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M 05-17-04-Annual BudgetTOWN OF LOS GATOS CALIFORNIA TOWN COUNCIL/PARKING AUTHORITY JOINT REDEVELOPMENT AGENCY MAY 17, 2004 / MINUTES Los Gatos Civic Center 110 E. Main Street Los Gatos, CA 95030 TIME ITEM ACTION ON ITEM 6:00 PM 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 6:00 p.m., Monday, May 17, 2004, in a joint regular session. 6:00 ROLL CALL Present:Sandy Decker, Diane McNutt, Joe Pirzynski, Mike Wasserman and Mayor/Chairman Glickman. Absent:None 6:00 PLEDGE OF ALLEGIANCE The audience was invited to participate in the Pledge of Allegiance. 6:01 CLOSED SESSION Town Attorney, Orry Korb, reported that Council had met in Closed Session prior to this evening’s meeting pursuant to Government Code Section 54957.6 regarding Conference with Labor Negotiator. Town Negotiator Gary Rogers, Human Resources Director discussed the following: TEA Negotiations; AFSCME Negotiations; Confidential Employees. Council gave direction. There was no final action taken. 6:02 PM CONSENT ITEMS CONSENT ITEMS ITEM 1 PERSONAL SERVICE BUSINESS REGULATIONS Ordinance 2132 Motion by Mr. Pirzynski, seconded by Mr. Wasserman, that Council adopt Ordinance 2132 entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING ORDINANCE OF THE TOWN CODE ESTABLISHING PERSONAL SERVICE BUSINESS REGULATIONS IN SECTIONS 29.10.020, 29.20.185, 29.20.190 AND 29.60.320. Carried by a vote of 3 ayes. Ms McNutt and Mr. Glickman voted no. (01.38) 6:02 PM CONSENT ITEMS CONSENT ITEMS CONTINUED ITEM 2 ELECTION SERVICES FOR BLOSSOM HILL MANOR #11 PROPOSED ANNEXATION Motion by Mr. Pirzynski, seconded by Mr. Wasserman, that Council adopt Resolution 2004-66 entitled, RESOLUTION OF TOWN OF LOS GATOS REQUESTING SNATA CLARA COUNTY BOARD OF SUPERVISORS TO AUTHORIZE REGISTRAR OF VOTERS TO PROVIDE ELECTION SERVICES FOR A SPECIAL ELECTION FOR THE PURPOSE OF ANNEXING CERTAIN TERRITORY DESIGNATED AS BLOSSOM HILL MANOR #11 TO THE TOWN OF LOS GATOS TO BE HELD ON AUGUST 31, 2004; DETERMINING THE QUESTION TO N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 1 TIME ITEM ACTION ON ITEM Resolution 2004-66 BE SUBMITTED TO THE VOTERS; AUTHORIZING REIMBURSEMENT FOR SAID SERVICES; APPROVING AN IMPARTIAL ANALYSIS; AND AUTHORIZING AND DIRECTING THE TOWN CLERK TO PUBLISH NOTICE AND TAKE STEPS NECESSARY FOR THE ELECTION. Carried unanimously. (02.26) 6:04 PM VERBAL COMMUNICATIONS VERBAL COMMUNICATIONS SPEAKER HIGHWAY 9 SAFETY ISSUES JoAnne Peth and Patrice Brill spoke for the Citizens for Safety on Highway 9. They noted that people have been killed on this road and asked for Council’s support and cooperation concerning the Highway 9 Study, preliminary grant, and community meetings regarding this issue. The ladies submitted a petition asking the City of Monte Sereno to take action on the situation signed by citizens who use that road. They requested that the Los Gatos Town Council also consider this petition. Town Manager, Debra Figone, explained that the three communities bordering this road are working together with CalTrans to address the citizens’ concerns regarding traffic safety issues. She also noted the Los Gatos was working on the specific location of the pedestrian crosswalk at Massol and Highway 9. 6:08 PM SPEAKER SAFE ROUTES TO SCHOOLS Ray Davis spoke of pedestrian safety at crosswalks. Specifically at Roberts Road and Blossom Hill, Massol and Highway 9, and other areas on Highway 9. He was specific about using all mitigation methods possible to ensure the safety of children using school access routes, and to also take into consideration people with disabilities using these crossings. 6:12 PM PUBLIC HEARING TOWN & AGENCY PUBLIC HEARING TOWN OF LOS GATOS AND REDEVELOPMENT AGENCY ITEM 3 OPERATING AND CAPITAL BUDGET TOWN AND AGENCY OPERATING & CAPITAL BUDGETS Mayor Glickman stated that this was the time and place duly noted for public hearing to consider the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year 2004/2005 and the Proposed Redevelopment Agency Budget for Fiscal Year 2004/2005. (03.09) 6:18 PM ITEM 3 BUDGET FINANCE DIRECTOR Finance Director, Steve Conway, spoke specifically on the following items which appear in the Proposed Budget: * Challenges from fluctuating State budget developments * Challenges from the financial climate in Silicon Valley * Addressing the budget on a five year forecast of revenues and costs * Core services remain in place in Fiscal Year 04/05 * Presently the operating expenses are in line with revenues * Noted the actions taken this year to maintain a balanced budget * Use of one time revenue funds * Possibilities of using reserves in the budget for one time N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 2 TIME ITEM ACTION ON ITEM expenditures * Shift of ERAF funds, property tax ($400,000) * COPS grant elimination ($200,000) * Reduced reimbursements ($100,000) 6:35 PM ITEM 3 BUDGET FINANCE DIRECTOR AND COUNCIL DISCUSSION Mr. Conway answered questions from