RA 05-19-03-JT-RDA-Annual BudgetTOWN OF LOS GATOS
CALIFORNIA
TOWN COUNCIL/PARKING AUTHORITY
JOINT REDEVELOPMENT AGENCY
May 19, 2003/Minutes
TOWN COUNCIL
The Town Council/Parking Authority/Redevelopment Agency of the Town of Los Gatos met in
the Council Chambers of the Town Hall, 110 East Main Street, at 6:05 p.m., Monday, May 18,
2003, in joint regular session.
ROLL CALL
Present:Steve Glickman, Diane McNutt, Joe Pirzynski
Mike Wasserman, and Mayor/Chairman Decker
Absent:None.
PLEDGE OF ALLEGIANCE
Mayor Decker introduced Los Gatos Webelos Pack 556 from Den 11 who Presented and Posted
the American and State flags. They then led the audience in the Pledge of Allegiance and Flag
Salute which all in attendance participated in.
CLOSED SESSION
Town Attorney, Orry Korb, announced that Council had not met in Closed Session this evening.
VERBAL COMMUNICATIONS (00.28)
General Comments on Town Government:
Ray Davis, spoke of accusations made by staff regarding his walking stick being considered a
threatening object.
Daves/Winchester Traffic Calming:
Mark Brodsky, from Monte Sereno, addressed Council and requested the second phase study of
the traffic calming measures on the Daves Avenue Winchester Boulevard be implemented with
the street striping and that one lane be eliminated to slow down the traffic and allow for sidewalk
construction for pedestrian safety.
CDBG Funds Distribution:
Mary Raz, representing the Teen and Family Counseling Center, thanked Council for their
continued support.
Drainage Issues with Monte Sereno Neighbor:
Chuck Novillo, Los Gatos resident, backs up to a Monte Sereno resident, and this neighbor has
been sending his drainage across Mr. Novillo’s property for twenty years. He asked for help and
support from the Town in solving this issue. Mayor Decker asked that the Town’s Community
Development Director, Bud Lortz, and Mr. Brodsky from Monte Sereno, meet with Mr. Novillo
in the lobby to discuss this issue and seek a way to resolve the problem.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
PUBLIC HEARING
CAPITAL IMPROVEMENT PROGRAM/FISCAL YEARS 2003-2008/HEARING
Mayor Decker stated that this was the time and place duly noted to hold public hearing to
consider Preliminary 2003-2008 Capital Improvement Program.
Debra Figone, Town Manager, spoke of the Capital Improvement Program, the Redevelopment
Budget and the Operating and Capital Budget. She addressed the fiscal controls put in place
during this year and the use of best practices to formulate these budgets. She affirmed Town’s
focus on customer services and the desire to preserve those services and the continued review and
focus on Council’s policies and priorities.
Steve Conway, Finance Director, presented an overview of the Capital Improvement Plans and
their Elements: Carryover Projects from Prior Years; Additional Funding Appropriated to
Carryover Projects for Current Year; New Projects; Planned Appropriations for Future Years; and
Project Status Updates. He spoke of the future capital project proposals and their prioritization
based on the funding in order to complete the projects. Financial planning then takes place to
project the cost updates and the funding and expenditure updates. This gives the opportunity to
identify the first year and following year’s funding opportunities. Revenue Sources are reflected
in Gas Tax; Development Fees; Town Contributions; RDA Tax Increments; and Fund Balance
Interest. The One Time Sources are from Grant Reimbursements and Bond Proceeds. Capital
Program meets diverse community needs in RDA Annual Projects; Parks Program; Public
Facilities; and Signal and Street Improvement Program. Future funding challenges involve
limited sources of on-going revenues.
John Curtis, Public Works Director, addressed the Capital Improvement Program FY 2003-2008
enumerating all of the completed projects from the past year and outlining the Carry Forward
Projects and their New Appropriations from FY 2002-2003. He also noted the New Projects
which are anticipated and explained that all projects are in concordance with the Town’s General
Plan and all State mandates. The Parks Programwas addressed next noting that the projects are
funded by Proposition 12.
Councilmember Glickman asked that a list of the parks projects and their prioritization be made
available to the neighborhoods for review.
