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HomeMy WebLinkAboutCity Council Agenda Packet 2007-03-02SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 ORIGINATING DEPT: Admin Services PREPARED BY: Mary Furey AGENDA ITEM: CITY MANAGER: Dave Anderson DEPT HEAD: VIA j ary Fur y SUBJECT: FY 2006/07 General Fund Financial Status RECOMMENDED ACTION(S): Review FY 2006/07 General Fund financial status projections and FY 2007/08 budget preparations. REPORT SUMMARY: FY 2006/07 Financial Overview: Under the City's current budgeting format, the "General Fund" is the primary operating fund net of several other General Fund activities accounted for within the Special Revenue Fund section, including all of Community Development services, and some Public Works and Recreation Department services. The following fiscal information therefore will reflect the City's net General Fund operations as established by the FY 2006/07 budget. As the General Fund schedule on page 2 shows, ongoing revenues and transfers -in are expected to increase from $11,084,856 in FY 2005/06 to $12,102,981 in FY 2006/07 - a little more than $1.0 million dollars. This increase is primarily due to: • the additional $786,000 of TEA property tax allocation, • the end of the ERAF III State Take -Away ($260,000 per year for two years), and • a slight increase in property tax revenue receipts as a result of property turnover and assessment increases. The remaining General Fund revenues for FY 2006 /07 are fairly consistent with prior year receipts. The following schedule also shows an increase in FY 2005/06 expenditures of $9,975,202 to budgeted expenditures of $10,228,236 of budgeted expenditures in FY 2006/07 — a $250,000 increase in General Fund ongoing operational expenditures. This increase is primarily attributed to funding increases for enhancing the city's web presence, rising utility costs, ABAG Premiums, Public Safety cost increases, and rising labor and benefit costs. GENERAL FUND Prior Year Actuals and Projected Financial Status at February 21, 2007 FY 2005/06 FY 2006/07 Additional Beginning Fund Balance Actuals Estimated Budget Adj Unreserved/Undesignated Fund Balance S 2,755,289 Construction in Progress Reserve 614,997 Total Available Beginning Fund Balance 3,370,286 Revenues Revenues & Operating Transfers In TEA Property Tax Allocation Ongoing Revenues One Time Revenues Total Revenues 11,084,856 11,230,204 785,777 11,084,856 12,102,981 780,000 87,000 11,864,856 12,189,981 Total Source of Funds 15.560.267 _ Estimated FY 2006/07 Total Use of Funds includes a recommended $500,000 year -end General Fund undesignated fund balance, leaving Council with $1.8 million dollars to designate for specific purposes, as outlined under the discussion of TEA and one -time funds in the last report of the Council retreat. Mid -Year Budget Adjustments The last column on the above schedule is to account for proposed budget adjustments. Any required budget adjustments identified as a result of the Council's General Fund financial discussions at the retreat will be brought forward to Council as part of the Mid -Year Budget Report on March 21, 2007. FY 2007108 Revenue Projections In preparation for the development of the FY 2007/08 budget, staff prepared a revenue forecast based on recent trends and known factors. Significant revenue projections include: • Property Tax Revenues (inclusive of the TEA allocations) - are projected to grow another 4% overall from FY 2006/07 estimated revenues, equating to an increase of $186,000 next year. Total expected Property Tax Revenues are $5.2 million. N • Sales Tax Revenue — receipts have not increased from the FY 2005/06 levels, therefore FY 2007/08 revenue projections are being held flat at $988,000. • VLF in Lieu Revenues — have a slight inflation factor of 2% built into FY 2007/08 projections as there continues to be a small growth trend ($36,000). The combined total of the VLF revenue "collected as property tax" and the regular VLF fee is expected to bring the city approximately $2.4 million next year. • Transient Occupancy Tax - is also expected to continue a slow growth trend, and is estimated with a 2% inflation factor for total expected receipts of $173,400 in FY 2007/08, (a net increase of $3,400). This revenue will be reviewed further as the city is considering initiating an audit of past receipts. • Franchise Fees — are received from PGE, Comcast, San Jose Water, and for solid waste services next year: West Valley Collection and Recycling. • PGE franchise fees are expected to continue growing at approximately 4% ($15,000) based on ongoing gas and electric rate increases. • San Jose Water is projected to grow at a more conservative 2% ($3,000) as there are both positive and negative fluctuations in this revenue stream over the past several years. • Comcast franchise fee revenue is expected to show moderate growth under a 4% trend increase ($10,000). Additional revenue is expected under a new contract to be negotiated in September 2008 that will provide a 1% PEG funding pass - through for KSAR, however this funding was not incorporated into the forecast as the contract is not in place and the increase would be offset with a matching expenditure out. • The solid waste franchise fee was restructured from 10% to 16.5% under a new waste collection franchise contract with West Valley Collection. Overall, solid waste franchise fees are expected to increase in the General Fund, but also will be offset by transferred program cost increases, resulting in a cost neutral restructuring. With the net result of $0, revenue was not increased for forecast purposes. Overall, General Fund revenues are expected to increase in FY 2007/08 by approximately $253,400 from these significant revenue sources. FY2007108 Expenditure Projections Operating expenditure for FY 2007/08 will include a $200,000 increase for the SCC Sheriff's basic service contract. For reference, the Sheriff's contract is appropriated at $3,420,700 for FY 2006/07, with a projected cost of $3,621,600 in FY 2007/08. In addition, citywide ongoning operating expenditure are expected to grow by approximately $300,000 as a result of increases in operational services, utilities, and materials, and rising labor and benefit costs. Any Council approved enhancements to the Sheriff's contract or city services will be identified and quantified during the upcoming budget development, and will further impact total appropriations. 3 FY2007108 FinanciaUBudget Changes: Staff has begun preparing the City's FY 2007/08 proposed budget, and wanted to take this opportunity to advise Council of some notable changes they can expect to see this spring. A primary change is the budget document will be developed under a departmental focus to improve the organizational understanding of services and budgeted funds. In addition, the budget will reflect a realignment of the financial structure. Currently, the City's financial structure is not in conformance with accounting or budgeting standards. Over the years, there has been a great deal of turnover in the Finance Department and as a result, financial system knowledge and processes were not transferred effectively. This resulted in many system work - arounds in order to track information in a manner that staff needed, and in turn, a non - standard fund and account structure. With the implementation of the new Finance Plus financial system, the accounting structure will be corrected to conform to accounting and budgeting standards. This change necessitates the realignment of some funds and programs, and as such, will be reflected in the FY 2007/08 budget. One such change will be the closing of the Integrated Waste Management Fund due to the elimination of the waste collection surcharge. Program obligations will be subsequently transferred to the General Fund, as noted earlier. Any remaining fund balance will be brought forward into FY 2007/08 as either a funding source for designated environmental projects, or held as a CIP reserve until projects are adopted. FISCAL IMPACTS: None at this time. Any required budget adjustments identified as a result of the Council's General Fund financial discussions at the retreat will be brought forward to Council as part of the Mid -Year Budget Report on March 21, 2007. