los Altos Hills would be meeting in Sacramento on April 16 to discuss tax equity allocation with representatives of the State Department of Finance. Santa Clara County Housing and Community Development (HCD) Council Committee – the next meeting will be April 20, 2015. Saratoga Area Senior Coordinating Council (SASCC) – the next meeting is the week of April 20, 2015. Council Member Emily Lo KSAR Community Access TV Board – during the last meeting, the Board discussed advertisements in the Saratoga News that are no longer free to print. The Board plans to seek out free publicity opportunities. The Board is also hoping to increase visibility by installing televisions airing KSAR programing and information about KSAR in high profile locations, such as the Saratoga Library, Community Center, and City Hall. Council Member Mary-Lynne Bernald Cities Association of Santa Clara County – during the last meeting, the group discussed new bills introduced during the current legislative cycle and identified bills to watch and/or support. There was also a report from Sunnyvale Mayor Jim Griffith on the Community Choice Energy South Bay technical feasibility study. Council Member Rishi Kumar Saratoga Chamber of Commerce & Destination Saratoga – the president of West Valley College attended the last meeting and there were updates on Chamber activities. Valley Transportation Authority (VTA) Policy Advisory Committee – Council Member Kumar attended the last meeting on behalf of Mayor Miller. The Committee received a report regarding two requests for Priority Development Area (PDA) Planning Grant funds. The requests were: Bascom Avenue Complete Street Corridor Study and Tasman Drive Complete Street Corridor Study. The Committee recommended funding for both projects. The Committee also discussed the Fiscal Year 2015 Congestion Management Program Fund Operating Budget, which was recommended for adoption with 1 member voting nay. There will be a study session on El Camino Bus Rapid Transit the week of April 20. 21 Page 8 of 8 CITY COUNCIL ITEMS Mayor Miller noted that there was a request to staff to bring the water efficient landscape ordinance to a future Council Meeting. CITY MANAGER’S REPORT City Manager James Lindsay shared that there have been some key staff members absent this week and he thanked the City Council for their patience. ADJOURNMENT LO/BERNALD MOVED TO ADJOURN THE MEETING AT 10:10 P.M. MOTION PASSED. AYES: MILLER, CAPPELLO, LO, BERNALD, KUMAR. NOES: NONE. ABSTAIN: NONE. ABSENT: NONE. Minutes respectfully submitted: Crystal Bothelio, City Clerk City of Saratoga 22 Gina Scott, Accounting Technician SUBJECT: Review of Accounts Payable Check Registers RECOMMENDED ACTION: Review and accept check registers for the following accounts payable payment cycles: 4/14/2015 Period 10 4/21/2015 Period 10 4/28/2015 Period 10 BACKGROUND: The information listed below provides detail for weekly City check runs. Checks issued for $20,000 or greater are listed separately as well as any checks that were void during the time period. Fund information, by check run, is also provided in this report. REPORT SUMMARY: Attached are Check Registers for: Date Ending Check # 4/14/15 127751 127817 67 242,122.66 04/14/15 4/1/15 127750 4/21/15 127818 127870 53 439,293.50 04/21/15 4/14/15 127817 Accounts Payable 4/28/15 127871 127923 53 87,279.29 04/28/15 4/21/15 127870 Accounts Payable checks issued for $20,000 or greater: Date Check # Issued to Dept.Amount 04/14/15 127758 General 36,762.31 04/14/15 127792 PW 25,456.80 04/14/15 127793 PW 26,125.00 04/14/15 127802 Legal 20,061.30 04/21/15 127851 PS 383,378.33 Accounts Payable checks voided during this time period: AP Date Check #Amount 12/17/14 127084 Re-Issue 125.00 ADVERTISING, NOTICING AND PUBLIC CONTACT: ATTACHMENTS: Check Registers in the 'A/P Checks By Period and Year' report format Prior Check Register Checks Released Total Checks Amount Worker's Comp Ins. Issued to CIP Streets Projects Portico, Inc.CIP Parks Project Fund Never Received CheckSteven and Ellen Karel Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City’s website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Reason Status Sidewalk Repair Shute Mihaly & Weinberger General SCC Office of the Sheriff General Law Enforcement Attorney Services Precision Concrete Cutting SARATOGA CITY COUNCIL MEETING DATE:May 6, 2015 DEPARTMENT:Finance & Administrative Services Fund Purpose PREPARED BY: Ending Check #Type of Checks Date Starting Check # Accounts Payable Accounts Payable Comp Shared Risk Pool Worker's Comp Fund Hakone Gardens 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: Finance & Administrative Services PREPARED BY: Ann Xu, Accountant SUBJECT: Treasurer’s Report for the Month Ended March 31, 2015 RECOMMENDED ACTION: Review and accept the Treasurer’s Report for the month ended March 31, 2015. BACKGROUND: California government code section 41004 requires that the City Treasurer submit to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Municipal Code of the City of Saratoga, Article 2-20, Section 2-20.035 designates the City Manager as the City Treasurer. This report is prepared to fulfill this requirement. The following attachments provide various financial transaction data 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 STATEMENT: Cash and Investments Balance by Fund As of March 31, 2015, the City had $713,115 in cash deposit at Comerica bank, and $15,239,479 on deposit with LAIF. Council Policy on Working Capital 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 March 31, 2015 is $15,952,594 and exceeds the minimum limit required. The following Fund Balance schedule represents actual funding available for all funds at the end of the monthly period. This amount differs from the above Cash Summary schedule as assets and liabilities are components of the fund balance. As illustrated in the summary below, Total Unrestricted Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available. Unrestricted Cash Comerica Bank 713,115$ Deposit with LAIF 15,239,479$ Total Unrestricted Cash 15,952,594$ Cash Summary 41 Fund Balance Designations In accordance with Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the components of fund balance are categorized as follows: “non-spendable fund balance”, resources that are inherently non-spendable from the vantage point of the current period; “restricted fund balance”, resources that are subject to enforceable legal restrictions; “committed fund balance”, resources whose use is constrained by limitations the government imposes upon itself through formal action at its highest level of decision making and remains binding unless removed in the same manner; “assigned fund balance”, resources that reflects a government’s intended use of resources, such intent would have to be established at either the highest level of decision making, by a body, or an official designated for that purpose; and “unassigned fund balance”, net resources in excess of what can properly be classified in one of the other four categories. Currently, the City’s fund balance reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund balance. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION The City would not be in compliance with Government Code Section 41004. ATTACHMENTS A – Change in Total Fund Balances by Fund under GASB 54 B – Change in Total Fund Balances by CIP Project C – Change in Cash Balance by Month D – Change in Operating Cash Balance by Month E – Local Agency Investment Fund (LAIF) Quarterly Apportionment Rates + Total Unrestricted Cash 15,952,594$ Plus: Assets 380,554 Less: Liabilities (1,886,880) Ending Fund Balance 14,446,268$ Adjusting Cash to Ending Fund Balance 42 ATTACHMENT A CHANGES IN TOTAL FUND BALANCE UNDER GASB 54 Fund Description Fund Balance 7/1/14 Increase/ (Decrease) Jul- Feb Current Revenue Current Expenditure Transfer In Transfer Out Fund Balance 3/31/15 General Fund Restricted Fund Balances: Environmental Services 413,182 - - - - - 413,182 Committed Fund Balances: Hillside Stability 992,934 - - - - - 992,934 Assigned Fund Balances: Capital & Efficiency Reserve 1,928,915 - - - - 1,833,345 95,570 Facility Reserve 600,000 - - - - - 600,000 Carryforwards 118,788 - - - - - 118,788 Unassigned Fund Balances:- Working Capital 2,930,184 - - - - - 2,930,184 Fiscal Uncertainty 1,500,000 - - - - - 1,500,000 Development Services 705,459 - - - - - 705,459 Compensated Absences 223,846 - - - - - 223,846 Other Unassigned (Pre YE distribution)2,422,326 (3,144,014) 1,166,170 1,107,826 - - (663,344) General Fund Total 11,835,634 (3,144,014) 1,166,170 1,107,826 - 1,833,345 6,916,619 Special Revenue Landscape/Lighting Districts 733,831 78,542 24,257 17,011 1,000 - 820,619 Capital Project Street Projects 799,947 (292,721) 6,770 10,581 730,000 - 1,233,414 Park and Trail Projects 560,784 21,597 - 34,594 443,445 - 991,231 Facility Projects 206,036 (94,180) 5,652 29,136 479,900 - 568,271 Administrative Projects 166,819 (7,078) 5,764 - 220,000 41,000 344,504 Tree Fund Projects 73,186 (13,747) 125 - - - 59,564 Park In-Lieu Fees Projects 372,031 (7,821) - 5,900 - - 358,311 CIP Grant Street Projects (1,896) (394,339) - (2,440) - - (393,794) CIP Grant Park & Trail Projects 22,874 (3,712) - 1,390 - - 17,772 Gas Tax Fund Projects 926,527 (76,805) 72,852 34,964 - - 887,610 CIP Fund Total 3,126,307 (868,806) 91,163 114,125 1,873,345 41,000 4,066,884 Debt Service Library Bond 897,786 (372,677) 2,691 - - - 527,800 Internal Service Fund Liability/Risk Management 283,125 38,842 3,334 8,543 - - 316,757 Workers Compensation 281,642 24,824 - 2,709 - - 303,758 Office Support Fund 53,121 20,302 958 5,305 - - 69,076 Information Technology Services 262,069 32,038 359 35,177 - - 259,289 Equipment Maintenance 36,349 77,576 - 15,272 - - 98,654 Building Maintenance 199,869 133,790 995 59,730 - - 274,924 Equipment Replacement 508,880 93,066 - 612 - - 601,334 Technology Replacement 152,788 37,767 - - - - 190,555 - Total City 18,371,402 (3,848,748) 1,289,927 1,366,310 1,874,346 1,874,346 14,446,268 43 ATTACHMENT B FUND BALANCES BY CIP PROJECT CIP Funds/Pro jects Fund Balance 7/1/14 Increase/ (Decrease) Jul-Feb Current Revenue Current Expenditure Transfer In Transfer Out Fund Balance 3/31/15 Street Projects Annual Street Resurfacing 37,147 (37,148) 5,249 5,249 - - - Residential Street Construction - - - 1,705 300,000 - 298,295 Roadway Safety & Traffic Calming 755 (24,491) - - 50,000 - 26,264 Highway 9 Safety Project - Phase II (Ped Paths)6,054 40,587 (45,079) - - - 1,562 Highway 9 Safety Project - Phase III (Bicycles)24,514 - (24,514) - - - - Highway 9 Safety Project - Phase IV 90,000 - 58,396 - - - 148,396 Big Basin Way Turnaround - - - - 50,000 - 50,000 Fruitvale Ave Median - (8,228) 12,718 - - - 4,490 Village LED Streetlights 5,180 (172) - - - - 5,007 Annual Sidewalks Project 39,437 (15,234) - - 50,000 - 74,202 Annual Storm Drain Upgrade 10,899 (14,827) - - 50,000 - 46,072 Village-Streetscape Improvements 25,059 - - - - - 25,059 Village-Phase II Design 13,363 (10,749) - - - - 2,614 Village-Phase II Construction 289,294 (162,958) - 3,628 - - 122,708 ELCamino Grande SD Pump - - - - 150,000 - 150,000 Saratoga Hills SD Pump - - - - 10,000 - 10,000 Storm Drain Capture Device - - - - 30,000 - 30,000 Wildcat Creek Outfall - - - - 40,000 - 40,000 Fourth Street Bridge 100,000 - - - - - 100,000 Quito Road Bridge Replacement Design 59,500 (59,500) - - - - - Underground Project 98,744 - - - - - 98,744 Total Street Projects 799,947 (292,721) 6,770 10,581 730,000 - 1,233,414 Parks & Trails Projects Park/Trail Repairs 1,038 (4,051) - 3,465 25,000 - 18,522 Playground Safety Equipment 16,478 (10,565) - 4,974 - - 939 Fibar Playground Improvement`4,020 (4,020) - - - - - Turf Reduction Renovation - (25,000) - - 25,000 - - Hakone Garden Matching Funds 250,000 135,466 - 26,155 - - 359,311 Hakone Garden Upper Moon House 125,000 - - - - - 125,000 Wildwood Bridge Rehab 60,499 (58,280) - - - - 2,220 Quarry Park Plan Implement - (2,677) - - 293,445 - 290,768 Quarry Park Row Acquisition - - - - 100,000 - 100,000 Joe's Trail at Saratoga/De Anza 33,997 - - - - - 33,997 Guava/Fredericksburg Entrance 45,880 - - - - - 45,880 Saratoga to Sea Quarry Master Plan 23,872 (9,278) - - - - 14,594 Total Parks & Trails Projects 560,784 21,597 - 34,594 443,445 - 991,231 Facility Projects Facility Projects 39,761 (65,760) - 7,004 100,000 - 66,997 Security Locks 37,096 (829) - 18,434 45,000 - 62,832 City Hall Emergency Power Backup 53,445 (21,390) - 845 - - 31,210 Master Electrical Board - - - - 140,000 - 140,000 Theater Improvements 66,061 13,923 5,652 910 - - 84,726 Theater MP Improvements - - - - 64,900 - 64,900 Community Center Cool Roof - - - - 90,000 - 90,000 Pre-School Play Structure - (24,999) - 1,943 40,000 - 13,058 McWilliams House Improvements 3,703 (125) - - - - 3,578 Library Building Exterior Maintenance Projects 5,970 5,000 - - - - 10,970 Total Facility Projects 206,036 (94,180) 5,652 29,136 479,900 - 568,271 44 ATTACHMENT B (Cont.) FUND BALANCES BY CIP PROJECT CIP Funds/Pro jects Fund Balance 7/1/14 Increase/ (Decrease) Jul-Feb Current Revenue Current Expenditure Transfer In Transfer Out Fund Balance 3/31/15 Administrative Projects Financial System Upgrade 3,534 - - - - - 3,534 COMB Document Imaging Project 78,673 (9,870) - - - - 68,803 Development Technology - 7,891 5,764 - - - 13,655 LLD Initiation Match Program - - - - 50,000 1,000 49,000 General Plan Update - - - - 100,000 - 100,000 Village Façade Program 3,821 (3,500) - - 20,000 - 20,321 Business Development Incentive Program 1,600 (1,600) - - - - - Wildfire Protection Plan 25,000 - - - - - 25,000 Risk Management Project Funding 54,192 - - - 50,000 40,000 64,192 Total Administrative Projects 166,819 (7,078) 5,764 - 220,000 41,000 344,504 Tree Fund Projects Citywide Tree Planting Program 50,311 (13,747) - - - - 36,564 Tree Dedication Program 21,125 - 125 - - - 21,250 SMSCF Tree Donation Program 1,750 - - - - - 1,750 Total Tree Fund Projects 73,186 (13,747) 125 - - - 59,564 CIP Grant Street Projects Highway 9 Safety Improvements Phase II (1,896) (2,782) - (2,440) - - (2,238) Saratoga Ave Sidewalk - (75,744) - - - - (75,744) Village Phase II - Construction - (368,991) - - - (368,991) Quito Road Bridges - 53,179 - - - - 53,179 Total CIP Grant Street Projects (1,896) (394,339) - (2,440) - - (393,794) CIP Grant Park & Trail Projects AB8939 Beverage Container Grant Funding 10,065 (3,712) - 1,390 - - 4,963 Joe's Trail at Saratoga / De Anza 12,809 - - - - - 12,809 Total CIP Grant Park & Trail Projects 22,874 (3,712) - 1,390 - - 17,772 Park In-Lieu Fees Projects Quarry Park Plan Implement 280,631 (7,821) - 5,900 - - 266,911 Saratoga Village Creek 50,000 - - - - - 50,000 Unallocated Park Fees 41,400 - - - - - 41,400 Total park In-Lieu Fees Projects 372,031 (7,821) - 5,900 - - 358,311 Gas Tax Fund Projects Annual Street Resurfacing 171,702 (40,683) 72,852 34,964 - - 168,908 Prospect/Saratoga OBAG Improvement 544,825 - - - - - 544,825 Citywide Signal Upgrade II 100,000 - - - - - 100,000 Arroyo de Arguello Storm Drain 70,000 (36,123) - - - - 33,878 Quito Road & Paseo Olivos Storm Drain 40,000 - - - - - 40,000 Total Gas Tax Fund Projects 926,527 (76,805) 72,852 34,964 - - 887,610 Total CIP Funds 3,126,307 (860,986) 91,163 108,225 1,873,345 41,000 4,066,884 45 ATTACHMENT C CHANGE IN CASH BALANCE BY MONTH 46 ATTACHMENT D March June September December 1977 5.68 5.78 5.84 6.45 1978 6.97 7.35 7.86 8.32 1979 8.81 9.10 9.26 10.06 1980 11.11 11.54 10.01 10.47 1981 11.23 11.68 12.40 11.91 1982 11.82 11.99 11.74 10.71 1983 9.87 9.64 10.04 10.18 1984 10.32 10.88 11.53 11.41 1985 10.32 9.98 9.54 9.43 1986 9.09 8.39 7.81 7.48 1987 7.24 7.21 7.54 7.97 1988 8.01 7.87 8.20 8.45 1989 8.76 9.13 8.87 8.68 1990 8.52 8.50 8.39 8.27 1991 7.97 7.38 7.00 6.52 1992 5.87 5.45 4.97 4.67 1993 4.64 4.51 4.44 4.36 1994 4.25 4.45 4.96 5.37 1995 5.76 5.98 5.89 5.76 1996 5.62 5.52 5.57 5.58 1997 5.56 5.63 5.68 5.71 1998 5.70 5.66 5.64 5.46 1999 5.19 5.08 5.21 5.49 2000 5.80 6.18 6.47 6.52 2001 6.16 5.32 4.47 3.52 2002 2.96 2.75 2.63 2.31 2003 1.98 1.77 1.63 1.56 2004 1.47 1.44 1.67 2.00 2005 2.38 2.85 3.18 3.63 2006 4.03 4.53 4.93 5.11 2007 5.17 5.23 5.24 4.96 2008 4.18 3.11 2.77 2.54 2009 1.91 1.51 0.90 0.60 2010 0.56 0.56 0.51 0.46 2011 0.51 0.48 0.38 0.38 2012 0.38 0.36 0.35 0.32 2013 0.28 0.24 0.26 0.26 2014 0.24 0.22 0.24 0.25 2015 0.26 Quarterly Apportionment Rates Local Agency Investment Fund 47 Page 1 of 2 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: Public Works PREPARED BY: Macedonio Nunez, Associate Engineer SUBJECT: Transportation Development Act (TDA) Article 3 Application for the Saratoga Avenue Walkway Project. RECOMMENDED ACTION: Adopt resolution supporting the Metropolitan Transportation Commission’s Transportation Development Act Article 3 Pedestrian/Bicycle Grant Application for the Saratoga Avenue Walkway Project. REPORT SUMMARY: Background: In April 2015, Public Works staff applied for a Metropolitan Transportation Commission grant titled Transportation Development Act Article 3 Pedestrian/Bicycle Grant Application (TDA Article 3 Grant) for the Saratoga Avenue Walkway Project. Under the TDA Article 3 Grant, “Guaranteed” funds are made available each year for bicycle/pedestrian projects. On January 21, 1998, a Resolution was passed by City Council in support of the Saratoga Avenue Walkway Project that utilized the TDA allocations. This project has been ongoing since 1992, and has created new walkways along Saratoga Avenue from the City limits to Heritage Oak. These funds have also funded Pedestrian Safety Improvements at Crestbrook Drive, Herriman Avenue, La Paloma Avenue intersections, the new Bus Stop locations, sidewalk in front of the Old Post Office to Park Place and will fund the sidewalk continuation from Park Place to in between Orchard Rd and La Paloma Ave. This year’s Guaranteed Allocation for the City of Saratoga is $22,753. Discussion: Renewed authorization to submit the attached application needs to be granted by the City Council. The limits of the newest walkway project along Saratoga Ave will be from Park Place to in between Orchard Rd and La Paloma Ave. This will be accomplished by adopting the attached Resolution. FISCAL IMPACTS: No local match is required for TDA Article 3 Grants. 48 Page 2 of 2 CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The project would not be approved, and the TDA Guaranteed Allocation of $22,753 would be reallocated to other cities in Santa Clara County. ATTACHMENTS Resolution 49 Resolution No. INSERT NUMBER Re: Request to the Metropolitan Transportation Commission for the allocation of fiscal year 2015-16 Transportation Development Act Article 3 Pedestrian/Bicycle project funding WHEREAS, Article 3 of the Transportation Development Act (TDA), Public Utilities Code (PUC) Section 99200 et seq., authorizes the submission of claims to a regional transportation planning agency for the funding of projects exclusively for the benefit and/or use of pedestrians and bicyclists; and WHEREAS, the Metropolitan Transportation Commission (MTC), as the regional transportation planning agency for the San Francisco Bay region, has adopted MTC Resolution No.4108, entitled “Transportation Development Act, Article 3, Pedestrian and Bicycle Projects,” which delineates procedures and criteria for submission of requests for the allocation of “TDA Article 3” funding; and WHEREAS, MTC Resolution No. 4108 requires that requests for the allocation of TDA Article 3 funding be submitted as part of a single, countywide coordinated claim from each county in the San Francisco Bay region; and WHEREAS, the City of Saratoga desires to submit a request to MTC for the allocation of TDA Article 3 funds to support the projects described in Attachment B to this resolution, which are for the exclusive benefit and/or use of pedestrians and/or bicyclists; now, therefore, be it RESOLVED, that the City of Saratoga declares it is eligible to request an allocation of TDA Article 3 funds pursuant to Section 99234 of the Public Utilities Code, and furthermore, be it RESOLVED, that there is no pending or threatened litigation that might adversely affect the project or projects described in Attachment B to this resolution, or that might impair the ability of the City of Saratoga to carry out the project; and furthermore, be it RESOLVED, that the project has been reviewed by the Bicycle Advisory Committee (BAC) of City of Saratoga ; and furthermore, be it RESOLVED, that the City of Saratoga attests to the accuracy of and approves the statements in Attachment A to this resolution; and furthermore, be it RESOLVED, that a certified copy of this resolution and its attachments, and any accompanying supporting materials shall be forwarded to the congestion management agency, countywide transportation planning agency, or county association of governments, as the case may be, of Santa Clara County for submission to MTC as part of the countywide coordinated TDA Article 3 claim. 50 The City of Saratoga adopted this resolution on May 6, 2015 AYES: NAYS: ABSENT: ABSTAIN Certified to by (signature): Howard Miller, Mayor Attest__________________________________ Crystal Bothelio, City Clerk City of Saratoga 51 Resolution No. INSERT NUMBER Attachment A Re: Request to the Metropolitan Transportation Commission for the Allocation of Fiscal Year 2015-16 Transportation Development Act Article 3 Pedestrian/Bicycle Project Funding Findings Page 1 of 1 1. That the City of Saratoga is not legally impeded from submitting a request to the Metropolitan Transportation Commission for the allocation of Transportation Development Act (TDA) Article 3 funds, nor is the City of Saratoga legally impeded from undertaking the project(s) described in “Attachment B” of this resolution. 2. That the City of Saratoga has committed adequate staffing resources to complete the project(s) described in Attachment B. 3. A review of the project(s) described in Attachment B has resulted in the consideration of all pertinent matters, including those related to environmental and right-of-way permits and clearances, attendant to the successful completion of the project(s). 4. Issues attendant to securing environmental and right-of-way permits and clearances for the projects described in Attachment B have been reviewed and will be concluded in a manner and on a schedule that will not jeopardize the deadline for the use of the TDA funds being requested. 5. That the project(s) described in Attachment B comply with the requirements of the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.). 6. That as portrayed in the budgetary description(s) of the project(s) in Attachment B, the sources of funding other than TDA are assured and adequate for completion of the project(s). 7. That the project(s) described in Attachment B are for capital construction and/or design engineering; and/or for the maintenance of a Class I bikeway which is closed to motorized traffic; and/or for the purposes of restriping Class II bicycle lanes; and/or for the development or support of a bicycle safety education program; and/or for the development of a comprehensive bicycle and/or pedestrian facilities plan, and an allocation of TDA Article 3 funding for such a plan has not been received by the City of Saratoga within the prior five fiscal years. 8. That the project(s) described in Attachment B is included in a locally approved bicycle, pedestrian, transit, multimodal, complete streets, or other relevant plan. 9. That any project described in Attachment B that is a bikeway meets the mandatory minimum safety design criteria published in Chapter 1000 of the California Highway Design Manual. 10. That the project(s) described in Attachment B will be completed before the funds expire. 11. That the City of Saratoga agrees to maintain, or provide for the maintenance of, the project(s) and facilities described in Attachment B, for the benefit of and use by the public. 52 Resolution No. INSERT NUMBER Attachment B Page 1 of 2 TDA Article 3 Project Application Form Fiscal Year of this Claim: 15-16 Applicant: City of Saratoga Contact person: Macedonio Nunez Mailing Address: 13777 Fruitvale Avenue, Saratoga CA 95070 E-Mail Address: mnunez@saratoga.ca.us Telephone: (408) 868-1218 Secondary Contact (in event primary not available) John Cherbone E-Mail Address:jcherbone@saratoga.ca Telephone:(408) 868-1241 Short Title Description of Project: Saratoga Avenue Pathway Project Amount of claim: $ 22,753 Functional Description of Project: Asphalt concrete & Portland cement concrete walkway and ADA ramps along Saratoga Ave from Park Place to in between Orchard Rd and La Paloma Ave Financial Plan: List the project elements for which TDA funding is being requested (e.g., planning, environmental, engineering, right-of-way, construction, inspection, contingency, audit). Use the table below to show the project budget. Include prior and proposed future funding of the project. If the project is a segment of a larger project, include prior and proposed funding sources for the other segments. Project Elements: Final design, specification, construction and inspection Funding Source All Prior FYs Application FY Next FY Following FYs Totals TDA Article 3 $355,024 $22,753 $22,753 list all other sources: 1. 