MINUTES OF THE SANTA CLARA STADIUM AUTHORITY OF
THE CITY OF SANTA CLARA FOR MEETING
HELD ON TUESDAY EVENING, JUNE 14, 2011

 

 

     The Santa Clara Stadium Authority of the City of Santa Clara met at 9:13 pm, on the above-mentioned date, for the regular scheduled meeting in the City Hall Council Chambers. The Closed Session in the Council Conference Room for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8 Property: APN 104-43-030; Negotiating Party(ies):  City of Santa Clara and the San Francisco 49ers; Stadium Authority Negotiator:  Jennifer Sparacino, Executive Director (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment) was not held.

 

 

 

     Present:  Stadium Authority Board Members Lisa M. Gillmor, Will Kennedy, Patrick Kolstad, Patricia M. Mahan, Jamie McLeod and Kevin Moore and Chairperson Jamie L. Matthews.

 

 

 

     MOTION was made by Kolstad, seconded and unanimously carried, that the Minutes for the meeting of May 17, 2011 be adopted as written.

 

 

 

     Earlier in the evening, the Mayor/Chairperson opened the Joint Public Hearing of the Council/Agency/Authority/Stadium Authority/Housing Authority to consider the City, Redevelopment Agency, Sports and Open Space Authority, Santa Clara Stadium Authority and Housing Authority Annual Budget for Fiscal Year 2011-12 including Community Development Block Grant (CDBG) and HOME Program Funding, Capital Improvement Projects, Municipal Fee Schedule, Appropriations Limit, Use of Asset Seizure Funds and the Budget Errata Memo (Director of Finance/Treasurer/Finance Director – 06/07/11). The City Manager/Executive Director corrected that the proposed Stadium Authority proposed budget is $1,505,080. She then gave an electronic presentation which included an overview of the proposed budget and noted that the proposed budget is balanced in part because of the great cooperation from City employees and bargaining groups and from a slight improvement in economic development. She also stated that this is the second year of a three year effort to balance a structural deficit. She continued the electronic presentation by reviewing the budget briefings and public meetings that were held in regard to the proposed budget. The Fiscal Year 2011-12 Proposed Annual Budget totals $558.9 million, which represents a 2.2% increase over Fiscal Year 2010-11, which is primarily due to an increase in benefit costs, debt service payments and resource and production costs. She stated that at the beginning of the budget process, Fiscal Year 2011-12 showed a deficit of more than $4 million even with many of the strong steps continued from Fiscal Year 2010-11 to address the deficit, which compares to $20 million from last fiscal year, with the primary drivers including continuing revenue impacts from the recession and pension cost increases. However, actions taken to balance the Fiscal Year 2011-12 budget include adjusting revenues based on higher than expected Fiscal Year 2010-11 collections, full year savings from unpaid furloughs and layoffs, an additional 2.75 full time equivalent (FTE) positions eliminated and an increased number of frozen positions. In addition, an increase in fees to move closer to full cost recovery, a proposal to sell one of five City-owned small properties to the Housing Authority for $0.4 million, continue staff charges to Capital Improvement Program (CIP) projects and savings from further reducing departmental materials, services and supplies budgets. She continued the electronic presentation by outlining employee changes, which included the elimination of 26.25 FTEs in the last two years, 70 FTEs frozen positions, 25-30 vacant positions due to attrition and noted that eight of ten bargaining units agreed to forego December 2010 and December 2011 general salary adjustments and take unpaid furloughs equivalent to about one day per month. She then reviewed the budget themes of economic development, minimizing impacts on City services and innovative service delivery and cost savings measures. The Director of Finance/Treasurer/Finance Director then continued the electronic presentation by reviewing the total resources of the proposed budget, appropriations by category, revenue by source and gave a reserve status update. The City Manager/Executive Director continued the electronic presentation by reviewing the rate and fee impact on enterprise funds (electric utility, water utility, recycled water and sewer utility) and stated that the City continues to provide the lowest combined electric, water and sewer rates in the nine Bay Area counties. She then reviewed the $68.8 million Capital Improvement Program budget, the $20.1 million Redevelopment Agency budget, the $5.5 million Housing Authority budget and the $5.5 million Sports and Open Space Authority budget. She then reviewed the $1.5 million proposed Stadium Authority budget, which includes salaries and benefits for staff that will work on the stadium project and legal and consulting costs, including annual audit, fiscal/economic consultant and legal services and supplies such as printing and publication costs. The Stadium Authority operating budget is covered by payments from the 49ers Stadium Company (Stadco). She continued the electronic presentation by reviewing the proposed Fiscal Year 2011-12 Municipal Fee Schedule. She then stated in conclusion, that significant progress has been made but challenges continue due to the lingering impacts of the Great Recession and reiterated that the proposed budget is balanced and expenditure controls need to continue. She acknowledged the outstanding dedicated employees and Santa Clara community for working alongside the City to meet challenges and noted that the budget is consistent with the Council Priority and Supporting Principles. The City Manager/Executive Director then responded to questions that had previously been received, including questions by the Citizens Advisory Committee (CAC) (06/10/11 and 06/14/11 and City Manager – 06/14/11). The City Manager/Executive Director