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): Council would postpone review and discussion of the city's financial status until the Mid -Year Budget review on March 21, 2007. ALTERNATIVE ACTION(S): None in addition to the above. FOLLOW UP ACTION(S): A Mid -Year Budget Report will be brought forward to Council on March 21, 2007 with any consensus direction for current fiscal year budget adjustments. ADVERTISING, NOTICING AND PUBLIC CONTACT: Notice for this meeting. ATTACHMENTS: n/a ld SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 AGENDAITEM: ORIGINATING DEPT: City Manager's Office CITY MANAGER: PREPARED BY: Dave Anderson, City Manager DEPT HEAD: 7 Dave Anderson, City Manager SUBJECT: Status and direction from Council on expenditure of TEA and one -time funds. RECOMMENDED ACTION: Accept report, discuss alternatives and provide direction. REPORT SUMMARY: One -Time Funds At the retreat held on February 2, 2007 Council discussed priorities for the expenditure of TEA and other one -time funds of $1.8 million. The minutes of the meeting show there was: Consensus for replenishing the Council Contingency at $30,000 Substantial consensus for allocating $1.1 million to fund the development of Kevin Moran Park. • Majority consensus for developing a Village Master Plan. Undesignated Fund Balance is available to carry out the projects above. Additionally, the CIP contains $50,000 for a Village Improvement Project which is defined as "Provides funding for small scale Village improvements and/or studies. Scope of work not yet defined." If Council decides to utilize the existing CIP funds for the Village Master Plan, approximately $650,000 would be left to fund other projects. Several options are available as follows: • Fund outside agency requests - KSAR $50,000; SASCC $60,000. • Funding for the railroad crossing improvement project - $100,000 • Appropriate remaining funds to undesignated CIP fund and determine use at the annual CIP budget review in September, 2007. • Allocate now for other specific one -time or CIP purpose(s). Ongoing Funds At the February retreat, Council did not reach a substantial or full consensus regarding the ongoing TEA funds of approximately $786,000. There was a majority consensus to expend a portion of the TEA funds for capital strategic needs. The allocation of ongoing funds for capital strategic needs can be accomplished by setting aside a certain amount of the revenue stream to be allocated to the CIP each year by Council policy. In the discussion on this topic at the February retreat, two council members suggested that half of the amount ($393,000) be allocated. Other potential areas for expenditures of ongoing funds that were discussed at the retreat were as follows: • Staffing — Converting selected temporary staffing to regular full time status - $68,400 • Restore Commission support staffing and other commission related direct costs - $95,000 -$110,000 • Additional funding for the Pavement Management Program • Restoration of pri or service cuts: • Sheriff's Office Traffic Patrols • School Resource Officer • Street sweeping of arterials (reduced from once a week to once a month) • School crossing guards • After - school teen programs • Bonding with part of the revenue stream. ($200,000 over 20 years equals $2,000,000; $500,000 over 20 years equals $5,500,000) This item is last on the agenda in order that all topics discussed today having cost implications can be weighed equally. A copy of the previous staff report on this topic, the proposal from the Sheriff's Office and a copy of the minutes from the retreat in February are attached for reference. ATTACHMENTS: a. February 2, 2007 report on TEA and Other One -Time Funds b. February 2, 2007 Retreat Minutes c. Sheriff's Office staffing request letter 2of2 SARATOGA CITY COUNCIL MEETING DATE: February 2, 2007 AGENDA ITEM: 1 ORIGINATING DEPT: City Manager's Office CITY MANAGER: PREPARED BY: DEPT HEAD: Dave Anderson, City Manager Dave Anderson, City Manager SUBJECT: Status and direction from Council on expenditure of TEA and other one -time funds. RECOMMENDED ACTION: Accept report, discuss alternatives and provide direction. REPORT SUMMARY: Proposition 13 froze property tax rates for local governments and special districts to pre - proposition levels. Saratoga, with a legacy of minimum service delivery, had a very low property tax rate which was subsequently made permanent. Some Cities had no property tax levy prior to the passage of Proposition 13. Such cities are called "Low -no property tax cities ". Legislation passed in the wake of Proposition 13 was intended to equalize low -no property tax cities to 7 %. As a result of the passage of this legislation, all cities in the state were granted a minimum property tax rate of 7% with the exception of the Cities of Cupertino, Los Altos Hills, Monte Sereno and Saratoga. Special legislation was introduced at the time to split the increase in property taxes 45/55% with Santa Clara County. Since the mid 1990's these four Cities have received only 55% of their full property tax equalization. This changed with the signing into law of AB 117 in September, 2006. AB 117 restored the property tax rate to the four cities to 7% on an ongoing basis. Initial estimates of the annual proceeds from this revenue stream were estimated to be over 1 million dollars for the City of Saratoga. A compromise that made the passage of the legislation possible reduced the net proceeds to the city to approximately $785,777 in Fiscal Year 2006 -07. This was due to the different rate of ERAF payments made by the County and the City and the reluctance of the state to absorb the loss of revenue represented by the lower city rate. Since the passage of the legislation during the last session of the legislature was not a certainty, these funds were not included in the FY 2006 -07 budget. Consequently, the first year of funding under AB 117 is off - budget and can be viewed as one time monies. I One Time Funds Other one time monies such as the estimated year end fund balance and other accounting adjustments are listed below: FY 2006 -07 One -Time Funds 2006 -07 TEA Proceeds $ 785,777 2006 -07 Estimated year end fund balance per audit $ 429,022 Remaining Undesignated Fund Balance $ 536,354 Total Estimated Available funds at June 30, 2007 $1,751,153 These monies are available for appropriation as a mid -year adjustment. As one -time funds, the City has traditionally used such funds for one time expenditures that will not incur ongoing financial obligations such as capital projects, replenishing trust and sinking fund accounts and establishing reserves. With this in mind, there are two unfunded projects that the City has committed to funding in the recent past that may benefit from the availability of these funds. Kevin Moran Park net of other funding sources $1,100,000 Hakone Gardens matching funds $ 250,000 Alternatively, the Council may wish to use future park development funding and State bond act proceeds over a longer period of time to fund these projects. Another long -term approved CIP project waiting for final Council direction regarding scope of project/funding levels is the Village Sidewalk Project. When the sidewalks were relinquished by Ca rans, they only had the authority to provide- 7Q0.000 in funds without going to the legislature. The City accepted the relinquishment and that level of funding. When the project was first envisioned, it was envisioned to be more extensive, including decorative paving, upgrading electrical and water systems, and providing pedestrian safety improvements. The costs for various levels of improvements are below: • Option 1 — Remove and Replace Damaged Concrete $ 740,000 • Option 2 — Option 1 + Enhanced Pedestrian Crosswalks: $ 940,000 • Option 3 — Comprehensive Rehabilitation $1,750,000 John Cherbone will be prepared to discuss each option if desired. If Council chooses not to provide direction on this topic at the retreat, staff will present these options during the CIP discussion in September, 2007. 2 of 4 Ongoing Funds While the City has had periodic experience with receipt and expenditure of one -time monies and coping with the loss of ongoing funding, the City has had relatively little experience with substantive ongoing increases to revenues. In this instance AB 117 provides for an ongoing stream of property tax revenue initially set in FY2006 -07 at $785,777. This is expected to increase with the overall increase in assessed valuation of property in the City. In recent years this has ranged from a year over year high of 17.61 % in FY 2001 -02 to a low of 3.47% in FY 2002 -03. See the attached graph for an example of TEA revenue growth over time. The options for ongoing expenditures are numerous and the funds available limited. Some ideas for consideration are listed below: o CIP — In recent years the Capital Improvement fund has never had a steady source of funding. CIP funding has been hit and miss, using sporadic one time funding, grants and reprioritization of approved but not completed CIP projects. This has hampered long -term CIP planning. A consistent stream of revenue would enable the Council to plan for improvements over a longer time frame and with greater certainty. On the other hand, by budgeting conservatively and not spending one -time funds on ongoing projects, new monies for the CIP are generated each year, just not as predictably. o Pavement Management Program (PMP) — Since FY 2000 -01 the City has consistently applied about $600,000 to pavement management each year from the general fund, and in certain years, a substantial amount from local, state and federal grants. The City's Pavement Management Index is a 70 which is considered relatively good. The pavement management computer analysis indicates that the City should be funding the PMP at $1.8 million to keep the index from declining. In FY 2006 -07 the City added $400,000 to the base level funding for a total of $1 million from the general fund. In addition, federal dollars were available to bring the total up to $1.37 million. (In 2005 -06 the City allocated $1.17 million). Next fiscal year should see the disbursement of state bond act monies, which will augment local funding in this area in the amount of $979,665 (one- time). Proposition 42 funding will be returning as a regular State supplement to the program at the $200- 300,000 level starting in FY 200X � 0$ o Staffing — This issue is covered in item number 5 on the retreat agenda. As a place holder for the discussion in the context of this discussion here are the basics: 1) For the past 6 years the City has used temporary staffing to augment regular staffing. Request to convert temporary staff to regular full time in recognition of the necessary support role they play. $160,000. 