Minutes 2008/12/01
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City Of Gilroy
City Council Minutes
Monday. December 1. 2008
I. OPENING
A. Mayor Pinheiro called the meeting to order at 7:00 p.m. and led the
Pledge of Allegiance.
The Invocation was given by Father Dan Derry of Saint Mary's Catholic Church.
City Clerk Freels reported that the agenda had been posted on November 26,
2008 at 10:00 a.m., the revised agenda posted on November 26, 2008 at 12:00
p.m.
Roll Call
Present: Council Member Peter Arellano, Council Member Dion Bracco,
Council Member Bob Dillon, Council Member Craig Gartman, Council
Member Perry Woodward and Mayor AI Pinheiro
Absent: Council Member Cat Tucker
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B. Orders of the Day
There were no changes to the agenda.
C. Introductions
There were no introductions.
D. Proclamations, Awards and Presentations
1. Presentation of Certificates of Appreciation to the Members of the
Library 4 Gilroy Campaign Committee
Mayor Pinheiro presented certificates of appreciation to the Library 4 Gilroy
Committee members: Jay and Vicki Baksa, Carol Smith, Hugh Smith, Conrad
Lather, Linda Bernett, Carol De Santis, Bill Paisley, Natilda Henry, Bob Dillon,
Bob Sigala, Phyllis Armenta, Kathleen Smith, Sylvia Wymouth, Bill Headley,
Mary Yastes and Lani Yashimura.
II. PRESENTATIONS TO COUNCIL
A. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON
THE AGENDA, BUT WITHIN THE SUBJECT MATTER JURISDICTION OF
THE CITY COUNCIL
B. Annual Presentation of the Bicycle Pedestrian Advisory Board
Council Member Arellano thanked the Bicycle Pedestrian Advisory Board for
their work on the new Camino Arroyo Bridge.
The presentation was given by Thomas Muniz the chair of the Bicycle
Pedestrian Advisory Board.
III. CONSENT CALENDAR
Council Member Woodward asked to pull item III.B.
A. Approval of the Minutes of the November 17, 2008 Regular Meeting
Motion on Item IIl.A.
Motion was made by Council Member Dillon, seconded by Council Member
Woodward and carried (Council Member Tucker absent) to approve the
item.
B. Approval of the Cimino Property Purchase Agreement in the Amount of
$14,000., Plus Closing Expenditures, to Purchase a 600 Square Foot
Parcel Located Between 7470 Eigleberry and Gourmet Alley, APN 799-
07-074 (staff report)
Council Member Woodward recused himself from voting on item III.B. stating that
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he owned real property within 500 feet of the subject site. He then left the dais.
Motion on Item IIl.B.
Motion was made by Council Member Arellano, seconded by Council
Member Bracco and carried (Council Members Tucker and Woodward
absent) to approve item IIl.B.
IV. BIDS AND PROPOSALS
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There were no bids and proposals.
V. PUBLIC HEARINGS
A. Public Hearing to Consider a Report by the Gilroy Police Department
Recommending a Spending Plan for $100,000. of Funding Under the
State Law Enforcement Block Grant Monies for the 2008/2009 Fiscal
Year. (staff report)
The staff report was presented by Police Chief Turner.
The Public Hearing was opened.
There being no comment the hearing was closed.
Motion on item V.A.
Motion was made by Council Member Bob Dillon, seconded by Council
Member Peter Arellano,M.D. and carried to approve Motion to Accept the
Funding Plan for the 2008/2009 COP's Grant as Recommended
B. Public Hearing to Consider Revision and Adjustment of Rates and
Charges for Municipal Sewer Service to be Effective January 1, 2009
and to Hear Protests Thereto
The staff report was presented by Finance Director Turner.
Council Member Arellano spoke on the costs increases in charges from the
County Water District and PG & E.
Finance Director Turner shared the process of increases stating that the rates
were smoothed over the following year and the City also attempted to keep costs
down by pumping during off-peak hours in order to keep the rates down.
The Public Hearing was opened.
There being no comment the hearing was closed.
Motion on item V.B.
Motion was made by Council Member Peter Arellano, seconded by Council
Member Dion Bracco and carried (Council Members Gartman and
Woodward voting no, Council Member Tucker absent) to adopt Resolution
2008-49 Approving the Adjustment of Rates and Charges for Municipal
Sewer Service.
