PRESENT:

ABSENT:

Mayor John Howe

Vice Mayor Dean Chu

Councilmember Fred Fowler

Councilmember Julia Miller

Councilmember Ron Swegles

Councilmember Otto Lee

Councilmember Melinda Hamilton

Staff Present:

Amy Chan, City Manager

Chuck Schwabe, Deputy City Manager

Valerie J. Armento, City Attorney

Mary Bradley, Director of Finance

Grace Kim, Budget Manager

Charlene Sun, Budget Analyst

Mark Eyrich, Management Analyst/Systems

Kurtis Mock, Administrative Analyst

Robert Paternoster, Community Development Director

Marvin Rose, Public Works Director

Victoria Johnson, Library Director

Mark Gregersen, Human Resources Director

John Pilger, Communications Officer

Coryn Campbell, Neighborhood and Community Services Manager

1)

Motion

RTC 04-131

CONSIDERATION OF THE PROPOSED PROCESS FOR ASSISTING THE CITY COUNCIL IN DEVELOPING ITS VISION FOR SUNNYVALE, AND FOR SELECTING AND PRIORITIZING CITY SERVICES AND SERVICE LEVELS.

Amy Chan, City Manager, presented the staff report with an overview of the process and the financial information that will be included in the preliminary unbalanced annual budget.

Motion

PRESENTATION AND DISCUSSION OF THE FY 2004/2005 PRELIMINARY, UNBALANCED ANNUAL BUDGET AND LONG TERM FINANCIAL PLANS

1. DISCUSSION OF INFORMATION AND CITY FUNDS ADDRESED IN THE PRELIMINARY, UNBALANCED ANNUAL BUDGET AND LONG TERM FINANCIAL PLANS;
2. DISCUSSION OF THE ESTIMATED GAP BETWEEN PROJECTED EXPENSES AND REVENUES IN THE PRELIMINARY, UNBALANCED ANNUAL BUDGET AND LONG TERM FINANCIAL PLANS;
3. DISCUSSION OF POTENTIAL STRATEGIES TO ADDRESS THE ESTIMATED GAP BETWEEN PROJECTED EXPENSES AND REVENUES IN THE PRELIMINARY, UNBALANCED ANNUAL BUDGET AND LONG-TERM FINANCIAL PLANS
4. DISCUSSION OF OVERARCHING ASSUMPTIONS USED TO PREPARE THE PRELIMINARY, UNBALANCED ANNUAL BUDGET AND LONG-TERM FINANCIAL PLANS;

Amy Chan, City Manager, presented the staff report regarding the Employee Benefits Fund and provided some overhead slides. Copies of the presentation materials are on file in the office of the City Clerk. Ms. Chan also introduced Finance staff that was present and responded to questions of the Council.

Members of the Council expressed their thanks and appreciation to staff for their time and efforts on this process.

Mary Bradley, Finance Director, responded to questions of the Council regarding the City’s retirement system with PERS.

Vice Mayor Chu requested historic average for PERS contributions in the last 5 to 7 years. Ms. Bradley noted staff will bring this information back.

Ms. Chan continued her presentation of the staff report regarding the Employee Benefits Fund and provided Council with overhead slides and additional materials regarding the PTO and vacation leave caps for the City’s various employee groups. Ms. Chan also responded to questions of the Council and stated that staff will bring back information regarding medical insurance survivor benefits. She also provided comments about the City’s Worker’s Compensation claims and prevention programs.

Mark Gregersen, Human Resources Director, provided comments about Sutter Health Center and other retirement options like Public Employees Medical Health Care Act (PEMHCA). He also commented about Labor Code 4850 that provides up to a year of salary and benefits for safety employees who are injured on the job and unable to return to work.

Ms. Bradley responded to questions of the Council regarding Worker’s Compensation.

Ms. Chan continued her presentation of the staff report regarding the Employee Benefits Fund and responded to Council questions regarding Liability and Property Insurance.

Ms. Chan continued her presentation of the staff report regarding Internal Service Funds and responded to Council questions. Ms. Chan stated staff will bring back information regarding facilities rental revenues from the new senior center.

Ms. Bradley also responded to Council questions. She stated staff will bring back a schedule after the debt service is paid off.

Council Member Miller moved, Council Member Fowler seconded to accept the staff report. The motion carried unanimously with Council Member Hamilton absent.

Vice Chair Chu declared a recess at 3:05 p.m. and reconvened the meeting at 3:10 p.m.

3)

Motion

PUBLIC HEARING AND COMMENTS

Vice Chair Chu opened the public hearing at 3:10 p.m. There being no public testimony, the public hearing was closed.

4)

Motion

PRESENTATION AND DISCUSSION OF THE REVENUE SOURCES AND COST CATEGORIES FOR TAX SUPPORTED CITY FUNDS

1. GENERAL FUND
2. GAS TAX FUND
3. YOUTH AND NEIGHBORHOOD SERVICES FUND
4. COMMUNITY RECREATION FUND
5. PATENT LIBRARY FUND
6. REDEVELOPMENT AGENCY FUND

Amy Chan, City Manager, presented the staff report and provided overhead slides. Ms. Chan responded to Council questions. She noted that if the subscription fees expenditure under the Patent Library Fund cannot be eliminated, she recommended the Council consider discontinuing or reducing the patent program to a smaller scale and suggested that if this change were to occur, to make it effective in January instead of July to allow for a smooth transition period with the patent office as well as the public. Mayor Howe stated he would support this recommendation. Ms. Chan also provided additional information under the Redevelopment Agency Fund on tax increment caps, which was not included in the materials to Council.

Vice Mayor Chu opened the public hearing and there being no public testimony, closed the public hearing.

5)

Motion

PRESENTATION AND DISCUSSION OF THE REVENUE SOURCES AND COST CATEGORIES FOR THE CITY’S CAPITAL FUNDS

1. PARK DEDICATION FUND
2. TRANSPORTATION DEVELOPMENT ACT FUND
3. CAPITAL PROJECTS FUNDS
4. INFRASTRUCTURE FUND

Amy Chan, City Manager, presented the staff report and provided overhead slides. Ms. Chan also responded to Council questions. She stated that staff will come back with information regarding the market value of the City’s acquired 11 residential properties.

Mary Bradley, Finance Director, also provided comments and responded to questions.

Council Member Miller directed staff to allocate the Park Dedication Fund monies of $200,000 for the original purpose that it was intended for which was to improve the hardscape in the downtown area. Ms. Chan clarified that when the budget comes back to Council, the subject monies will be allocated according to Council’s action taken a few years ago as pointed out by Council Member Miller.

Mayor Howe directed staff to use park dedication fees from the Plaza General Plan revenues to repay our General Fund the $1.2 million even if we have to make a loan to Park Dedication Fees in anticipation of additional revenues.

Vice Mayor Chu pointed out that the following sub funds have not been covered: Wastewater Management Water Supply and Distribution Sub Fund, Solid Waste Management Sub Fund, Gas Tax Sub Fund, Measures A and B Sub Fund, and the Traffic Mitigation Sub Fund.

Ms. Chan and Ms. Bradley provided information and clarification about these sub funds.

Vice Mayor Chu opened the public hearing at 5:21. There being no public testimony, closed the public hearing.

6)

Motion

DEVELOPMENT AND DISCUSSION OF THE CITY COUNCIL’S VISION FOR SUNNYVALE