2. 3. 4. Totals $355,024 $22,753 $377,777 Project Eligibility: YES?/NO? A. Has the project been approved by the claimant's governing body? (If "NO," provide the approximate date approval is anticipated). NO 05/20/15 B. Has this project previously received TDA Article 3 funding? If "YES," provide an explanation on a separate page. YES C. For "bikeways," does the project meet Caltrans minimum safety design criteria pursuant to Chapter 1000 of the California Highway Design Manual? (Available on the internet via: http://www.dot.ca.gov). D. Has the project been reviewed by a Bicycle Advisory Committee? (If "NO," provide an explanation). YES E. Has the public availability of the environmental compliance documentation for the project (pursuant to CEQA) been evidenced by the dated stamping of the document by the county clerk or county recorder? (required only for projects that include construction). YES F. Will the project be completed before the allocation expires? Enter the anticipated completion date of project (month and year) September 2014 YES G. Have provisions been made by the claimant to maintain the project or facility, or has the claimant arranged for such maintenance by another agency? (If an agency other than the Claimant is to maintain the facility provide its name: ) YES 53 PAGE 2 OF 2 TDA ARTICLE 3 PROJECT APPLICATION FORM Project Eligibility: B. This project has been previously funded in several cycles. See the attached TDA article 3 application for fiscal year of claim 03/04. D. This project is ongoing and has been reviewed in the past. See the attached TDA article 3 application for fiscal year of claim 03/04 54 Resolution No. Attachment B Page 1 of 1 TDA Article 3 Project Application Form Fiscal Year of this Claim: 03/04 Applicant: City of Saratoga Contact person: Morgan Kessler Mailing Address: 13777 Fruitvale Avenue, Saratoga CA 95070 E-Mail Address: mkessler@saratoga.ca.us Telephone: (408) 868-1218 Secondary Contact (in event primary not available) John Cherbone E-Mail Address: jcherbone@saratoga.ca.us Telephone: (408) 868-1241 Short Title Description of Project: Saratoga Avenue Pathway Project Amount of claim: $17,254.00 Functional Description of Project: Asphalt concrete & Portland cement concrete walkway along Saratoga Avenue, between Herriman Drive & Big Basin Way Financial Plan: List the project elements for which TDA funding is being requested (e.g., planning, environmental, engineering, right-of-way, construction, construction management, contingency). Use the table below to show the project budget. Include prior and proposed future funding of the project. If the project is a segment of a larger project, include prior and proposed funding sources for the other segments (make certain the use of the currently requested funding is made clear in the “Project Elements” section below, and include any other clarifying information on the next page). Project Elements: Final design, specification, construction, inspection. Funding Source All Prior FYs Application FY Next FY Following FYs Totals TDA Article 3 $103,926.00 $17,254.00 $17,254.00 list all other sources: 1. 2. 3. 4. Totals $103,926.00 $17,254.00 $121,180.00 Project Eligibility: YES?/NO? A. Has the project been approved by the claimant's governing body? (If "NO," on the next page provide the approximate date approval is anticipated). YES B. Has this project previously received TDA Article 3 funding? If "YES," provide an explanation on the next page. YES C. For "bikeways," does the project meet Caltrans minimum safety design criteria pursuant to Chapter 1000 of the California Highway Design Manual? (Available on the internet at: http://www.dot.ca.gov/hq/oppd/hdm/chapters/t1001.htm ). D. Has the project been reviewed by a Bicycle Advisory Committee? (If "NO," provide an explanation on the next page). YES E. Has the public availability of the environmental compliance documentation for the project (pursuant to CEQA) been evidenced by the dated stamping of the document by the county clerk or county recorder? (If “NO” provide and explanation on the next page; and note that MTC cannot allocate funds to a project which lacks environmental clearance). YES F. Will the project be completed within the three fiscal year time period (including the fiscal year of funding) after which the allocation expires? Enter the anticipated completion date of project (month and year) YES G. Have provisions been made by the claimant to maintain the project or facility, or has the claimant arranged for such maintenance by another agency? (If an agency other than the Claimant is to maintain the facility provide its name: ) YES 55 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: Public Works PREPARED BY: Iveta Harvancik, Senior Engineer SUBJECT: Village Creek Trail Design: Budget Resolution, Design Contract, Easement Acceptance RECOMMENDED ACTIONS: 1. Approve budget adjustment. 2. Approve Professional Design Services amount of $26,144 for design services, and authorize staff to approve additional costs up as a project contingency. 3. Approve Resolution accepting Mrs. Rosenfeld and authorize the BACKGROUND: Proposed Village Creek Trail will be a public pedestrian pathway running the length of the Village from Saratoga the terrain constrains and limited land rights, the trail connection to a new pedestrian bridge. Therefore, the project was divided into two phases as shown on the Site Plan - Phase 1 includes 1000 feet long trail behind the Village walk down towards the creek and relax on a bench near the creek the final 300 feet trail section and a new Phase 1 trail will have two different characteristics, depending on the existing topography. locations where the creek bank is too steep for a trail, the trail will be located on the parking lot level, just behind the parking lot curb a parking lot (approximately behind The Bank Bar), the trail will gradually descend the creek to a proposed creek viewing area with benches and an informative sign. From this area the trail will continue along a relatively flat area near the creek towards Wildwood Park. T section of the trail as well as the pedestrian of the project. SARATOGA CITY COUNCIL Iveta Harvancik, Senior Engineer Village Creek Trail Design: Budget Resolution, Design Contract, Trail Professional Design Services Contract with Alta Planning and Design in the amount of $26,144 for design services, authorize the City Manager to execute the same and authorize staff to approve additional costs up to 10% of the contract amount ($2,600) Offer to Dedicate Pedestrian Trail Easement from Mr. and the City Manager to sign the Certificate of Acceptance. a public pedestrian pathway located along Saratoga Creek running the length of the Village from Saratoga-Sunnyvale Road to Wildwood Park. Based on rights, the trail connection to Wildwood Park will require a new pedestrian bridge. Therefore, the project was divided into two phases as shown on the Site Phase 1 includes 1000 feet long trail behind the Village businesses and an opportunity to ax on a bench near the creek; Phase 2 of the project new bridge to Wildwood Park. trail will have two different characteristics, depending on the existing topography. bank is too steep for a trail, the trail will be located on the parking lot level, just behind the parking lot curb along the top of the creek bank. About half-way along the parking lot (approximately behind The Bank Bar), the trail will gradually descend down towards the creek to a proposed creek viewing area with benches and an informative sign. From this area the trail will continue along a relatively flat area near the creek towards Wildwood Park. T section of the trail as well as the pedestrian bridge to Wildwood Park will be designed in Phase 2 Trail and Design in the to execute the same to 10% of the contract amount ($2,600) from Mr. and City Manager to sign the Certificate of Acceptance. located along Saratoga Creek Sunnyvale Road to Wildwood Park. Based on Wildwood Park will require a new pedestrian bridge. Therefore, the project was divided into two phases as shown on the Site an opportunity to of the project includes trail will have two different characteristics, depending on the existing topography. In bank is too steep for a trail, the trail will be located on the parking lot way along the down towards the creek to a proposed creek viewing area with benches and an informative sign. From this area the trail will continue along a relatively flat area near the creek towards Wildwood Park. The last bridge to Wildwood Park will be designed in Phase 2 56 Budget Resolution Design and environmental review of the Village Creek Trail project was initially funded in the Fiscal Year 2011/12 CIP with $39,000 in grant funds received from the Santa Clara Valley Water District (District) under the 2011 Watershed Stewardship Grant Program. The total estimated cost to complete the design and environmental clearance phase of the project is approximately $119,000. The City Council provided direction at the Budget Study Session to fully fund the design phase with an additional appropriation of $80,000 in Fiscal Year 2015/16. The Fiscal Year 2014/15 CIP included funding for the construction phase of the project in the amount of $50,000 to begin setting aside matching funds towards a future grant. The City Council provided direction at the Budget Study Session to set the funding level of the construction phase at $100,000 with an additional $50,000 appropriation in Fiscal Year 2015/16. The design phase is proceeding faster than expected and funds are needed this Fiscal Year to keep the project moving. Staff is therefore recommending approval to transfer $31,000 from the construction phase to the design phase of the project. If the transfer is approved, then the $130,000 in appropriations proposed for each phase of the project in Fiscal Year 2015/16 CIP will be updated so that the design and environmental phase will not exceed $119,000 in funding and the construction phase will not exceed $100,000 in funding as per Council direction in the Budget Study Session. It is therefore recommended that the City Council approve the proposed budget adjustment resolution, approve the design contract with Alta Planning and Design in the amount of $26,144 and accept the trail easement dedication from Mr. and Mrs. Rosenfeld. Design Contract Design of the Village Creek Trail requires knowledge of planning trails on slopes near creeks. Alta Planning and Design has been selected to provide these services based on their long-term experience with designing similar trails. Additionally, the cost proposal was the lowest from all submitted proposals. Attached is the Professional Design Services Agreement with Alta Planning and Design in the amount of $26,144. Designer’s scope of work consists of preparation of the trail construction documents including trail alignment, cross sections and details. Trail Easement Dedication The land ownership along the trail alignment varies between the property owned by the City and private properties. Trail easement or property dedication is needed for sections of trail not currently on the City’s property or easement. City staff worked with the private owners on obtaining the rights for the trail. Mr. George M. Payne, owner of one of the properties along the creek (APN 503-24-049), dedicated the property to the City in 2013. Mr. and Mrs. Rosenfeld, the owners of the second private property, agreed to dedicate a 15-foot-wide pedestrian trail easement on their property (APN 503-24-081). The 57 easement dedication documents are attached including the resolution accepting the trail easement and the Certificate of Acceptance. Trail Easement acceptance is one of the recommended actions of this report. Thanks to the property owners who were willing to support this project by providing the land rights to the City, the trail can be designed as a continuous pathway as shown on the site plan. FISCAL IMPACTS: The transfer of $31,000 from the construction phase to the design and environmental phase is not an increase in appropriation. There is no cost to the City for accepting the trail easement dedication. FOLLOW UP ACTION(S): The Design Contract shall be executed and the Trail Easement Dedication will be recorded. ATTACHMENTS: Attachment A. Village Creek Trail Site Plan Attachment B. Budget Resolution Attachment C. Design Contract with Alta Planning and Design Attachment D. Offer to Dedicate Pedestrian Trail Easement Attachment E. Resolution Accepting Offer to Dedicate Pedestrian Trail Easement Attachment F. Certificate of Acceptance 58 Parking District City of Saratoga Wildwood Park Saratoga Cree k Trail section completed in 2013 (appr. 100 ft) B i g B as i n W ay 3rd Stre et 4th Stre et B r o o k w o o d L a n e S a r a t o g a -S u n n y v a l e R o a d New bridge to Wildwood Park (Phase 2) O a k S t r e et W i l d w o o d W aySpringer A v e nu e Phase 1 Trail(appr. 1,000 ft) Phase 2 Trail(appr. 300 ft) ú Creek View area with benches 503-24-076 503-24 -049 503-24 -081 503-24 -034503-24 -079 503-24 -078 503-24 -038 503-24 -036 503-24 -035 SARATOGA VILLAGE CREEK TRAIL PLANNINGSite Plan -0 100 200 300 40050 Feet Legend City Easements City Properties City Parks59 RESOLUTION NO.__________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA TO RE-APPROPRIATE FUNDS FOR THE VILLAGE CREEK TRAIL PROJECT WHEREAS, the City Council desires the design and construction of the Village Creek Trail; WHEREAS, the design phase of the project needs to be completed before the construction phase; WHEREAS, grant funds available for the design phase are insufficient and supplemental CIP funds are needed in the current FY14/15; WHEREAS, CIP funds have been budgeted and appropriated for FY 14/15 into the Construction Phase of the project; WHEREAS, it is necessary to re-appropriate some funds from the Construction phase to the Design phase for successful completion of work in FY14/15: Account Description Account Amount To decrease expenditure budget and transfer out funds from Construction Phase: Decrease expenditure Village Creek Trail Construction 422.9277-003.81161 ($ 31,000.00) Increase transfer out from Village Creek Trail Construction 422.9277-003.49999 $ 31,000.00 To appropriate revenue and Expense for Village Creek Trail Design Phase: Increase transfer in to Village Creek Trail Design 422.9277-001.49999 $ 31,000.00 Increase expenditure Village Creek Trail Design 422.9277-001.81142 $ 31,000.00 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saratoga hereby approves the above adjustments to the Fiscal Year 2014/15 CIP Budget. BE IT FURTHER RESOLVED, the above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on 6th day of May, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________ Howard A. Miller City of Saratoga Attest: _______________________ Crystal Bothelio, City Clerk 60 Form Rev. 2.18.2015 Page 1 of 2 Design Services City of Saratoga Standard Professional Design Services Contract This agreement is made at Saratoga, California by and between the City of Saratoga, a municipal corporation (“City”), and _____________________ (“Consultant”), who agree that: 1. Purpose of Contract.This is a contract for __________________________________ as more specifically described in Exhibit A of this agreement (“Scope of Work”). 2. Term. The term of this agreement commences on (check one): …the date last signed below … ________________ (“Effective Date”) and extends through ________________ or the completion of the project, whichever occurs first. This agreement may be renewed for successive __ year terms by a letter agreement between the parties provided, however, that the total term of such renewals may not extend more than six years beyond the Effective Date. 3. Payment. City shall pay Consultant for work product produced pursuant to this agreement an amount not to exceed the total sum of ____________________________________ dollars ($____________________________) for work to be performed and any authorized reimbursable costs. This is a (check one): … Time and Materials … Lump Sum contract. If this is a Time and Materials Contract, the Consultant’s hourly rates are set forth in the Scope of Work. Consultant is not authorized to undertake any efforts or incur any costs whatsoever under the terms of this agreement until receipt of a fully executed Purchase Order from the Finance Department of the City of Saratoga. 4. Contract Administration. The primary representatives of City and Consultant for Contract administration are listed below. The City’s primary representative is the Administrator. City of Saratoga Primary Representative: Address: Telephone: Fax: Cell Phone: E-mail: 5. Insurance. Consultant agrees to procure and maintain insurance as required by the provisions set forth in Exhibit B. Certificates of such insurance and copies of the insurance policies and endorsements shall be delivered to City within ten (10) days after being notified of the award of the contract, and before execution of this agreement by the City. 6. General Provisions. City and Consultant agree to and shall abide by the general provisions set forth in Exhibit C. Alta Planning and Design Village Creek Trail Design Project April 20, 2015 December 31, 2016 twenty six thousand & one hundred & forty-four & 00/100 26,144.00 Iveta Harvancik, Senior Engineer 13777 Fruitvale Avenue 1-408-868-1274 1-408-868-1274 iharvancik@saratoga.ca.us Alta Planning and Design Randy Anderson, Principal 711 SE Grand Ave., Portland OR 97214 510-540-5008 (office) / 707-373-5164 (cell) randyanderson@altaplanning.com Village Creek Trail Project Design Alta Planning and Design 61 Form Rev. 2.18.2015 Page 2 of 2 Design Services 7. Supplemental Provisions. This agreement includes supplemental provisions described in connection with each box checked below: … This agreement is funded in whole or in part by an entity other than City. Consultant shall comply with all rules and regulations required by such funding entity. Applicable funding entity requirements are set forth in Exhibit D. Nothing in this paragraph or in the funding entity requirements shall be construed to relieve Consultant of its duty to ensure that it is in compliance with all applicable laws and regulations. … Exhibit E sets forth provisions regarding ______________________________________. 8. Exhibits. All exhibits referred to in this agreement are attached hereto and are by this reference incorporated herein and made a part of this agreement. 9. Entire agreement.This agreement supersedes any and all agreements, either oral or written, between the parties with respect to Consultant's completion of the Scope of Work on behalf of City and contains all of the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. No amendment, alteration, or variation of the terms of this agreement shall be valid unless made in writing and signed by the parties hereto. 10.Authority to Execute agreement. Each individual executing this agreement represents that he or she is duly authorized to sign and deliver the agreement on behalf of the party indicated and that this agreement is binding on such party in accordance with its terms. This agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this agreement. Consultant City of Saratoga James Lindsay, City Manager Name Title Date: Date: Consultant Name/ Contract Description: ATTEST: Crystal Bothelio, City Clerk Date: APPROVED AS TO FORM: Richard Taylor, City Attorney Date: ✔special scope and payment terms and Exhibit C, Section 11 Randy Anderson Principal Alta Planning and Design / Village Creek Trail Design Proj. Village Creek Trail Project Design Alta Planning and Design 62 Form Rev. 2.18.2015 Exhibit A - Page 1 of 3 Design Services Exhibit A Scope of Work Consultant shall complete scope of work for the Village Creek Trail Design, detailed as follows: In the event of a conflict between the terms of this agreement and this Exhibit or any of the exhibits referenced in this Exhibit A the terms of the agreement shall govern. Contractor shall perform only Tasks 1 and 2.1 unless and until the Contractor Administrator provides written authorization to proceed with one or more of the remaining tasks. Contractor is not authorized to receive payment in excess of the $11,772 allocated for Tasks 1 and 2.1 unless additional tasks are authorized. Village Creek Trail Project Design Alta Planning and Design 63 Form Rev. 2.18.2015 Exhibit A - Page 2 of 3 Design Services Village Creek Trail Project Design Alta Planning and Design 64 Form Rev. 2.18.2015 Exhibit A - Page 3 of 3 Design Services -End of Exhibit A- Village Creek Trail Project Design Alta Planning and Design 65 Form Rev. 2.18.2015 Exhibit B – Page 1 of 4 Design Services Exhibit B Insurance The insurance requirements listed below that have an “X” indicated in the space before the requirement apply to this agreement together with the general requirements. Consultant shall provide its insurance broker(s)/agent(s) with a copy of these requirements and request that they provide certificates of insurance complete with copies of all required endorsements to: Risk Manager, City of Saratoga, 13777 Fruitvale Avenue, Saratoga, CA 95070 with a copy to the Primary Representative listed in section 4 on page 1. During the term of this agreement Consultant shall ensure that its broker(s)/agent(s) provide the Risk Manager and Primary Representative with updated certificates of insurance reflecting continued satisfaction of the requirements of this agreement together with updated endorsements in the event of a change in the underlying insurance policy(ies). All endorsements shall be signed by a person authorized by that insurer to bind coverage on its behalf. City has the right to require Consultant’s insurer to provide complete, certified copies of all required insurance policies. As described in more detail below, the City, its officers, officials, employees, agents, and volunteers are to be covered as insureds. All certificates and endorsements must be received and approved by City before work commences. Insurance Requirements _:__ Commercial General/Business Liability Insurance with coverage at least as broad as indicated: _:__ $2,000,000 per occurrence/$2,000,000 aggregate limits for bodily injury and property damage ___ Coverage for X, C, U hazards MUST be evidenced on the Certificate of Insurance _:__ Auto Liability Insurance with coverage as indicated: _:__ $2,000,000 combined single limit for bodily injury and property damage ___ $500,000 combined single limit for bodily injury and property damage ___ Garage keepers’ extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the consultant, regardless of where the vehicles are kept or driven. _:__ Professional/Errors and Omissions Liability (“E&O”) with coverage as indicated: _:_ $1,000,000 per loss/ $2,000,000 aggregate ___ $5,000,000 per loss/ $5,000,000 aggregate Village Creek Trail Project Design Alta Planning and Design 66 Form Rev. 2.18.2015 Exhibit B – Page 2 of 4 Design Services _:__ Workers' Compensation as required by the State of California, with statutory limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. The Employer's Liability policy shall be endorsed to waive any right of subrogation against the City, its employees or agents. All subcontractors used must comply with the above requirements except as noted below: General Requirements As to all of the checked insurance requirements above, the following shall apply: 1. Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: x The City, its officers, officials, employees, agents and volunteers (each an “additional insured”) are to be covered as insureds with the same coverage and limits available to the named insured regarding: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Contractor; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of the protection afforded to the City, its officers, officials, employees, agents or volunteers. Any available insurance proceeds broader than or in excess of the minimum insurance coverage requirements and/or limits specified in this agreement shall be available to the additional insured. The requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured; whichever is greater. The additional insured coverage under Consultant’s policy shall be ''primary and non-contributory" and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13. This requirement does not apply to errors and omissions insurance. x Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. x The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Deductibles and Self Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials and employees; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. The Village Creek Trail Project Design Alta Planning and Design 67 Form Rev. 2.18.2015 Exhibit B – Page 3 of 4 Design Services limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. 3. Waiver of Subrogation. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of Consultant may acquire against City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether City has received a waiver of subrogation endorsement from the insurer. 4. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this Exhibit. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require at any time complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications and failure to exercise this right shall not constitute a waiver of any of City’s rights pursuant to this agreement. 5. Maintenance of Coverage. Consultant shall not cancel, assign, or change any policy of insurance required by this agreement or engage in any act or omission that will cause its insurer to cancel any insurance policy required by this agreement except after providing 30 days prior notice to the City. If an insurance policy required by this agreement is unilaterally cancelled or changed by the insurer, Consultant shall immediately provide written notice to the City and obtain substitute insurance meeting the requirements of this agreement. Nothing in this paragraph relieves Consultant of its obligation to maintain all insurance required by this agreement at all times during the term of the agreement. 6. Claims Made Policies. If any of the required policies provide claims-made coverage, the coverage shall be maintained for a period of five years after completion of the contract. Consultant may satisfy this requirement by renewal of existing coverage or purchase of either prior acts or tail coverage applicable to said five-year period. 7. Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A: VII. 8. Subcontractors. Consultant agrees to include with all subcontractors in their subcontract the same requirements and provisions of this agreement including the indemnity and insurance requirements to the extent they apply to the scope of the subcontractor's work. Subcontractors hired by Consultant shall agree to be bound to Consultant and City in the same manner and to the same extent as Consultant is bound to the City under this agreement. Subcontractors shall further agree to include these same provisions with any sub-subcontractor. Consultant shall provide subcontractor with a copy of the indemnity and insurance provisions of this agreement as a part of Consultant’s subcontract with subcontractor. Consultant shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior to commencement of any work and will provide proof of compliance to the City. Village Creek Trail Project Design Alta Planning and Design 68 Form Rev. 2.18.2015 Exhibit B – Page 4 of 4 Design Services 9. Special Risks or Circumstances. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. -End of Exhibit B- Village Creek Trail Project Design Alta Planning and Design 69 Form Rev. 2.18.2015 Exhibit C – Page 1 of 10 Design Services Exhibit C General Provisions 1. INDEPENDENT CONTRACTOR. City requires the services of a qualified contractor to provide the work product described in Exhibit A because it lacks the qualified personnel to provide the specified work product. Consultant is qualified to provide the required work product and is agreeable to providing such work product on the terms and conditions in this agreement. 1.1 In General. At all times during the term of this agreement, Consultant shall be an independent contractor and shall not be an employee of City. Consultant shall complete the Scope of Work hereunder in accordance with currently approved methods and practices in Consultant's field. No relationship of employer and employee is created by this agreement between the City and Consultant or any subcontractor or employee of Consultant. City shall have the right to control Consultant only with respect to specifying the results to be obtained from Consultant pursuant to this agreement. City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this agreement. Any terms in this agreement referring to direction from City shall be construed as providing for direction as to policy and the result of the Consultant’s work only, and not as to the means by which such a result is obtained. 1.2 Non-Exclusive Contract. Nothing contained in this agreement shall be construed as limiting the right of Consultant to engage in Consultant's profession separate and apart from this agreement so long as such activities do not interfere or conflict with the performance by Consultant of the obligations set forth in this agreement. Interference or conflict will be determined at the sole discretion of the City. 1.3 Standard of Care. Consultant shall complete the Scope of Work required pursuant to this agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All work product of whatsoever nature which Consultant delivers to City pursuant to this agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Consultant’s profession. 1.4 Qualifications. Consultant represents and warrants to City that the Consultant is qualified to perform the services as contemplated by this agreement and that all work performed under this agreement shall be performed only by personnel under the supervision of the Consultant as an employee or, if authorized by the Scope of Work, a subcontractor. All personnel engaged in the work shall be fully qualified and shall be authorized, licensed and certified under state and local law to perform such work if authorization, licensing or certification is required. The Consultant Village Creek Trail Project Design Alta Planning and Design 70 Form Rev. 2.18.2015 Exhibit C – Page 2 of 10 Design Services shall commit adequate resources and time to complete the project within the project schedule specified in this agreement. 1.5 Professional Seal. Where applicable in the determination of the Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility" as per the sample below. ______________________________ Seal and Signature of Registered Professional with report/design responsibility. 1.6 Use of City Equipment. City shall not be responsible for any damage to persons or property as a result of the use, misuse or failure of any equipment used by Consultant, or by any of its employees, even though such equipment be furnished, rented or loaned to Consultant by City. 1.7 Payment of Taxes and Other Expenses. Should City, in its discretion, or a relevant taxing authority, including, but not limited to the Internal Revenue Service or the State Employment Development Division, determine that the Consultant is an employee for purposes of collection of any employment taxes, the amounts payable under this agreement shall be reduced by amounts equal to both the employee and employer portions of the tax due (and offsetting any credits for amounts already paid by the Consultant which can be applied against this liability). City shall then forward those amounts to the relevant taxing authority. Should a relevant taxing authority determine a liability for past services performed by the Consultant for City, upon notification of such fact by the City, the Consultant shall promptly remit such amount due or arrange with the City to have the amount due withheld from future payments to the Consultant under this agreement (again, offsetting any amounts already paid by the Consultant which can be applied as a credit against such liability). Any determination of employment status above shall be solely for the purposes of the particular tax in question, and for all other purposes of this agreement, The Consultant shall not be considered an employee of City. Notwithstanding the foregoing, should any court, arbitrator, or administrative authority determine that the Consultant is an employee for any other purpose, then the Consultant agrees to a reduction in the City's financial liability so that the City's total expenses under this agreement are not greater than they would have been had the court, arbitrator, or administrative authority determined that the Consultant was not an employee. Village Creek Trail Project Design Alta Planning and Design 71 Form Rev. 2.18.2015 Exhibit C – Page 3 of 10 Design Services 2. COMMUNICATION AND NOTICES. The Administrator designated in section 4 on page 1 of this agreement is authorized to receive information, interpret and define City's policies consistent with this agreement, and communicate with Consultant concerning this agreement. All correspondence and other communications shall be directed to or through the Administrator or the Administrator’s designee. 2.1 In General. All notices or communication concerning a party's compliance with the terms of this agreement shall be in writing and may be given either personally, by certified mail, return receipt requested, or by overnight express carrier. The notice shall be deemed to have been given and received on the date delivered in person or the date upon which the postal authority or overnight express carrier indicates that the mailing was delivered to the address of the receiving party. The parties shall make good faith efforts to provide advance courtesy notice of any notices or communications hereunder via e-mail. However, under no circumstances shall such courtesy notice satisfy the notice requirements set forth above; nor shall lack of such courtesy notice affect the validity of service pursuant to the notice requirement set forth above. 2.2 Addresses for Notice. Notices or communications shall be given to the parties at the addresses set forth in section 4 (“Contract Administration”) unless otherwise designated in a written notice to the other party. In addition, notices to City shall be copied to: James Lindsay City Manager City of Saratoga 13777 Fruitvale Avenue Saratoga, CA 95070 Crystal Bothelio City Clerk City of Saratoga 13777 Fruitvale Avenue Saratoga, CA 95070 These copies shall not constitute notice. 2.3 Change of Address. Any party hereto, by giving ten (10) days written notice to the other, may designate any other address as substitution of the address to which the notice or communication shall be given. 3. PAYMENT. The payments specified in this paragraph shall be the only payments to be made to Consultant in connection with Consultant’s completion of the Scope of Work pursuant to this agreement. Reimbursable expenses shall be billed only at their actual cost. Consultant shall submit all billings to City and City shall pay such billings in the manner specified in this paragraph. Payment shall be made payable to Consultant and delivered to the address specified in section 4 on page 1 of this agreement. The making of any payment by City, or the receipt thereof by the Consultant, shall in no way lessen the liability of the Consultant to correct or revise unsatisfactory work, even though the unsatisfactory character of such work may not have been apparent or detected at the time such payment was made. City may withhold payment to Consultant in any instance in which the Consultant has failed or refused to satisfy any material obligation provided for Village Creek Trail Project Design Alta Planning and Design 72 Form Rev. 2.18.2015 Exhibit C – Page 4 of 10 Design Services in this agreement. In no event shall City be liable for interest or late charges for any late payments. 3.1 Time and Materials. If this contract is designated as a Time and Materials contract on page 1, invoicing and payment shall be as follows: (a)Consultant shall submit invoices, not more often than once a month during the term of this agreement, based on the cost for work performed in accordance with the Rate Schedule in the Scope of Work and authorized reimbursable expenses incurred prior to the invoice date. Invoices shall contain the following information: (i)Serial identifications of bills, i.e., Bill No. 1; (ii)The beginning and ending dates of the billing period; (iii)A summary containing the total contract amount, the amount of prior billings, the total due this period, percentage of work completed, the remaining balance available for all remaining billing periods, and a brief description of work completed during the billing period. (b)City shall make monthly payments, based on such invoices, for satisfactory progress in completion of the Scope of Work, and for authorized reimbursable expenses incurred. 3.2 Lump Sum. If this contract is designated as a Lump Sum contract on page 1 following completion of the work Consultant shall submit a single invoice containing the beginning and ending dates of the billing period and the total contract amount. City shall make a single payment, based on such invoice, for satisfactory completion of the Scope of Work. 4. CONTRACTOR NOT AGENT.Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this agreement to bind City to any obligation whatsoever. 5. BENEFITS AND TAXES. Consultant shall not have any claim under this agreement or otherwise against City for seniority, vacation time, vacation pay, sick leave, personal time off, overtime, health insurance, medical care, hospital care, insurance benefits, social security, disability, unemployment, workers compensation or employee benefits of any kind. Consultant shall be solely liable for and obligated to pay directly all applicable taxes, including, but not limited to, federal and state income taxes, and in connection therewith Consultant shall indemnify and hold City harmless from any and all liability that City may incur because of Consultant's failure to pay such taxes. City shall have no obligation whatsoever to pay or withhold any taxes on behalf of Consultant. Village Creek Trail Project Design Alta Planning and Design 73 Form Rev. 2.18.2015 Exhibit C – Page 5 of 10 Design Services 6. ASSIGNMENT PROHIBITED. The services to be performed by the Consultant are personal in character and no party to this agreement may assign any right or obligation under this agreement. Any attempted or purported assignment of any right or obligation under this agreement shall be void and of no effect. However, with the consent of the City given in writing, Consultant is entitled to subcontract such portions of the work to be performed under this agreement as may be specified by City. 7. PERSONNEL. Consultant shall assign only competent personnel to complete the Scope of Work pursuant to this agreement. In the event that City, in its sole discretion, at any time during the term of this agreement, desires the removal of any such persons, Consultant shall, immediately upon receiving notice from city of such desire of City, cause the removal of such person or persons from work in connection with the Scope of Work. 8. CONFLICT OF INTEREST. 8.1 In General. Consultant understands that its professional responsibility is solely to City. Consultant represents and warrants that it presently has no interest, and will not acquire any direct or indirect interest, that would conflict with its performance of this agreement. Consultant shall not employ or subcontract with a person having such an interest in the performance of this agreement. 8.2 Subsequent Conflict of Interest. Consultant agrees that if an actual or potential conflict of interest on the part of Consultant is discovered after award, the Consultant will make a full disclosure in writing to the City. This disclosure shall include a description of actions, which the Consultant has taken or proposes to take, after consultation with the City to avoid, mitigate, or neutralize the actual or potential conflict. Within 45 days, the Consultant shall have taken all necessary steps to avoid, mitigate, or neutralize the conflict of interest to the satisfaction of the City. 8.3 Interests of City Officers and Staff. No officer, member or employee of City and no member of the City Council shall have any pecuniary interest, direct or indirect, in this agreement or the proceeds thereof. Neither Consultant nor any member of any Consultant’s family shall serve on any City board or committee or hold any such position which either by rule, practice or action nominates, recommends, or supervises Consultant's performance of the Scope of Work or authorizes funding to Consultant. 9. COMPLIANCE WITH LAWS 9.1 In General. Consultant shall keep itself fully informed of and comply with all laws, policies, general rules and regulations established by City and shall comply with the common law and all laws, ordinances, codes and regulations of governmental agencies, (including federal, state, municipal and local governing bodies) applicable to the performance of the Scope of Work hereunder. Village Creek Trail Project Design Alta Planning and Design 74 Form Rev. 2.18.2015 Exhibit C – Page 6 of 10 Design Services 9.2 Licenses and Permits. Consultant represents and warrants to City that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession. In addition to the foregoing, Consultant shall obtain and maintain during the term hereof a valid City of Saratoga Business License. 10. WORK PRODUCT AND RECORDS 10.1 Property of City. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by Consultant pursuant to this agreement shall become the property of City upon completion of the work to be performed hereunder or upon termination of this agreement. Without limiting the generality of the foregoing, if, in connection with services performed under this agreement, the Consultant or its subcontractors create artwork, copy, posters, billboards, photographs, videotapes, audiotapes, systems designs, software, reports, diagrams, surveys, source codes or any other original works of authorship, such works of authorship shall be works for hire as defined under Title 17 of the United States Code, and all copyrights in such works are the property of City. If it is ever determined that any works created by the Consultant or its subcontractors under this agreement are not works for hire under U.S. law, the Consultant hereby assigns all copyrights to such works to City, grants City a royalty-free, exclusive, and irrevocable license to reproduce, publish, use, and to authorize others to do so, all such works and agrees to provide any material and execute any documents necessary to effectuate such assignment and license. The Consultant may retain and use copies of such works for reference and as documentation of its experience and capabilities. 10.2 Intellectual Property. Consultant represents and warrants that it has the legal right to utilize all intellectual property it will utilize in the performance of this agreement. Consultant further represents that it shall ensure City has the legal right to utilize all intellectual property involved in and/or resulting from Consultant’s performance of this agreement. Consultant shall indemnify and hold City harmless from all loss and liability, including attorneys’ fees, court costs and all other litigation expenses for any infringement of the patent rights, copyright, trade secret or any other proprietary right or trademark, and all other intellectual property claims of any person or persons in consequence of the use by City, or any of its officers or agents, of articles or services to be supplied in the performance of this agreement. 10.3 Retention of Records. Until the expiration of five years after the furnishing of any services pursuant to this agreement, Consultant shall retain and make available to the City or any party designated by the City, upon written request by City, this agreement, and such books, documents and records of Consultant (and any books, documents, and records of any subcontractor(s)) that are necessary or Village Creek Trail Project Design Alta Planning and Design 75 Form Rev. 2.18.2015 Exhibit C – Page 7 of 10 Design Services convenient for audit purposes to certify the nature and extent of the reasonable cost of services to City. 10.4 Use of Recycled Paper and Electronic Documents. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. Documents shall be printed on both sides of the page and City shall be provided with electronic copies of documents (in Word or .pdf format) except where unusual circumstances make it infeasible to do so. 11. CONFIDENTIAL INFORMATION. Consultant shall hold any confidential information received from City in the course of performing this agreement in trust and confidence and will not reveal such confidential information to any person or entity, either during the term of the agreement or at any time thereafter. Upon expiration of this agreement, or termination as provided herein, Consultant shall return materials which contain any confidential information to City. Consultant may keep one copy for its confidential file. For purposes of this paragraph, confidential information is defined as all information disclosed to Consultant which relates to City's past, present, and future activities, as well as activities under this agreement, which information is not otherwise of public record under California law. 12. RESPONSIBILITY OF CONTRACTOR. Consultant shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to Consultant, to any subcontractor, to the City, to City officers and employees, or to parties designated by the City, on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes to the extent predicated on active or passive negligence of the Consultant or of any subcontractor. 13. INDEMNIFICATION. To the fullest extent permitted by law, Consultant shall immediately defend, indemnify, and hold harmless City, its Council members, employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs (including, without limitation, costs and fees of alternative dispute resolution and litigation) of any kind whatsoever without restriction or limitation, incurred arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of Consultant or its employees, agents, or subcontractors. All obligations under this provision are to be paid by Consultant as they are incurred by the City. Consultant’s obligation to indemnify applies unless it is finally adjudicated that the liability was caused by the sole active negligence or sole willful misconduct of an indemnified party. If it is finally adjudicated that liability is caused by the comparative active negligence or willful misconduct of an indemnified party, then Consultant’s indemnification obligation shall be reduced in proportion to the established comparative liability. 13.1 Scope of Consultant Obligation. The obligations of Consultant under this or any other provision of this agreement will not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its employees and officials. Village Creek Trail Project Design Alta Planning and Design 76 Form Rev. 2.18.2015 Exhibit C – Page 8 of 10 Design Services 13.2 Subcontractors. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this section from each and every subcontractor, sub tier contractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance or subject matter of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. 13.3 Duty to Defend. In addition to Consultant’s obligation to indemnify, Consultant shall defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by the City, the City, its Council members, employees, agents and officials, immediately upon tender to Consultant of the claim in any form or at any stage of an action or proceeding, whether or not liability is established. An allegation or determination that persons other than Consultant are responsible for the claim does not relieve Consultant from its separate and distinct obligation to defend. The obligation to defend extends through final judgment, including exhaustion of any appeals. The defense obligation includes an obligation to provide independent defense counsel if Consultant asserts that liability is caused in whole or in part by the negligence or willful misconduct of the indemnified party. If it is finally adjudicated that liability was caused by the comparative active negligence or willful misconduct of an indemnified party, Consultant may submit a claim to the City for reimbursement of reasonable attorneys’ fees and defense costs in proportion to the established comparative liability of the indemnified party. 