and the Director of Finance/Treasurer/Finance Director then answered Council/Agency/Authority/Stadium Authority/Housing Authority questions. With no public input, MOTION was made by Kennedy, seconded and unanimously carried, that the Council/Agency/ Authority/Stadium Authority/Housing Authority close the joint public hearing. MOTION was made by Kolstad, seconded and unanimously carried, that the Council adopt Resolution No. 11-7857 entitled, “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, ESTABLISHING FISCAL YEAR 2011-12 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION AS IMPLEMENTED BY TITLE 1, DIVISION 9 (ENTITLED ‘EXPENDITURE LIMITATIONS’ — SECTION 7900 ET SEQ.) OF THE CALIFORNIA GOVERNMENT CODE” which establishes the Appropriation Limit for 2011 of $291,996,814 as computed by the Finance Department. According to regulations, Fiscal Year 2011-12 appropriations classified within this limit total $96,374,223. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the City of Santa Clara proposed 2011-12 Capital Improvement Project (CIP) Budget of $63,278,568 and the Housing Authority Proposed CIP Budget of $5,500,000, plus adjustments as noted in the 2011-12 Budget Errata Memo. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/ Housing Authority approve the City of Santa Clara proposed 2011-12 total budget of $558,911,268, including the Operating Budget of $495,632,700 and CIP Budget of $63,278,568, plus adjustments as noted in the 2011-12 Budget Errata Memo. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the Redevelopment Agency proposed 2011-12 total budget of $20,051,916. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the Sports and Open Space Authority proposed 2011-12 total budget of $5,463,040. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the Housing Authority proposed 2011-12 total budget of $5,500,000 (which includes the CIP budget of $5,500,000). MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the Stadium Authority proposed 2011-12 total budget of $1,505,080, as noted in the 2011-12 Budget Errata Memo. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the City of Santa Clara Five-Year Financial Plan 2012-13 through 2016-17 (the Five Year Financial Plan will be updated based on the adopted 2011-12 budgets and included as part of the adopted Operating and CIP budget documents). MOTION was made by Kolstad, seconded and unanimously carried, that the Council adopt Resolution No. 11-7858 entitled, “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, FINDING THAT THE USE OF THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND BY THE CITY HOUSING AUTHORITY FOR HOUSING SERVICES TO BE PROVIDED IN FISCAL YEAR 2011-12 OUTSIDE OF THE REDEVELOPMENT PROJECT AREAS BY CATHOLIC CHARITIES OF SAN JOSE, SILICON VALLEY INDEPENDENT LIVING CENTER, COUNCIL ON AGING OF SANTA CLARA COUNTY, NEXT DOOR: SOLUTIONS TO DOMESTIC VIOLENCE, EHC LIFEBUILDERS, INNVISION AND PROJECT SENTINEL WILL BENEFIT THE REDEVELOPMENT PROJECT AREAS” and that the Agency adopt Resolution No. 11-17(RA) entitled, “A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARA, CALIFORNIA, FINDING THAT THE USE OF THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND BY THE CITY HOUSING AUTHORITY FOR HOUSING SERVICES TO BE PROVIDED IN FISCAL YEAR 2011-12 OUTSIDE OF THE REDEVELOPMENT PROJECT AREAS BY CATHOLIC CHARITIES OF SAN JOSE, SILICON VALLEY INDEPENDENT LIVING CENTER, COUNCIL ON AGING OF SANTA CLARA COUNTY, NEXT DOOR: SOLUTIONS TO DOMESTIC VIOLENCE, EHC LIFEBUILDERS, INNVISION AND PROJECT SENTINEL WILL BENEFIT THE REDEVELOPMENT PROJECT AREAS” which determine that the use of Redevelopment Agency's Low- and Moderate-Income Housing Fund for housing services outside of the redevelopment project areas will benefit the redevelopment project areas. MOTION was made by Kolstad, seconded and unanimously carried, that the Agency adopt Resolution No. 11-18(RA) entitled, “A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARA, CALIFORNIA, DETERMINING THAT THE PLANNING AND ADMINISTRATIVE EXPENSES TO BE FUNDED IN FISCAL YEAR 2011-12 BY THE LOW AND MODERATE INCOME HOUSING FUND ARE NECESSARY FOR THE PRODUCTION, IMPROVEMENT AND/OR PRESERVATION OF AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME HOUSEHOLDS” which determines that the planning and administrative expenses provided in the budget to be made from the Low- and Moderate-Income Housing Fund are necessary for the production, improvement or preservation of low- and moderate-income housing. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the continuation of the contribution rate to the Redevelopment Agency Housing fund of up to an additional 10% of tax increment funds received by the Bayshore North Redevelopment Project Area above the State mandated 20% contribution rate. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the disposition of $17,649.29 from the Give A Little...Help A Lot community donation campaign. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the use of $63,600 for police activities and programs from the Asset Seizure Trust Fund as requested by the Chief of Police. MOTION was made by Kolstad, seconded and unanimously carried, that the Council/Agency/Authority/Stadium Authority/Housing Authority approve the Conference, Training and Travel guidelines for City Board/Commissions. MOTION was made by Kolstad, seconded and unanimously carried, that the Council adopt Resolution No. 11-7859 entitled, “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, ADOPTING THE "CITY OF SANTA CLARA MUNICIPAL FEE SCHEDULE 2011-12" WHICH IMPOSES NEW FEES, AMENDS EXISTING FEES AND RETAINS UNCHANGED FEES FOR VARIOUS CITY DEPARTMENTS” which establishes the 2011-12 Municipal Fee Schedule and refer the policy regarding fees for Parks and Recreation programs to the City Manager and Parks and Recreation Commission for review and policy recommendations to the City Council. The Council/Agency/Authority/Stadium Authority/ Housing Authority duly noted and filed an email received by Rich Solis (06/07/11).