Mr. Curtis reviewed the completed and ongoing work on bridge upgrades; Sidewalk repair that
has reduced trip and fall claims; ADA requirements in specific locations; Signage for the Parking
Management Program and; Upgrades to the downtown parking lots. He also spoke of the
continued work toward a Pavement Condition Index of 75 which was discussed by Council five
years ago and which is on target in the Pavement Management program. He spoke of the funding
resources for this program and the need to identify future funding so as to maintain the quality of
the streets. He addressed the retaining wall rehabilitation projects and how resources may be
allocated to complete these problem areas.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
PUBLIC HEARING CONTINUED
CAPITAL IMPROVEMENT PROGRAM/FISCAL YEARS 2003-2008/HEARING
The following people from the audience addressed the Capital Improvement Program Hearing:
Ray Davis, speaker, addressed the traffic light islands in several locations in town. He believes
they are dangerous for pedestrians, particularly students, to be waiting on for the traffic signals to
change.
Jim Lewis, speaker, spoke of ADA requirements for the upgrades on the parking lots in the
downtown as listed in the Downtown Parking Program.
No one else from the audience addressed this issue.
PRELIMINARY 2003-2008 REDEVELOPMENT AGENCY BUDGET/HEARING
Mayor Decker stated that this was the time and place duly noted to hold public hearing to
consider Preliminary 2003-2008 Redevelopment Agency Budget.
Steve Conway, Finance director, addressed the Projected Fund Balances showing the Beginning
Fund Balance; The Total Revenues; The Total Expenditures; and the Ending Fund Balance.
These were developed with RDA Capital Projects; RDA Debt Service Administration; RDA Low
& Moderate Income Housing; and the Total of All Funds.
Councilmember Glickman, inquired about the $350,000 shortfall which will be generated by the
current and projected State take-aways, and asked how the Town can commit its RDA funds so as
to avoid these seizures.
Councilmember McNutt asked where housing projects would be allowed under the confines of
the Redevelopment Agency’s operating guidelines.
Councilmember Pirzynski noted that the debt service must be met for the commitments of this
Agency
Steve Conway noted that the Town would not allow the bonds to go into default for non payment.
There is a safety reserve for bond backup, but the Town must be alert to the State’s plans to
continue to take 5% over the next several years.
Mayor Decker reminded the Town that this program was initiated after the 1989 Earthquake for
the specific rehabilitation needs of our devastated downtown area. The Town is not pleased that
the State is attempting to take away these necessary funds.
Councilmember Wasserman spoke of attending the League Convention last week, and he
praised the Herculean efforts of the staff, Council and the League in the attempts to protect the
cities resources from the takings of the State.
Marty Woodworth, Redevelopment Manager, noted that the State has backed off the taking of
the housing funds for the time being. He presented his review of the RDA Budget; Revenues;
Expenditures; Fund Balances; and Previous Year’s Achievements. He addressed the Gross
Increment of Revenues of $4,430,000 and noted the Expenditures following: Pass Through
Payments; 20% Affordable Housing Fund Set-Aside; 1992 COP Debt Service for Parking Lot $
construction; 2002 COP Debt Service for Downtown Improvements; Agency Administration;
Overhead Charges paid to Town; Interest Paid on Town Loan; and Assumed Payment to State
Education Revenue Augmentation Fund (ERAF). The Total expenditures of $4,791,354 leave a
deficit of $361,354. He also addressed the Affordable Housing Fund and the Economic Vitality
Activities in the Redevelopment Project Area.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
PUBLIC HEARING CONTINUED
PRELIMINARY 2003-2008 REDEVELOPMENT AGENCY BUDGET/HEARING
The following person from the audience addressed the Redevelopment Agency’s Budget:
Ray Davis spoke of bond sales by municipalities and the ancillary fees involved in processing
and managing them. He noted seminars given by the League of California Cities explaining the
process, and the overall costs to the initiators. He asked that the debt service for the Town Plaza
be laid forth for the public to review.
No one else from the audience addressed this subject.
OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2003-2004/HEARING
Mayor Decker stated that this was the time and place duly noted to hold public hearing to
consider Preliminary 2003-2004 Operating and Capital Budget.
