Loading...
HomeMy WebLinkAbout08-02-2000 City Council MinutesMINUTES SARATOGA CITY COUNCIL AUGUST 2, 2000 The City Council of the City of Saratoga met in Closed Session, Administrative Conference Room, 13777 Fruitvale Avenue at 6:00 p.m . Public Employee Performance Evaluation (Gov't Code 54957) Title: City Attorney Conference with Legal Counsel -Existing Litigation (Gov't Code 54956.9(a) Chiang v. Barnes et al., Santa Clara County Superior Court No. CV785117 Conference with Legal Counsel -Anticipated Litigation Significant Exposure to Litigation (Gov't Code 54956.9(b)): 2 cases Mayor's Resort on Closed Session - 7:06 p.m. Mayor Bogosian reported there was Council discussion but no action was taken. Mayor Bogosian called the regular City Council meeting to order at 7:07p.m. and requested Dave Anderson, to lead the Pledge of Allegiance. ROLL CALL PRESENT: Ann Waltonsmith, Evan Baker, Nick Streit, Stan Bogosian. ABSENT: John Mehaffey ALSO PRESENT: Bill Norton, Interim City Manager Richard Taylor, City Attorney Cathleen Boyer, City Clerk Mary Jo Walker, Dir. of Administrative Services John Cherbone, Dir. of Public Works Christina Ratcliff, Assistant Planner Cary Bloomquist, Administrative Analyst Paula Reeve, Senior Administrative Analyst REPORT OF CITY CLERK ON POSTING OF AGENDA FOR AUGUST 2, 2000. Cathleen Boyer, City Clerk, reported that pursuant to Government Code Section 54954.2, the agenda for the meeting of August 2, 2000 was properly posted on July 28, 2000. • City Council Minutes COMMUNICATIONS FROM COMMISSIONS & PUBLIC None COMMUNICATIONS FROM BOARDS AND COMMISSIONS None WRITTEN COMMUNICATIONS None ORAL COMMUNICATIONS -COUNCIL DIRECTION TO STAFF None CEREMONIAL ITEMS - 7: 07 p.m. August 2, 2000 1. PRESENTATION BY GOVERNMENT FINANCE OFFICERS ASSOCIATION TO MARY JO WALKER, DIRECTOR OF ADMINISTRATIVE SERVICES AND RAY GALINDO, ACCOUNTING SUPERVISOR FOR "CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING." STAFF RECOMMENDATION: That Council accept certificate. Tim Hansen, Finance Director, City of San Leandro/ Northern California Representative of . the Finance Association, presented to Mary Jo Walker, Director of Administrative Services and Ray Galindo, Accounting Supervisor the "Certificate of Achievement for Excellence in Financial Reporting." Councilmember Baker suggested putting news of this achievement in the local newspaper. CONSENT CALENDAR 2A. APPROVAL OF MINUTES -ADJOURNED MEETING OF JULY 11, 2000, REGULAR MEETING OF JULY 19, 2000, AND CLOSED SESSION OF JULY 19, 2000. STAFF RECOMMENDATION: That Council approve minutes as submitted. Mayor Bogosian pulled the minutes of Adjourned Meeting -July 11, 2000 & Re ular Meeting -July 19, 2000 Mayor Bogosian requested that on page 3, 2na paragraph, July 11th-Adjourned Meeting, the following be added: "Mayor Bogosian expressed concern that people will have a livable home while still preserving the historic nature of the building." Mayor Bogosian noted on page 7, 4th paragraph, July 19-Regular Meeting, the discussion was about the "parking lot" at Hakone Gardens not the "road." 2 City Council Minutes August 2, 2000 Mayor Bogosian requested on page 12, 2"d paragraph, July 19-Regular Meeting, the following be added: "Mayor Bogosian stated that the Heritage Preservation Commission is an advisory commission in the same way the other commissions are in that they advise the Council on policy and the day to day operations should be left to the staff." Councilmember Baker noted on page 3, last paragraph, July 11th -Adjourned Meeting, he disagreed with what the minutes stated. He commented that the Board's arborist report never said to remove the trees. Baker explained that the Arborist might have told Ms. Petrossi to remove the trees at the meeting but it was not in the report. Richard Taylor, City Attorney, suggested that the Clerk include a notation of the uncertainty in tonight's minutes. Councilmember Waltonsmith noted on page 9, 8th paragraph, July 19-Regular meeting, should read: "He explained that the VTA Board of Directors approved adding Highway 85 Noise Mitigation Test Project to the list covered by Measure B this fiscal year, pushing it ahead of schedule." Councilmember Waltonsmith noted on page 11, 2na paragraph, July 19th--Regular meeting, misspelled word, "suckering" should be "suckers." Councilmember Waltonsmith noted page 11, 8th paragraph, July 19th-Regular Meeting, for better clarification of the sentence which should read as follows: "Part of his agreement is that he keeps the harvest but unfortunately there was no cherry crop for him to sell in order to lower the maintenance costs." WALTONSMITH/BAKER MOVED TO APPROVE MINUTES OF JULY 11, 2000, JULY 19, 2000 CLOSED SESSION & REGULAR MEETING. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 2B. APPROVAL OF CHECK REGISTER STAFF RECOMMENDATION: That Council approve check register as submitted. STREIT/BAKER MOVED TO APPROVE CHECK REGISTER. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT 2D. JOHN SKIDMORE, CLAIMANT: CLAIM NO.00-010. STAFF RECOMMENDATION: That Council reject claim. Bill Norton, Interim City Manager, requested that this item be removed from the consent calendar. 3 City Council Minutes August 2, 2000 2E. AUTHORIZATION TO AMEND MEMORANDUM OF UNDERSTANDING (MOU) FOR WAGES, EMPLOYEE BENEFITS AND CONDITIONS OF EMPLOYMENT BETWEEN THE CITY OF SARATOGA EMPLOYEES ASSOCIATION DATED JULY 1,1999. STAFF RECOMMENDATION: That Council adopt resolution. TITLE OF RESOLUTION: 85-9.123 RESOLUTION OF THE CITY OF SARATOGA AMENDING THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY AND THE SARATOGA EMPLOYEES ASSOCIATION, FURTHER AMENDING RESOLUTION 85-9 AS AMENDED, ADJUSTING SALARIES AND BENEFITS FOR NON-MANAGEMENT EMPLOYEES STREIT/BAKER MOVED TO ADOPT RESOLUTION AMENDING THE MOU BETWEEN THE CITY OF SARATOGA AND THE SARATOGA EMPLOYEES ASSOCIATION. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. Mayor Bogosian noted that it was not time to start the public hearings, he moved to Item #5 Old Business. OLD BUSINESS 5. STATUS REPORT ON SARATOGA CREEK SETTLEMENT AGREEMENT. STAFF RECOMMENDATION: That Council accept report. Bill Norton, Interim City Manager, presented staff report. He indicated the City of Saratoga is in compliance with the settlement agreement entered in with the Friends of the Saratoga Creek and the San Francisco Bay Keepers. Mr. Norton explained the City has made substantial efforts with the help of a volunteer, Don Whetstone, to find the areas of the Saratoga Creek that were being contaminated. The City determined there was a problem with the sanitary sewer leaking from West Valley Sanitation District pipes. Norton indicated that the City and the Sanitation District are working together to fix the problem. Mr. Norton informed the Council that the Sanitation District would be lining the pipes to prevent any further leakage. The process should be completed at the end of September. He also noted that in some recent sampling of the creek, considerable amounts of contamination were found, not only at Saratoga-Sunnyvale, but also on 4th Street at Wildwood Park. Since that finding, the storm drain has been blocked. 4 City Council Minutes August 2, 2000 Mr. Norton reported that the City of Saratoga has provided storm drain maps as required by the agreement. Also the City has placed stenciled "No Dumping" signs and posted warning signs along the creek, worked with the Fire Department to reduce emergency response time, and worked with City Staff to improve their efforts to comply with the agreement. Mayor Bogosian asked Mr. Norton if he knew when the sag at 4th Street would be repaired. He indicated he read in the report that the West Valley Sanitation District would repair it once they have lined the pipes in that area. He suggested that it should be repaired before the rainy season comes. Mr. Norton stated that the Sanitation District assures him that the work will be completed by the end of September 2000. Don Whetstone, 14768 Vickery Avenue, confirmed that the City of Saratoga was in full compliance with the settlement agreement. Whetstone also noted that a few weeks ago he met with the Sanitation District and was informed that 18,000 feet of new suspicious pipes have been identified. Mr. Whetstone thanked Bryan McQueen and Howard Lewis of the Public Works Department for the excellent job they have doing. Mayor Bogosian thanked Mr. Norton and Mr. Whetstone for the detailed information they provided. PUBLIC HEARINGS 3. APPEAL OF PLANNING COMMISSION DECISION. PROPERTY LOCATED AT 20571 