C. Public Hearing to Consider Revision and Adjustment of Rates and
Charges for Municipal Water Service to be Effective January 1, 2009
and to Hear Protests Thereto (staff report)
The Public Hearing was opened.
There being no comme"nt the hearing was closed.
Motion on Item V.C.
Motion was made by Council Member Peter Arellano, seconded by Council
Member Dion Bracco and carried (Council Members Gartman and
Woodward voting no, Council Member Tucker absent) to adopt Resolution
2008-50 Approving the Adjustment of Rates and Charges for Municipal
Water Service.
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D. Public Hearing to Consider an Appeal of the Planning Commission
Decision to Deny a Variance Request to Increase the Floor Ratio for a
Proposed Redevelopment Project and to Recommend Against the
Associated Architectural and Site Review to Remodel the Existing Un-
reinforced Masonry Building at 7401 Monterey Street, APN 799-07-067,
A1S 07-53 & V 08-04, Jose Montes Applicant
The staff report was presented by Planner II Mcintyre.
Council Member Bracco asked how tall the building was.
Planner II Mcintyre stated that she didn't know the height stating that the
building was two stories and the adjacent Milias building was 48 feet to 54 feet.
Council Member Bracco spoke on the balconies, asking why they were removed
from the Historic Heritage Committee recommendation.
Planner II Mcintyre stated that there were several reasons, two of which were
the cost of the balconies and the safety concerns of the people below.
Council Member Arellano asked how many other buildings had received a FAR
variance in the area.
Planner II Mcintyre stated that she had not looked into the other projects in the
downtown area with a FAR variance.
Mayor Pinheiro stated that he had asked Planning Manager Faus the same
question and he had stated that the Heritage building had a FAR variance.
Mayor Pinheiro then stated that the building across from the post office had
covered the full foot-print as did Mr. Burtoloni's building which was 4 buildings
down from the subject site.
Council Member Gartman asked how tall the Burtoloni building was.
Mayor Pinheiro stated that it had 3 floors and looked as though it was taller than
the existing Halls Building.
The Public Hearing was opened.
Katherine McBride, Member of the Historic Heritage Committee, stated that she
was speaking for herself and was not in favor of the variance for FAR. She
stated that the HHC had not been in favor of the project as it was not in
compliance with the intent of the zoning ordinance and downtown specific plan
and could be detrimental to the community due to the height of the building and
lack of parking.
Carol De Santis spoke in opposition to the variance for the FAR sharing her
concerns with the remodel of the building. She stated that the building would be
disproportionately tall in comparison to the adjacent buildings and was in
violation to the downtown specific plan. She suggested that the applicant
purchase additional adjacent property to spread the building out.
Larry Cope PresidenUCEO"of the Gilroy Economic Development Corporation
spoke in support of the project stating that there were other buildings in the area
that would match the height. He spoke on creating density in the downtown
areas stating that many cities were proposing more dense downtown areas to
reduce the carbon footprint and utilize the public transportation in the areas. He
shared the adequacy of parking in the downtown area and then spoke on the
downtown specific plan as a "best knowledge plan" explaining that at the time it
was the best guess the specific plan task force had at the time.
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Council Member Gartman asked Mr. Cope if he could give background on the
2.5.
Planning Manager Faus explained that the downtown specific plan task force
had worked with a number of options through slides and photographs and they
had not determine a numeric determination but a more visual recommendation
of what the downtown should look like.
Council Member Gartman asked if the 2.5 was an arbitrary number the
downtown specific plan task force had come up with.
Planning Division Manager Faus stated that it was not arbitrary explaining that
the task force had spent many hours visiting other city downtown districts and
had reviewed multiple photos and had recommended a fairly flexible downtown
image.
Project Applicant Jose Montes stated that he had begun the process 1 year
previous and he had worked with all divisions of the City to comply with any
requirements imposed. He explained that there were no guidelines for the FAR
so he had used the National standard. He explained that the project had 4
residential units and 28,000 square feet of commercial stating that the residential
units should be grandfathered in. He then shared a handout with the Council
which detailed the present amount of parking along with the proposed parking
stating that the deficiency was only 1.5 parking spaces. He stated that the
design had very little impact on the downtown areas and explained that he had
received the HHC recommendations to utilize the old brick for the facade and
the recommendation that the balcony conform with the other floors and he had
complied with all of the recommendations. He concluded by stating that the City
Council should consider other buildings that already exceeded the FAR in the
downtown areas.
