M 09-11-00TOWN OF LOS GATOS
CALIFORNIA
TOWN COUNCIL/PARKING AUTHORITY
JOINT REDEVELOPMENT AGENCY
September 11, 2000/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 7:00 p.m., Monday, September 11,
2000, in joint regular session with study session.
ROLL CALL
Present:Randy Attaway, Jan Hutchins, Linda Lubeck,
Joe Pirzynski and Chairman/Mayor Steve Blanton.
Absent:None
VERBAL COMMUNICATIONS
130 Nina Court:
Ray Davis, resident, quoted sections of the General Plan and decisions involved in the final action
to be taken on Nina Court.
REDEVELOPMENT FINANCING STRATEGIES (01.27)
Staff Presentation:
Mr. Piper, Assistant Town Manager gave an overview of the reasons for holding this study session.
He noted the need to plan for the use of the Redevelopment funds since they may be lost if not
obligated during the remaining life of the Agency.
Emily Wagner, of E. Wagner & Associates, Pleasanton, had a presentation composed of slides,
packet of materials and verbal explanation of financing strategies. She listed the financing
alternatives of General Obligation Bonds, Certificates of Participation, Tax Allocation Bonds,
Special Assessment District, and Mello-Roos Community Facilities District, and answered
questions concerning the implementation of these alternatives.
Mr. Piper, reviewed the options and noted that the most cost effective approach may be for the
Town and Agency to enter into an agreement whereby the Agency would grant funds to the Town,
and then the Town would be the entity issuing the debt.
Mr. Pirzynski, expressed interest in the use of Certificates of Participation (COP’s) for most of the
Town’s funding needs, since the process has been used successfully by the Town in the past. COP’s
are not considered debt in California. Ms. Wagner indicated that the Town’s $550 Million debt
limit set by state statute is likely to exceed any amount that would be considered for debt financing.
Our Town essentially has no debt which is highly unusual compared to the municipalities which are
funding capital projects successfully and conservatively under various types of debt financing.
Mr. Davis, resident, spoke against borrowing for capital improvements.
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Town Council Minutes September 11, 2000
Redevelopment Agency Los Gatos, California
REDEVELOPMENT FINANCING STRATEGIES CONT.
Mr. Piper asked the following of Council:
∙Does the Council have an interest in considering some form of debt financing to fund some
of the capital improvement needs of the Agency and the Town?
∙Would Council like staff to bring back some debt financing options in a more developed
state for consideration?
∙Would Council like to reevaluate the list of projects that Council had considered on June 5th?
∙Would Council like a further meetings to discuss the time lines for implementing, funding
and constructing these capital improvements?
Mr. Attaway asked that this process evolve after careful consideration and opportunity for public
comment.
Mr. Pirzynski believed this is the time to move forward. He asked that staff return with specifics
regarding the projects and recommended funding options to finance those projects given the
methodologies presented this evening. The Council concurred.
Mr. Cowan, 222 Tait Ave., spoke of the poorly maintained alleys in the Almond Grove district and
asked if they could be publicly improved since they exist in the Redevelopment Area and are
identified with a $200,000 set aside for alleys. Council asked staff to identify ownership of the
alleys and report back with paving options.
RECESS CALLED FOR FIVE MINUTES
Mayor Blanton reopened the study session meeting.
PAVEMENT MANAGEMENT PROGRAM (02.25)
Mr. Perlin, Public Works Director, introduced Mary Urtchel and George Ching, of Nichols
Consulting in Santa Cruz. Ms Urtchel gave a presentation of the needs and plans for a
comprehensive pavement management and street reconstruction program.
Mr. Perlin explained the need to upgrade the streets in town. It was explained that the Town’s
streets are measured by a Pavement Condition Index (PCI) which is a scale of 0 to 100. A new
street would have a PCI of 100 while a significantly distressed street would have a PCI of 25 or
less. Mr. Perlin stated the latest condition survey indicates a composite rating of 64 for the entire
street network. This rating would indicate a condition in the middle of the satisfactory range.
When looking at individual street segments within the overall street system, 44% would be rated
“good”, 28% would be rated “satisfactory”, 22% would be “poor” and 6% would be rated “very
poor”. He indicated that if only the existing resources of $4.4 million during the next 5 years, were
available, the streets would further deteriorate. If the budget was increased to $6 million spent in 5
years the streets would remain in the same condition they are today. Expending $10 million in 5
years would improve conditions to a PCI rating of 70 at the end of five years, and spending
approximately $15 million over a 5 year period of time would raise the condition of the streets to a
recommended PCI level of 75. He spoke of possibly extending last year’s paving contract to get
some street improvement work done before the start of the rainy season this fall and winter. He
indicated that he hoped to have a contract extension for this work on the Town Council agenda of
October 2, 2000. Mr. Perlin indicated that the remainder of the street improvement program for
this fiscal year would be started in Spring of 2001. He indicated that the spring program would use
a variety of street improvement methods depending upon the condition of the particular street
segment being improved.
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Town Council Minutes September 11, 2000
Redevelopment Agency Los Gatos, California
PAVEMENT MANAGEMENT CONT.
Council consensus to support a Network Pavement Condition Index Goal of 75 and seek ways to
fund this commitment at $14.8 million over a period of 5 years.
Mr. Perlin, in response to a question from Council, indicated that it would be unlikely that the Town
could either fund or absorb the impact on the community of having all the work indicated in Budget
Scenario #1 done in a single year. He recommended that the funding and work be scheduled more
evenly during the next few years to avoid these problems.
Staff will return with report for the immediate repairs before the rainy season begins, and a
comprehensive plan, including financing alternatives, for the long range program of street
maintenance and reconstruction.
Mr. Davis, resident, commented on the pavement management program.
ADJOURNMENT
Mayor Blanton adjourned this evening's meeting at 10:10 p.m. Carried unanimously.
ATTEST:
Marian V. Cosgrove
Town Clerk
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