KOMINA AVENUE, SARATOGA TENNIS CLUB. STAFF RECOMMENDATION: That Council deny the appeal and uphold the Planning Commission's decision. No public hearing was necessary. Appellant withdrew appeal. Mayor Bogosian indicated Councilmember Mehaffey would be convening a meeting with the owners of the Tennis Club, interested neighbors, and Saratoga Union School District at a later date. 4. APPROVE RESOLUTION OF CONFIRMATION AND REPORT OF ASSESSMENT OF WEEDS AND BRUSH ABATEMENT. STAFF RECOMMENDATION: That Council adopt resolution. TITLE OF RESOLUTION: 00-045 5 City Council Minutes August 2, 2000 • RESOLUTION OF THE CITY OF SARATOGA CONFIRMING REPORT AND ASSESSMENT OF WEED AND BRUSH ABATEMENT CHARGES Mayor Bogosian opened the public hearing at 7:45 p.m. Marty Hicks, Santa Clara County Fire Marshal's Office, indicated to Council the total assessment totaled $3,551.14. Councilmember Waltonsmith questioned why last year's total assessments were much larger than this year's total. Mr. Hicks explained that the community responded very well to the abatement notices. Councilmember Waltonsmith asked if the County was doing the work at a cheaper rate rather than if the City hired out. Mr. Hicks indicated they were not doing the work at a lower rate. Mayor Bogosian closed the public Hearing at 7:50 p.m. STREIT/BAKER MOVED TO APPROVE RESOLUTION CONFIRMING REPORT AND ASSESSMENTS OF WEED AND BRUSH ABATEMENT CHARGES. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. NEW BUSINESS 6. AUTHORIZATION TO EXECUTE AGREEMENT WITH DAVE ANDERSON FOR CITY MANAGER. STAFF RECOMMENDATION: That Council approve authorization to execute agreement. Bill Norton, Interim City Manager, presented staff report. Mr. Norton indicated that he and the City Attorney negotiated the contract in compliance with the City Council's direction. BAKER/WALTONSMITH MOVED TO APPROVE AGREEMENT WITH DAVE ANDERSON. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. Mayor Bogosian emphasized that after an exhausting search, he felt the Council chose an exceptional individual to be the new City Manager of Saratoga. • 6 City Council Minutes August 2, 2000 • 7. PRESENTATION BY GARY BLOOMQUIST: STATUS OF SARATOGA PLAYFIELDS. STAFF RECOMMENDATION: That Council accept report and direct staff accordingly. Cary Bloomquist, Administrative Analyst, presented staff report. Mr. Bloomquist summarized his findings. He noted that upon receiving direction from the City Council to investigate the availability of land for recreational use as playfields, he contacted all the school districts, service clubs, businesses, and other groups both public and private, to discuss the shortage of land for playfields. Most of the existing facilities are being utilized to their full capacity at the present time. Mr. Bloomquist explained he has been working with the primary user group of playfields in Saratoga, A.Y.S.O., in an effort to discover additional facilities or "flat grass" areas that were not presently being utilized for playfields. Together they have recently procured five (5) additional playfield sites: one (1) at the Mormon Church in Saratoga, two (2) at El Quito Park, one (1) at Wildwood, and one (1) at Beauchamps park. New leads for additional playfields at De Anza College and Rolling Hills School in San Jose have been and continue to be researched by City Staff. Staff is also researching an additional four (4) playfield sites at Christa McAuliffe Elementary • School in the Cupertino Union School District. Mr. Bloomquist indicated if the City were able to procure the usage of the playfield at Christa McAuliffe School in the Cupertino School District and Country Lane School in Moreland School District the needs of A.Y.S.O. for the 2000 season should be met. He noted that in 2001 with the construction of Congress Springs Park and local schools A.Y.S.O. would be challenged to meet their practice field needs. Mr. Bloomquist noted that the A.Y.S.O. Regional Commissioner Mark Linsky was present to answer any questions the City Council might have. Councilmember Streit expressed concern about the loss of Congress Springs Park in 2001. He indicated that the construction was postponed until the Saratoga Pony League season was over, but the A.Y.S.O. needed to relocate during the time of construction. Mr. Bloomquist responded that De Anza College in Cupertino was a good potential flat grass area for the A.Y.S.O. 2001 season. Mr. Mark Linski, A.Y.S.O Regional Commissioner, indicated that during that time Saratoga Soccer has offered to provide portable goal posts as needed. He also noted that A.Y.S.O thought they were going to be able to utilize Saratoga Schools but unfortunately due to the construction the completion times are uncertain and also the • size of the schools have expanded, shrinking the size of the playfields. Mayor Bogosian thanked staff for the report. 