Council Member Bracco asked how tall the building was.
Mr. Montes stated that he didn't know what the existing height was stating that
the Milias building was much taller and was 4 stories, with an additional tower.
Council Member Bracco stated that he sat on the HHC and had reviewed the
project. He explained that the applicant had complied with all of the City
standards he was concerned with discussion on the HHC that the building was
too nice for the area. He explained that Old City Hall was a taller building as was
the Milias building explaining that any new building in the downtown would be 4
stories and would exceed the FAR. He explained that there were many
previously approved projects without parking as close as the subject project had
and he thought the Council should see what the applicant had originally
provided to the HHC as it was a beautiful design.
Mayor Pinheiro spoke on the architectural differences of the downtown
explaining that the existing buildings in the area were wall-to-wall and most were
narrow as that was the foot print of the downtown area. He spoke on the City's
request for the repair of the downtown URM buildings and the fee waivers in
place. He spoke on the project appeal and the staff report detailing the reasons
for approval. He then spoke on the use of old brick of the building as he believed
that it might not make sense to save all of the walls stating that replication of the
facade could achieve a more appealing building.
Council Member Gartman spoke on the variance request for FAR stating that
there were no specifications in place to define the FAR. He stated that other
cities had such definitions. He then stated that other buildings in the vicinity were
the same height if not higher and he was in support of the variance but would
like to see the vote taken separately for the variance and the architectural and
site plan.
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Council Member Arellano spoke on the aesthetics of the Halls building
explaining that the City had been trying to revitalize the downtown with high
density as the property was narrow in the downtown areas. He spoke on the
danger of the un-reinforced masonry buildings in the downtown stating that he
was comfortable with approving the variance for the FAR and he agreed that
there was parking down the alley from the building. He then spoke on
development of an assessment district for parking.
Council Member Woodard asked what the Floor Area Ratio was for the Milias
Hotel.
Planning Manager Faus stated that it was about 4.0.
Council Member Woodward then stated that the variance issue would come up
over and over as more structures were built explaining that standards needed to
be amended for a well defined FAR for the downtown area as many cities had a
well defined standard.
Council Member Dillon asked what would happen if the appeal was sustained
asking if the architectural and site plan would go back for the balcony features.
Planning Manager Faus stated that the applicant would go back to redesign the
project.
City Attorney Callon explained that the variance was on the agenda for approval
so there would only be a re-submittal of the architectural and site plans if
changes were to be made to it.
Motion on Item V.D.
Motion was made by Council Member Peter Arellano, seconded by Council
Member Dion Bracco and carried (Council Member Tucker absent) to
Uphold the Appeal of V 08-04
Council Member Gartman requested that the design go back and be adjusted to
the previous design that had been first submitted to the HHC.
Council Member Bracco asked that if any changes were to be made at the Staff
level then he wanted it to come back to the Council.
Mayor Pinheiro asked Planner II Mcintyre how the cost and safety issues had
, caused the changes with the project. He then asked how the rounded balcony
was a safety issue in comparison to the flat balcony.
Planner II Mcintyre stated that the developer had responded to comments from
staff so he had made the suggested changes. She then explained that several
staff members had determined that there were safety issues with the balcony and
the applicant had made other changes due to costs.
Mr. Montes stated that conformity had been an issue for the balcony as the
comment had been made that it conform with others. He said it would be his
preference to have the rounded balcony.
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Council Member Arellano asked Mr. Montes if the old brick could be used.
Mr. Montes stated that he would prefer to use the old flag stone as the brick was
decaying and he would prefer to see the facade of the building to look more like
the Old City Hall building.
Council Member Dillon stated that the brick could be used as a feature in an
artistic area in a non load bearing display.
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Mayor Pinheiro spoke on other buildings using the older materials in other areas
other than load baring such as entry ways.
Council Member Gartman asked that the item come back for the architectural
and site approval asking if the Planning Commission had seen the original
design.
Planner II Mcintyre explained that the HHC had not approved the original design
and had asked that it be re-designed so the original design had not been
reviewed by the Planning Commission.