2) Additional support for commissions /enhanced public information and participation. Staff member in CMO office $95- 110,000. Plus direct cost of commission support $17,500 (Commission Appreciation dinner, training, travel etc.). o Selected restoration of service cuts during the recession — Over the past 4 years the Council had to cut services to the community in order to balance the budget. Some of the cuts were as follows: 3 of 4 o Sheriffs Office Traffic Patrols o School Resource Officer • Street sweeping of arterials reduced from once a week to once a month • Spring garbage cleanup • Household hazardous waste drop -off o SgIlool crossing guards 5 �� ?roSc-rn The spring garbage pickup and the household hazardous waste drop off programs will be reinstated under the new solid waste and recycling contract negotiated by the JPA. Schools have largely picked up the funding for the crossing guards. Restoration of weekly street sweeping of arterial and Village parking districts is estimated to cost an additional $56,846 yearly. The Sheriffs Office will be proposing conversion of the Neighborhood Resource Officer to a School Resource Officer. They will also be proposing a new schedule for patrol officers to obtain greater efficiencies, and an additional traffic officer ($383,000). Captain Calderone will be presenting this proposal under item 5 on the retreat agenda. o Outside agency requests — Representatives of KSAR and SASCC have indicated that they are each struggling financially. Each organization will be requesting an increase in financial assistance over what is currently provided to support basic operations. $37,500 SASCC and KSAR — one year bridge payment of $50,000. Bonding with part of the revenue stream to implement needed improvements — The new flow of revenue could be used for debt payment for a revenue bond. The benefit to this approach is that it could generate several million dollars for C1P projects that otherwise could not be financed. Additionally, the repayment is fixed over a period of years while the revenue stream will grow with the growth in assessed valuation. A table showing the approximate amounts that could be generated at different levels of repayment and term(s) is shown below: Annual Debt Service Requirement Bonding Capacity $200,000 10 year term $1,000,000 15 year term $1,500,000 20 year term $2,000,000 $500,000 10 year term $3,000,000 15 year term $4,300,000 20 year term $5,500,000 $700,000 10 year term $4,300,000 15 year term $6,200,000 20 year term $7,900,000 4 of 4 0 N L 16 O t 3 O 71' w 0 o E O O M U1 U O O N 0 C9 1*O 1 0 0 0 0 0 ° 0 0 0 0 0 LO 0 0 LO N N I 43MOj'J leal 9� O S�S2?�y O S2d2 -(y O O Fa,� �y 0 20 2 l�q, O 02S! ey 0 y ,9 Oe `!o y e a !9! 'y H O LL 9!s! -0, O S!X! �y ts! Oc� �.r 0 e!2! -(y 0 c'!!! -(y O !!o! -(Y O olso (y 0 Z;01, �r 8 `o e MINUTES SARATOGA CITY RETREAT HAKONE GARDENS FEBRUARY 2, 2007 Mayor Kao called the Council retreat order at 9:00 a.m. ROLL CALL PRESENT: Mayor Aileen Kao, Vice Mayor Ann Waltonsmith, Councilmembers Chuck Page, Kathleen King, Jill Hunter ABSENT: None ALSO Dave Anderson, City Manager PRESENT: Barbara Powell, Assistant City Manager Richard Taylor, City Attorney Cathleen Boyer, City Clerk Mary Furey, Administrative Services Director Sandra Sato, Interim Administrative Services Director John Cherbone, Director of Public Works John Livingstone, Community Development Director Joan Pisani, Recreation Director REPORT OF CITY CLERK ON POSTING OF AGENDA FOR FEBRUARY 2, 2007 Cathleen Boyer, City Clerk reported that pursuant to Government Code Section 54954.2, the agenda for the meeting of February 2, 2007 was properly posted on January 31, 2006. ORAL COMMUNICATIONS The following people requested to speak at tonight's meeting: Priscilla Ho informed the Council that she feels that the Wildlife Center should keep treated birds with West Nile Virus for at least six months. TAX EQUITY ALLOCATION (TEA) FUNDS Dave Anderson, City Manager, presented staff report. COUNCIL DISCUSSION One Time Funds Mayor Kao • Replenish Council Contingency @ $30,000 • Allocate some funds towards the North Campus renovations • Fund Kevin Moran Park @ $1.1 • Hold off funding Hakone matching funds • Investigate the concept of a "Historic Village" designation Village Sidewalk Project o Prepare a Sidewalk Master Plan Suspend the Hakone Gardens matching funds Vice Mayor Waltonsmith • Replenish Council Contingency @ $30,000 • Fund Kevin Moran Park @ $1.1 • Fund Hakone Gardens matching funds • Allocate some funds towards the North Campus renovations • Village Sidewalk Project o Supports Option 1 — Remove and Replace Damaged Concrete @ $740,000 Councilmember Page • Replenish Council Contingency @ $30,000 • Fund Kevin Moran Park @ $1.1 • Delay the Hakone Gardens matching funds • Saratoga Village needs a Master Plan • Village Sidewalk Project o Supports Option 1 — Remove and Replace Damaged Concrete @ $740,000 Councilmember King • Replenish Council Contingency @ $30,000 • Fund Kevin Moran Park @ $1.1 • Allocate some funds towards the North Campus renovations • Table the matching funds for Hakone; wait and see if the City receives park bond funding from the State • Village Sidewalk Project o Prepare a Sidewalk Master Plan Councilmember Hunter • Replenish Council Contingency @ $30,000 • Does not support the funding of Kevin Moran Park @ $1.1 — would like to suggest minimum upgrades • Allocate some funds towards the North Campus renovations • Delay the Hakone Gardens matching funds • Investigate the concept of the Village as being designated and marketed as "Historic Village" through the National Trust • Install street lights on P Street and Oak Street @ Big Basin • Would not support any funds being used to prepare a Village Master Plan or to hire a consultant COUNCIL DIRECTION 1. Unanimous consensus on the following items: • Replenish Council Contingency @ $30,000 • Hold off on funding Hakone matching funds City Council Retreat Minutes 2 February 2, 2007 2. Items where there is substantial consensus • Fund Kevin Moran Park @ $1.1 million Items with majority concurrence • Village Master Plan (includes sidewalks) Oneoina Funds Mayor Kan CIP — integrate all money and project to make Saratoga unique and beautiful. • Would support allocating a portion of the TEA funds for strategic planning Vice Mayor Waltonsmith • Suggested Pavement Management Program allocation is too high for a city the size of Saratoga • Supports allocating addition financial assistance from the City to KSAR • Supports weekly street sweeping Councilmember Page • Look at investment opportunities Councilmember King • Keep at least half of the TEA money each year for capital strategic needs • Citizens of Saratoga expect the following to be provided: o Safety o Infrastructure • Community Development • Business Development • Recreational Services • Supports allocating addition financial assistance form the City to KSAR • Leverage TEA (don't obligate it all on operations) use as matching funds Councilmember Hunter • Roads are in good shape • Does not support allocating $1.8 million to the Pavement Management Program (PMP), would support allocating $1 million • Keep at least half of the TEA money each year for capital strategic planning needs COUNCIL DIRECTION • Council Consensus — none • Substantial consensus — none • Items with majority consensus to save some of the TEA money each year for capital strategic needs 2. FACILITIES Barbara Powell, Assistant City Manager, Joan Pisani, Recreation Director, Thomas Scott, Facilities Supervisor and Yvonne Lampshire, Facilities Rental Coordinator, presented staff report. City Council Retreat Minutes 3 February 2, 2007 c Mayor Kao • Asked about solar panels on Fellowship Hall • Must keep good of community as focus • Prefers that the Sanctuary building be demolished and use land for community use • RFP — whole campus or just front? Send out ASAP Vice Mayor Waltonsmith • Two front buildings provide a buffer • If the Education and Sanctuary buildings are used: • Must provide a buffer • Must be open to the community (public use) • Willing to give long term lease • If Sanctuary building is demolished would leave an "ugly" space o Prefer leave as is and use for storage o Find out proposals for use • How much does it cost to build a small gymnasium? Councilmember Page • RFP a good idea • If long term lease, turn over to City after lease with improvements • Need to take noise in account when approving potential uses, as neighbors are use to an under utilized site • Open up facilities to the larger community Councilmember King • Front property not fully utilized • City could fund more as matching funds • RFP ok to consider Councilmember Hunter • Prefers no modular buildings COUNCIL DIRECTION • Consensus to schedule a Study Session to set parameters for proposals CITY COMMISSIONS, COMMITTEES, AD HOCS, TASKFORCES Barbara Powell, Assistant City Manager, presented staff report. COUNCIL DISCUSSION Mayor Kao • If Commissions are reinstated make sure they have clear goals • Website provides venue for citizen input o May need to educate people about it • If Commissioners are appointed; residents would need to speak through the Commissions • Each commission will have different goal(s) City Council Retreat Minutes 4 February 2, 2007 • Parks & Recreation Commisison could focus on the principles of the initiative Vice Mayor Waltonsmith • All for reinstating the commission and empowering them • We have had years of "Top down" approach from City Council. o Want to avoid in future in the community • Existing commissions /committees are great "eyes & ears" • Want Commissions to bring forth ideas • Try to work with neighborhood groups • Help build groups in areas without neighborhood groups • Train residents workings of the City • Ongoing issues • Library Commission — who oversees bond money; continue quarterly meetings • Finance Commission — make it a committee; could possibly handle library bond money • Arts Commission and Parks and Recreation Commission — combined into one commission; together could provide opportunity to raise money and promote events o Traffic Safety— go back to Public Safety Commission • Heritage Preservation Commission —give direction/channel • Traffic Safety Commission — ok as is • Library Commission — mothball • Finance Commission — manage library bond money; translate budget to public • Parks & Recreation Commission — reinstate with specific scope Councilmember Page • What is the ultimate benefit of each commission? • Potential problem — "You didn't hear me because you didn't do what I said" • Have commissioners receive input from residents; come to Council for direction/focus /priorities • Library Commission — does not function; purpose is not clear; may not need • Arts Commission — unfocused (ideas with no money) • Finance Commission — questioned their need; maybe have a Budget Oversight Group • Traffic Safety Commission — ok as is as long as they ask for help with conflicts like we have experiences recently with the issue of speed bumps on Pierce Road • Parks & Recreation Commission — Put back in place; possible conversion to a Public Use Commission Councilmember King • What is the objective? • Are we trying to get citizens involved? • Flushing out issues to bring to Council? • Need to analyze costs vs. benefits • Two way education about what commission can do • If no direct relation with City some residents feel disenfranchised • Would like more community input • Suggest neighborhood representatives City Council Retreat Minutes 5 February 2, 2007 • Need to analyze benefit and costs • Parks & Recreation Commission — support reinstating; have to have clear objectives /directions right now • Arts and Finance Commission — not sure about reinstating • Parks & Recreation Commission — reinstate with specific scope • Heritage Preservation Commission — give direction • Take longer time with Commissions during Council joint meeting to provide focus /direction • Library Commission— mothball Councilmember Hunter • Support reinstating all Commissions • Commissions need strong direction from Council • What was /is the cost of not having commissions (what they provide /save the City) • Need to communicate that City Council cares • People feel less disenfranchised if they feel they know who to go to • Make people feel as if they are part of the governance of Saratoga; part of the process • City Councilmembers should sit on commissions • Model — Saratoga Education Foundation o Take in input o Board gives direction • Reinstate Arts, Finance, and Parks & Recreation Commissions PUBLIC COMMENTS Cheriel Jensen stated that she fully supports reinstating the commissions. Mrs. Jensen pointed out that in the past the Finance Commission provided an overview of the City financials which was available at the Saratoga Library. Mrs. Jensen would like the Parks & Recreation Commission to revisit the dog park issue. Mrs. Jensen stated that she feels commissions can function without staff support. Mrs. Jensen stated that it's her belief that the more commissions the better. COUNCIL DIRECTION Consensus of the City Council to direct staff to prepare a staff report including the following information: • Park & Recreation Commission • Option for terms and number of members • Extend suspended members terms? • Staffing • Larger focus; not focused only on parks and fields • Council to provide specific direction • Library Commission —at joint meeting on April 4, 2007 discuss options • Arts Commission — continue discussion • Finance Commisiion — purpose; to prepare an executive summary of budget and audit City Council Retreat Minutes 6 February 2, 2007 Councilmember King and City Manager Anderson will talk to Villa Montalvo in regards to a possible formation of a Cultural Council 4. PUBLIC INFORMATION /COMMUNITY OUTREACH Cathleen Boyer, City Clerk, presented staff report. COUNCIL DISCUSSION Mayor Kao • State of the City — support; mid year • Saratogan — support but find ways to cut costs (place them at the Post Office and throughout City Hall, email version) Vice Mayor Waltonsmith • Keep newspapers informed • Update web • KSAR — Allocate more funds • Saratogan — reinstate 1 per year • WVC& R — use quarterly invoices to publish public notices • Neighborhood meetings — support for major issues • Citizen Academy — support • State of the City — support Councilmember Page • Create a list serve where more that two Councilmembers could log on • Look at ways to send out Saratogan (web, email) • Neighborhood meetings — support; a place to be heard and gather input Councilmember King • Create a list serve on key issues • Use a list serve to learn how people want to receive information • Use a city -wide voice mail to notify groups of meeting times and dates Councilmember Hunter • Use banner at Blaney Plaza only for Saratoga events COUNCIL DIRECTION Consensus of the City Council to move forward with the following: • Continue with currently used methods of outreach • Incorporate neighborhood meetings into outreach • Publish one Saratogan • Prepare a "State of the City" midyear • Investigate "City Page" in the Saratoga News and Los Gatos Daily • "Hall of Fame" page on City's web site with photos of people /groups receiving commendations and proclamations. City Council direction to staff to purchase a digital camera for this purpose. • City sponsored list serve City Council Retreat Minutes February 2, 2007 5. STAFFING ISSUES (INCLUDING SHERIFF'S OFFICE) Barbara Powell, Assistant City Manager, presented staff report. COUNCIL DISCUSSION Mayor Kao • Asked the reasons behind recent departure of employees • Add more employees; workflow would even out • Offer FTEs more money • Ease into additional employees • Would like to keep employees happy • What is the work load for each department? Vice Mayor Waltonsmith • Supports all recommendations in staff report; current staff is exhausted Councilmember Page • Suggested that the recommended positions be prioritized • Requested a cost increase projection for the next few years of employee salaries, benefits, etc. Councilmember King • Concerned about the upcoming employee negotiations • Concerned with the proposed increase in staff at approximately $160k and the additional request of $95k for an analyst to manage the Parks & Recreation Commisison. • Five additional employees would put the total FTEs at the highest in 10 years • Staff recommendations could use up to 30% of the TEA funds • How does Saratoga's attrition compare to other cities? Councilmember Hunter Hard to support staff's recommendations; should take one step at a time Asked why the City does not hire part time employees rather than hiring temporary employees Council direction to staff to continue this item to the next retreat and include the following: 1. Prioritize positions in report 2. Cost projection 3. Cost of benefits City Council direction to convert the City Council meeting packet onto a CD for distribution and provide City Councilmembers with laptop computers. City Council Retreat Minutes 8 February 2, 2007 STAFFING ISSUES - SHERIFF'S OFFICE Captain Terry Calderone, Santa Clara County Sheriffs Office (SO), presented staff report. Captain Calderone stated that they are in the same position as the City. Captain Calderone pointed out that staffing is a real concern and listed the positions that have been cut from 2001 -2006. Captain Calderone reported that call for service were up 7% and accident calls up 8 %. Captain Calderone stated the SO would like to covert the Neighborhood Resource Officer (NRO) position to the School Resource Officer (SRO). • Continue discussion 6. ORDINANCE PRIORITIES COUNCIL DISCUSSION None COUNCIL DIRECTION • Continue discussion 7. REPRISE TEA — CITY COUNCIL DIRECTION FOR BUDGET COUNCIL DISCUSSION None COUNCIL DIRECTION • Continue discussion 8. SCHEDULE FUTURE STUDY SESSIONS Councilmembers discussed the following items for future study session meetings: • Enhancement of Cooperation with Local School Districts • Saratoga to the Sea Project • City Financial Status • Contract Process • Mixed Use Housing • Abrams Property • Public Safety COUNCIL DIRECTION • Continue Council Retreat to March 2, 2007 • Enhancement of Cooperation with Local School Districts - refer this item to the City Council Adhoc City Council Retreat Minutes February 2, 2007 • Saratoga to the Sea Project — remove from list for time being • City Financial Status — item for the March 2nd retreat agenda • Contract Process — City Manager Anderson and