7 City Council Minutes August 2, 2000 • 8. REAPPOINTMENT OF JIM STALLMAN, REPRESENTATIVE TO THE VALLEY TRANSPORTATION AUTHORITY BICYCLE ADVISORY COMMITTEE (BAC). STAFF RECOMMENDATION: That Council reappoint representative. STREIT/BAKER MOVED TO APPROVE REAPPOINTMENT OF JIM STALLMAN. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 9. APPROVAL OF RESOLUTION ACCEPTING OFFER OF RIGHT-OF-WAY ON MT. EDEN ROAD FOR TRAIL IMPROVEMENTS. STAFF RECOMMENDATION: That Council approve resolution accepting dedication. TITLE OF RESOLUTION: 36-B-254 RESOLUTION ACCEPTING OFFER OF DEDICATION - MT. EDEN ROAD John Cherbone, Director of Public Works, presented staff report. He explained if the resolution were adopted, it would accept right-of -way at the property located at 22101 Mt. Eden Road. He explained that this dedication is necessary to improve trail Section 51 which, when constructed, would link Section 10 at the North end to Section 12. Presently users are forced to move onto Mt. Eden Road for the length of this segment. The Parks & Recreation Commission has selected trail Section 51 as a high priority for improvements and has recommended the improvement be funded with Park Development Funds designated for trails. Mr. Cherbone noted that if the resolution is approved, the City will have the Contractor who was awarded the 2000 Concrete Repair Project do the work. BAKER/WALTONSMITH MOVED TO APPROVE RESOLUTION ACCEPTING OFFER OF RIGHT-OF-WAY. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 10. REPORT ON LEGAL OPTIONS TO LIMIT CONVERSIONS OF COMMERCIAL RETAIL USERS TO OFFICE USES. STAFF RECOMMENDATION: That Council accept report and direct staff accordingly. Richard Taylor, City Attorney, presented staff report. • Mr. Taylor indicated the Council had requested information concerning the City's ability to adopt retail to office conversion policy similar to that being considered by the City Council Minutes August 2, 2000 • City of Cupertino. A similar policy could be adopted by the City as part of a General Plan revision to designate an acceptable mix of retail, office and other uses in commercial areas and to establish a review process for approving projects that vary from that allocation. Mr. Taylor explained that in order to adopt such a policy in Saratoga, the City would need to make substantial revisions to the General Plan. He noted that currently there are no distinctions between Retail Uses and Office Uses. The City would also need to hire a consultant to come in and look at Saratoga and evaluate the appropriate mix of those uses and establish the core square footage amounts. Mr. Taylor indicated that it would be a challenge to work in non-conforming uses if such a policy were adopted. He noted that a policy in the Village was adopted whereby office uses cannot occupy sidewalk frontage; they have to be removed onto a 2°d story or located behind retail establishments. Mr. Taylor discussed a few alternative possibilities: extend the Village policies elsewhere in the City, create Retail District and Office Districts, and the last possibility could be to require a use permit for businesses which want to change Retail Uses to Office Uses. Councilmember Waltonsmith noted that she hesitates reworking the General Plan; she does like the idea of creating districts. Councilmember Streit supported the idea of similar guidelines that are enforced in the Village. He suggested that each area in the City be looked at and determinations be made on what they need. Councilmember Baker noted that he does not support rewriting the General Plan but supports extending a similar kind of permit used in the Village throughout the City. Mayor Bogosian noted that he also