Council Member Bracco stated that the HHC had voted to approve the design
with the rounded balcony and at the next meeting it had been changed.
Mayor Pinheiro stated that the Council wanted it to go back to the Planning
Commission with the rounded balcony concept and fa<;ade recommendations the
Council had just discussed along with the caveat that staff directed changes
beyond what the Council wanted come back to Council.
Council Member Woodward stated that he liked the idea that Mr. Montes had
suggested that his building look more like Old City Hall with the flag stone.
Second Motion on Item V.D.
Motion was made by Council Member Perry Woodward, seconded by
Council Member Dion Bracco to uphold the appeal of AS 07-53 and the AS
will go back to the Planning Commission.
City Administrator Haglund suggested that the original architectural and site plan
design that had been developed for the HHC come back to the Council instead
of the Planning Commission.
Council Member Woodward stated that he wanted the Planning Commission to
give input with the knowledge that the City Council was taking a more liberal view
of the FAR and the downtown specific plan.
Council Member Arellano stated that he didn't believe the Planning Commission
needed to review the project explaining that they were not able to change things
the way that the Council could stating that he didn't want the Planning
Commission to go through the whole process again.
Mayor Pinheiro stated that the architectural and site design did not go through
the Planning Commission as was stated in the draft minutes explaining that Mr.
Montes could go back to the Planning Commission with a full detail of the AlS.
Planner II Mcintyre explained that she would not be the planner taking the
project forward after the January date.
Continued Second Motion on Item V.D.
The motion carried (Council Member Tucker absent)
City Attorney Callon stated that there was one additional action the Council
would need to take and that was to direct staff to prepare a resolution with the
findings to grant the variance.
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Third Motion on Item V.D.
Motion was made by Council Member Woodward, seconded by Council
Member Arellano and carried (Council Member Tucker absent) to direct
staff to prepare the resolution with findings to grant the variance of V 08-
04.
VI. UNFINISHED BUSINESS
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A. An Ordinance of the City Council of the City of Gilroy Approving Z 08-
03, Amending the Gilroy Zoning Ordinance to Create the Murray
Avenue-Las Animas Avenue Overlay Combining District, Bounded by
Leavesley Avenue to the South, 101 Freeway to the East, Cohansey
Avenue to the North and Monterey Road to the West, and Modifying the
City Zoning Map to Designate Such Overlay Combining District (Public
Hearing Held 11/17/08)
Motion on Item VI.A.
Motion was made by Council Member Dillon, seconded by Council Member
Woodward to Read the Ordinance by Title Only and Waive Further Reading
of the Ordinance
Council Member Gartman asked if the language regarding the significant affect
on the environment was incorrect.
City Attorney Callon explained that the language was a typo and should read:
"whereas CEQA provides that if it can be seen with certainty as here that there is
no possibility that the Gilroy Zoning Ordinance".
Council Member Garman asked that the change to the language be included in
the motion.
Council Members Dillon and Woodward agreed.
City Clerk Freels read the ordinance by title.
Continued Motion on Item VI.A.
The motion 'carried (Council Member Tucker absent).
Second Motion on Item VI.A.
Motion was made by Council Member Dillon, seconded by Council Member
Woodward and carried (Council Member Tucker absent) to Introduce An
Ordinance of the City Council of the City of Gilroy Approving Z 08-03,
Amending the Gilroy Zoning Ordinance to Create the Murray Avenue-Las
Animas Avenue Overlay Combining District, Bounded by Leavesley Avenue
to the South, 101 Freeway to the East, Cohansey Avenue to the North and
Monterey Road to the West, and Modifying the City Zoning Map to
Designate Such Overlay Combining District
Third Motion on Item VI.A.
Motion was made by Council Member Arellano, seconded by Council
Member Dillon and carried (Council Member Tucker absent) to Direct Staff
to Prepare a Resolution to Approve/Modify/Deny the Murray Avenue-Las
Animas Avenue Overlay Combining District Design Policy
B. A Resolution of the City Council of the City of Gilroy Approving a
Downtown Small Project Exemption of Forty-five (45) Residential Units
with Commercial Space Located at 7121 Monterey Street, APN 799-10-
049, DSPE 08-02.(ltem Heard 11/17/08 with an Affirmative vote of 6-0-1)
Council Member Arellano stated that he had previously recused himself from
deliberating on the item due to the possibility of a conflict of interest but had since
spoken with the City Attorney and recognized that no conflict existed.