 

 

 

     MOTION was made by McLeod, seconded and unanimously carried, that, per the Stadium Authority Treasurer’s (06/07/11), the Stadium Authority approve the renewal of Excess Liability Insurance with Alliant National Municipal Liability Program (ANML) for the period of July 1, 2011 to July 1, 2012, authorize the payment of insurance premium to Alliant Insurance Services, in the amount of $148,200, and authorize the Executive Director to execute all related documents.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried, that, per the Stadium Authority Treasurer’s memo (06/02/11), the Authority approve the renewal of Master Property Insurance and Excess Boiler and Machinery Insurance for the period of July 1, 2011 - July 1, 2012, authorize payment of insurance premium to Alliant Insurance Services, in the amount of $477,569 and authorize the Executive Director to execute all related documents.

 

 


 

 

     The Assistant Stadium Authority Counsel reported that the Closed Session in the Council Conference Room for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8 Property: APN 104-43-030; Negotiating Party(ies):  City of Santa Clara and the San Francisco 49ers; Stadium Authority Negotiator:  Jennifer Sparacino, Executive Director (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment) was not held.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried, that, per the Interim Stadium Authority Counsel’s memo (06/10/11), the Stadium Authority set Tuesday, July 5, 2011 at 6:00 pm for a Closed Session in the Council Conference Room for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8 Property: APN 104-43-030; Negotiating Party(ies):  City of Santa Clara and the San Francisco 49ers; Stadium Authority Negotiator:  Jennifer Sparacino, Executive Director (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment).

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried, that there being no further business, the meeting was adjourned at 9:13 pm to Tuesday evening, July 5, 2011 at 6:00 pm for a Closed Session in the Council Conference Room and to 7:00 pm for the regular scheduled meeting in the City Hall Council Chambers.

 

 

 ATTEST:  ________________________

             Secretary

 

APPROVE: ________________________

            Chairperson