supported extending the Village guidelines throughout the City. He explained that he would like to take due time and consideration of any policy changes considered and full participation from the community is a must. Councilmember Waltonsmith questioned the possibility of the City losing tax revenue and was concerned about the areas in the City that the retail uses should be left as is. Mr. Taylor indicated the fiscal issue is one Cupertino deals with through a Development Agreement. Cupertino invites people proposing conversions to make them an offer to deal with the economic impact of that conversion. He explained that this was a much easier thing to do then a General Plan change and easier than use permits. He noted that if the City of Saratoga were concerned about fiscal issues, an excise tax could be imposed on establishments of Office Uses. Although it would require voter approval, it • would be similar to the construction tax that the City currently levies. The new tax would be called an "office use tax." 9 City Council Minutes August 2, 2000 • Mayor Bogosian noted that the direction to staff is to develop an outline of the process with the following considerations: revenue aspects and preservation of retail. He noted that he wants all parties involved. Consensus of Council. 11. AUTHORIZATION TO CITY MANAGER TO AWARD CONTRACT TO BSA ARCHITECTS FOR LIBRARY EXPANSION PROJECT. STAFF RECOMMENDATION: That Council approve authorization to execute contract. Mary Jo Walker, Director of Administrative Services, presented staff report. Director Walker indicated that the RFP was sent out to twenty-seven qualified architectural firms; seven were received back. Out of that seven, only three of the firms were qualified. On July 18, 2000 those three firms were interviewed by the Library expansion Committee, Mayor Bogosian, and Councilmember Streit. BSA Architects is the recommended firm based on the company's quality of staff, site visits, previous experience, and references. Mayor Bogosian agreed with Director Walker that BSA Architects met all of the • expectations of all parties involved in the selection process. He noted that this firm has the ability to bring the community together. Councilmember Streit noted that the Committee was impressed with BSA's professionalism. He also commended the Committee. Councilmember Waltonsmith commended Director Walker for her hard work and effort developing the RFP process for the Library Expansion Project. BAKER/STREIT MOVED TO APPROVE AWARD OF CONTRACT TO BSA ARCHITECTS. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 12. AUTHORIZATION TO CITY MANAGER TO NEGOTIATE AN AGREEMENT TO CONTRIBUTE UP TO $20,000 FOR A PREMIUM MEN'S CLOTHING STORE TO RELOCATE TO THE SARATOGA VILLAGE. STAFF RECOMMENDATION: That Council authorize negotiations. Bill Norton, Interim City Manager, presented staff report. He indicated that Council gave direction to staff to provide economic development for the Village and Gateway shopping districts. He explained that staff has been working with Mr. Warren . Lampshire, a real estate agent representing Patrick James, for a high quality men's clothing retailer. Patrick James has several stores in the Bay Area and the store regularly advertises in regional daily newspapers. Patrick James recently lost their lease 10 City Council Minutes August 2, 2000 . in the Pruneyard Shopping Center in Campbell and is looking for another location in Santa Clara County. Patrick James has provided a letter of intent to lease 14527 Big Basin Way for an initial term often years. However, Patrick James has several conditions in their commitment pertaining to improvements to the building. Mr. Patrick MonPere, owner of Patrick James, is willing to spend $85,000 on this to bring the building up to standards. Norton explained that although the property owner and the tenant have negotiated and agreed upon many of the issues, unfortunately there is still a $20,000 gap. If this particular issue isn't resolved the retailer will not occupy the property in the Village. Mr. MonPere has estimated annual sales for this facility at $650,000. The City's share of sales tax is 1 %. Norton explained that in addition to direct benefits from sales and business license tax revenues from Patrick James, there are indirect benefits from increased pedestrian traffic to restaurants and retailers in the area. If the retailer is unable to generate the promised revenue to the City he will make up the difference. He also noted that the City would be paid back if the business leaves before the $20,000 is recovered in sales tax revenue. Councilmember Baker thanked Mr. Norton for his efforts in bringing in such a fine retail establishment to the Village. BAKER/WALTONSMITH MOVED TO NEGOTIATE CONTRACT AND CONTRIBUTE UP TO $20,000. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. • 13. CONSIDERATION OF A REQUEST FOR PROPOSALS FOR LEASING HAKONE GARDENS STAFF RECOMMENDATION: That Council accept report and direct staff accordingly. Bill Norton, Interim City Manager presented staff report. Mr. Norton summarized the proposed Hakone Gardens lease agreement. He indicated that the Foundation was organized in 1984 as a nonprofit organization. In 1994 they entered into amanagement/operations agreement with the City of Saratoga to maintain and operate the Hakone Gardens. The latest agreement dated July 1, 1997, is due to expire on June 30, 2004. In March, Dan Pulcrano, Chairman of the Board of Trustees/Hakone Gardens, notified the City that the Board of trustees desired a change to the operating agreement. The change involves along-term lease instead of a short- term operating agreement. The Foundation indicated that the purpose of this would enable the Foundation to solicit additional funds through grants and other contributions, which currently they are not allowed to receive. Because of the short-term operations agreement many foundations are reluctant to donate larger sums of money, but have indicated to the Hakone Foundation that if they were separate and apart from the City, in a landlord/tenant relationship, they could expect more money. • Mr. Norton indicated that after reviewing the new lease agreement with Richard Taylor, City Attorney, he determined that if it's a long-term lease, it could trigger an assessment 11 City Council Minutes August 2, 2000 • of possessory interest tax from the County Assessor, and would require competitive bidding/proposals. The Hakone Foundation is currently looking into the possibility of being exempt from this tax because they are a nonprofit organization. Mr. Norton explained that the "caretaker's cottage" that the City has remodeled and is used as glow-income housing project, would be converted into a visitor's center/gift shop and the current tenants would have to be given an eviction notice. In exchange for the conversion, City Staff believes that the Foundation should pay the City back the $120,000 received from HUD since it would no longer be used as aloes-income project. The Foundation would pay back to the City of Saratoga the money over a 30-year period at an interest rate of 6% ($9,360 per year). Mr. Norton explained the costs of bringing the Gardens up to standard would be: road repair-$600,000, sealing of the parking lot-$3000, and pest control damage-$100,000. The City would also have to pay all real and personal property taxes levied on the premises Mr. Norton indicated that under this new lease the City would no longer be responsible for appointing the Board of Trustees. Mr. Norton explained that if the Council chooses to pursue the long-term lease requested by the Foundation, the process would proceed as follows: staff would prepare a RFP for Council approval seeking bids from qualified bidders, RFP would be publicly noticed fora 30-day bidding period, Council would hold a public hearing, and then the ordinance would be adopted and the lease signed. Councilmember Streit indicated that he believes the City of Saratoga and the Hakone Foundation have spent a lot of time making sure the Gardens were well taken care of and, if it went out for bid, it potentially would open the Gardens up for just any contractor to come in and ruin it. He also had a lot of concerns about the actual lease agreement. Councilmember Streit noted he that he had talked to Richard Taylor, City Attorney, and that Dan Pulcrano, President/ Hakone Foundation, concurred by that limiting the lease agreement to 55 years, the City could consider a sole source provider and not go through the RFP process. Mr. Streit