June 29, 2006

City Hall News Briefs

City Council increases library tax

The City Council voted unanimously on Tuesday to increase Library Parcel Tax rates by 2 percent over this fiscal year’s (2005-06) rates. In addition, council members approved placing the tax on Santa Clara County’s property tax roll.

The parcel tax was passed in November 2004 and replaced the 10-year benefit assessment district tax that expired last year. The new tax, which is the same as the old tax of $25 per single-family parcel, has a section allowing increases not to exceed 3 percent. The 2 percent increase for 2006-07 will cost single-family parcel taxpayers an additional 50 cents.

City Council votes to continue funding Dolce Hayes Mansion

After considerable debate and pointed questions about the value of holding onto an asset with continued debt, the city council unanimously passed a recommendation to continue funding the Dolce Hayes Mansion.

The discussion centered on whether the cost of the subsidized mansion makes it less of an asset. City Manager Les White said the revenue will run about $30-35 million compared with the $60 million debt service with an opportunity over four to six years to quadruple revenues.

White said the revenue increases are “not unrealistic depending on the city’s ability to upgrade rooms. It’s one of the few city-subsidized [assets] that is running in the black not in the red,” he told council members.

Interest rates on the debt service are low, according to staff, and with Dolce running the resort/meeting center it has doubled its asset value. City staff continues to look for opportunities to save money on its debt mode.

District 2 Councilman Forrest Williams called the property “a jewel for the city.” He said it’s important for the city to provide services and culture to its citizens. “The city is about debt, we need to provide cultural amenities for our citizens. We have obligations to provide these amenities and in time we will pay them off. I think we need to give the process time to continue and look for ways to lower the debt,” he said.

District 4 City Councilman Chuck Reed asked to add to the motion, requesting a check every year on all subsidized facilities such as Dolce Hayes and various golf courses, so that the council can decide whether or not to keep them in their portfolio.

Council members also noted that the Dolce staff has done a remarkable job.

Council votes to keep funding Evergreen, Coyote Valley plans

City Council members on June 27 unanimously approved continuing funding for work associated with the Coyote Valley Specific Plan and the Evergreen East Hills Vision Strategy.

The Coyote Valley recommendation included extending environmental documents and regulatory permits from June 30 to Dec. 31 of this year. It also increased funding to cover staff and related non-personnel costs from April 1 to Dec. 31.

In addition, it approved the funding agreement with Yerba Buena Opco, Inc. for work association with Phase 2 of the preparation of the EEHVS, which includes authorization of the director of Planning, Building and Code Enforcement to approve and execute minor amendments specified in the agreement.

There were no questions or discussions on either recommendation.

Council approves Sunshine Reform Implementation

The City Council unanimously passed the Sunshine Reform Implementation as part of the Council/Board agenda process.

The recommendation includes three Sunshine reforms:

Establish in July a guideline for early report distribution and process for contracts and expenditures of $1 million or more that provides items and related staff reports to be distributed 14 days prior to the council meeting and posted on line 13 days prior to the meeting.

Approve three guidelines for determining when an item is of significant public interest. These guidelines include council action on the use of public funds of $1 million or more; adoption of a new or revised policy that may have implications for public health, safety, quality of life or financial/economic vitality of the city; and consideration of proposed changes to service deliver, programs and staffing that may impact community services requiring special outreach that have been identified by staff, council or a community group.

Accept a new council memo format with added sections relating to including sections on policy alternatives, fiscal/policy alignment and staff contact information.

In addition, the proposal seeks to adopt a resolution superceding previous resolutions to permit the council to establish additional procedures and a resolution amending the Redevelopment Agency’s bylaws to allow the Agency Board to establish additional procedures.