Director Cherbone to meet with interested Councilmembers • Mixed Use Housing — item for the March 2nd retreat agenda • Abrams Property — schedule this item for discussion at a regular meeting in the near future • Public Safety — remove from list ADJOURNMENT There being no further business Mayor Kao adjourned the meeting at 5:00 p.m. and thanked everyone for attending the retreat. Respectfully submitted, Cathleen Boyer, CMC City Clerk City Council Retreat Minutes 10 February 2, 2007 February 16, 2007 Mayor and Council Members City of Saratoga Dear Mayor and Council Members, I would like to provide you with an update to the projected Public Safety Services. I previously addressed what I perceive to be necessary additions in Public Safety to meet the requests, and safety, of the residents of Saratoga. I strongly believe there is a need in Saratoga to increase resources to respond to the growing requests, and increasing calls for service. I realize this request is difficult to consider, and you have to consider a number of projects for the community you serve. I would like to condense my previous request to assist your consideration based on the services that you feel would appropriately meet the safety concerns of the residents of your community. I have continued to evaluate and monitor the need for additional services in the City of Saratoga. The previous reductions in Public Safety Services in the city continue to have a growing effect on the ability of the Sheriffs Office to meet our obligations to the residents. We continue to receive a number of requests for additional traffic enforcement in various residential areas, and at the schools. In addition I monitored the calls for service, and as I indicated previously, they continue to rise. The number of calls for service have had minimal effect on our response times, but every increase in response is a time period that puts safety at risk. I have continued to bring additional resources into the city to meet these needs. I have evaluated the needs for services, and prioritized those needs below. I also provided the costs for each of the services. #1 Priority - Additional Hours — 1,046 additional hours to cover the increase in resources that are being brought into the city. Cost of $141,178 #2 Priority - Traffic Unit — working a swing shift from 1:00 PM to 11:00 PM Cost of $239,000 #3 Priority - Swin2 Shift Beat Deputy — Working swing shift from 6:00 PM to 6:30 AM Cost of $237,000 The above priorities will help meet the current needs of the city. The additional hours that I have requested consist of a percentage of increase in the calls for service (8 %), plus a percentage of increased hours being provided to cover the calls for service (3 %). I then averaged these two percentages to reach an additional 5.5 %. This 5.5% increase will help to cover the time that I now bring additional resources into the city to respond to calls for service, and to cover the units that are not available to respond to calls. This percentage is added to the total number of hours, at the projected contract rate. The additional hours will provide for the unincorporated units that respond into the city, allow for adjustments to various needs, and allow me to remain within the contractual obligation that we have with Saratoga. I also prioritized two additional resources that would provide the services necessary to address the requests in the city. Traffic continues to be a priority for residents of Saratoga, and the additional traffic unit would meet this need, as well as provide an additional unit to respond to calls for service. This unit would be in the City of Saratoga, and would not be required to respond from outside of the city limits. This would increase the unit's response time, and availability to provide the services needed. Response times on Accident calls can be critical. The additional Swing Shift Beat would also allow for the same response, and could assist with the traffic concerns, as well as accidents. Both of these units would be in the city, where the additional hours allows for units to respond into Saratoga from outside the city limits. The recent budget cuts that resulted in the reduction of Public Safety Services to the city in past years has had an effect on the service that the Sheriffs Office provides to Saratoga. The positions that were cut had an effect on response times, calls for service, and the need for traffic enforcement. With the elimination of a Code Enforcement Officer, we now provide these services to Saratoga as well. The priorities listed above would provide for some of the services that Saratoga residents desire and expect of their Public Safety contract. I do not have a need at this time to convert the Neighborhood Resource Officer to a School Resource Officer, as was initially proposed. Instead, I would like to work with City Staff, and Council, to reorganize the Neighborhood Resource Officer's duties, and responsibilities to include responsibilities to a number of schools in the city. By doing this, I can provide the schools with the additional training that is needed, and meet some of their requests for additional services. I have an obligation and responsibility to the Council and City Staff to keep you appraised of the Public Safety concerns facing the city, while maintaining fiscal responsibility in providing the necessary services to keep the community safe. I appreciate your consideration to address Public Safety needs, and will continue to work with City Staff and Council to provide professional and effective service to the city. Sincerely, Captain Terry Calderone SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 AGENDA ITEM: 2 ORIGINATING DEPT: Citv Mana er's CITY MANAGER: PREPARED BY: �EPT HEAD: Barbara Powe , Assistant City Manager SUBJECT: Follow -up for Select City Commissions RECOMMENDED ACTION: Review staff's recommendations, and provide direction concerning the Arts, Finance and Parks & Recreation Commissions. REPORT SUMMARY: Background At its February 2, 2007 Retreat, the City Council received a staff report concerning options for the Arts, Finance, Library and Parks & Recreation Commissions. Following discussion, the Council directed staff to prepare a report including: • Parks & Recreation Commission • Proposed options for the focus of the Commission • Proposed options for number of members and terms (including possible extension of Commission members serving at the time of suspension) • Staffing • Finance Commission • Mission/focus as discussed at the February 2, 2007 Council Retreat • Proposed options for number of members and terms The Council also desires to continue to discuss options for the Arts Commission at its March 2nd Retreat, and to discuss options for the Library Commission at its joint meeting with the Commission, scheduled for April 4, 2007. Parks & Recreation Commission: 1. Focus: a. Retain the current Commission profile: "The Parks and Recreation Commission advises the Council on design, use, development, financing, care and maintenance of parks and playgrounds; landscaping along thoroughfares and other City streets; walkways, pathways and equestrian paths, and other such matters as may be requested by the Council. The Commission also advises and makes recommendations concerning programming and implementation of the City's recreation and leisure activity programs." b. Combine the Parks & Recreation Commission profile with the Pedestrian, Equestrian and Bicycle Trails Advisory Committee (PEBTAC) profile: "The Parks and Recreation Commission advises the Council on design, use, development, financing, care and maintenance of parks and playgrounds; landscaping along thoroughfares and other City streets; walkways, pathways, equestrian paths and sidewalks and to maintain the trails network to enhance the quality of life in Saratoga, and other such matters as may be requested by the Council. The Commission also advises and makes recommendations concerning programming and implementation of the City's recreation and leisure activity programs." c. Create an Executive Committee Model, retaining the profile /status of the PEBTAC and creating other task forces /committees, such as a "Kevin Moran Park Implementation Task Force ", a "Parks Projects Task Force ", and/or a "Recreation Committee ". Chairs of each Task Force /Committee would serve on an Executive Committee. 2. Number of Members: a. Retain the current number of Commission members (7) and PEBTAC members (5) b. Combine the Parks & Recreation Commission and PEBTAC; appoint 7— 11 members NOTE: Two PEBTAC members are former Parks & Recreation Commission members c. Retain the current number of PEBTAC members (5) and create additional task forces /committees d. Other combinations(s) of the above options 3. Member Terms: a. Appoint new members to the Parks & Recreation Commission; retain current PEBTAC members b. Contact Parks & Recreation Commission members with terms outstanding (4) to determine if they desire to continue service on the Commission; recruit additional members as needed. c. Combine the Parks & Recreation Commission outstanding members desiring to continue service with the current PEBTAC members d. Retain the current PEBTAC members and appoint new members to newly constituted task forces /committees e. Other combination(s) of the above options 4. Staffing: If the Parks & Recreation Commission is reinstated, add a Management Analyst position to the City Manager's Office to provide Commission support and perform other duties. In addition, approximately one - quarter of a Director's time is required to support the Parks & Recreation Commission. Finance Commission: 1. Focus: At its February 2, 2007 Retreat, the Council did not reach clear consensus concerning the need to reinstate the Finance Commission. However, if the Commission was reinstated, one purpose could be to prepare an executive summary of the annual budget and audit in a "reader - friendly" format for public reference. 