indicated that the City then could go over the rest of the actual lease proposed by the Hakone Foundation. Mayor Bogosian questioned how City Staff would structure the RFP. Mr. Norton explained that City Staff would structure the RFP so anyone who has interest in submitting a proposal would have to provide proof of their expertise. Councilmember Baker asked if this would be a separate organization in addition to the Hakone Foundation. • Mr. Norton explained that they would be in lieu of the Foundation. The new agreement drops the relationship the City currently has. The City would then be a landlord looking for a tenant who had the capabilities to provide a specialized service. The proposed 12 City Council Minutes August 2, 2000 lease is for 60 years with two (2) 15-year lease options. Because it is essentially a 90- year lease, state law requires competitive bidding. Mr. Norton indicated that if the Council wanted to shorten the term of the lease, the bidding process would not be necessary. Councilmember Waltonsmith indicated that she didn't agree with the City losing control over the Hakone Gardens and asked if the Council could break the lease if the operators were not performing up to the City's standards. Mr. Norton explained that according to the proposed lease agreement, the City could only break the lease if they weren't fulfilling the terms of the agreement. Mayor Bogosian explained when the lease agreement was first proposed, he felt it was a great idea if it contained two key elements; free access to the Hakone Gardens for citizens of Saratoga, and that the uses are compatible with the surrounding neighborhood. He questioned if the new lease had any guarantees that the operators would comply with the City's expectations. Richard Taylor, City Attorney, explained that the Hakone Foundation must provide a Master Plan and follow the local ordinances. The City could include in the lease provisions that the Foundation be required to provide an annual report. Councilmember Streit expressed that the Council should simply lower the lease to 55 years and declare the Hakone Foundation a sole source provider. This would eliminate the RFP process. He noted that the Hakone Foundation has been in place for a long time and has proven it can take care of the City's garden. He asked that the Hakone Board consider lowering the lease to 55 years. Dan Pulcrano, President/ Hakone Foundation, indicated that the Board already approved the 60-15-15 formula. He will take the possibility of lowering the lease to 55 years back to the Board at their next meeting. Councilmember Baker indicated that after he reviewed and compared the old lease and the proposed lease agreement he had many questions regarding fiscal and operational issues. He could however, agree to lowering the lease to 55 years to avoid the bidding process, but unfortunately, the rest of the terms need to be discussed more thoroughly. Councilmember Waltonsmith noted that she felt how long the lease was for and whether or not a RFP is required, are two separate issues. She also expressed concern that Councilmember Mehaffey should be included in any decisions made on such an important issue. Councilmember Streit explained that he was not trying to change the concept of the lease or avoid the concerns of the rest of the Council, but lowering the lease to 55 years • was a good idea to avoid having to go out for bid on a piece of property that has current operators who have proven to be the best. He indicated that tonight he would like to get beyond the RFP and make the Hakone Foundation the sole provider and bring this back 13 City Council Minutes August 2, 2000 • to Council at a later date and negotiate the terms of the lease. Mayor Bogosian noted that he could agree with lowering the lease to 55 years, but he also has problems with the fiscal and operational issues of the proposed lease agreement. He would like to take more time to negotiate the terms and get everyone who is interested involved in the process. Councilmember Baker expressed disagreement because of the fact that under the proposed lease agreement the City loses control, receives no profit, and has to pay a lot of costs. Baker noted that he could agree with shortening the lease term to remove