Steve Conway, Finance Director, spoke of Town policy to follow sound fiscal and budgeting
practices especially during the ongoing economic downturn. He pointed out the anticipated
budget impacts and proposed State take-aways. He addressed the anticipated budgetary
expenditures and the current estimate of the General Fund Operating Revenues. He then
explained the reduction impacts of the Tier I Scenario and its potential budget impacts on the
individual departments, and the further potential budget impacts of the Tier II Scenario’s
additional operational and FTE reductions. These scenarios were planned in anticipation of more
State take-aways.
OVERVIEW OF TOWN DEPARTMENTS
TOWN COUNCIL
It was reported that the Town Council budget reflects changes in the allocation of existing
resources in the Manager’s Office. The Tier I budget includes reductions in salary and benefits
and operational expenditures, although the allocation of resources provided through the budget
provides the Council with the necessary support to perform its responsibilities.
TOWN TREASURER
The Tier I operating budget reflects an overall decrease in supplies, fees and training expenses.
This office could not sustain any more drastic reductions. The Treasurer’s Office does not
anticipate service impacts from these reductions as the decreases were generated from
discontinued service fees and low operating requirements.
TOWN CLERK
The Office of the Town Clerk will continue to provide core services as the Tier I budget will not
significantly impact the provision of those services. It is anticipated that the loss of funding for
temporary employees will impact the implementation of some records management-related
responsibilities.
TOWN ATTORNEY
The Town Attorney noted that this budget reflects moderate reductions in operational
expenditures, such as office supplies, legal subscriptions, and legal services. These reductions
will have a minimal impact on departmental operations, barring any unforseen litigation involving
the Town. Additionally he noted that the department Secretary position will remain unfilled for
this fiscal year.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
OVERVIEW OF TOWN DEPARTMENTS CONTINUED
TOWN MANAGER
The Town Manager noted that the programs within this department reflect a variety of Tier I
budget reductions. These include changes in salary and benefits and operating expenditures,
while minimizing service impacts to the community. She spoke of the activities and programs
generated through the Manager’s Office and noted that an analyst position was to be defunded to
3/4 in Tier I.
HUMAN RESOURCES
The Tier I reductions in temporary and permanent staff will reduce the ability of Human
Resources to seek enhancements to administrative policies and procedures and to update and
maintain the classification plan. Customer service and ways in which employees could be trained
and redeployed to continue to deliver current services by addressing duties more efficiently were
discussed.
FINANCE DEPARTMENT
The Finance Director spoke of the cuts and controls he is suggesting for his department and of
placing some effort on linking cost controls where they can be implemented to various programs.
He spoke of streamlining processes and of being able to still keep the internal controls in place,
and of identifying and supporting the core services. Training expenses will be reduced and efforts
for internal training opportunities will be explored.
MIS SYSTEMS
The Assistant Manager reported on this internal service fund which supports the delivery of all
services to the Town in a cost effective manner in this time of fiscal constraints. This program
manages the Town’s Web site which aids the residents and clients in obtaining pertinent
information quickly and efficiently. This activity supports the Town’s consensus to enhance the
delivery of information to the community and staff. A Master Plan for investment in priority
technology programs will be brought forward to Council.
COMMUNITY DEVELOPMENT
The Community Development Director spoke of overtime being eliminated in this department
and the staff hours being readjusted to be able to cover all committee and commission meetings.
The attenuated fee schedule will continue to keep building and planning services on a cost
recovery basis for the community. Adjustment of duties will allow for efficient and timely
continued customer service.
POLICE DEPARTMENT
The Police Chief noted that the Tier I budget reflects a reduction in expenditures with revenues
remaining constant. He spoke of the cuts that are planned and those that cannot be implemented.
The reductions include staffing, overtime, equipment replacement, and operating expenditures.
The department will focus on priority services, mitigating the reductions in staff resources
through workload redistribution. If it becomes necessary to implement Tier II there will be a
reduction in community outreach programs and services to schools, and a reduction in the average
response time to the community for lower priority services.