Motion on Item VI.B.
Motion was made by Council Member Dillon, seconded by Council Member
Woodward and carried (Council Member Tucker absent) to Adopt
Resolution 2008-51 Approving DSPE 08-02
C. A Resolution of the City Council of the City of Gilroy Approving a
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Downtown Small Project Exemption for Three (3) Additional Residential
Units Located at 7700, 7760 and 7776 Monterey Street, APN 841-04-019,
DSPE 06-04. (Item Heard 11/17/08 with an Affirmative vote of 6-0-1)
Council Member Arellano stated that he had previously recused himself from
deliberating on the item due to the possibility of a conflict of interest but had since
spoken with the City Attorney and recognized that no conflict existed.
Motion on Item VI.C.
Motion was made by Council Member Woodward, seconded by Council
Member Bracco and carried (Council Member Tucker absent) to Adopt a
Resolution 2008-52 Approving DSPE 06-04
D. A Resolution Amending the City of Gilroy Records Retention
Guidelines to Provide for the Permanent Retention of all Electronic City
Council Meeting Agenda and Agenda Reports
Council Member Gartman asked that an amendment to the resolution be made to
add the retention of study session and Council summit notes to the website
asking if the resolution could be amended to include the study session notes
retention.
City Clerk Freels stated that the retention of study session notes had not been
added to the resolution as the item had come up after the Council had agreed to
the permanent retention of agenda reports, but the resolution could be amended
to include the retention of study session notes.
Mayor Pinheiro asked if the notes retention were through Granicus.
City Clerk Freels stated that they were not retained through Granicus and could
be hosted on the City website. She then asked if the suggestion was to include
the notes with a permanent retention.
Council Member Gartman agreed.
Motion on Item VI.D.
Motion was made by Council Member Gartman, seconded by Council
Member Dillon and carried (Council Member Tucker absent) to Adopt
Resolution 2008-53 of the City Council of the City of Gilroy Amending the
City of Gilroy Records Retention Guidelines Adopted as Resolution No.
2003-79 to Provide for the Permanent Retention of All Electronic City
Council Meeting Agenda and Agenda Reports
VII. NEW BUSINESS
There were no New Business items.
VIII. CITY ADMINISTRATOR'S REPORTS
A. Update on Ongoing Funding for Sidewalk Repair
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City Administrator Haglund spoke on the outstanding budget concerns and the
allocation of funding to the sidewalk repair.
Mayor Pinheiro stated that he had discussed the issue with the City Administrator
and had shared the past decisions to take monies from the general fund for the
50/50 program He stated that he believed that under the current 09/10 budget
there had been monies set aside for the program, but under the current
circumstances he was not in support of adding additional funds from the 08/09
budget. He then spoke on going forward with the program using future funding
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from future budgets.
Council Member Gartman stated that the City was telling the public that there
was no funding available for sidewalk repairs which is why he had asked the City
Administrator to address the item with the Council. He spoke on the funding
options available with the ADA funds and gas tax funds stating that he didn't want
to see the general fund used.
Council Member Woodward asked if the gas tax funds could be used for
sidewalk repair and asked how gas sales would impact the tax revenues the City
received.
City Administrator Haglund stated that it was permissible but not advisable
sharing the impact to other programs such as signal light maintenance and chip
seal explaining that the funding for chip seal or light maintenance would have to
come from the general fund.
Finance Director Turner stated that there was a delay in the gas tax receipts and
City would not receive the full allotment for the year.
Council Member Bracco stated that the 50/50 program was money well spent
stating that if people were willing to fund their sidewalk repair then the city should
find a way to do it.
Council Member Arellano spoke on the previous practices based on a high
reserve stating that the City was in the process of laying off staff and could not
afford to take monies at the expense of the bottom line. He spoke on the State of
California hold on the monies and the need to step back and look at the decline
in the amount of fuel consumed and possible loss of tax revenues. He spoke in
favor of paying back the property owners who completed the work once the
future funds were available.
Mayor Pinheiro agreed with Council Member Bracco stating that any opportunity
for the sharing of the costs was beneficial but he was very worried about the
future financial picture for the City stating that the state legislature was back in
session on budget issues. He stated that the City would be hit at different Jevels
and he was very concerned about additional spending of any funds.