2. Members /Terms: The previous Finance Commission consisted of seven members serving four - year overlapping terms. Several members' terms have lapsed and several others have expressed they are no longer interested in serving. If the Commission is reinstated, Council would need to recruit new members. Staff recommends a maximum of five members for this Commission. 3. Staffing: Depending upon the focus and meeting schedule for this Commission, some staffing support, probably from the Administrative Services Director, will be required. Arts Commission: Staff presented the following options for the Arts Commission at the February 2, 2007 Retreat: a. Reinstate the Arts Commission, better define its role, and provide for a designated revenue source for it to pursue projects /programs b. Reactivate a "scaled back" version of the Arts Commission, with less frequent meetings, fewer members and/or a reduced scope of duties. c. Dissolve the Arts Commission An additional option discussed by the Council at the Retreat is to pursue the formation of a Cultural Arts Council, perhaps in conjunction with Villa Montalvo. FISCAL IMPACTS: If Council decides to reinstate one or more of the currently suspended Commissions and/or to increase the meeting frequency or mission of the Library Commission, staff is recommending adding a position, at the Management Analyst level, to the City Manager's Office to provide Commission support. Anticipated cost to the General Fund for this position would be $95,000 to $110,000. As noted earlier, this position would also provide, among other duties, for the preparation of a community newsletter and public /media relations services. An additional $17,500 would also be required in order to fund reinstatement of the Commission Dinner ($7,500) and travel, training, supplies expenses ($10,000). CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION (S): The Arts, Finance and Parks & Recreation Commissions would remain in suspension. ALTERNATIVE ACTION (S): Council may choose to implement one or more of the options provided above. FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda according to the Brown Act. ATTACHMENTS: N/A SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 AGENDA ITEM: ORIGINATING DEPT: City Manager's$ C Y MANAGER: PREPARED BY: ,r� l EPT HEAD: Barbara Powell, Assistant City Manager SUBJECT: Prioritized Recommendations for Select Staffing Changes RECOMMENDED ACTION: Review staff's recommendations concerning select staffing changes and provide direction for follow -up. REPORT SUMMARY: Background: At its February 2, 2007 Retreat, the City Council received a staff report recommending the following: ➢ Conversion of two full -time, temporary, non - benefited positions to full -time, regular, benefited positions (I.T. Technician — Administrative Services Department and Parks Maintenance Worker I, Public Works Department) ➢ Conversion of two part-time, temporary, non - benefited positions to full -time, regular, benefited positions (Office Specialist III, Human Resources Division and Street Maintenance Worker I, Public Works Department) ➢ Conversion of a part-time, temporary, non - benefited position to a part-time, regular benefited position (increasing hours from 20 to 32 per week) to provide for additional Accounting - related functionality (Accounting Clerk, Administrative Services Department) Following discussion, the Council directed staff to prioritize the staffing recommendations, thereby enabling the possible phase -in of these changes over time, and to calculate the multi -year costs of implementing these changes, taking into account anticipated inflation in salaries and benefits. Discussion: Staff used several criteria to establish a priority ranking for the five positions, including provision of: ➢ Direct, visible service/benefit to the community /residents; ➢ Internal organizational support City -wide; ➢ Time - sensitive projects /programs critical to efficient /effective City operations; and ➢ Services tied to compliance with legal requirements. Based upon these criteria, staff prioritized the five positions as follows: 1. I.T. Technician 2. Street Maintenance Worker I 3. Office Specialist III (HR/City Clerk) 4. Parks Maintenance Worker I 5. Account Clerk Staff prepared the attached five year cost analysis for converting the I.T. Technician and Street Maintenance Worker I from temporary employment status to regular status (Attachment "A "). Staff used conservative (high) assumptions for the analysis of salary increases; benefits increases are based upon prior year trends. Actual total cost increases per year are likely to be less. Recommendations: Staff is recommending the following: 1. Conversion of the I.T. Technician (Administrative Services Department) from a full -time, temporary, non - benefited position to a full -time, regular, benefited position. 2. Conversion of the Street Maintenance Worker I, (Public Works Department) from a part-time, temporary, non- benefited position to a full -time, regular, benefited position. FISCAL IMPACTS: For FY 2006 -07, anticipated total cost to the General Fund for the changes to the I.T. Technician and Street Maintenance Worker I positions is $68,400. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION (S): The current staffing levels would remain in effect. ALTERNATIVE ACTION (S): Council may choose to implement one or more of the five prioritized staffing changes. FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda according to the Brown Act. ATTACHMENTS: Attachment A — Five Year Cost Analysis Attachment "A" Five Year Cost of Converting Temp to Regular Positions - Page 1 of 2 Benefits PER's City (9) IT Tech -Administrative Services Dept. Convert FT Temp to Reg FT & 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 upgrade the position from Intern $6,906.64 $7,390.10 $7,907.41 $8,460.93 $9,053.20 Hrly Budget Rate $29.00 $31.03 $33.20 $35.53 $38.01 Speciality Pays $0.00 $0.00 $0.00 $0.00 $0.00 Annual Hours Worked 2080.00 2080.00 2080.00 2080.00 2080.00 Annual Salary (1) $60,320.00 $64,542.40 $69,060.37 $73,894.59 $79,067.22 OT Hours $200.00 $200.00 $200.00 $200.00 $200.00 OT Rate $44.13 $47.22 $50.53 $54.06 $57.85 OT Budget (2) $8,826.15 $9,443.98 $10,105.06 $10,812.41 $11,569.28 Benefits PER's City (9) 0.0700 $4,222.40 $4,517.97 $4,834.23 $5,172.62 $5,534.71 PER's - Employee (9) 0.1145 $6,906.64 $7,390.10 $7,907.41 $8,460.93 $9,053.20 Medicare (9) 0.0145 $874.64 $935.86 $1,001.38 $1,071.47 $1,146.47 Mthly Uniform - $0.00 $0.00 $0.00 $0.00 $0.00 Mthly Uniform $0.00 $0.00 $0.00 $0.00 $0.00 Medical (3) $5,106.00 $5,106.00 $5,616.60 $6,178.26 $6,796.09 $7,475.69 Dental (4) $294.84 $294.84 $309.58 $325.06 $341.31 $358.38 Unemployment (7) $238.00 $238.00 $238.00 $238.00 $238.00 $238.00 Mthly Life Ins (6) $67.56 $67.56 $67.56 $67.56 $67.56 $67.56 Mnthly LTD (6) $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 Workers Comp (5) 0.0088 $530.82 $567.97 $607.73 $650.27 $695.79 Annual Benefit Cost $18,321.90 $19,724.65 $21,240.63 $22,879.26 $24,650.80 TOTAL COST $87,468.05 $93,711.03 $100,406.05 $107,586.26 $115,287.30 FTE 1.00 1.00 1.00 1.00 1.00 Current Amount Budgeted (8) $51,175.48 $54,757.76 $58,590.81 $62,692.16 $67,080.61 Net Additional Cost $36,292.57 $38,953.27 $41,815.25 $44,894.10 $48,206.68 Attachment "A" Five Year Cost of Converting Temp to Regular Positions - Page 2 of 2 Benefits PER's City (9) Street Maintenance Worker I - Public Works Dept. Convert PT Temp to Reg FT 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Hrly Budget Rate $20.37 $21.80 $23.32 $24.95 $26.70 Speciality Pays $0.00 $0.00 $0.00 $0.00 $0.00 Annual Hours Worked 2080.00 2080.00 2080.00 2080.00 2080.00 Annual Salary (1) $42,369.60 $45,335.47 $48,508.96 $51,904.58 $55,537.90 OT Hours $0.00 $0.00 $0.00 $0.00 $0.00 OT Rate $31.00 $33.17 $35.49 $37.97 $40.63 OT Budget (2) $0.00 $0.00 $0.00 $0.00 $0.00 Benefits PER's City (9) 0.0700 $2,965.87 $3,173.48 $3,395.63 $3,633.32 $3,887.65 PER's - Employee (9) 0.1145 $4,851.32 $5,190.91 $5,554.28 $5,943.07 $6,359.09 Medicare (9) 0.0145 $614.36 $657.36 $703.38 $752.62 $805.30 Mthly Uniform - $0.00 $0.00 $0.00 $0.00 $0.00 Mthly Uniform $0.00 $0.00 $0.00 $0.00 $0.00 Medical (3) $12,148.68 $12,148.68 $13,363.55 $14,699.90 $16,169.89 $17,786.88 Dental (4) $877.80 $877.80 $921.69 $967.77 $1,016.16 $1,066.97 Unemployment (7) $238.00 $238.00 $238.00 $238.00 $238.00 $238.00 Mthly Life Ins (6) $67.56 $67.56 $67.56 $67.56 $67.56 $67.56 Mnthly LTD (6) $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 Workers Comp (5) 0.0088 $372.85 $398.95 $426.88 $456.76 $488.73 Annual Benefit Cost $22,217.44 $24,092.51 $26,134.40 $28,358.39 $30,781.19 TOTAL COST $64,587.04 $69,427.98 $74,643.35 $80,262.97 $86,319.09 FTE 1.00 1.00 1.00 1.00 1.00 Current Amount Budgeted (8) $32,480.00 $34,753.60 $37,186.35 $39,789.40 $42,574.65 Net Additional Cost $32,107.04 $34,674.38 $37,457.00 $40,473.57 $43,744.44 SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 AGENDA ITEM: L� ORIGINATING DEPT: City Ma ger / CITY MANAGER: — PREPARED BY: ? (' DEPT HEAD: Barbara Powell, Assistant City Manager SUBJECT: Request for Conceptual Proposals —North Campus RECOMMENDED ACTION(S): Receive report and direct staff accordingly. REPORT SUMMARY: At its March 2, 2007 Retreat the City Council received a staff report about the North Campus including: • A status report on planned renovations for the Administration Building and Fellowship Hall. • A status report on rentals of the Administration Building, showing historic data from 2002 through January 2007. • An overview of proposals received from the public for long -term use of the Education Building, and some options for Council to consider regarding long -term use of the building • A report on the condition of the Sanctuary Building and some options for Council to consider regarding the future of the building An option considered by the Council for use of the Education Building was to conduct a formal "Request for Proposals" from interested users of the building. Consideration of this option led to a broader discussion about the possibility of conducting a formal "Request for Conceptual Proposals" (RFCP) from users interested in one building, more than one building or, possibly, use of the entire campus. Council directed staff to schedule a Study Session to set the parameters for the RFCP process. In order to expedite preparation and distribution of the RFCP (if approved) the Study Session has been scheduled for the Council's March Retreat. DISCUSSION: Council may wish to consider the following questions in order to determine whether an RFCP is desired, and to establish the parameters for the RFCP process: 1. For which buildings /facilities does the Council desire to enter into an RFCP process? • Education Building ❑ Sanctuary Building • Administration Building ❑ Fellowship Hall ❑ Landscaping/Parking ❑ Entire Campus 2. Will the Council consider a long -term lease for any of the buildings? ❑ Education Building ❑ Sanctuary Building ❑ Administration Building ❑ Fellowship Hall ❑ Entire Campus 3. If the Council would consider a long -term lease for one or more of the buildings, what lease period would be considered? ❑ 3 years ❑ 5 years ❑ 10 years ❑ 15 years ❑ Depends upon the proposal received 4. Will the Council consider the demolition and reconstruction of any of the buildings as part of a conceptual proposal? • Education Building ❑ Sanctuary Building • Administration Building ❑ Fellowship Hall Will the Council consider a Master Plan for the entire campus? ❑ Yes ❑ No If "Yes" to #4, will the Council consider: • Renovation/remodel of existing buildings only • Demolition and reconstruction of specific buildings with renovation/remodel of other buildings ❑ Completely new Master Plan for the site as a whole Should staff continue with planned renovations to the Administration Building and Fellowship Hall and making the Education Building weatherproof for storage? • Administration Building ❑ Yes ❑ No • Fellowship Hall ❑ Yes ❑ No • Education Building ❑ Yes ❑ No 8. What use(s) would the Council consider for individual buildings and/or the site as a whole? • Daycare ❑ Pre - school ❑ Entire School Campus ❑ Cultural /Art Center • Adult Daycare ❑ Community Center ❑ Community Center + Housing • Athletic Facility ❑ Museum/History Center ❑ Storage • Other 9. Should preference be given to a non - profit and/or community -based organization's proposal? ❑ Yes ❑ No 10. What funding mechanism(s) will be considered adequate to qualify a proposal? ❑ Full funding upfront ❑ Approved loan(s) ❑ Anticipated grant(s) ❑ Fundraising/pledges ❑ Installment payments ❑ Match from City ❑ Other 11. Are there other criteria/parameters that should be included in an RFCP process? FISCAL IMPACTS: Fiscal impacts will need to be determined, following direction received from City Council. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): N/A ALTERNATIVE ACTION(S): Do not prepare and issue an RFCP for the North Campus. FOLLOW UP ACTION(S): If applicable, implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda according to the Brown Act. ATTACHMENTS: None SARATOGA CITY COUNCIL MEETING DATE: March 2, 2007 AGENDA ITEM: ME ORIGINATING DEPT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: John F. Livingstone, AICP, Com. Dev. Dir. DEPT HEAD: SUBJECT: Mixed -Use Development Standards RECOMMENDED ACTIONS: Direct staff accordingly. REPORT SUMMARY: Several Council members have asked that Mixed -Use Development Standards be reviewed as applied in the Village. There have been several projects where the applicants have expressed interest in building owner occupied housing units in the commercially zoned areas. The current ordinance requires that all housing in mixed -use projects be rental housing. BACKGROUND: In 2002 the General Plan Housing Element was updated. In order to get the Housing Element certified by the State the City of Saratoga had to show how it would meet the City's share of the bay area regional housing needs. To do this the City approved two new policies. The first policy was to make it easier to create second units, and the second policy created additional housing opportunities through mixed -use development standards. In 2004 the City of Saratoga's Zoning Ordinance was updated to reflect the Housing Element policies creating a new ordinance, Article 15 -58 (see attached article). The new ordinance provided for additional housing opportunities which allowed the Housing Element to be certified by the State and also acted to preserve the future commercial development in the City by not allowing the dwellings units to be comprised of more than fifty percent of the total building area of all buildings on the site. One of the other requirements of the article is that the residential component of a mixed -use project be rental and no greater than 1,250 square feet in size. This requirement prohibits owner occupied units such as condominiums for sale to individual owners. Applicants have stated that without the economic advantage of selling the owner occupied units it makes financing the commercial portions of the project very difficult. City Council Retreat March 2, 2007 Page 2 In order to remove the rental requirement, both the Zoning Ordinance and the Housing Element would need to be updated. The Housing Element will need to be updated over the next few years as part of the State requirements. In order to meet the regional housing demand and get the element certified by the State a new method to provide for housing opportunities in the City would be required. Inclusionary housing ordinances are one of the most common used tools to provide for affordable housing units. These ordinances are specifically required for cities with redevelopment agencies but are also used city wide outside of the redevelopment areas. Inclusionary housing ordinances normally require that a certain percentage of any new units being developed be affordable units. The specifics of the programs and how they are implemented vary considerably from city to city. Other methods may also be available to meet the cities housing needs and could be further researched. FISCAL IMPACTS: The budget for this fiscal year includes a 1% General Plan Maintenance Fee on building permits. Based on average building permit fees generated in past years the Community Development Department is estimating available revenue to be approximately $70,000 a year. Starting in July 07 the account will begin accruing funds. The majority of the existing funding is being utilized as part of the current General Plan update. Staff estimates the entire fund of approximately $70,000 would be needed to update the Housing Element and the ordinance update may need an additional $20,000. ALTERNATIVE ACTIONS: As Directed. FOLLOW UP ACTIONS: Staff will continue to work on the tasks recommended by the Council. ADVERTISING, NOTICING AND PUBLIC CONTACT: The agenda was properly posted for this meeting. ATTACHMENTS: 1. Article 15 -58 Mixed -Use Development Standards 2. Map of the Village area Attachment 1 15- 58.010 Article 15-58 MIXED -USE DEVELOPMENT STANDARDS Sections: 15- 58.010 Purposes of Article. 15- 58.020 Development standards. 15- 58.010 Purposes of Article. The purpose of the mixed -use development standards is the implementation of Program I.1 of the Housing Ele- ment of the General Plan. The goal is to implement this Housing Program in a consistent manner throughout the various commercial and office zoned districts of the City. It is further the goal of these standards to protect existing and future commercial development. (Ord. 230 § 2 (part), 2004) 15- 58.020 Development standards. (a) The maximum density is twenty dwellings per net acre. (b) The dwelling unit(s) shall be located either on the second floor or at the rear of the parcel. (c) The dwelling unit(s) shall not comprise more than fifty percent of the total floor area of all buildings on the site. The maximum floor area allowed may be increased by ten percent for projects providing below market rate rental housing. (d) Parking for both the non - residential and the dwell- ing unit(s) shall be as specified in the Zoning Ordinance, provided that the Planning Commission may consider shared parking in some cases. (e) Perimeter fencing shall be required to the maxi- mum height allowed in the Zoning Ordinance. (f) Each dwelling shall have private, usable outdoor space, i.e., decks, balconies, yards or patios. (g) The maximum height of a mixed -use structure shall be twenty-six feet. Structures that are solely non- residential on a site that has mixed -use, the maximum height is as it is stated in the underlying zoning. (h) The design of mixed -use projects will be required to conform to the policies and techniques of the Residen- tial Design Handbook and any other design standards in place for the area of application. (i) Overall site coverage may be increased up to ten percent for projects containing deed restricted below mar- ket rate housing units. 