13.4 In General. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns, or heirs of Consultant and shall survive the termination of this agreement or this section. This section 13 shall in no event be construed to require indemnification by Contractor to a greater extent than permitted under the public policy of the State of California. For purposes of Section 2782 of the Civil Code the parties hereto recognize and agree that this agreement is not a construction contract. By execution of this agreement, Consultant acknowledges and agrees that it has read and understands the provisions hereof and that this paragraph is a material element of consideration. City approval of insurance required by this agreement does not relieve the Consultant or subcontractors from liability under this paragraph. 14. DEFAULT AND REMEDIES. 14.1 Events of default. Each of the following shall constitute an event of default hereunder: (a)Failure by Consultant to perform any obligation under this agreement and failure to cure such breach immediately upon receiving notice of such Village Creek Trail Project Design Alta Planning and Design 77 Form Rev. 2.18.2015 Exhibit C – Page 9 of 10 Design Services breach, if the breach is such that the City determines the health, welfare, or safety of the public is immediately endangered; or (b)Failure by either party to perform any obligation under this agreement and failure to cure such breach within fifteen (15) days of receiving notice of such breach (except for breaches subject to subparagraph (a), above); provided that if the nature of the breach is such that the non-breaching party determines it will reasonably require more than fifteen (15) days to cure, the breaching party shall not be in default if it promptly commences the cure and diligently proceeds to completion of the cure. 14.2 Remedies upon default. Upon any default, the non-defaulting party shall have the right to immediately suspend or terminate this agreement, seek specific performance and/or seek damages to the full extent allowed by law. City shall have the right to contract with another party to perform this agreement. 14.3 No Waiver. Failure by City to seek any remedy for any default hereunder shall not constitute a waiver of any other rights hereunder or any right to seek any remedy for any subsequent default. 15. TERMINATION.Either party may terminate this agreement with or without cause by providing 10 days notice in writing to the other party. The City may terminate this agreement at any time without prior notice in the event that Consultant commits a material breach of the terms of this agreement. Upon termination, this agreement shall become of no further force or affect whatsoever and each of the parties hereto shall be relieved and discharged from the rights and obligations of this agreement, subject to payment for acceptable services rendered prior to the expiration of the notice of termination and delivery to City of any work in progress, completed work, supplies, equipment, and other materials produced as a part of, or acquired in connection with the performance of this agreement, and any completed or partially completed work which, if this agreement had been completed, would have been required to be furnished to City. Notwithstanding the foregoing and section 2 on page 1, this section and the provisions of this agreement concerning insurance (Exhibit B), Funding Agency Requirements (as set forth in Exhibit D if applicable), Work Product and Records, Confidential Information, Responsibility of Consultant, Indemnification, Default and Remedies, Litigation, and Jurisdiction and Severability shall survive termination or expiration of this agreement. 16. DISPUTE RESOLUTION. The parties shall make a good faith effort to settle any dispute or claim arising under this agreement. If the parties fail to resolve such disputes or claims, they shall submit them to non-binding mediation in California at shared expense of the parties for at least 8 hours of mediation. If mediation does not arrive at a satisfactory result, arbitration, if agreed to by all parties, or litigation may be pursued. In the event any dispute resolution processes are involved, each party shall bear its own costs and attorneys fees. Village Creek Trail Project Design Alta Planning and Design 78 Form Rev. 2.18.2015 Exhibit C – Page 10 of 10 Design Services 17. LITIGATION. If any litigation is commenced between parties to this agreement concerning any provision hereof or the rights and duties of any person in relation thereto, each party shall bear its own attorneys’ fees and costs. 18. JURISDICTION AND SEVERABILITY. This agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this agreement shall be in that state and venue shall be in Santa Clara County, California. If any part of this agreement is found to conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with said laws, but the remainder of this agreement shall be in full force and effect. 19. NOTICE OF NON-RENEWAL. Consultant understands and agrees that there is no representation, implication, or understanding that the City will request that work product provided by Consultant under this agreement be supplemented or continued by Consultant under a new agreement following expiration or termination of this agreement. Consultant waives all rights or claims to notice or hearing respecting any failure by City to continue to request or retain all or any portion of the work product from Consultant following the expiration or termination of this agreement. 20. PARTIES IN INTEREST. This agreement is entered only for the benefit of the parties executing this agreement and not for the benefit of any other individual, entity or person. 21. WAIVER. Neither the acceptance of work or payment for work pursuant to this agreement shall constitute a waiver of any rights or obligations arising under this agreement. The failure by the City to enforce any of Consultant’s obligations or to exercise City's rights shall in no event be deemed a waiver of the right to do so thereafter. -End of Exhibit C- Village Creek Trail Project Design Alta Planning and Design 79 Form Rev.2.18.2015 Exhibit E – Page 1 of 1 Design Services Exhibit E Special Conditions 1) Contractor shall perform only Tasks 1 and 2.1, as described in Exhibit A, unless and until the Contractor Administrator provides written authorization to proceed with one or more of the remaining tasks. Contractor is not authorized to receive payment in excess of the $11,772 allocated for Tasks 1 and 2.1, as described in Exhibit A, unless additional tasks are authorized. 2) Exhibit C, Section 11 is replaced in its entirety with the following: 11. CONFIDENTIAL INFORMATION. Consultant shall hold any confidential information received from City in the course of performing this agreement in trust and confidence and will not reveal such confidential information to any person or entity, either during the term of the agreement or at any time thereafter. Upon expiration of this agreement, or termination as provided herein, Consultant shall return materials which contain any confidential information to City. Consultant may keep one copy for its confidential file. For purposes of this paragraph, confidential information is defined as all information disclosed to Consultant that has been declared or can be reasonably assumed to be confidential which relates to City's past, present, and future activities, as well as activities under this agreement, which information is not otherwise of public record under California law. -End of Exhibit E - Village Creek Trail Project Design Alta Planning and Design 80 81 82 83 84 85 86 87 88 RECORDING REQUESTED BY: City of Saratoga WHEN RECORDED MAIL TO: City Clerk City of Saratoga 13777 Fruitvale Avenue Saratoga, California 95070 RESOLUTION NO. ______ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ACCEPTING OFFER TO DEDICATE PEDESTRIAN TRAIL EASEMENT APN 503-24-081 WHEREAS, the City of Saratoga (“City”) General Plan shows a future proposed public pedestrian trail along Saratoga Creek behind Big Basin Way located partially on private properties; and WHEREAS, Mr. James Rosenfeld and Mrs. Arlene Rosenfeld (“Owners”) own APN 503-24-081, one of the properties on which the future proposed public pedestrian trail is planned to be located, have agreed to dedicate a pedestrian trail easement on this property to the City of Saratoga; and WHEREAS, the Offer to Dedicate Pedestrian Trail Easement (“Offer”) by Owners to City of the property located at Big Basin Way, and known as Santa Clara County APN 503-24-081 has been prepared and executed in acceptable form and content; and WHEREAS, the City Council has determined that the acceptance of the Offer would be in the public interest. NOW, THEREFORE, BE IT RESOLVED that the CITY COUNCIL OF THE CITY OF SARATOGA hereby: 1. Accepts that certain Offer to Dedicate Pedestrian Trail Easement executed by James Rosenfeld and Arlene Rosenfeld on the 30th day of June 2014 as described hereinabove and attached hereto; and 2. Authorizes and directs the City Manager to execute the attached Certificate of Acceptance and the City Clerk to record the Offer to Dedicate Pedestrian Trail Easement and this Resolution Accepting the Offer. 89 Passed and adopted on the 6th day of May, 2015 by the CITY COUNCIL OF THE CITY OF SARATOGA by the following vote of the members thereof: AYES: NOES: ABSENT: ABSTAIN: ______________________ Howard A. Miller, Mayor City of Saratoga Attest: _______________________ Crystal Bothelio, City Clerk 90 CERTIFICATE OF ACCEPTANCE (Pursuant to Cal. Gov’t Code § 27281) This is to certify that the interest in real property conveyed by the OFFER TO DEDICATE PEDESTRIAN TRAIL EASEMENT dated June 30, 2014 (attached hereto as Exhibit A) from JAMES ROSENFELD and ARLENE ROSENFELD to the CITY OF SARATOGA, a Municipal Corporation, is hereby accepted by the undersigned officer on behalf of the City Council of the City of Saratoga, pursuant to authority conferred by Resolution No. ________ of the City Council, adopted on May 6, 2015, and grantee consents to recordation thereof by its duly authorized officer . Dated: ___________________________ By _________________________________ James Lindsay, City Manager CITY OF SARATOGA Encl. Exhibit A – [OFFER TO DEDICATE PEDESTRIAN TRAIL EASEMENT] 91 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Manager’s Office PREPARED BY: Crystal Bothelio SUBJECT: Resolution of Support for Senate Bill 16 RECOMMENDED ACTION: Adopt resolution of support for Senate Bill 16. BACKGROUND: In December 2014, State Senator Jim Beall introduced Senate Bill (SB) 16 to provide additional funding for State and local roadways. If SB 16 is signed into law, it would: increase motor vehicle fuel (gasoline) taxes by $0.10 per gallon; increase the diesel fuel excise tax by $0.12 per gallon; increase the annual vehicle registration fee by $35; and create a new vehicle registration fee of $100 for zero-emission vehicles. SB 16 is expected to ge annually. Money generated from these increases would be deposited into a new Road Maintenance and Rehabilitation Program, which would be required to be authorized every 5 years. The funding in the Road Maintenance and Rehabilitation Program transportation debt and for maintenance of State and local highways and streets. Roughly 48 percent of the funds would be distributed among California counties and cities based on a specified formula. Preliminary estimates Saratoga could receive $649,004 to $834,433 per year if SB 16 is approved. If the Road Maintenance and Rehabilitation Program is not authorized, the funds generated from increased gasoline and diesel taxes and changes to vehicle registration fees would be deposited in the State Highway Account to be used for maintaining the State highway system or for highway operations and protection. ATTACHMENTS: Attachment A - Resolution of Support for Attachment B - SB 16 Text SARATOGA CITY COUNCIL City Manager’s Office Crystal Bothelio, City Clerk Resolution of Support for Senate Bill 16 Adopt resolution of support for Senate Bill 16. In December 2014, State Senator Jim Beall introduced Senate Bill (SB) 16 to provide additional funding for State and local roadways. If SB 16 is signed into law, it would: increase motor (gasoline) taxes by $0.10 per gallon; increase the diesel fuel excise tax by $0.12 per gallon; increase the annual vehicle registration fee by $35; and create a new vehicle registration emission vehicles. SB 16 is expected to generate $2.8 to $3.6 billion Money generated from these increases would be deposited into a new Road Maintenance and , which would be required to be authorized every 5 years. The funding in tation Program would be used to pay down State transportation debt and for maintenance of State and local highways and streets. Roughly 48 percent of the funds would be distributed among California counties and cities based on a ary estimates from the League of California Cities suggest that Saratoga could receive $649,004 to $834,433 per year if SB 16 is approved. If the Road Maintenance and Rehabilitation Program is not authorized, the funds generated from increased diesel taxes and changes to vehicle registration fees would be deposited in the State Highway Account to be used for maintaining the State highway system or for highway Resolution of Support for SB 16 In December 2014, State Senator Jim Beall introduced Senate Bill (SB) 16 to provide additional funding for State and local roadways. If SB 16 is signed into law, it would: increase motor (gasoline) taxes by $0.10 per gallon; increase the diesel fuel excise tax by $0.12 per gallon; increase the annual vehicle registration fee by $35; and create a new vehicle registration nerate $2.8 to $3.6 billion Money generated from these increases would be deposited into a new Road Maintenance and , which would be required to be authorized every 5 years. The funding in transportation debt and for maintenance of State and local highways and streets. Roughly 48 percent of the funds would be distributed among California counties and cities based on a suggest that Maintenance and Rehabilitation Program is not authorized, the funds generated from increased diesel taxes and changes to vehicle registration fees would be deposited in the State 92 RESOLUTION NO. 15-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA IN SUPPORT OF SENATE BILL 16 (BEALL) WHEREAS, many California cities and counties are struggling to maintain roadways and as street conditions deteriorate repair costs increase exponentially; and WHEREAS, Senate Bill (SB) 16 authored by State Senator Jim Beall proposes to provide a reliable funding source for maintenance of State and local roads; and WHEREAS, SB 16 would increase motor vehicle fuel taxes by $0.10 per gallon, diesel fuel excise taxes by $0.12 per gallon, vehicle registration fees by $35, and create a new vehicle registration fee of $100 for zero-emission vehicles; and WHEREAS, the increases in fuel taxes and vehicle registration fees is expected to raise $2.8 to $3.6 billion annually; and WHEREAS, this funding would be applied toward a new Road Maintenance and Rehabilitation Program and be distributed among the State and local governments; and WHEREAS, just under half of the funding would be distributed to counties and cities in California by formula; and WHEREAS, if SB 16 is adopted, Saratoga is estimated to receive $649,004 to $834,433 per year. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Saratoga does hereby support SB 16 and urges the California State Legislature and the Governor of California to sign this bill into law. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 6th day of May 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Howard A. Miller, Mayor ATTEST: DATE: Crystal Bothelio, City Clerk 93 AMENDED IN SENATE APRIL 15, 2015 AMENDED IN SENATE MARCH 26, 2015 AMENDED IN SENATE MARCH 2, 2015 SENATE BILL No. 16 Introduced by Senator Beall December 1, 2014 An act to add Section 14526.7 to the Government Code, relating to transportation. An act to add Sections 14526.7, 14526.8, and 16321 to the Government Code, to amend Sections 7360, 10752, and 60050 of the Revenue and Taxation Code, to add Section 2103.1 to, and to add Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sections 9250.3, 9250.6, and 9400.5 to the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest SB 16, as amended, Beall. Department of Transportation: budgetary cost-savings plan: state highway operation and protection program. Transportation funding. (1)  Existing law provides various of sources of funding for transportation purposes, including funding for the state highway system and the local street and road system. These funding sources include, among others, fuel excise taxes, commercial vehicle weight fees, local transactions and use taxes, and federal funds. Existing law imposes certain registration fees on vehicles, with revenues from these fees deposited in the Motor Vehicle Account and used to fund the Department of Motor Vehicles and the Department of the California Highway Patrol. 96 94 Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account. This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. The bill would provide for the program to be authorized every 5 years by the Legislature, and would provide that authorization for the 2015–16 through 2019–20 fiscal years. The bill would require the California Transportation Commission to identify the estimated funds to be available for the program and adopt performance criteria to ensure efficient use of the funds. The bill would provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the bill would create in the State Transportation Fund, including revenues from a $0.10 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill and $0.10 of the $0.12 per gallon increase in the diesel fuel excise tax imposed by the bill, an increase of $35 in the annual vehicle registration fee, a new $100 annual vehicle registration fee applicable to zero-emission motor vehicles, as defined, commercial vehicle weight fees redirected over a 5-year period from debt service on general obligation transportation bonds, and repayment, over a 3-year period, of outstanding loans made in previous years from certain transportation funds to the General Fund. The bill would continuously appropriate the funds in the account for road maintenance and rehabilitation purposes for each 5-year period in which the Legislature has authorized the program, and would, for those fiscal years, allocate 5% of available funds to counties that approve a transactions and use tax on or after July 1, 2015, with the remaining funds to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program, and 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on agencies receiving these funds. This bill, in fiscal years in which the Road Maintenance and Rehabilitation Program is not reauthorized by the Legislature, would make inoperative the increases in the gasoline and diesel excise tax rates and the $35 increase in the vehicle registration fee imposed by the bill. The bill, in those fiscal years, would also provide for the deposit of revenues from the $100 vehicle registration fee applicable to zero-emission vehicles, and weight fee revenues, in the State Highway 96 — 2 —SB 16 95 Account, to be used for purposes of maintaining the state highway system or the state highway operation and protection program. (2) The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement, and specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes. The bill would transfer revenues from $0.02 of the $0.12 increase in the diesel fuel excise tax to the Trade Corridors Investment Fund for expenditure on eligible projects. As with the remainder of the gasoline and diesel fuel tax increases imposed by this bill, this portion of the diesel fuel excise tax increase would be inoperative in fiscal years in which the Road Maintenance and Rehabilitation Program in (1) is not reauthorized. (3)  Existing law imposes a vehicle license fee, in lieu of property tax, on motor vehicles based on market value, at a rate of 0.65%. Pursuant to Article XI of the California Constitution, vehicle license fee revenues at the 0.65% rate are required to be allocated to cities and counties. This bill would incrementally increase the vehicle license fee to a rate of 1%, over a 5-year period beginning July 1, 2015, with the revenues above the 0.65% rate to be deposited in the General Fund and used for transportation general obligation bond debt service. (4)  Existing law requires the Department of Transportation to prepare a state highway operation and protection program every other year for the expenditure of transportation capital improvement funds for projects that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. The program is required to be based on an asset management plan, as specified. Existing law requires the department to specify, for each project in the program, the capital and support budget and projected delivery date for various components of the project. Existing law provides for the California Transportation commission to review and adopt the program, and authorizes the commission to decline and adopt the program if it determines that the program is not sufficiently consistent with the asset management plan. 96 SB 16— 3 — 96 This bill, on and after February 1, 2017, would require the commission to make an allocation of all capital and support costs for each project in the program, and would require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. the bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project allocation requirement that the commission determines are necessary to ensure that projects are not unnecessarily delayed. (5)  Existing law requires the Department of Transportation to prepare and submit to the Governor a proposed budget and to develop budgeting, accounting, fiscal control, and management information systems to provide budget oversight. This bill, by April 1, 2016, would require the department to present to the California Transportation commission a plan to increase department efficiency by up to 30% over the subsequent 3 years, with the ongoing savings to result in increased capital expenditures in the state highway operation and protection program or an increase in the state highway maintenance program. (6)  This bill would declare that it is to take effect immediately as an urgency statute. (1)  Under existing law, the Department of Transportation is responsible for the planning, design, construction, maintenance, and operation of the state highway system. Existing law requires the department to prepare and submit to the Governor a proposed budget and to develop budgeting, accounting, fiscal control, and management information systems to provide budget oversight. Existing law authorizes the California Transportation Commission to prepare an independent evaluation of the department’s budget regarding the adequacy of funding levels and the relative needs of program categories and to submit its recommendations to the Legislature by April 1 of each year. This bill would require the Department of Transportation, by April 1, 2016, and as part of its budget for the 2016–17 fiscal year, to prepare a plan to identify up to $200,000,000 annually in cost savings from its budget, and to submit the plan to the appropriate policy committees of the Senate and the Assembly. (2)  Existing law requires the Department of Transportation to prepare a state highway operation and protection program every other year for the expenditure of transportation capital improvement funds for projects 96 — 4 —SB 16 97 that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. The program is required to be based on an asset management plan, as specified. Existing law requires the department to specify, for each project in the program, the capital and support budget and projected delivery date for various components of the project. Existing law provides for the California Transportation Commission to review and adopt the program, and authorizes the commission to decline to adopt the program if it determines that the program is not sufficiently consistent with the asset management plan. This bill, on and after February 1, 2016, would require the commission to make an allocation of all capital and support costs for each project in the program, and would require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. The bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project allocation requirement that the commission determines are necessary to ensure that projects are not unnecessarily delayed. Vote: majority 2⁄3. Appropriation: no yes. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  Over the next ten years, the state faces a $59 billion shortfall line 4 to adequately maintain the existing state highway system, in order line 5 to keep it in a basic state of good repair. line 6 (b)  Similarly, cities and counties face a $78 billion shortfall line 7 over the next decade to adequately maintain the existing network line 8 of local streets and roads. line 9 (c)  Statewide taxes and fees dedicated to the maintenance of line 10 the system have not been increased in more than 20 years, with line 11 those revenues losing more than 55 percent of their purchasing line 12 power, while costs to maintain the system have steadily increased line 13 and much of the underlying infrastructure has aged past its line 14 expected useful life. 96 SB 16— 5 — 98 line 1 (d)  California motorists are spending $17 billion annually in line 2 extra maintenance and car repair bills, which is more than $700 line 3 per driver, due to the state’s poorly maintained roads. line 4 (e)  Failing to act now to address this growing problem means line 5 that more drastic measures will be required to maintain our system line 6 in the future, essentially passing the burden on to future line 7 generations instead of doing our job today. line 8 (f)  A five-year funding program will help address a portion of line 9 the maintenance backlog on the state’s road system and will stop line 10 the growth of the problem until a longer-term solution can be line 11 created. line 12 (g)  Modestly increasing various fees can spread the cost of road line 13 repairs broadly to all users and beneficiaries of the road network line 14 without over-burdening any one group. line 15 (h)  Improving the condition of the state’s road system will have line 16 a positive impact on the economy as it lowers the transportation line 17 costs of doing business, reduces congestion impacts for employees, line 18 and protects property values in the state. line 19 (i)  The federal government estimates that increased spending line 20 on infrastructure creates more than 13,000 jobs per $1 billion line 21 spent. line 22 (j)  Well-maintained roads benefit all users, not just drivers, as line 23 roads are used for all modes of transport, whether motor vehicles, line 24 transit, bicycles, or pedestrians. line 25 (k)  Well-maintained roads additionally provide significant health line 26 benefits and prevent injuries and death due to crashes caused by line 27 poorly-maintained infrastructure. line 28 SECTION 1. line 29 SEC. 2. Section 14526.7 is added to the Government Code, to line 30 read: line 31 14526.7. (a)  On and after February 1, 2016, 2017, an allocation line 32 by the commission of all capital and support costs for each project line 33 in the state highway operation and protection program shall be line 34 required. line 35 (b)  For a project that experiences increases in capital or support line 36 costs above the amounts in the commission’s allocation pursuant line 37 to subdivision (a), a supplemental project allocation request shall line 38 be submitted by the department to the commission for approval. line 39 (c)  The commission shall establish guidelines to provide line 40 exceptions to the requirement of subdivision (b) that the 96 — 6 —SB 16 99 line 1 commission determines are necessary to ensure that projects are line 2 not unnecessarily delayed. line 3 SEC. 2. The Department of Transportation shall, by April 1, line 4 2016, and as part of its budget for the 2016–17 fiscal year, prepare line 5 a plan to identify up to two hundred million dollars ($200,000,000) line 6 annually in cost savings from its budget, and shall submit the plan line 7 to the appropriate policy committees of the Senate and the line 8 Assembly. line 9 SEC. 3. Section 14526.8 is added to the Government Code, to line 10 read: line 11 14526.8. (a)  On or before April 1, 2016, the department shall line 12 present to the commission a plan to increase department efficiency line 13 by up to 30 percent over the subsequent three years. The ongoing line 14 savings experienced through this increased efficiency shall result line 15 in increased capital expenditures in the department’s state highway line 16 operation and protection program or an increase in the line 17 department’s state highway maintenance program. line 18 (b)  The commission shall consider the reasonableness of the line 19 proposal, and may approve the entire plan or reject all or portions line 20 of the plan. The commission’s feedback is intended to ensure that line 21 the department is achieving the savings in the most responsible line 22 way possible. line 23 (c)  All future state highway operation and protection program line 24 documents shall identify the increased funding available to the line 25 program as a result of the efficiencies realized due to the line 26 implementation of the plan. line 27 SEC. 4. Section 16321 is added to the Government Code, to line 28 read: line 29 16321. (a)  Notwithstanding any other law, on or before March line 30 1, 2016, the Department of Finance shall compute the amount of line 31 outstanding loans made from the State Highway Account, the line 32 Motor Vehicle Fuel Account, the Highway Users Tax Account, line 33 and the Motor Vehicle Account to the General Fund. The line 34 department shall prepare a loan repayment schedule, pursuant to line 35 which the outstanding loans shall be repaid to the accounts from line 36 which the loans were made, as follows: line 37 (1)  On or before June 30, 2016, 33 percent of the outstanding line 38 loan amounts. line 39 (2)  On or before June 30, 2017, 33 percent of the outstanding line 40 loan amounts. 96 SB 16— 7 — 100 line 1 (3)  On or before June 30, 2018, 34 percent of the outstanding line 2 loan amounts. line 3 (b)  Notwithstanding any other provision of law, as the loans line 4 are repaid pursuant to this section, the repaid funds shall be line 5 transferred to the Road Maintenance and Rehabilitation Account line 6 created pursuant to Section 2031 of the Streets and Highways line 7 Code. line 8 (c)  Funds for loan repayments pursuant to this section shall be line 9 appropriated from the Budget Stabilization Account pursuant to line 10 subclause (II) of clause (ii) of subparagraph (B) of paragraph (1) line 11 of subdivision (c) of Section 20 of Article XVI of the California line 12 Constitution. line 13 SEC. 5. Section 7360 of the Revenue and Taxation Code is line 14 amended to read: line 15 7360. (a)  (1)  (A)  A tax of eighteen cents ($0.18) is hereby line 16 imposed upon each gallon of fuel subject to the tax in Sections line 17 7362, 7363, and 7364. line 18 (B)  In addition to the tax imposed pursuant to subparagraph line 19 (A), a tax of ten cents ($0.10) is hereby imposed upon each gallon line 20 of fuel subject to the tax in Sections 7362, 7363, and 7364. This line 21 subparagraph shall be inoperative in any fiscal year in which the line 22 Road Maintenance and Rehabilitation Program has not been line 23 authorized, pursuant to subdivision (b) of Section 2030 of the line 24 Streets and Highways Code. line 25 (2)  If the federal fuel tax is reduced below the rate of nine cents line 26 ($0.09) per gallon and federal financial allocations to this state for line 27 highway and exclusive public mass transit guideway purposes are line 28 reduced or eliminated correspondingly, the tax rate imposed by line 29 subparagraph (A) of paragraph (1), on and after the date of the line 30 reduction, shall be recalculated by an amount so that the combined line 31 state rate under subparagraph (A) of paragraph (1) and the federal line 32 tax rate per gallon equal twenty-seven cents ($0.27). line 33 (3)  If any person or entity is exempt or partially exempt from line 34 the federal fuel tax at the time of a reduction, the person or entity line 35 shall continue to be so exempt under this section. line 36 (b)  (1)  On and after July 1, 2010, in addition to the tax imposed line 37 by subdivision (a), a tax is hereby imposed upon each gallon of line 38 motor vehicle fuel, other than aviation gasoline, subject to the tax line 39 in Sections 7362, 7363, and 7364 in an amount equal to seventeen line 40 and three-tenths cents ($0.173) per gallon. 96 — 8 —SB 16 101 line 1 (2)  For the 2011–12 fiscal year and each fiscal year thereafter, line 2 the board shall, on or before March 1 of the fiscal year immediately line 3 preceding the applicable fiscal year, adjust the rate in paragraph line 4 (1) in that manner as to generate an amount of revenue that will line 5 equal the amount of revenue loss attributable to the exemption line 6 provided by Section 6357.7, based on estimates made by the board, line 7 and that rate shall be effective during the state’s next fiscal year. line 8 (3)  In order to maintain revenue neutrality for each year, line 9 beginning with the rate adjustment on or before March 1, 2012, line 10 the adjustment under paragraph (2) shall also take into account the line 11 extent to which the actual amount of revenues derived pursuant to line 12 this subdivision and, as applicable, Section 7361.1, the revenue line 13 loss attributable to the exemption provided by Section 6357.7 line 14 resulted in a net revenue gain or loss for the fiscal year ending line 15 prior to the rate adjustment date on or before March 1. line 16 (4)  The intent of paragraphs (2) and (3) is to ensure that the act line 17 adding this subdivision and Section 6357.7 does not produce a net line 18 revenue gain in state taxes. line 19 SEC. 6. Section 10752 of the Revenue and Taxation Code is line 20 amended to read: line 21 10752. (a)  The annual amount of the license fee for any line 22 vehicle, other than a trailer or semitrailer, as described in line 23 subdivision (a) of Section 5014.1 of the Vehicle Code or a line 24 commercial motor vehicle described in Section 9400.1 of the line 25 Vehicle Code, or a trailer coach that is required to be moved under line 26 permit as authorized in Section 35790 of the Vehicle Code, shall line 27 be a sum equal to the following percentage of the market value of line 28 the vehicle as determined by the department: line 29 (1)  Sixty-five hundredths of 1 percent on and after January 1, line 30 2005, and before May 19, 2009. line 31 (2)  One percent for initial and renewal registrations due on and line 32 after May 19, 2009, but before July 1, 2011. line 33 (3)  Sixty-five hundredths of 1 percent for initial and renewal line 34 registrations due on and after July 1, 2011, but before July 1, 2015. line 35 (4)  Seventy-two hundredths of 1 percent for initial and renewal line 36 registrations due on and after July 1, 2015, but before July 1, 2016. line 37 (5)  Seventy-nine hundredths of 1 percent for initial and renewal line 38 registrations due on and after July 1, 2016, but before July 1, 2017. line 39 (6)  Eighty-six hundredths of 1 percent for initial and renewal line 40 registrations due on and after July 1, 2017, but before July 1, 2018. 96 SB 16— 9 — 102 line 1 (7)  Ninety-three hundredths of 1 percent for initial and renewal line 2 registrations due on and after July 1, 2018, but before July 1, 2019. line 3 (8)  One percent for initial and renewal registrations due on and line 4 after July 1, 2019. line 5 (b)  The annual amount of the license fee for any commercial line 6 vehicle as described in Section 9400.1 of the Vehicle Code, shall line 7 be a sum equal to 0.65 percent of the market value of the vehicle line 8 as determined by the department. line 9 (c)  Notwithstanding Chapter 5 (commencing with Section line 10 11001) or any other law to the contrary, all revenues (including line 11 penalties), less refunds, attributable to that portion of the rate line 12 imposed pursuant to this section in excess of 0.65 percent shall be line 13 deposited into the General Fund and shall be used for debt service line 14 on transportation general obligation bonds. line 15 SEC. 7. Section 60050 of the Revenue and Taxation Code is line 16 amended to read: line 17 60050. (a)  (1)  A tax of eighteen cents ($0.18) is hereby line 18 imposed upon each gallon of diesel fuel subject to the tax in line 19 Sections 60051, 60052, and 60058. line 20 (2)  If the federal fuel tax is reduced below the rate of fifteen line 21 cents ($0.15) per gallon and federal financial allocations to this line 22 state for highway and exclusive public mass transit guideway line 23 purposes are reduced or eliminated correspondingly, the tax rate line 24 imposed by paragraph (1), including any reduction or adjustment line 25 pursuant to subdivision (b), on and after the date of the reduction, line 26 shall be increased by an amount so that the combined state rate line 27 under paragraph (1) and the federal tax rate per gallon equal what line 28 it would have been in the absence of the federal reduction. line 29 (3)  If any person or entity is exempt or partially exempt from line 30 the federal fuel tax at the time of a reduction, the person or entity line 31 shall continue to be exempt under this section. line 32 (b)  (1)  On July 1, 2011, the tax rate specified in paragraph (1) line 33 of subdivision (a) shall be reduced to thirteen cents ($0.13) and line 34 every July 1 thereafter shall be adjusted pursuant to paragraphs line 35 (2) and (3). line 36 (2)  For the 2012–13 fiscal year and each fiscal year thereafter, line 37 the board shall, on or before March 1 of the fiscal year immediately line 38 preceding the applicable fiscal year, adjust the rate reduction in line 39 paragraph (1) in that manner as to result in a revenue loss line 40 attributable to paragraph (1) that will equal the amount of revenue 96 — 10 —SB 16 103 line 1 gain attributable to Sections 6051.8 and 6201.8, based on estimates line 2 made by the board, and that rate shall be effective during the state’s line 3 next fiscal year. line 4 (3)  In order to maintain revenue neutrality for each year, line 5 beginning with the rate adjustment on or before March 1, 2013, line 6 the adjustment under paragraph (2) shall take into account the line 7 extent to which the actual amount of revenues derived pursuant to line 8 Sections 6051.8 and 6201.8 and the revenue loss attributable to line 9 this subdivision resulted in a net revenue gain or loss for the fiscal line 10 year ending prior to the rate adjustment date on or before March line 11 1. line 12 (4)  The intent of paragraphs (2) and (3) is to ensure that the act line 13 adding this subdivision and Sections 6051.8 and 6201.8 does not line 14 produce a net revenue gain in state taxes. line 15 (c)  In addition to the tax imposed pursuant to subdivisions (a) line 16 and (b), an additional tax of twelve cents ($0.12) is hereby imposed line 17 upon each gallon of diesel fuel subject to the tax in Sections 60051, line 18 60052, and 60058. This subdivision shall be inoperative in any line 19 fiscal year in which the Road Maintenance and Rehabilitation line 20 Program has not been authorized, pursuant to subdivision (b) of line 21 Section 2030 of the Streets and Highways Code. line 22 SEC. 8. Chapter 2 (commencing with Section 2030) is added line 23 to Division 3 of the Streets and Highways Code, to read: line 24 line 25 Chapter 2. Road Maintenance and Rehabilitation line 26 Program line 27 line 28 2030. (a)  The Road Maintenance and Rehabilitation Program line 29 is hereby created to address deferred maintenance on the state line 30 highway system and the local street and road system. Funds made line 31 available by the program shall be prioritized for expenditure on line 32 basic road maintenance and road rehabilitation projects, and on line 33 critical safety projects. The program shall be subject to line 34 reauthorization every five years by the Legislature. The California line 35 Transportation Commission shall identify the estimated funds to line 36 be available pursuant to this chapter for the program during any line 37 authorized five-year period, and shall adopt performance criteria line 38 to ensure efficient use of the funds. line 39 (b)  The Legislature hereby authorizes the program for the line 40 2015–16 to 2019–20 fiscal years, inclusive. 96 SB 16— 11 — 104 line 1 (c)  If the Legislature does not reauthorize the program beyond line 2 the 2019–20 fiscal year, the increases in excise tax rates for motor line 3 vehicle fuel and diesel fuel associated with the revenues referenced line 4 in subdivision (a) of Section 2031, and the increase in the vehicle line 5 registration fee referenced in Section 9250.3 of the Vehicle Code, line 6 shall terminate at the end of the 2019–20 fiscal year. line 7 2031. The following revenues shall be deposited in the Road line 8 Maintenance and Rehabilitation Account, which is hereby created line 9 in the State Transportation Fund: line 10 (a)  The revenues from the increase in the motor vehicle fuel line 11 excise tax by ten cents ($0.10) per gallon and the revenues from line 12 ten cents ($0.10) per gallon of the increase in the diesel fuel excise line 13 tax by twelve cents ($0.12) per gallon, as provided in Section line 14 2103.1. line 15 (b)  The revenues from the increase in the vehicle registration line 16 fee pursuant to Section 9250.3 of the Vehicle Code. line 17 (c)  The revenues from the increase in the vehicle registration line 18 fee pursuant to Section 9250.6 of the Vehicle Code, except as line 19 provided in paragraph (2) of subdivision (b) of that section. line 20 (d)  The revenues from vehicle weight fees redirected from line 21 transportation bond debt service to the State Highway Account, line 22 pursuant to the schedule set forth in subdivision (a) of Section line 23 9400.5 of the Vehicle Code. line 24 (e)  The revenues from repayment of loans made from the State line 25 Highway Account, the Motor Vehicle Fuel Account, the Highway line 26 Users Tax Account, and the Motor Vehicle Account to the General line 27 Fund, pursuant to the schedule set forth in Section 16321 of the line 28 Government Code. line 29 (f)  Any other revenues designated for the program. line 30 2032. (a)  Five percent of the revenues deposited in the Road line 31 Maintenance and Rehabilitation Account for the period of fiscal line 32 years specified in subdivision (b) of Section 2030 shall be set aside line 33 for counties in which voters approve, on or after July 1, 2015, a line 34 transactions and use tax for transportation purposes, and which line 35 counties did not, prior to that approval, impose a transactions and line 36 use tax for those purposes. The funds available under this line 37 subdivision in each fiscal year are hereby continuously line 38 appropriated for allocation to each eligible county and each city line 39 in the county for road maintenance and rehabilitation purposes line 40 pursuant to Section 2035. However, funds remaining unallocated 96 — 12 —SB 16 105 line 1 under this subdivision in any fiscal year shall be reallocated on line 2 the last day of the fiscal year pursuant to subdivision (b). line 3 (b)  The remaining revenues deposited in the Road Maintenance line 4 and Rehabilitation Account for the period of fiscal years specified line 5 in subdivision (b) of Section 2030, including the revenues line 6 reallocated for the purposes of this subdivision pursuant to line 7 subdivision (a), are hereby continuously appropriated for road line 8 maintenance and rehabilitation purposes under the program, as line 9 follows: line 10 (1)  Fifty percent for allocation to the department for line 11 maintenance of the state highway system or for purposes of the line 12 state highway operation and protection program. line 13 (2)  Fifty percent for apportionment to cities and counties by the line 14 Controller pursuant to the formula in subparagraph (C) of line 15 paragraph (3) of subdivision (a) of Section 2103 for the purposes line 16 authorized by this chapter, subject to subdivision (d) of Section line 17 2033 and paragraph (2) of subdivision (a) of Section 2034. line 18 2033. (a)  The commission shall annually evaluate each agency line 19 receiving funds pursuant to this chapter. line 20 (b)  For each fiscal year in which the department receives an line 21 allocation of funds pursuant to Section 2032, the department shall line 22 submit documentation to the commission that includes a description line 23 and the location of each completed project, the amount of funds line 24 expended on the project, the completion date, and the project’s line 25 estimated useful life. The commission shall evaluate the line 26 documentation to determine the effectiveness of the department in line 27 reducing deferred maintenance and improving road conditions on line 28 the state highway system, and may withhold future funding from line 29 the department if it determines that program funds have not been line 30 appropriately spent. line 31 (c)  For each fiscal year in which an agency receives an line 32 apportionment of funds pursuant to subdivision (a) or paragraph line 33 (2) of subdivision (b) of Section 2032, the commission shall line 34 evaluate the documentation submitted pursuant to subdivision (b) line 35 of Section 2034 to determine the effectiveness of the agency in line 36 reducing deferred maintenance and improving road conditions line 37 within its jurisdiction. line 38 (d)  If the commission determines, with respect to any given line 39 fiscal year, that a local agency has not appropriately spent its line 40 apportionment of funds, the commission shall direct the Controller 96 SB 16— 13 — 106 line 1 to make that agency ineligible to receive an apportionment during line 2 the next fiscal year. The Controller shall reapportion that agency’s line 3 share of funds to all other eligible local agencies pursuant to line 4 paragraph (2) of subdivision (b) of Section 2032. line 5 (e)  The commission shall include a discussion of its evaluations line 6 pursuant to this section in its annual report to the Legislature line 7 pursuant to Section 14535 of the Government Code. line 8 2034. (a)  (1)  Prior to receiving an apportionment of funds line 9 under the program pursuant to paragraph (2) of subdivision (b) line 10 of Section 2032 from the Controller in a fiscal year, an eligible line 11 local agency shall submit to the commission a list of projects line 12 proposed to be funded with these funds pursuant to an adopted line 13 city, county, or city and county budget. All projects proposed to line 14 receive funding shall be included in a city, county, or city and line 15 county budget that is adopted by the applicable city council or line 16 board of supervisors at a regular public meeting. The list of line 17 projects proposed to be funded with these funds shall include a line 18 description and the location of each proposed project, a proposed line 19 schedule for the project’s completion, and the estimated useful life line 20 of the improvement. The project list shall not limit the flexibility line 21 of an eligible local agency to fund projects in accordance with line 22 local needs and priorities so long as the projects are consistent line 23 with subdivision (d). line 24 (2)  The commission shall report to the Controller the local line 25 agencies that have submitted a list of projects as described in this line 26 subdivision and that are therefore eligible to receive an line 27 apportionment of funds under the program for the applicable fiscal line 28 year. The Controller, upon receipt of the report, shall apportion line 29 funds to eligible local agencies. line 30 (b)  For each fiscal year, each local agency receiving an line 31 apportionment of funds shall, upon expending program funds, line 32 submit documentation to the commission that includes a description line 33 and location of each completed project, the amount of funds line 34 expended on the project, the completion date, and the project’s line 35 estimated useful life. The documentation shall also include a line 36 comparison of the projects the local agency would have completed line 37 without receiving funds under the program compared with the line 38 projects completed