PUBLIC WORKS
The Parks & Public Works Director spoke of the programs provided by this department to the
residents and business community. The Tier I budget reductions will limit service levels and
affect the flexibility to undertake additional services requested by the community without
redistribution of the workload. Within these proposed changes are internal transfers of staff to
other programs that align more closely with their work activities, and the director spoke of the
particular programs that will be impacted by this restricted budget.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
OVERVIEW OF TOWN DEPARTMENTS CONTINUED
PUBLIC WORKS CONTINUED
Council considered the report from the Parks and Public Works Director and inquired as to the
opportunities to share and augment services with other municipalities, agencies and programs.
The director noted the many opportunities for shared support and for volunteers that the program
has utilized over time and affirmed that they would continue to search for and use these resources.
Town Manager Figone noted that Mark Brodsky, from Monte Sereno, had spoken earlier about
the Town proceeding with Phase II of the Daves Ave.-Winchester traffic calming measures. She
noted that this item would need to be put on hold until there were sufficient funds to proceed with
additional improvements at this location, and that this vision was really one of Monte Sereno’s
and not one that the Town had brought forward. She also noted that Council had determined that
a full arterial study was needed in Town before further planning went into this, or any other,
particular project.
Councilmember Pirzynski affirmed the need for doing the arterial study first before working on
the safety issues at specific intersections, but he also emphasized the need for speed signs
between Blossom Hill and past Daves Ave. to control the pick up of speed in this location.
Mayor Decker noted the increased speed in this location due to the cars speeding up to beat the
changing of the traffic lights and she also spoke of continued cooperation between the Town and
Monte Sereno. She noted that Monte Sereno had some funds for this intersection and perhaps we
could cooperate on a traffic speed control signage project on this section of road.
COMMUNITY SERVICES
The Community Services Director spoke of the Tier I budget cuts which include a Secretary II
position, and reduction of overtime hours. Staff attends the Sunday Music in the Park concerts,
the July 4th celebration, and the evening Volunteer Recognition Reception. Coverage at these
events is done by shifting working hours and schedules. If the department is faced with the Tier
II cuts further reduction in overtime will affect the flexibility of the department to provide staff at
events which occur outside of normal working hours. The director spoke of additional cuts that
will affect the housing program, waste management program, and which will cause the
termination of the contract with senior case management. The budget for the Civic Calendar will
be eliminated but additional focus will be placed on the Vista news letter and the Web so as to
keep the community appraised of pertinent information affecting them and their neighborhoods.
The additional budget cuts may cause reduced grants to the non profits and have the
Neighborhood Center closing over the weekends.
Council questioned the use of a temporary employees hired through Kelly Services and staff
explained that benefits are not required for short term hires. There was a consensus of Council to
keep the Center opened over the weekends and to continue with Kelly Services. Council also
supported more active use of the Center by youth groups on the weekends. The closure on
weekends is proposed within the Tier II budget but may be counter productive if the groups who
are using the facility are already paying rates that are cost recovery. The Housing Program was
discussed and request was made to have information on Page IV-190 reflecting the Below Market
Program inventory.
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Town Council Minutes May 19, 2003
Redevelopment Agency Los Gatos, California
OVERVIEW OF TOWN DEPARTMENTS CONTINUED
LIBRARY
The Town Librarian spoke on the history of the Los Gatos Library and its strong support to the
educational needs of the Town including children and teen enrichment. She spoke of the
reductions associated with the Tier I budget and of the numbers of new materials that would be
reduced. She noted that any other reductions in the future would cause the Library to close one
day and one evening a week. She spoke positively of the volunteers and many donations and
programs that ease the impact of the budget reductions.
Council consensus to reevaluate certain elements of the Tier II budget in the fall. Public Safety
and particularly the Dispatch Unit and Patrols; the Street Maintenance Program; the book
collection budget and the Library’s hours of operation; and the Neighborhood Center weekend
operations along with the availability of this facility for youth group activities were all considered
Council priorities at this time..
Town Manager Figone committed to a reevaluation of Council’s priorities in the fall and a report
to return to Council with budget considerations and recommendations concerning those priorities.
Mayor Decker closed the public hearings and noted Council Consensus to move forward on staff
recommendations at this time, and return to Council on June 2, 2003 with the appropriate budget
resolutions.
ADJOURNMENT
Mayor Decker adjourned this evening's meeting at 11:15 p.m.
ATTEST:
Marian V. Cosgrove, Town Clerk
Secretary to the Redevelopment Agency
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