0) Mixed -use projects shall have sound walls and landscape screening in order to protect the privacy and quality of life of abutting single-family residential lands uses. (S"op Supp. Na 13,12-06) 364 (k) The residential component of a mixed -use project shall be rental. The individual dwelling units shall range in size from eight hundred fifty square feet for one bedroom units to one thousand two hundred fifty square feet for three bedroom units sequent mixed -use development. (1) Projects with multiple stories shall be reviewed to ensure that design features such as setbacks and window placement provide adequate privacy protection. (m) Non - residential structures or parcels created or developed as part of a previous mixed -use development or multi -family development may not be redeveloped as a mixed -use development at a greater density or intensity of use. (n) Smaller mixed -use projects (twenty or fewer dwelling units) must pay an in lieu fee for park construc- tion. (o) In larger mixed -use projects (more than twenty dwelling units) either the developer must pay an in lieu fee for park construction or construct common, useable open space on site at the discretion of the Planning Commission based on the vicinity of existing public parks. (Ord. 230 § 2 (part), 2004) Attachment 2 ,,Rcrirew:o DR o� r - e , J RD` ! ' `•. Ri C`. NO AN I 1 X p , � ..��� � � � "'� �� •• � %.r "o Jai 'V� ���.��i. .. 1 �) ,'J�.. AGENDA COUNCIL RETREAT HAKONE GARDENS FRIDAY MARCH 2, 2007 CITY COUNCIL RETREAT — HAKONE GARDENS — 21000 BIG BASIN WAY 8:30 A.M. CONTINENTAL BREAKFAST CALL MEETING TO ORDER — 9:00 A.M. REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on February 22, 2007) 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. 1. Ordinance Priorities 9:00 — 10:00 a.m. BREAK 10:00 — 10:15 2. City Commissions, Committees, Ad Hocs, Taskforces — 10:15 — 11:15 Part II 3. Staffing Issues — Part 11 11:15 — 12:15 LUNCH 12:15 — 12:45 4. North Campus — RFP Discussion 12:45 — 1:15 5. Mixed Use Housing 1:15 — 2:00 6. City Financial Status 2:00 — 2:30 BREAK 2:30 — 2:45 7. Reprise TEA — City Council Direction for Budget 2:45 — 4:00 ADJOURNMENT 4:00 p.m. 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, Cathleen Boyer, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council of the City of Saratoga was posted on February 22, 2007, at the City of�aratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and was available for public review at th t Iocy{tion. Thj .g enda is also available on the City's website at www %saratoga. ca. us 2nd day of February 2007 at Saratoga, California. ;er, CMC SARATOGA CITY COUNCIL MEETING DATE: February 2, 2007 AGENDA ITEM: ORIGINATING DEPT: Community Development CITY MANAGER: ��G - -- Dave Ande on PREPARED BY: John F. Livingstone, AICP, Com. Dev. Dir. DEPT HEAD: SUBJECT: Community Development Department's Advance Planning Activities RECOMMENDED ACTIONS: Direct staff accordingly. REPORT SUMMARY: On January 91h the Planning Commission met in a special study session to discuss what ordinances they would recommend to the City Council. The Planning Commission started with a list of 11 possible ordinances. In reviewing the ordinances one of the factors they considered was which ordinances could be improved to reduce problems and costs to the City associated with the existing ordinance. Consequently, the Planning Commission selected the fence ordinance as their number one priority. Their second priority was the ordinance updates that were recommended as part of the Administrative Design Review process that the Council reviewed earlier in the year. The recommendations included story poles, increasing the noticing from 250 feet to 500 feet and creating a requirement for a 4X8 sign to be posted in front of the project site. Since all three of those issues are related to the identification and noticing of a project the Planning Commission recommended that the three items be reviewed together as one package. The third priority for the Planning Commission was tied between the nonconforming use and sign ordinance. ORDINANCES: #1 The Council asked that this ordinance be updated. The update Fence Ordinance should include a fence exception process to allow for taller fences. This may reduce city staff and attorney time spent dealing with code complaints on fences. 42 Require all Administrative and Planning Commission Design Story Poles Review projects to have story poles erected a minimum of two weeks prior to a Planning Commission hearing or the mailing of the Notice of Intent to Approve an Administrative Design Review project. City Council Retreat February 2, 2007 Page 2 #2 Increase the minimum required noticing on Administrative Increase Noticing on Design Review projects to match the Planning Commission Administrative Design Design Review projects with a 500 foot radius instead of the Review Applications existing 250 foot radius. #2 Require all applicants to place a 4' x 8' notice with a project Notice sign on properties description at the proposed project site a minimum of two Housing Element (Update required every 5 years) weeks prior to a Planning Commission hearing or the mailing 2007 of the Notice of Intent to Approve an Administrative Design 1988 Review project. #3A The sign ordinance has not been updated in some time and does Sign Ordinance not reflect recent developments in the law. This ordinance will 1999 require more time than some of the other ordinances due to the need for staff to work with the business and real estate community. #313 This ordinance has not been updated in some time and does not Nonconforming Use reflect recent developments in the law. Ordinance The Planning Department is in the process of updating three Elements of the City's General Plan: the Land Use Element, Conservation and Open Space Element. The Land Use Element was last updated in 1983, the Conservation Element in 1988, and the Open Space Element in 1993. The following table shows some proposed dates for the other elements to be updated. General Plans should be updated every 10 years and the Housing Element should be updated every five years according to State requirements. GENERAL PLAN: MANDATORY ELEMENTS DATE OF ADOPTION PROPOSED UPDATE Land Use Element 1983 Update in Progress Conservation Element 1988 Update in Progress Open Space Element 1993 Update in Progress Housing Element (Update required every 5 years) 2002 2007 Noise Element 1988 2008 Safety Element 1987 2009 Circulation Element 1999 2010 City Council Retreat February 2, 2007 Page 3 OPTIONAL DATE OF PROPOSED ELEMENTS ADOPTION UPDATE Scenic Highways 1999 2011 Element Seismic Safety Element 1987 2012 FISCAL IMPACTS: Ordinance update Ordinances are typically updated by staff and reviewed for legal conformance by the City Attorney. Several of the proposed ordinances will require environmental review typically in the form of a negative declaration or mitigated negative declaration. The environmental review would be conducted by staff. One new ordinance and one new general plan element could be started over the next twelve months. Staff time to complete one ordinance would be approximately .15 FTE depending on the number of neighborhood meetings and study sessions required. If the Council was interested in moving forward with an additional ordinance the City Attorneys office is available to write ordinances when needed. The City Attorney has estimated that the cost for them to write an ordinance instead of staff would be approximately $20,000 per ordinance. The current rate to have a consultant complete a mitigated negative declaration is approximately $20,000, for a total of approximately $40,000 per ordinance. Some staff time is also needed to manage the project and attend meetings. General Plan update The budget for this fiscal year includes a I% General Plan Maintenance Fee on building permits. Based on average building permit fees generated in past years the Community Development Department is estimating available revenue to be approximately $70,000 a year. Starting in July 07 the account will begin accruing funds again. The majority of the existing funding is being utilized as part of the General Plan update which involves the contract planner, staff time, and the updating of maps. General Plan updates are typically conducted by a consultant with expertise in that particular area. ALTERNATIVE ACTIONS: As Directed. FOLLOW UP ACTIONS: Staff will continue to work on the tasks recommended by the Council. ADVERTISING, NOTICING AND PUBLIC CONTACT: The agenda was properly posted for this meeting. ATTACHMENTS: None