Council: * Readdressed the uncertainties within the economy and the policies of the state budget impacts * Spoke of the potential swap of vehicle license funds for property tax * Explained the sources of one time revenues * The status of the parking program was discussed * Mid-year adjustments may be required in FY 04/05 after review of local revenues * Anticipation of reinstatement of state held funds 7:01 PM ITEM 3 BUDGET TOWN MANAGER AND COUNCIL DISCUSSION Ms Figone addressed consolidated efforts with the League of California Cities to ensure that specific local funds will be reinstated to their communities and remain there. Cities are working diligently toward placing this issue on the ballot for voter approval. There is anticipation that this measure will pass. Town will cover shortfall with one time contingency funds in expectation that its residential and retail tax base will be reinstated. She noted that Council’s recommendations would have sufficient ongoing revenues to support those services. 7:05 PM PUBLIC HEARING TOWN & AGENCY PUBLIC HEARING TOWN OF LOS GATOS AND REDEVELOPMENT AGENCY 7:18 PM ITEM 3 BUDGET PERFORMANCE CUSTOMER SATISFACTION Assistant Town Manager, Pamela Jacobs, addressed performance measures within the budget. She spoke of customer satisfaction and methods of measuring that element. The work plans for establishing this criteria were noted and the reports on the surveys are being evaluated. ITEM 3 BUDGET REPORTS FROM EACH DEPARTMENT Town Manager Figone introduced the budget presentations from each department. Council had time to question the assumptions and ask the department heads how they are handling the reductions within the budget that has been proposed. ITEM 3 LIBRARY BUDGET Peggy Conaway, Librarian, spoke on the Library reductions for the year, the ability to remain open seven days a week, and the need to reduce certain hours. She spoke of the severe cut to the acquisition budget and presented the possibility of accepting donations to the book collection. She presented different scenarios of hours of operation and supported the public service benefits of the ongoing history project. She also pointed out the very popular and well used computer stations allowing access to the internet. 8:01 PM ITEM 3 COMMUNITY SERVICES BUDGET Regina Falkner, Community Services Director, addressed issues raised by Council. She spoke of the Community Development Block Grants and their use within Human Services programs. She noted the agreement negotiated by the Community Services Commission between A Place For Teens and the Recreation Department. She explained the service agreement between the Town and the Museums N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 3 TIME ITEM ACTION ON ITEM and the work with the Science Institute. 8:20 PM ITEM 3 PARKS AND PUBLIC WORKS BUDGET Kevin Rohani, Town Engineer, spoke on the transferring of funds and project accounting. He discussed fees, revenues and in-house projects. He noted staff reductions and upcoming retirements. He outlined the core services in this department and explained the grants available for particular projects. He also explained the concept of working smarter with fewer people and defined the Asset Management System which will provide a great deal of information regarding a project at the touch of a few computer keys. 8:20 PM PUBLIC HEARING TOWN & AGENCY PUBLIC HEARING TOWN OF LOS GATOS AND REDEVELOPMENT AGENCY 8:35 PM ITEM 3 PARKS AND PUBLIC WORKS BUDGET Kevin Rohani, Town Engineer, continued speaking on the performance measures and customer satisfaction feedback from efforts within his shop. He discussed the street light maintenance program, the ongoing focus on traffic calming in the neighborhoods and continued work on the safe routes to schools projects. DONATION TO THE LIBRARY Sandy Decker, Councilmember, announced that Marc Jensen had just donated two books and $200 to the Library. RECESS RECESS Mayor Glickman called a ten minute recess. 8:53 PM ITEM 3 POLICE DEPARTMENT BUDGET Scott Seaman, Chief of Police, described the cuts in the Police Department. He noted that the reduction in staff would cause some service impacts but that the new technology within the department would ensure more immediate information for the officers on patrol. He noted the increase to impound fees and false alarm response fees. ITEM 3 COUNCIL AND CHIEF DISCUSSION Chief Seaman addressed the following issues with Council: * Mobile data computers maximizing the efforts on the streets * Auto theft task force officer * Further consideration of the parking program and use of way finding signs to assist visitors and keep from writing so many tickets * Use of courtesy tickets first and then review the needs and causes of the tickets looking for ways to mitigate * Loss of motorcycle officers and its relationship to traffic enforcement * Loss of patrol officers and impact on service * Loss of canine units and the impacts * Discussion of those impacts