Council Member Dillon asked how far out the other projects would need to be
pushed out if the gas tax funds were used for sidewalks instead of street lights
and chip seal.
City Administrator Haglund stated that it would depend on how much was used,
but it may be a few years before the City went into the negative.
Council Member Woodard asked how much money was generated from gas
sales.
City Administrator Haglund stated that it was per gallon.
Council Member Woodward stated that Council Member Arellano was correct
about the amount of tax the City would receive and then reminded the Council
that there had just recently been a settlement payout because of faulty
sidewalks.
Council Member Gartman stated that the CIP had nothing to do with general fund
programs. He explained that the money was just sitting there and couldn't be
used for anything else.
Mayor Pinheiro spoke on the lack of funds in the future years if the monies were
used for other projects other than the projects that they were allocated for. He
then explained that the City didn't know what the future would bring and the gas
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tax funds were allocated to fix streets explaining that the City would need to take
from the general fund. He suggested that the City would be strapped in a
financial crisis by using the funds explaining that the city didn't know what monies
the state would be taking.
Council Member Arellano spoke on balancing safety issues with the roadways
and the sidewalks stating that streets were more expensive to repair than
sidewalks and the costs would be higher in future years if they were not
maintained. He stated that the City didn't know what the State was proposing to
take. He then asked if the gas tax funds could be used for sidewalks.
City Administrator Haglund stated that the City could stating that the City was
following the 50/50 on the sidewalk and 80/20 on the curb and gutter.
Council Member Woodward stated that he share the dire financial position the
City was in but other cities were not as lucky as the City of Gilroy with injury due
to sidewalk disrepair and he believed the City would need to be very careful.
Council Member Dillon stated that fixing the sidewalks could not be equated to
fixing the streets stating that he was concerned with the comments made by
Council Member Arellano and he did not agree with going backwards with the
amount of money the City would be paying towards sidewalk repair.
He then made the motion to use up to $350,000 out of the gas tax for 08/09 for
the 80/20 program and have the City Administrator look at alternatives in further
budget discussions. The motion was seconded by Council Member Gartman.
Mayor Pinheiro asked if Council Member Woodward was suggesting that
additional money would be allocated to sidewalk repair for people who came to
the City in 5 or 6 months.
Council Member Woodard stated that his motion was a one time amount from the
gas tax funds.
Council Member Gartman stated that he wasn't trying to appease anyone in
particular and he took offense to the comment as he was trying to address a
problem in the City and the Council would need to address the additional need
for funding for sidewalk repair during future budget discussions.
Mayor Pinheiro stated that the motion was addressing the $350,000 and
Council Member Gartman had suggested that his neighbors were hoping to get
on the future list and he wanted the Council to consider future requests for the
sidewalk repair program once the $350,000 was expended.
Council Member Arellano stated that people who road bicycles on roads in
disrepair were injured equally as often as people were injured on sidewalks. He
then suggested that the City .give IOU's to people who wanted to take advantage
of the 50/50 program.
Council Member Woodward stated that the $350,000 was an interim measure
and in May the Council could look at additional monies for sidewalk repair.
Continuance of Council"Member Woodward's motion.
The motion but did not pass (Council Members Arellano, Bracco and Pinheiro
voting no, Council Member Tucker absent)
Council Member Bracco made the motion to issue IOU's until such time as the
City Administrator brought forward more budget information. The motion was
seconded by Mayor Pinheiro and failed (Council Members Dillon, Gartman and
Woodward voting no, Council Member Tucker absent)
B. Update on City Website Connectivity Issues
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City Administrator Haglund shared sporadic problems with the city website.
Council Member Woodward stated that he was able to access his email via his
work computer it worked 100% and his laptop was 50%.
C. Budget Update
City Administrator Haglund shared the financial situation of the city. He shared
the forecast for property tax and sales tax sharing the estimates for the decline
in revenue.
Council Member Bracco asked if the City knew what it was receiving.
Finance Director Turner stated that the City received payments periodically
throughout the year and a true-up of actual would come in periodically.