the RFP requirement but under no circumstances should value-added tax be included in the lease. Also Baker would like City Staff to prepare a matrix showing the costs to the City under the current lease for the next five years and one for the City under the proposed lease agreement including the present loan balance of $169,000. Councilmember Streit indicated that the estimated $600,000 for road repairs should be turned over to John Cherbone, Public Works Director. Streit noted that if Mr. Cherbone could spread the $600,000 over 4-5 years but still keeping the road safe, he could support the funding. Mayor Bogosian added further direction to staff as follows: 1. Obtain a more detailed report concerning the estimated $750,000 worth of termite work. • 2. Report back on the cost of widening the road. 3. Comparison on how other nonprofit agencies operates. 4. Bring back to Council on September 20, 2000. STREITBOGOSIAN MOVED TO ACCEPT HAKONE FOUNDATION AS SOLE SOURCE PROVIDER AND NEGOTIATE A LEASE NOT TO EXCEED 55 YEARS. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 14. CONSIDERATION OF WINERY DIRECTIONAL SIGNS. STAFF RECOMMENDATION: That staff accept report and direct staff accordingly. Bill Norton, Interim City Manager, presented staff report. Mr. Norton explained that some years back, the City of Saratoga placed directional point of interest signs throughout the City. Phase 3 of that program was to provide directional signs to the various wineries. He noted that even though most of the wineries were out of town, it would still be beneficial to provide signs for not only to the wineries, but also to businesses within the community. The proposed signs are located at the following areas: Big Basin Way/Saratoga -Los Gatos Road, Saratoga-Sunnyvale Road/Pierce Road, Pierce Road/Mt. Eden, Pierce Road/Highway 9 intersection, Highway 9/Skyline • Blvd. Mr. Norton indicated that after looking at these areas, the Community Development 14 City Council Minutes August 2, 2000 • Department Staff has recommended that the County pursue the Highway 9/Skyline Blvd since it is outside city limits. Also, he noted, some concern regarding Pierce Road/Highway 9 because that intersection already has several directional signs that the wineries have placed. Mr. Norton explained that with those two exceptions, staff recommends Council to go forward with the placement of signs in the first three locations. Councilmember Streit noted that he supports the placement of directional signs because it is one more way to promote Saratoga. BAKER/STREIT MOVED TO APPROVE WINERY DIRECTIONAL SIGNS TO BE PLACED AT BIG BASIN WAY/SARATOGA -LOS GATOS ROAD, SARATOGA-SUNNYVALE ROAD/PIERCE ROAD, PIERCE ROAD/MT. EDEN. MOTION PASSED 4-0 WITH MEHAFFEY ABSENT. 15. REPORT ON VALLEY TRANSPORTATION 2020 PROJECTS. Bill Norton, Interim City Manager, presented staff report. He noted that the VTA 2020 Projects were currently before the Santa Clara County Board of Supervisors. The Board is considering the presented projects around the Bay Area. Councilmember Streit indicated that the Saratoga City Council should become proactive • in the VTA's 2020 Project. Streit suggested lobbing the VTA to get more projects on the 20201ist that would benefit Saratoga. Mayor Bogosian directed staff to report back on the VTA's 2020 projects and feedback from the Board of Supervisors. CITY COUNCIL ITEMS Councilmember Waltonsmith reminded the Council that tonight's meeting would be Bill Norton's last meeting. She wanted to thank him for all his hard work. Mayor Bogosian thanked Mr. Norton and commended him on all that he accomplished in such a short time. Councilmember Streit reported that on July 21, 2000, he spent the day with the Parks and Public Works Department. He explained that in the morning he filled potholes and in the afternoon he mowed the lawn at Congress Springs Park. At lunchtime he was treated to a BBQ joined by the entire department. He commended the Department of Public Works for doing a great job for the City of Saratoga. OTHER None • 15 City Council Minutes August 2, 2000 . CITY MANAGER'S REPORT None ADJOURNMENT There being no further business, the Mayor declared the meeting adjourned at 10:05 p.m. Respectfully submitted, ti ~` ~~ ~ ^ Cathleen Boyer City Clerk • 16