with these funds. line 39 (c)  The documentation provided pursuant to subdivision (b) line 40 shall be forwarded by the commission to the department, in a 96 — 14 —SB 16 107 line 1 manner and form approved by the department, at the end of each line 2 fiscal year as long as program funds remain available for line 3 expenditure. The department may post the information contained line 4 in the documentation on its Internet Web site. line 5 (d)  Funds made available to a local agency under the program line 6 shall be used for improvements to transportation facilities that line 7 will assist in reducing further deterioration of the existing road line 8 system. These improvements may include, but need not be limited line 9 to, pavement maintenance, rehabilitation, installation, construction, line 10 and reconstruction of necessary associated facilities such as line 11 drainage and traffic control devices, or safety projects to reduce line 12 fatalities. Funds made available under the program may also be line 13 used to satisfy the local match requirement in order to obtain state line 14 or federal transportation funds for similar purposes. line 15 2035. (a)  On or before July 1, 2016, the commission, in line 16 cooperation with the department, transportation planning agencies, line 17 county transportation commissions, and other local agencies, shall line 18 develop guidelines for the allocation of funds pursuant to line 19 subdivision (a) of Section 2032. line 20 (b)  The guidelines shall be the complete and full statement of line 21 the policy, standards, and criteria that the commission intends to line 22 use to determine how these funds will be allocated. line 23 (c)  The commission may amend the adopted guidelines after line 24 conducting at least one public hearing. line 25 2036. (a)  Cities and counties shall maintain their existing line 26 commitment of local funds for street, road, and highway purposes line 27 in order to remain eligible for an allocation or apportionment of line 28 funds pursuant to Section 2032. line 29 (b)  In order to receive an allocation or apportionment pursuant line 30 to Section 2032, the city or county shall annually expend from its line 31 general fund for street, road, and highway purposes an amount line 32 not less than the annual average of its expenditures from its general line 33 fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as line 34 reported to the Controller pursuant to Section 2151. For purposes line 35 of this subdivision, in calculating a city’s or county’s annual line 36 general fund expenditures and its average general fund line 37 expenditures for the 2009–10, 2010–11, and 2011–12 fiscal years, line 38 any unrestricted funds that the city or county may expend at its line 39 discretion, including vehicle in-lieu tax revenues and revenues line 40 from fines and forfeitures, expended for street, road, and highway 96 SB 16— 15 — 108 line 1 purposes shall be considered expenditures from the general fund. line 2 One-time allocations that have been expended for street and line 3 highway purposes, but which may not be available on an ongoing line 4 basis, including revenue provided under the Teeter Plan Bond line 5 Law of 1994 (Chapter 6.6 (commencing with Section 54773) of line 6 Part 1 of Division 2 of Title 5 of the Government Code), may not line 7 be considered when calculating a city’s or county’s annual general line 8 fund expenditures. line 9 (c)  For any city incorporated after July 1, 2009, the Controller line 10 shall calculate an annual average of expenditure for the period line 11 between July 1, 2009 , and December 31, 2015, inclusive, that the line 12 city was incorporated. line 13 (d)  For purposes of subdivision (b), the Controller may request line 14 fiscal data from cities and counties in addition to data provided line 15 pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 line 16 fiscal years. Each city and county shall furnish the data to the line 17 Controller not later than 120 days after receiving the request. The line 18 Controller may withhold payment to cities and counties that do line 19 not comply with the request for information or that provide line 20 incomplete data. line 21 (e)  The Controller may perform audits to ensure compliance line 22 with subdivision (b) when deemed necessary. Any city or county line 23 that has not complied with subdivision (b) shall reimburse the line 24 state for the funds it received during that fiscal year. Any funds line 25 withheld or returned as a result of a failure to comply with line 26 subdivision (b) shall be reapportioned to the other counties and line 27 cities whose expenditures are in compliance. line 28 (f)  If a city or county fails to comply with the requirements of line 29 subdivision (b) in a particular fiscal year, the city or county may line 30 expend during that fiscal year and the following fiscal year a total line 31 amount that is not less than the total amount required to be line 32 expended for those fiscal years for purposes of complying with line 33 subdivision (b). line 34 SEC. 9. Section 2103.1 is added to the Streets and Highways line 35 Code, to read: line 36 2103.1. Notwithstanding subdivision (b) of Section 2103, the line 37 portion of the revenues in the Highway Users Tax Account line 38 attributable to the increase in the tax rate on motor vehicle fuel line 39 by ten cents ($0.10) per gallon pursuant to subdivision (a) of line 40 Section 7360 of the Revenue and Taxation Code and the increase 96 — 16 —SB 16 109 line 1 in the tax rate by twelve cents ($0.12) per gallon on diesel fuel line 2 pursuant to subdivision (c) of Section 60050 of the Revenue and line 3 Taxation Code, as amended by the act adding this section, shall line 4 be deposited in the Road Maintenance and Rehabilitation Account line 5 created pursuant to Section 2031, except that the portion of the line 6 revenues attributable to two cents ($0.02) of the increase in the line 7 tax rate on diesel fuel shall be deposited in the Trade Corridors line 8 Improvement Fund for expenditure pursuant to Section 2192. line 9 SEC. 10. Section 9250.3 is added to the Vehicle Code, to read: line 10 9250.3. (a)  In addition to any other fees specified in this code line 11 or the Revenue and Taxation Code, a registration fee of thirty-five line 12 dollars ($35) shall be paid to the department for registration or line 13 renewal of registration of every vehicle subject to registration line 14 under this code, except those vehicles that are expressly exempted line 15 under this code from payment of registration fees. line 16 (b)  (1)  For any year in which the Road Maintenance and line 17 Rehabilitation Program is authorized pursuant to subdivision (b) line 18 of Section 2030 of the Streets and Highways Code, revenues from line 19 the fee shall be deposited in the Road Maintenance and line 20 Rehabilitation Account created pursuant to Section 2031 of the line 21 Streets and Highways Code. line 22 (2)  For any year in which the Legislature does not reauthorize line 23 the Road Maintenance and Rehabilitation Program, this section line 24 shall be inoperative. line 25 SEC. 11. Section 9250.6 is added to the Vehicle Code, to read: line 26 9250.6. (a)  In addition to any other fees specified in this code line 27 or in the Revenue and Taxation Code, a registration fee of one line 28 hundred dollars ($100) shall be paid to the department for line 29 registration or renewal of registration of every zero-emission line 30 motor vehicle subject to registration under this code, except those line 31 motor vehicles that are expressly exempted under this code from line 32 payment of registration fees. line 33 (b)  (1)  For any year in which the Road Maintenance and line 34 Rehabilitation Program is authorized pursuant to subdivision (b) line 35 of Section 2030 of the Streets and Highways Code, revenues from line 36 the fee shall be deposited in the Road Maintenance and line 37 Rehabilitation Account created pursuant to Section 2031 of the line 38 Streets and Highways Code. line 39 (2)  For any year in which the Legislature does not reauthorize line 40 the Road Maintenance and Rehabilitation Program, revenues from 96 SB 16— 17 — 110 line 1 the fee shall be deposited in the State Highway Account to be used line 2 for purposes of maintaining the state highway system or the state line 3 highway operation and protection program. line 4 (c)  This section does not apply to a commercial motor vehicle line 5 subject to Section 9400.1. line 6 (d)  For purposes of this section, “zero-emission motor vehicle” line 7 means a motor vehicle as described in subdivisions (c) and (d) of line 8 Section 44258 of the Health and Safety Code, or any other motor line 9 vehicle that is able to operate on any fuel other than gasoline or line 10 diesel fuel. line 11 SEC. 12. Section 9400.5 is added to the Vehicle Code, to read: line 12 9400.5. (a)  Notwithstanding Sections 9400.1, 9400.4, and line 13 42205 of this code, Sections 16773 and 16965 of the Government line 14 Code, Section 2103 of the Streets and Highways Code, or any line 15 other law, the amount of weight fee revenues otherwise to be line 16 transferred from the State Highway Account to the Transportation line 17 Debt Service Fund, the Transportation Bond Direct Payment line 18 Account, or any other fund or account for the purpose of payment line 19 of the debt service on transportation general obligation bonds, or line 20 for the purpose of being loaned to the General Fund, shall be line 21 reduced pursuant to the following schedule, with the applicable line 22 revenues thereby retained in the State Highway Account to be line 23 transferred to the Road Maintenance and Rehabilitation Account line 24 created pursuant to Section 2031 of the Streets and Highways line 25 Code: line 26 (1)  For the 2015–16 fiscal year, by 20 percent. line 27 (2)  For the 2016–17 fiscal year, by 40 percent. line 28 (3)  For the 2017–18 fiscal year, by 60 percent. line 29 (4)  For the 2018–19 fiscal year, by 80 percent. line 30 (5)  For the 2019–20 fiscal year and in each subsequent fiscal line 31 year thereafter, by 100 percent. line 32 (b)  For any year in which the Legislature does not reauthorize line 33 the Road Maintenance and Rehabilitation Program, pursuant to line 34 subdivision (b) of Section 2030 of the Streets and Highways Code, line 35 the revenues described in subdivision (a) shall be retained in the line 36 State Highway Account to be used for purposes of maintaining the line 37 state highway system or the state highway operation and protection line 38 program. line 39 SEC. 13. This act is an urgency statute necessary for the line 40 immediate preservation of the public peace, health, or safety within 96 — 18 —SB 16 111 line 1 the meaning of Article IV of the Constitution and shall go into line 2 immediate effect. The facts constituting the necessity are: line 3 In order to provide additional funding for road maintenance line 4 and rehabilitation purposes as quickly as possible, it is necessary line 5 for this act to take effect immediately. O 96 SB 16— 19 — 112 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Manager’s Office PREPARED BY: Crystal Bothelio SUBJECT: Resolution of Support for Senate Bill 321 RECOMMENDED ACTION: Approve resolution of support for Senate Bill 321. BACKGROUND: Senate Bill (SB) 321, authorized by State Senator Jim Beall, gas tax revenues for local governments and the State. Currently, gasoline tax revenues distributed among the State and local governments based on does not account for historical data. As a result, the current methodology results in over and under estimation of revenues that are reconciled by “true ups” estimations. This results in constant fluctuation in fuel tax revenues. gas tax revenues, many local governments find it difficult to plan funding for long term capital roadway and transportation projects. In distribution is expected to cause a 56% reduction in fuel tax revenues If signed into law, SB 321 would adjust the gas tax on four years of historical data. When tax swings occur, the bill would also allow the “true up” to take place over three years, helping to stabilize allocations to local governments. The bill is supported by the League of California Cities. ATTACHMENTS: Attachment A - Resolution of Support for SB 321 Attachment B - SB 321 Text Attachment C - SB 321 Analysis SARATOGA CITY COUNCIL City Manager’s Office Crystal Bothelio, City Clerk Resolution of Support for Senate Bill 321 Approve resolution of support for Senate Bill 321. Senate Bill (SB) 321, authorized by State Senator Jim Beall, proposes to reduce the volatility of gas tax revenues for local governments and the State. Currently, gasoline tax revenues are istributed among the State and local governments based on a complicated methodology As a result, the current methodology results in over and under estimation of revenues that are reconciled by “true ups” to correct past over or under This results in constant fluctuation in fuel tax revenues. With unexpected swings in , many local governments find it difficult to plan funding for long term capital In 2015/16 alone, the existing methodology for fuel tax a 56% reduction in fuel tax revenues for California cities If signed into law, SB 321 would adjust the gas tax forecasting model. Forecasts would be based rs of historical data. When tax swings occur, the bill would also allow the “true up” to helping to stabilize allocations to local governments. The bill is supported by the League of California Cities. Resolution of Support for SB 321 proposes to reduce the volatility of are a complicated methodology that As a result, the current methodology results in over and t past over or under unexpected swings in , many local governments find it difficult to plan funding for long term capital the existing methodology for fuel tax for California cities. forecasting model. Forecasts would be based rs of historical data. When tax swings occur, the bill would also allow the “true up” to 113 RESOLUTION NO. 15-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA IN SUPPORT OF SENATE BILL 321 (BEALL) WHEREAS, the current methodology used for determining fuel tax rates for local governments is unpredictable and changes from year to year; and WHEREAS, the methodology is based on projections of fuel prices and consumption and does not include historical data; and WHEREAS, when projections do not match actual fuel prices or use, it results in future adjustments or “true ups” that can significantly alter the amount of gasoline tax revenues received by local governments; and WHEREAS, in Fiscal Year 2015/16 alone, local governments are expecting to see a 56 percent reduction in gas tax funds; and WHEREAS, the annual fluctuation in gasoline tax funds makes it difficult for local governments to plan for transportation projects; and WHEREAS, Senate Bill (SB) 321, authored by State Senator Jim Beall, would stabilize the overall volatility of this revenue source by changing the forecasting model; and WHEREAS, SB 321 would require that four years of historical data be used for projection; and WHEREAS, in the event of discrepancies between forecasts and actual fuel tax revenues, SB 321 would distribute the tax rate swing over a three year period. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Saratoga does hereby support SB 321 and urges the California State Legislature and the Governor of California to sign this bill into law. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 6th day of May 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Howard A. Miller, Mayor ATTEST: DATE: Crystal Bothelio, City Clerk 114 AMENDED IN SENATE MARCH 26, 2015 SENATE BILL No. 321 Introduced by Senator Beall February 23, 2015 An act to amend Section 7360 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest SB 321, as amended, Beall. Motor vehicle fuel taxes: rates: adjustments. Existing law, as of July 1, 2010, exempts the sale of, and the storage, use, or other consumption of, motor vehicle fuel from specified sales and use taxes and increases the excise tax on motor vehicle fuel, as provided. Existing law requires the State Board of Equalization, for the 2011–12 fiscal year and each fiscal year thereafter, on or before March 1 of the fiscal year immediately preceding the applicable fiscal year, to adjust the motor vehicle fuel tax rate in a manner as to generate an amount of revenue equal to the amount of revenue loss attributable to the sales and use tax exemption on motor vehicle fuel, based on estimates made by the board. Existing law also requires, in order to maintain revenue neutrality, the board to take into account actual net revenue gain or loss for the fiscal year ending prior to the rate adjustment date. Existing law requires this determined rate to be effective during the state’s next fiscal year. This bill would, for the 2015–16 fiscal year and each fiscal year thereafter, instead require the board, on or before July 1, 2015, or March 1 of the fiscal year immediately preceding the applicable fiscal year, 98 115 as specified, to adjust the rate in a manner as to generate an amount of revenue equal to the average amount of revenue loss attributable to the exemption over the next five fiscal years, exemption, based on estimates made by the board that reflect the combined average of the actual fuel price over the previous 4 fiscal years and the estimated fuel price for the current fiscal year, and continuing to take into account adjustments required by existing law to maintain revenue neutrality. This bill would authorize, for rate adjustments made after January 1, 2015, in order to reduce the potential volatility of the revenues generated by the motor vehicle fuel tax, the board to make partial adjustments over up to 3 consecutive years to take into account the net revenue gain or loss of any fiscal year. This bill would also authorize, if, due to clear changes in either fuel prices or consumption in the state, the board makes a determination that the amount of revenue being generated by the motor vehicle fuel tax will be significantly different than the estimates made by the board, the board to adjust the rate more frequently than annually, but no more frequently than quarterly every 6 months in order to reduce the potential volatility of the revenues. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 7360 of the Revenue and Taxation Code line 2 is amended to read: line 3 7360. (a)  (1)  A tax of eighteen cents ($0.18) is hereby imposed line 4 upon each gallon of fuel subject to the tax in Sections 7362, 7363, line 5 and 7364. line 6 (2)  If the federal fuel tax is reduced below the rate of nine cents line 7 ($0.09) per gallon and federal financial allocations to this state for line 8 highway and exclusive public mass transit guideway purposes are line 9 reduced or eliminated correspondingly, the tax rate imposed by line 10 paragraph (1), on and after the date of the reduction, shall be line 11 recalculated by an amount so that the combined state rate under line 12 paragraph (1) and the federal tax rate per gallon equal twenty-seven line 13 cents ($0.27). 98 — 2 —SB 321 116 line 1 (3)  If any person or entity is exempt or partially exempt from line 2 the federal fuel tax at the time of a reduction, the person or entity line 3 shall continue to be so exempt under this section. line 4 (b)  (1)  On and after July 1, 2010, in addition to the tax imposed line 5 by subdivision (a), a tax is hereby imposed upon each gallon of line 6 motor vehicle fuel, other than aviation gasoline, subject to the tax line 7 in Sections 7362, 7363, and 7364 in an amount equal to seventeen line 8 and three-tenths cents ($0.173) per gallon. line 9 (2)  (A)  For the 2011–12 fiscal year to the 2014–15 fiscal year, line 10 inclusive, the board shall, on or before March 1 of the fiscal year line 11 immediately preceding the applicable fiscal year, adjust the rate line 12 in paragraph (1) in that manner as to generate an amount of revenue line 13 that will equal the amount of revenue loss attributable to the line 14 exemption provided by Section 6357.7, based on estimates made line 15 by the board, and that rate shall be effective during the state’s next line 16 fiscal year. line 17 (B)  For the 2015–16 fiscal year, the board shall, on or before line 18 July 1, 2015, adjust the rate in paragraph (1) in that manner as to line 19 generate an amount of revenue that will equal the average amount line 20 of revenue loss attributable to the exemption provided by Section line 21 6357.7 over the next five fiscal years, 6357.7, based on estimates line 22 made by the board that reflect the combined average of the actual line 23 fuel price over the previous four fiscal years and the estimated line 24 fuel price for the current fiscal year, and that rate shall be effective line 25 during the 2015–16 fiscal year. line 26 (C)  For the 2016–17 fiscal year and each fiscal year thereafter, line 27 the board shall, on or before March 1 of the fiscal year immediately line 28 preceding the applicable fiscal year, adjust the rate in paragraph line 29 (1) in that manner as to generate an amount of revenue that will line 30 equal the average amount of revenue loss attributable to the line 31 exemption provided by Section 6357.7 over the next five fiscal line 32 years, 6357.7, based on estimates made by the board that reflect line 33 the combined average of the actual fuel price over the previous line 34 four fiscal years and the estimated fuel price for the current fiscal line 35 year, and that rate shall be effective during the state’s next fiscal line 36 year. line 37 (3)  In order to maintain revenue neutrality, beginning with the line 38 rate adjustment on or before March 1, 2012, the adjustment under line 39 paragraph (2) shall also take into account the extent to which the line 40 actual amount of revenues derived pursuant to this subdivision 98 SB 321— 3 — 117 line 1 and, as applicable, Section 7361.1, the revenue loss attributable line 2 to the exemption provided by Section 6357.7 resulted in a net line 3 revenue gain or loss for the fiscal year ending prior to the rate line 4 adjustment date on or before March 1. For rate adjustments made line 5 after January 1, 2015, in order to reduce the potential volatility of line 6 the revenues generated by the tax imposed under this subdivision, line 7 the board may make partial adjustments over up to three line 8 consecutive years to take into account the net revenue gain or loss line 9 of any fiscal year. line 10 (4)  If, due to clear changes in either fuel prices or consumption line 11 in the state, the board makes a determination that the amount of line 12 revenue being generated by the tax imposed by this section will line 13 be significantly different than the estimates made by the board, line 14 the board may adjust the rate in paragraph (1) more frequently line 15 than annually, but no more frequently than quarterly every six line 16 months in order to reduce the potential volatility of the revenues. line 17 (5)  The intent of paragraphs (2) and (3) is to ensure that Chapter line 18 6 of the Statutes of 2011, which added this subdivision and Section line 19 6357.7, does not produce a net revenue gain in state taxes. line 20 (6)  It is the intent of the Legislature that the amendments made line 21 by the act adding this paragraph does not produce a net revenue line 22 gain in state taxes. Revenue neutrality, as used in this section, does line 23 not refer to revenues generated in any particular fiscal year, but line 24 instead means that, over a reasonable period of fiscal years, the line 25 actual amount of revenues derived pursuant to this subdivision is line 26 equal to the estimated amount of revenue loss attributable to the line 27 exemption provided by Section 6357.7. line 28 SEC. 2. This act is an urgency statute necessary for the line 29 immediate preservation of the public peace, health, or safety within line 30 the meaning of Article IV of the Constitution and shall go into line 31 immediate effect. The facts constituting the necessity are: line 32 In order to avoid a significant and devastating decrease in the line 33 amount of funding available for the maintenance of California’s line 34 local streets and roads, it is necessary that this act take effect line 35 immediately. O 98 — 4 —SB 321 118 SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular Bill No: SB 321 Hearing Date: 4/15/15 Author: Beall Tax Levy: No Version: 3/26/15 Fiscal: Yes Consultant: Bouaziz MOTOR VEHICLE