City Administrator Haglund shared the decrease in motor vehicle tax and the
estimate that the General Fund would have a decrease of $771 ,000 for the
08/09 fiscal year. He explained that unless there was a market rebound there
would be a 2-3% increase in PERS. He spoke on the reduction of development
fee revenues and shared the forecast of a minimum $7 million deficit in the
general fund in FY 09/10 with possible further declines coming. He spoke on the
expenditures that would hit the General Fund with no monies in the impact funds
sharing the City's contributions to the Gilroy Unified School District. He
concluded by reviewing the 6 actions the Council had previously taken and
spoke on the additional cuts directed by the City Council that would come back
at the December 15th Council meeting.
Council Member Arellano asked what the 2% increase in PERS would be to the
City.
Finance Director Turner explained that it was 2-4% of the employer contribution
which was approximately $200,000.
Council Member Gartman stated that he wanted to get a sharper image of where
the City was going and what adjustments would be made as well as the
assumptions made.
City Administrator Haglund states that all of the assumptions and adjustments
were specifically defined in the report from the December 5th City Council
Meeting.
Council Member Gartman stated that the assumptions and the reasons the
decisions were made were not in the report from the 5th as the Council needed to
know what the thought process was.
Mayor Pinheiro stated that he left the meeting on the 5th with the knowledge that
the City Administrator would go forward with the decisions the Council had made
and the Council gave him the flexibility to use more than exhibit A for the
reductions. He then stated that some Council wanted to be more involved in the
decisions of how, when and where. He then explained that the Council had hired
the City Administrator to m~ke the best decisions with the monies that the City
had stating that on December 15th he wanted to see an overview of the additional
cuts. He continued that the City Administrator could provide more of an update at
January Council retreat.
Council Member Arellano stated that the numbers and facts that were provided
were fluid and to ask the City Administrator about the decisions he had made
previously was difficult. He explained that large financial institutions had
miscalculated with their decisions and though he may not be happy with the
decisions the Council had taken.
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City Administrator Haglund explained that pages 2-8 of the City Administrator's
report had shared the details of the projections.
IX. CITY ATTORNEY'S REPORTS
There was no report.
X. REPORTS OF COUNCIL MEMBERS
Mayor Pro Tempore Bracco stated that Saturday night was the downtown
Christmas parade and tree lighting. He then stated that he had received several
phone calls on Sergeant Gillio's presentation on the Gang Activity at the Mayor's
forum stating that people in the community wanted to see a quarterly meeting on
gang activity. He then invited the public to the gang task force meeting the next
evening.
Council Member Gartman
A. Presentation by Tim Price, Bike Park Proposal in Downtown Gilroy
Council Member Gartman spoke on the request stating that Tim Price had
wanted to propose a bike track and was looking into additional issues in creating
the track. He spoke on the possibility of using the future arts center location on
Monterey Street explaining that Mr. Price would be providing additional material
for a future Council meeting.
He then spoke on the sidewalk issue and requested that the item be agendized
again on the 15th for a full Council vote.
He then spoke on his conversations with Congressman Honda's office on
Federal bailout assistance asking if the Council was interested in supplying
Congressman Honda with a letter sharing the City's financial crisis.
Mayor Pinheiro stated that the sidewalk item would be returned with no staff
report.
Council Member Arellano asked if the BMX park was on the Council's top 10 list
stating that the Council had not given direction to go forward with the concept
and no staff time should be put into it. He then spoke in opposition to the
proposed location of the track.
Mayor Pinheiro stated that any Council Member had the right to put the item on
the agenda.
Council Member Gartman stated that the presentation materials were in the
packet.
City Attorney Callon stated that she had read a headline on the issue that the
Mayor of San Jose had announced that he was seeking the funding, and then the
next day he was no longer seeking the funding.
No other Council Memb~r showed an interest in providing the letter to
Congressman Honda.
XI. MAYOR'S REPORT
Mayor Pinheiro thanked the Council Members for their RSVP for the upcoming
Cities Association meeting. He then asked the Council to send him their interest
in any of the Council representative positions as the item would be on the
8994
December 15th agenda.
XII. FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Bracco asked to have an item agendized for the retreat on
holding quarterly gang forum meetings.
Council Member Arellano suggested that a Vietnam Veterans Memorial street be
agendized for the January summit.
XIII. ADJOURNMENT TO MEETING OF DECEMBER 15, 2008
The meeting adjourned at 10:17 p.m.