and ways to mitigate them and reorganize to continue service in a different way * Noted the Youth Commission as focusing on issues that the young people are helping with 9:15 PM ITEM 3 COMMUNITY DEVELOPMENT Bud Lortz, Community Development Director, spoke on the fee increases and planning projects and then discussed the Economic Vitality Plan and the need to fill the Redevelopment Manager position and Assistant Community Development Director position. He spoke of his shop being pro cost recovery wherever possible. N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 4 TIME ITEM ACTION ON ITEM 9:20 PM PUBLIC HEARING TOWN & AGENCY PUBLIC HEARING TOWN OF LOS GATOS AND REDEVELOPMENT AGENCY ITEM 3 MANAGER’S DEPARTMENT BUDGET Jenny Haruyama, Administrative Analyst, spoke of the projections outlined in the budget and focused on the Town’s Cable Services, Town’s Marketing Project, and the MIS program and equipment. MIS was discussed and the reductions and projects were reviewed. Mayor Glickman asked that the expansion of the MIS responsibilities be reviewed and that a report explain what programs the different departments are using and what changes these programs are bringing. 9:27 PM ITEM 3 HUMAN RESOURCES BUDGET Gary Rogers, Human Resources Manager, spoke on the defunding of personnel in his office by 12 hours and the impact on core services and key projects. He addressed the 20% increases in Workers Compensation and in employee benefits. He also spoke of the employee survey results and the planned ergonomics training. ITEM 3 FINANCE DEPARTMENT BUDGET Steve Conway, Finance Director, discussed personnel de-fundings and the different options in keeping the finance counter open. He noted the discretionary reductions within his office. New software within the department was addressed along with the Pentamation upgrades. He also discussed the process for going to bid for hiring our auditing firm and noted the policies other cities used in obtaining their auditors. 9:50 PM ITEM 3 TOWN COUNCIL TOWN CLERK TREASURER TOWN ATTORNEY BUDGETS Ms Haryama gave an overview of these departments: * Town Council budget report and reduction impact was read into the record * Town Clerk budget was read and noted that the Clerk Administrator and the Elected Clerk have been separated into two separate offices. * Treasurer budget was read for the record * Town Attorney budget was read and the key projects emphasized. 10:03 PM ITEM 3 SPEAKER TO THE PUBLIC HEARING GRAND JURY Ray Davis spoke concerning the Grand Jury Report regarding Redevelopment Agency pass through funds to other agencies. Ms Figone responded by explaining that the Town was eventually able to convince the County to take back the funds they were supposed to distribute to other agencies. It was then the County’s responsibility to distribute those funds appropriately. She noted that these agencies are not expected to pay interest to each other or try to calculate among themselves the funding that is to come to them. It is the County’s responsibility to use the appropriate means to do the calculations and distributions. 10:10 PM PUBLIC HEARING TOWN & AGENCY PUBLIC HEARING TOWN OF LOS GATOS AND REDEVELOPMENT AGENCY 10:10 PM ITEM 3 SPEAKER TO THE PUBLIC HEARING Lee Fagot addressed the Community Development Block Grant funds and requested that Council keep them at the 2003-2004 level. 10:12 PM HEARING CLOSED Mayor Glickman closed the public hearing. N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 5 TIME ITEM ACTION ON ITEM 10:11 PM ITEM 3 COUNCIL DISCUSSION COUNCIL DISCUSSION: * Refund the Library at $35,000 * Restore funds to A Place for Teens at $3,000 * Restore the Los Gatos Museum Association $7,000 * Be unspecific when reviewing these budgets * What would it take to keep the Library open * Return with some further thoughts on these items * Reassess the reserves * There are other services losing funding beside these three * Are there other options besides the General Fund 10:55 PM ITEM 3 COUNCIL CONSENSUS Council Consensus to: * To replace the grant funds to A Place for Teens * That more analysis take place regarding the restoration of the Museum funds * That the Library be funded but with maybe more than they were defunded after looking at what the needs for staying open are and what would establish an appropriate funding for books. * That Council give full support to the Police Department as they look for other avenues to run their department * To move forward with the resolution for the Operating Budget. 11:06 PM ITEM 3 ADJOURNMENT Mayor Glickman adjourned this evening’s meeting to a continued meeting to be held on Tuesday, May 18, 2004 at 6:00 PM in the Council Chambers. N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 6 Town Council Minutes May 17, 2004 Redevelopment Agency Los Gatos, California ATTEST: Marian V. Cosgrove Town Clerk Secretary to the Redevelopment Agency N:\CLK\A MARIAN'S FILE\Draft Minutes\4MM-05-17-04-JT-RDA-Annual Budget.wpd 7