FUEL TAXES: RATES: ADJUSTMENTS Changes the methodology used to determine the fuel tax rates. Background and Existing Law In 2010, the Legislature enacted two “fuel tax swap” measures that changed the imposition and rates of state taxes on gasoline and diesel fuel, and require the Board of Equalization (BOE) to annually determine the appropriate excise tax rate adjustments to maintain revenue neutrality (ABx8 6, Assembly Committee on Budget, 2010) and (SB 70, Senate Committee on Budget and Fiscal Review). The gasoline tax changes became operative on July 1, 2010, and the diesel fuel tax changes on July 1, 2011. The fuel tax swap was partly enacted, to allow the use of additional existing transportation revenue for highway purposes, including General Obligation bond debt service, where that debt service was related to transportation projects. The swap bills exempted sales and purchases of gasoline from the state sales and use tax rate. To offset the revenue loss related to this partial exemption, the law increased the gasoline excise tax rate from $0.18 per gallon to $0.353 per gallon. Conversely, the measure reduced the diesel fuel excise tax rate from $0.18 to $0.13 per gallon, but increased the sales and use tax rate on diesel fuel sales to offset the loss related from the reduction, resulting in the following rates: 1.87%, effective July 1, 2011, 2.17%, effective July 1, 2012, 1.94%, effective July 1, 2013, 1.75%, effective July 1, 2014, and thereafter. The fuel tax swap provisions require BOE to maintain revenue neutrality, so that the revenues derived from the increased gasoline excise tax and the increased diesel sales and use tax equals the revenues that would have been derived had the gasoline sales and use tax partial exemption and the diesel fuel excise tax reduction, respectively, not occurred. To maintain revenue neutrality, state law requires BOE to annually adjust the gasoline and diesel fuel excise tax rates either upward or downward. For gasoline, the BOE determines: (1) whether the sales and use tax revenue loss related to the partial exemption was fully offset by the adjusted rate, and (2) the projected sales and use tax revenue loss for the next fiscal year, considering forecasted gasoline prices and consumption. For diesel fuel, the BOE determines: (1) whether the revenue gain from the increased sales and use tax rate on diesel fuel sales and purchases was 119 SB 321 (Beall) 3/26/15 Page 2 of 3 fully offset by the adjusted diesel fuel excise tax rate, and (2) the projected sales and use tax revenue gain for the next fiscal year, considering forecasted diesel fuel prices and consumption. By March 1 each year, the BOE must determine the rate adjustments and the adjusted rate applies on the following July 1. Proposed Law Senate Bill 321 amends the method BOE uses to adjust the excise tax on fuel. Specifically, AB 321 does the following: For Fiscal Year (FY) 2015-16, requires BOE to adjust the excise tax rate based on a five- year average that relies on fuel price data, from the immediately preceding four years and estimated fuel prices for the current fiscal year, to generate a forecasted fuel price that is weighted primarily by known fuel price data. That adjusted rate must be determined by July 1, 2015, and that rate would be effective for 2015-16. Beginning 2016-17, BOE would follow the same estimate methodology as above, but the rate would be adjusted by March 1 of the fiscal year immediately preceding the applicable fiscal year. For true-up rate adjustments made after January 1, 2015, BOE can make partial adjustments over a three-year period, to take into account the net revenue gain or loss of any fiscal year in order to reduce potential revenue volatility. If changes in either fuel prices or consumption in the state occur, the BOE may adjust the rate before March 1, but not sooner than six months between the intervening adjustments. This bill contains an urgency clause, and becomes effective immediately. State Revenue Impact None. Comments 1. Purpose of the bill. According to the author, “The Board of Equalization (BOE) annually adjusts the price-based portion of the excise tax on gasoline in order to collect roughly the same amount of revenue, as the state would have collected if it still charged a sales tax on gasoline. Difficulty in forecasting gas prices inevitably results in either over- or under-collecting revenue and future adjustments must reconcile this discrepancy. The reconciling adjustment, or “true up,” leads to volatility from year to year. Uncertainty, in future revenue puts a significant strain on state and local governments when preparing their multiyear transportation budgets. SB 321 makes changes to the administrative process, for setting the price-based excise tax in order to give BOE the tools necessary to reduce the overall volatility of this revenue.” 2. Reduction in volatility. SB 321 attempts to reduce the volatility of revenues received by local governments. The fuel price component has the biggest impact on the fuel excise tax calculation. The current methodology for forecasting the fuel price component is problematic because, it does not take into account historical data using only projections. This bill would use 4 years of historical data, which is expected to result in a reduction of wide excise tax rate swings, and make transportation budgeting less difficult for local governments. Additionally, 120 SB 321 (Beall) 3/26/15 Page 3 of 3 when there is a wide excise tax rate swing, the bill allows the swing to be paid over a three year period, reducing its impact. 3. Related legislation. SB 433 (Berryhill) would require the Department of Finance, instead of the BOE, to determine the annual excise tax rate adjustment for gasoline and diesel fuel under the “fuel tax swap” provisions. 4. Urgency clause. Regular legislation takes effect on the January 1 following its passage, but urgency bills take effect as soon as they're passed, signed, and chaptered. The California Constitution allows urgency statutes that are "necessary for immediate preservation of the public peace, health, or safety." SB 321 contains an urgency clause explaining the need for the bill to take effect immediately. Support and Opposition (4/9/15) Support: California State Association of Counties; California Transportation Commission; City of San Jose; League of California Cities; Rural County Representatives of California; San Bernardino Associated Governments (SANDAG); Urban Counties Caucus. Opposition: Unknown. -- END -- 121 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: Community Development Department PREPARED BY: Erwin Ordoñez, Community Development Director SUBJECT: Ordinance Amending Article 16 RECOMMENDED ACTION: Conduct public hearing; introduce and waive the first reading of the attached ordinance updating Article 16-60 of the City Code; and direct staff to place the ordinance on the Consent Calendar for adoption at the June 3, 2015 City Coun BACKGROUND: In the early 1980s, the Saratoga Fire District reporting system commonly referred to as EWAS. alarms, provided early reporting of fires deployment of fire engines prior to receiving notification by phone. the Fire Department to arrive on scene faster and, according to damage in several incidents. The specifications of the monitoring and communication equipment has historically been established by With the demolition of the old Fire Station in 2003 function of EWAS. Since then notification of alarm activations Communications (9-1-1) to dispatch fire engines. to exclusively use the alarm monitoring company that has SFD has contracted with. Recently SFD has expressed desire to change that requirement and allow owners to select their own monitoring company. With the constantly changing s systems SFD also desires to refer exclusively to the California Building, Residential, an Codes instead of maintaining their own standards for EWAS. The SFD Board of Commissioners is scheduled to consider May 26, 2015 that mirrors what the City Council is considering with the attached ordinance. Representatives from the Saratoga Fire District and County Fire will be meeting to answer any questions regarding Council take action on the second reading of the May 26th meeting when they are scheduled to introduce SARATOGA CITY COUNCIL Community Development Department Erwin Ordoñez, Community Development Director Ordinance Amending Article 16-60 - Early Warning Fire Alarm System Conduct public hearing; introduce and waive the first reading of the attached ordinance updating of the City Code; and direct staff to place the ordinance on the Consent Calendar City Council meeting. In the early 1980s, the Saratoga Fire District (SFD) and the City introduced an early warning fire reporting system commonly referred to as EWAS. The system, through smoke detectors and alarms, provided early reporting of fires directly to the Saratoga Fire Station enabling deployment of fire engines prior to receiving notification by phone. This early warning enabled the Fire Department to arrive on scene faster and, according to SFD, helped reduce major fire The specifications of the monitoring and communication established by SFD. With the demolition of the old Fire Station in 2003, SFD started contracting out the monitoring otification of alarm activations are forwarded to County 1) to dispatch fire engines. Every owner of an EWAS system is required to exclusively use the alarm monitoring company that has SFD has contracted with. Recently ed desire to change that requirement and allow owners to select their own With the constantly changing specifications of fire detection and alarm SFD also desires to refer exclusively to the California Building, Residential, an Codes instead of maintaining their own standards for EWAS. is scheduled to consider changes to their local ordinance on May 26, 2015 that mirrors what the City Council is considering with the attached ordinance. esentatives from the Saratoga Fire District and County Fire will be at the City Council meeting to answer any questions regarding these proposed changes. Staff is recommending the ion on the second reading of the ordinance on June 3rd, which is after meeting when they are scheduled to introduce their ordinance. Early Warning Fire Alarm System Conduct public hearing; introduce and waive the first reading of the attached ordinance updating of the City Code; and direct staff to place the ordinance on the Consent Calendar an early warning fire The system, through smoke detectors and directly to the Saratoga Fire Station enabling This early warning enabled , helped reduce major fire The specifications of the monitoring and communication SFD started contracting out the monitoring forwarded to County Every owner of an EWAS system is required to exclusively use the alarm monitoring company that has SFD has contracted with. Recently ed desire to change that requirement and allow owners to select their own pecifications of fire detection and alarm SFD also desires to refer exclusively to the California Building, Residential, and Fire changes to their local ordinance on May 26, 2015 that mirrors what the City Council is considering with the attached ordinance. at the City Council changes. Staff is recommending the ch is after the SFD 122 SUMMARY: The attached ordinance would amend Article 16-60 of the City Code to be consistent with the changes supported by the Saratoga Fire District. The changes in the ordinance are summarized below: · Removes the requirement that SFD directly receive notification of an alarm activation. · Clarifies that all new and existing structures (expanding by fifty percent or more,) classified as “R” occupancies and located within the Wildland-Urban Interface Fire Area are required to have EWAS installed. · Refers directly to the current versions of the California Building, Residential, and Fire Codes for the required components of EWAS. · Removes reference to separate fire districts. · Removes the requirement to record a notice on the property that the homeowner pay an administrative fee to SFD to maintain EWAS. ADVERTISING, NOTICING AND PUBLIC CONTACT: The public hearing for this item was property noticed in the Saratoga News on April 24, 2015. ATTACHMENTS: Attachment A – Draft Ordinance Attachment B – Wildland-Urban Interface Fire Map 123 Page 1 of 9 ORDINANCE NO. ____ AN ORDINANCE AMENDING CHAPTER 16-60 OF THE SARATOGA CITY CODE THE COUNCIL OF THE CITY OF SARATOGA HEREBY ORDAINS AS FOLLOWS: Findings 1. Saratoga City Code Chapter 16-60 Early Warning Fire Alarm System specifies requirements for notification to the Saratoga Fire District and alarm standards and requirements established by the Saratoga Fire Protection District by resolution. The requirements of the Saratoga Fire Protection District have changed. 2. The City Council of the City of Saratoga wishes to amend the City Code to mirror alarm standards and requirements of the Saratoga Fire Protection District. 3. The City Council of the City of Saratoga held a duly noticed public hearing on May 6, 2015, and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. Section 16-60 of the Saratoga City Code is amended as set forth in Attachment 1. Text to be added is indicated in bold double-underlined font (e.g., bold double-underlined) and text to be deleted is indicated in strikeout font (e.g., strikeout). Text in standard font is readopted by this ordinance. 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. California Environmental Quality Act The proposed amendments and additions to the City Code are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15061(b)(3). CEQA applies only to projects which have the potential of causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the 124 Page 2 of 9 activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance the amendments to the existing City Code and related sections and additions of provisions and reference appendices to the existing Code; the amendments and additions would have a de minimis impact on the environment. Section 4. Publication. A summary of this ordinance shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. Following a duly notice public hearing the foregoing ordinance was introduced at the regular meeting of the City Council of the City of Saratoga held on the 6th day of May 2015 and was adopted by the following vote on June 3, 2015. COUNCIL MEMBERS: AYES: NOES: ABSENT: ABSTAIN: SIGNED: Howard A. Miller MAYOR, CITY OF SARATOGA, CALIFORNIA ATTEST: DATE: Crystal Bothelio, CITY CLERK APPROVED AS TO FORM: DATE: Richard Taylor, CITY ATTORNEY 125 Page 3 of 9 ATTACHMENT 1 – AMENDMENTS TO CITY CODE 16-60 Article 16-60 - EARLY WARNING FIRE ALARM SYSTEM 16-60.010 Findings; requirement for installation of alarm system. (a) Findings and purpose. The City Council finds and determines as follows: (1) Utilization of current technology in the detection and warning of fire will significantly enhance the level of protection from such hazard while at the same time maximizing the effectiveness of existing equipment and facilities for emergency responses. (2) Certain areas of the City have been designated as the Wildland-Urban Interface Fire Area on the City's Wildland-Urban Interface Fire Area Map, which are defined as any land covered with grass, grain, brush or forest which is so situated or is of such inaccessible location, that a fire originating upon such land would present an abnormally difficult job of suppression or would result in great and unusual damage through fire or resulting erosion. The response time of emergency equipment to calls for aid in the hazardous fire areas is impaired due to the nonavailability of access to some portions of such areas, the existence of steep, narrow streets and roadways located in such areas, the lack of connecting streets and roadways in such areas, and the unusual topography of such areas. Further, the presence of heavy vegetation in the Wildland-Urban Interface Fire Area increases the potential for the rapid spread of any fire which may start in such areas, particularly during seasonal dry spells. (3) A substantial portion of the new single-family dwellings being constructed in the City are larger structures, typically in excess of five thousand square feet with three-car garages. By reason of their size, a fire in these structures can be more difficult to extinguish. (4) The risk of fire to persons and property within multi-family dwellings and structures containing multiple sleeping units is proportionately greater because of the higher density of occupants. Immediate warning of fire and notification to the Fire District of the existence and location of fire will serve to reduce the possibility of death, injury and property damage. (5) Because commercial buildings and community facilities are public gathering places, the public health and safety risks of fire are particularly acute. Immediate warning of fire and notification to the Fire District of the existence and location of fire will serve to reduce the possibility of death, injury and property damage in these structures. (6) The public safety and welfare may necessitate installation of an early warning fire alarm system in a commercial structure or community facility, depending upon the facts and circumstances to be evaluated by the Fire Chief in each individual case. 126 Page 4 of 9 (7) It is the goal and policy of the City, as set forth in the Safety Element of the General Plan, to require installation of an early warning fire alarm system as hereinafter provided in this Section. The purpose of this Section is to implement such goal and policy. (b) Mandatory requirement for installation of alarm system. Installation of an early warning fire alarm system in accordance with the provisions of this Article is required as a condition for the granting of any building or other permit under this Chapter 16 in each of the following cases: (1) All new single-family dwellings residential structures classified as "R" occupancies in the most recent version of the California Building Code, commercial structures and community facilities located within the designated Wildland-Urban Interface Fire Area. (2) Any existing single-family dwelling structure classified as an "R" occupancy in the most recent version of the California Building Code, commercial structure or community facility which is expanded by fifty percent or more in floor area and is located within the designated Wildland-Urban Interface Fire Area. (3) All new single-family dwellings, commercial structures and community facilities having a floor area in excess of five thousand square feet. (4) Any existing single-family dwelling, commercial structure or community facility which is expanded by fifty percent or more in floor area which, after such expansion, will exceed five thousand square feet in floor area. (5) All new residential structures classified as "R" occupancies in the most recent version of the California Building Code adopted by the City of Saratoga, except R-3 occupancies which are not otherwise required to install the early warning alarm system under paragraphs (1), (2), (3), or (4) above. (6) Any existing residential structure classified as an "R" occupancy, except an R-3 occupancy as described in subsection (b)(5) of this Section, which is expanded by fifty percent or more in floor area. (c) Discretionary requirement for certain "R" occupancies, commercial structures and community facilities. Where an existing commercial structure or community facility is remodeled and such commercial structure or community facility either: (1) has a floor area in excess of five thousand square feet, or (2) regardless of size, is located within the designated Wildland-Urban Interface Fire Area, then the Chief of the Fire District having jurisdiction over the project, may require the installation of an early warning fire alarm system in accordance with this Article as a condition for the granting of any building or other permit under this Chapter 16. The determination by the Fire Chief shall be based upon any one or more of the following considerations: 127 Page 5 of 9 (1) An occupant load increase of fifty percent or more. (2) New commercial cooking operations. (3) Hazardous materials storage for which a permit is required. (4) The principal use involves the care or supervision of building occupants such as day care facilities for children or senior citizens. (d) Determination of floor area and fifty percent expansion. (1) As used in this Section, the term "commercial structure" includes, but is not limited to, office buildings, retail stores, restaurants, repair shops, and industrial buildings, and the term "community facility" includes, but is not limited to, schools, theatres, churches, meeting halls and conference centers. (2) The determination of floor area is as defined in Chapter 15; and (3) For the purposes of this Section, any expansion shall be considered as equaling or exceeding the fifty percent limit where the work of construction or improvement is done at different time intervals requiring two or more building permits, within a period of five years after completion of the first improvement, where although each is for a project encompassing an expansion of less than fifty percent of increased floor area, but when combined with other expansions during the five-year period of time increase the amount of floor area of the structure by fifty percent or more of that amount which existed immediately prior to the commencement of the first of the several expansions. 16-60.020 Required components. Each early warning fire alarm system installed pursuant to this Code shall be connected to a monitoring station in such manner as may be specified by the Saratoga Fire District and shall be installed, operated, and maintained in compliance with the applicable standards and requirements for installation, operation and maintenance of the system, as established from time to time by resolution of the Board of Fire Commissioners of the Saratoga Fire District. A copy of the latest adopted standards and requirements shall be kept on file and made available to the public in the office of the Community Development Department. Early warning alarm systems shall comply with the current adopted California Building Code and California Residential Code as amended by this section. (a) R-3 occupancies shall provide a “Household fire alarm system” required by the California Residential Code for Smoke Alarms (2013 CRC section R314) and installed in accordance with NFPA 72 (2010 NFPA 72 chapter 29) or current equivalent adopted code. 128 Page 6 of 9 (b) All occupancies, other than R-3 listed above, shall have Fire alarm systems installed in accordance with the California Fire Code (2013 CFC Section 907) with no exceptions allowed for occupant load. 16-60.030 Plan check by Fire District. (a) All documentation relative to the proposed installation shall be submitted to the Fire District for approval. Where property is located within the jurisdiction of the Central Fire District, one copy of such documentation shall be furnished to the Chief of such District and one copy of such documentation shall also be furnished to the Chief of the Saratoga Fire District who shall determine whether the installation will comply with the applicable standards for the proposed system. The documentation shall include all plans, specifications, diagrams, data sheets, manufacturer's recommendations, and other information and documents listed in the standards and requirements adopted by the Saratoga Fire District, and such additional items pertaining to the proposed system as may be requested by the District. Notwithstanding any other provisions of this Code, alternatives to the adopted standards and requirements may be approved if the Chief of the Fire District having jurisdiction over the property where an alternative is to be installed determines that such alternative will perform the early warning notification function as well or better than the adopted standards. The Saratoga Fire District shall be furnished a copy of documentation for all approved alternate installations. (b) The Fire Districts may establish a fee for the plan checking services rendered pursuant to this Section. 16-60.040 Qualifications and responsibilities of installer. All early warning fire alarm systems shall be installed by a person holding a valid fire protection engineering license, or a qualified and experienced contractor with a valid C-10 Electrical Contractor's License issued by the California Contractors State License Board. All such systems shall be installed in a workmanlike manner and in accordance with the specifications and standards approved by the Fire District. Upon completion of the installation, the licensed installer shall instruct the property owner, or his designated representative, in the use of the system and shall provide applicable manufacturer's operating manuals. 16-60.050 Inspections by Fire District. The Fire District having jurisdiction over the property shall be responsible for conducting inspections and approving or disapproving any system installed in a structure pursuant to this Article. The Fire Districts may establish a fee for the inspection services rendered pursuant to this Section. The licensed installer shall provide the Fire District having jurisdiction with a set of as built plans for the system. 129 Page 7 of 9 16-60.055 Recorded notice of fire alarm system. (a) Prior to the issuance of a certificate of occupancy or its equivalent for any improvements for which an early warning fire alarm system has been required pursuant to this Code, a disclosure form giving notice of such fire alarm system shall be recorded in the office of the Recorder of Santa Clara County. The disclosure shall be signed by an authorized representative of the Saratoga Fire District and shall contain the following information: (1) The address and legal description of the property on which the early warning fire alarm system has been installed. (2) A general description of the fire alarm system, including the locations within the structure where components of the system have been installed. (3) A reference to the permit or other development approval granted by the City which required installation and continued operation of the fire alarm system. (4) The obligation of the property owner to maintain the fire alarm system in good condition and repair. (5) The obligation of the property owner to pay an administrative fee to the Saratoga Fire District for monitoring the fire alarm system. If such fee also includes the cost of other services provided by the District in connection with the early warning fire alarm system, the nature and extent of such services shall be described in the notice. (6) The job title, address and telephone number of an authorized representative of the Saratoga Fire District who may be contacted if the property owner requires any assistance or has any questions concerning the early warning fire alarm system. (b) With the written consent of the property owner, the Chief of the Saratoga Fire District or his or her authorized representative may execute and record a disclosure notice containing the information set forth in subsection (a) of this Section, for any property on which an early warning fire alarm system has been or will be installed without the requirement for recordation of the disclosure notice. 16-60.060 Voluntary installation. Nothing contained in this Article shall prohibit any person from voluntarily installing and maintaining an early warning fire alarm system as described in this Article in any type of building or structure within the City, subject only to appropriate arrangement for such installation and maintenance being made between the owner and the Chief of the Saratoga Fire District. 16-60.070 Violations; delegation of enforcement authority. 130 Page 8 of 9 (a) Any violation of this Article shall constitute an infraction and a public nuisance for which penalties may be imposed and other relief sought as provided in Chapter 3 of this Code. As a separate or cumulative remedy, a Notice of Code Violation may also be recorded pertaining to such violation, in accordance with the provisions of Section 16-60.080 (b) In addition to any other persons having enforcement authority, the Chief of the Fire District having jurisdiction over the property on which an early warning alarm system is installed, or the Fire Chief's designated representative, shall have authority to enforce the provisions of this Article. 16-60.080 Recorded notice of code violation. (a) Whenever the Chief of the Fire District having jurisdiction over the property on which an early warning alarm system is installed, or the Fire Chief's designated representative ("Fire Chief") has knowledge of a violation of any provision of this Article, the Fire Chief may give written notice of such violation to the owner of the property on which the early warning fire alarm system has been installed. Violations may include failure to install, operate, or maintain the alarm system in accordance with the applicable standards and requirements adopted by the Saratoga Fire District, or failure to connect the alarm system to a monitoring station as specified by the Saratoga Fire District. Such notice shall be mailed to person and address as shown on the records of the Fire District, or if such record does not exist or is known to be inaccurate, to the person and address as shown on the latest available County assessment roll or as otherwise known to the Fire Chief. (b) If the property owner fails to correct the violation within the time specified in the notice, or such additional time as may be granted by the Fire Chief, a further written notice may be given of the Fire Chief's intention to record a Notice of Code Violation in the office of the County Recorder. The notice of intent shall describe the nature of the violation and inform the owner that a Notice of Code Violation will be recorded unless a hearing before the Board of Fire Commissioners of the Saratoga Fire District is requested by the owner within twenty days from the date of the notice. (c) In the event a hearing is not requested and the violation has not been corrected, or in the event that after the conduct of a hearing by the Board of Fire Commissioners of the Saratoga Fire District, and consideration of all evidence presented thereat by the owner, the Board determines that a violation of this Article in fact exists, the Fire Chief may record a Notice of Code Violation in the office of the County Recorder. (d) At the request of the affected property owner or other interested person and upon determination by the Fire Chief that the violation described in the Notice has been fully corrected and no longer exists, the Fire Chief shall furnish to the owner or other interested person a notice of expungement of the previously recorded Notice of Code Violation. 131 Page 9 of 9 (e) The recording of a Notice of Code Violation pursuant to this Section shall be in addition to any other rights, remedies or actions available to the Fire District by reason of the same violation as described in the notice. 638519.1 676880.2 132 Sa r a t o g a S u n n y v a l e R d . Pierc e R d . S a r a t o g a L o s G a t o s R d . ( H W Y 9 ) Ba s i n W a y M t . E d e n Rd. Big Mon t a l v o Rd . Pied m o n t Rd. Oa k S t . 6 t h S t . Bohlm a n R d . Cox Ave. Sa r a t o g a S u n n y v a l e R d . Pierc e R d . Fr u i t v a l e A v e . S a r a t o g a L o s G a t o s R d . ( H W Y 9 ) Sobey Rd. Sara t o g a A v e . Ba s i n W a y Mi l l e r A v e . M t . E d e n Rd. Big Douglas Ln. Congress Spring Rd. (HWY 9) Mon t a l v o Rd . Pied m o n t Rd. Allendale Ave. P o r t o s D r . Glen B r a e D r . Qu i t o R d . Prospect Rd. Che s t e r A v e . CUPERTINO SAN JOSE LOS GATOS La w r e n c e E x p y . SARATOGA LOS GATOS UNINCORPORATED SANTA CLARA COUNTY Oa k S t . 6 t h S t . Bohlm a n R d . Legend Very High High Moderate Wildland-Urban Interface Saratoga City Limits Saratoga Sphere of Influence Surrounding City Boundaries SAFETY ELEMENT Fire Hazard Zones Exhibit 7 0 1,500 3,000750 Feet Prepared by RBF Consulting: 12/04/2012 Sources: City of Saratoga - Zoning Map (2010) Wildland-Urban Interface Fire Area Map (2009) : ESRI Terrain Basemap County of Santa Clara - CityLimits (2010) StreetEdge (2009) : CA Dept of Forestry and Fire Protection (2007) C ITY OFSARATOGA Fire Station 133 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Attorney’s Office PREPARED BY: Richard Taylor, City Attorney SUBJECT: Amendment to Lease Agreement with Hakone Foundation RECOMMENDED ACTION: Approve amendment to lease agreement with Hakone Foundation to reduce the number of members of the Board of Trustees from fifteen to nine BACKGROUND: The Hakone Foundation leases Hakone Gardens from the City pursuant to a long term lease. That lease requires that the Foundation’s Board of Trustees have at least 15 members. The Foundation has asked that the minimum number be reduced to 9 that size is more appropriate for the size of Hakone’s operations and the functioning of the Board. (The Foundation’s request is included as Attachment A.) The attached amendment to the lease agreement the lease agreement as follows: 23.5 The by-laws of the Hakone Foundation shall require that the Board of Trustees comprised of no less than a minimum of nine (9) Trustees and a maximum of (15) persons at all times during the term of this lease. Tenant shall make reasonable effort to provide that no less than one third of Saratoga. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Foundation would not be allowed to reduce the size of its Board which could reduce the Board’s operational effectiveness. FOLLOW UP ACTION: Staff will circulate the lease amendment for signature. SARATOGA CITY COUNCIL City Attorney’s Office Richard Taylor, City Attorney Amendment to Lease Agreement with Hakone Foundation lease agreement with Hakone Foundation to reduce the number of from fifteen to nine. The Hakone Foundation leases Hakone Gardens from the City pursuant to a long term lease. ation’s Board of Trustees have at least 15 members. The Foundation has asked that the minimum number be reduced to 9 because they believe a board of that size is more appropriate for the size of Hakone’s operations and the functioning of the Foundation’s request is included as Attachment A.) The attached amendment to the lease agreement (Attachment B) would amend section 23.5 of laws of the Hakone Foundation shall require that the Board of Trustees a minimum of nine (9) Trustees and a maximum of fifteen at all times during the term of this lease. Tenant shall make reasonable effort to provide that no less than one third of whom the Trustees shall be residents of CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Foundation would not be allowed to reduce the size of its Board which could reduce the amendment for signature. lease agreement with Hakone Foundation to reduce the number of The Hakone Foundation leases Hakone Gardens from the City pursuant to a long term lease. ation’s Board of Trustees have at least 15 members. The because they believe a board of that size is more appropriate for the size of Hakone’s operations and the functioning of the would amend section 23.5 of laws of the Hakone Foundation shall require that the Board of Trustees be fifteen at all times during the term of this lease. Tenant shall make reasonable effort residents of The Foundation would not be allowed to reduce the size of its Board which could reduce the 134 ATTACHMENTS: Attachment A – Letter from Hakone Foundation (March 24, 2015) Attachment B – Fourth Amendment to Hakone Lease Agreement 672036.1 135 HAKONE FOUNDATION P.O. Box 2324 Saratoga, CA 95070 Taxpayer I.D. Number: 77-0054274 March 24, 2015 City Council City of Saratoga 13777 Fruitvale Ave Saratoga, CA 95070 RE: Request by Hakone Foundation for the City of Saratoga, City Council, to agree to change the Hakone Lease 2005 language to match the Foundation’s Bylaws number of Board of Trustees. Dear City Council The Board of Trustees, Hakone Foundation is updating its Bylaws. In the process, we realize that the 2005 Lease agreement has a statement. The Foundations Bylaws has the following statement: The Foundation shall have a minimum of nine (9) Trustees and a maximum of fifteen (15). Collectively they shall be known as the Board of Trustees; two positions on the Board of Trustees shall be reserved and filled exclusively by two members of the City Council of Saratoga, California. The Foundation shall make reasonable effort to provide that at least three (3) of the Trustees shall be residents of the City of Saratoga. The number of Trustees which may be seated at any time shall be set by Board resolution within the minimum and maximum set forth above. The maximum number of Trustees may be changed by amendment of these Bylaws, or by repeal of these Bylaws and adoption of new Bylaws, as provided in these Bylaws. The minimum number of Trustees may not be changed. The Foundation would prefer to have that language “minimum of nine (9) Trustees and a maximum of fifteen (15).” That number is more fitting for the functioning of the Board and considering the size of the operations. So The Foundation Board is requesting that the City of Saratoga, City Council, change the wording of the 2005 Lease to match the wording of the Foundation Bylaws. Thank you for your consideration. Regards, Ann Waltonsmith President Hakone Foundation Board of Trustees 136 Page 1 of 1 FOURTH AMENDMENT TO LEASE BETWEEN THE CITY OF SARATOGA AND THE HAKONE FOUNDATION This agreement amends the lease agreement (hereinafter “Lease”), effective as of May 1, 2005 (and as amended through May 6, 2015), by and between the City of Saratoga, a Municipal Corporation (hereinafter "Landlord"), located in the County of Santa Clara, State of California and the Hakone Foundation, a not for profit corporation organized under the laws of the State of California (hereafter "Tenant"), pertaining to the City owned property located at 21000 Big Basin Way, Saratoga, California. This agreement is effective on the date last signed below. 1. Landlord and Tenant agree that section 23.5 of the Lease is hereby replaced in its entirety with the following: 23.5 The by-laws of the Hakone Foundation shall require that the Board of Trustees be comprised of a minimum of nine (9) Trustees and a maximum of fifteen (15) at all times during the term of this lease. Tenant shall make reasonable effort to provide that no less than one third of the Trustees shall be residents of Saratoga 2. The Lease shall remain unchanged in all respects other than the replacement of Section 23.5 as described above. Landlord Tenant By: _________________________ Howard Miller, Mayor Date: ________________________ By: _________________________ Shozo Kagoshima Executive Director, Hakone Foundation Date: ________________________ Attest: __________________________ Crystal Bothelio, City Clerk Date: ________________________ Attest: __________________________ Secretary of the Board, Hakone Foundation Date: ________________________ Approved as to Form: __________________________ Richard Taylor, City Attorney Date: ________________________ Approved as to Form: __________________________ General Counsel, Hakone Foundation Date: ________________________ 672013.1 137 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: Community Development PREPARED BY: Kate Bear, City Arborist SUBJECT: The Effects of Drought Stress RECOMMENDED ACTION: Receive information regarding drought stressed City tree removal applications. BACKGROUND: The State of California is experiencing an extreme drought the April snow pack in the Sierras measured at mandatory water restrictions this week The lack of rain is having a very significant impact on the City’s trees. Trees that are not drought tolerant and not adapted to warmer microclimates redwoods are dying in larger numbers than normal eucalyptus, Aleppo pines, deodar cedars and coast live oaks are suffering from the lack of water. In response to the drought increase in permits to remove dead and dying trees. Drought stress in trees causes them to be more susceptible to attacks from insect pests and diseases. Pines are susceptible to attacks from seve at the tips of the branches, at the larger branches and scaffold limbs, and at the trunk and the base of the tree. Although Monterey pines are the most susceptible to attacks from beetles, Aleppo pines and Italian stone pines can suffer from such attacks. ATTACHMENTS: Attachment A – Photos of trees SARATOGA CITY COUNCIL Community Development Kate Bear, City Arborist of Drought Stress on Trees Citywide drought stressed City-maintained trees, routine maintenance experiencing an extreme drought that has lasted for several years measured at 6% of normal, and the governor announcing this week. significant impact on the City’s trees. Trees that are not drought adapted to warmer microclimates, such as Monterey pines, birch trees and in larger numbers than normal. Even drought tolerant species such as deodar cedars and coast live oaks are showing signs of stress and In response to the drought the City is experiencing a 30% increase in permits to remove dead and dying trees. Drought stress in trees causes them to be more susceptible to attacks from insect pests and Pines are susceptible to attacks from several different types of beetles, which can attack at the tips of the branches, at the larger branches and scaffold limbs, and at the trunk and the base of the tree. Although Monterey pines are the most susceptible to attacks from beetles, Aleppo uffer from such attacks. routine maintenance and years, with and the governor announcing significant impact on the City’s trees. Trees that are not drought irch trees and . Even drought tolerant species such as showing signs of stress and the City is experiencing a 30% Drought stress in trees causes them to be more susceptible to attacks from insect pests and can attack at the tips of the branches, at the larger branches and scaffold limbs, and at the trunk and the base of the tree. Although Monterey pines are the most susceptible to attacks from beetles, Aleppo 138 De a d  Mo n t e r e y  pi n e Sa r a t o g a  Su n n y v a l e  Ro a d So u t h b o u n d  at  br i d g e  ju s t   be f o r e  Bi g  Ba s i n  Wa y . 13 9 14 0 De a d  Mo n t e r e y  pi n e Sa r a t o g a  Su n n y v a l e  Ro a d We s t  si d e  of  th e  ro a d  by   Re i d  La n e . 14 1 De a d  Mo n t e r e y  pi n e s  ‐ Hw y  9  at    Th r e e  Oa k s  Wa y No r t h  si d e  of  th e  ro a d 14 2 Mo r e  de a d  Mo n t e r e y   pi n e s  on  Hw y  9   So u t h  si d e  of  th e  ro a d . 14 3 Mo r e  de a d  Mo n t e r e y   pi n e s  on  Hw y  9   14 4 Mo r e  de a d  Mo n t e r e y  pi n e s  on  Hw y  9   14 5 Sa r a t o g a  Cr e e k   at  Wi l d w o o d  Pa r k   Wa t e r  le v e l s  ar e  ex t r e m e l y   lo w . 14 6 Sa r a t o g a  Cr e e k  at  Wi l d w o o d  Pa r k 14 7 De a d  al d e r Wi l d w o o d  Pa r k   in  Sa r a t o g a  Cr e e k 14 8 Sa r a t o g a  Cr e e k  at  Br i d g e   on  Co x  Av e n u e Dy i n g  al d e r  in  cr e e k ,   so u t h  si d e  of  Co x  Av e .   14 9 Sa r a t o g a  Cr e e k  at  Co x  Av e n u e  is  co m p l e t e l y  dr y . 15 0 Co x  Av e n u e  at  Br i d g e   Dy i n g  eu c a l y p t u s  tr e e   ne a r  Sa r a t o g a  Cr e e k .   15 1 Dy i n g  eu c a l y p t u s  at   Sa r a t o g a  Cr e e k  by   Pr o s p e c t  Hi g h  Sc h o o l . 15 2 De a d  eu c a l y p t u s  at   Pr o s p e c t  Hi g h  Sc h o o l . 15 3 Dy i n g  ra y w o o d a s h  on  Pr o s p e c t  Ro a d 15 4 St r e s s e d  re d w o o d s  on  Mc F a r l a n d  Av e n u e 15 5 De a d  re d w o o d s  at  post  office 15 6 Li q u i d a m b a r s St r e s s e d  tr e e s  on  Sa r a t o g a  Av e n u e De a d  tr e e  at  Po s t  Of f i c e 15 7 De a d  oa k  on  Hw y  9 15 8 De a d  oa k  on  De H a v i l l a n d a t  Sh u b e r t  (b y  Co x  Av e n u e )   15 9 It a l i a n  st o n e  pi n e  at  Bl a n e y P l a z a 16 0 SARATOGA CITY COUNCIL MEETING DATE: May 6, 2015 DEPARTMENT: City Manager Department PREPARED BY: Monica LaBossiere Tony McFarlane, Finance Manager SUBJECT: Council Resolution to Adopt Memorandum of Understanding for the Saratoga Employee Association ( RECOMMENDED ACTION: Staff recommends the City Council approve the proposed Memorandum of Understanding (MOU) and adopt Council Resolution to Adopt Memorandum of Understanding for the Employee Association (“SEA”) July 1, 2015 to June 30, 2019. BACKGROUND: The SEA is the labor organization or exclusive representative of the employees management employed by the City, excluding employees in the Streets and Parks Division represented by the “UNION” and the City’s unrepresented classifications. The current Memorandum of Understanding (MOU) with the Beginning in February, the SEA and the City have met and discussed the terms and conditions of employment. Throughout bargaining, the City emphasized its comparability and “market” average in the establishment and maintenance of salary and benefits and economic viability of the City as the priority over the short the City, the community, and its employees. As of March 17, 2015, the City and the the SEA membership on April 16, 2015, The City Council will provide the City’s Negotiating Team final direction on the MOU during the 5:00 PM Closed Session. If the Council does not request further negotiation than a decision on the MOU will occur in open session and copies of the MOU public via the City website and in the Theater Lobby SARATOGA CITY COUNCIL Department Monica LaBossiere, Human Resources Manager Tony McFarlane, Finance Manager Council Resolution to Adopt Memorandum of Understanding for the Saratoga Employee Association (“SEA”) July 1, 2015 to June 30, 2019. Staff recommends the City Council approve the proposed Memorandum of Understanding Council Resolution to Adopt Memorandum of Understanding for the July 1, 2015 to June 30, 2019. is the labor organization or exclusive representative of the employees and mid , excluding employees in the Streets and Parks Division represented by the “UNION” and the City’s unrepresented classifications. Memorandum of Understanding (MOU) with the SEA expires on June 30 and the City have met and discussed the terms and conditions of Throughout bargaining, the City emphasized its guiding principles of comparability and “market” average in the establishment and maintenance of salary and benefits economic viability of the City as the priority over the short- and long-term for the benefit of the City, the community, and its employees. , the City and the SEA reached a tentative agreement and was ratified by 2015, subject to City Council approval. The City Council will provide the City’s Negotiating Team final direction on the MOU during the Council does not request further negotiation than a decision will occur in open session and copies of the MOU will be made available to the public via the City website and in the Theater Lobby before the Council’s decision. July 1, 2015 to June 30, 2019. Staff recommends the City Council approve the proposed Memorandum of Understanding Council Resolution to Adopt Memorandum of Understanding for the Saratoga and mid- , excluding employees in the Streets and Parks Division June 30, 2015. and the City have met and discussed the terms and conditions of guiding principles of comparability and “market” average in the establishment and maintenance of salary and benefits term for the benefit of was ratified by The City Council will provide the City’s Negotiating Team final direction on the MOU during the Council does not request further negotiation than a decision will be made available to the 161 ATTACHMENTS: Attachment A – Resolution Attachment B – SEA MOU (Copies will be available to the public prior to the Council’s decision on the MOU). 162 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING MEMORANDUM OF UNDERSTANDING FOR THE SARATOGA EMPLOYEE ASSOCIATION (“SEA”) July 1, 2015 to June 30, 2019 WHEREAS, representatives of the City and the SEA have reached agreement on matters relating to the employment conditions of said employees, as reflected by the written Tentative Agreement for the Memorandum of Understanding; and WHEREAS, the Tentative Agreement for the Memorandum of Understanding was ratified by the SEA membership on April 16, 2015 and presented to the City Council on May 6, 2015; and WHEREAS, this Council finds that the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding fair and proper and in the best interest of the City; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saratoga the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding for the “SEA” July 1, 2015 to June 30, 2019 are hereby ratified and adopted as the Memorandum of Understanding. The above and foregoing resolution was passed and adopted by the Saratoga City Council at a regular meeting held on the 6th day of May 2015, by the following vote: AYES: NAYES: ABSTAIN: ABSENT: Howard A. Miller, Mayor ATTEST: DATE: Crystal Bothelio, City Clerk 163