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CC 06-28-6510321 SOUTH SARATOGA-SUNNYVALE ROAD 252-4505 Cupertino, California 95014 C I T Y .O F C U P E'R T I N O California MINUTES OF THE ADJOURNED REGULAR COUNCIL MEETING - June 28, 1965 PLACE: City Hall TIME: 8:00 P.M. I ROLL CALL Councilmen present: Finch (8:15), Fitzgerald, Noel, Stokes, Dempster Councilmen absent: None Staff present: II CHAMBER OF COMMERCE City Manager, Phil Storm City Clerk, Larry Martin Bob Scott, 20301 Stevens Creek Boulevard, president of the Chamber, referred to the folder just distributed by the Chamber of. Commerce. He said he would like the Council to examine the brochure to see what it means and to see what it can do. He also referred to the recent progress edition of the SUNNYVALE STANDARD. Briefly, the Cupertino Chamber of Commerce distributed 5,000 maps in the past year. They receive on an average 425 phone calls per month, 460 letters per month, and 450 visitors per month. In the past eleven months the dues aid by the membership totals $5,530 as contrasted with total dues of 2,300 for the 12-month period of last fiscal year. One full time man is employed and one full time girl. In the matter of population growth, Cupertino and Santa Clara County rate as second in the nation. Mr. Scott said that the potential market for commerce has so far been neglected. The City Council has zoned property for commercial purposes indicating that the City wants to encourage and foster the expansion of the business community. The road network is coming along rapidly as well as everything needed except promotion, This takes money. Mr. Scott referred to a list which shows that 65 (approximately) types of.business cannot be found within the City limits of Cupertino. He pointed out that this list is not ofPidial nor exhaustive but merely his observation of the local commercial situations Book stores, office machine sales, delicatessens, and motor repair shops would be examples, A successful advertising and promotional campaign could result directly in a regional shopping center which would directly benefit the entire community, satisfying the needs of the city residents. He referred to. the 1% City sales tax and the property tax as increased revenue for the city. A regional shopping center would draw customers from outside the City limits, specifically Saratoga, Sunnyvale., DeAnza College will mean potential customers. Promotion is needed now in order to establish buying habits and secure the location of a major department store. He estimated the immediate market as 75,000 people and repeated that the funds allocated by the City to the Chamber will be returned many times in the form of tax receipts, making it an invest- ment in the future of the City. Dave Laing, Secretary of the .Chamber of Commerce, stated that the Cupertino Chamber is starting out in a position far behind the nearby Chambers. The sum of $12,000 being asked by the Chamber of the City represents roughly $1.00 per capita. He said it will take $2.00 per capita at a later date to accomplish the necessary tasks and put the Chamber in a roper position to function, if they are not able to get going with a M,000 appropriation from the City for the 165-66 fiscal year. Councilman Noel asked why the Chamber is receiving less than - 1 - formerly from the County, Alps, Manager of the Chamber of Comm rce, answered that it is"nierrely a bookkeeping factor. It happened that the accounts shove a two-year allocation for the present year as opposed t6 the one-year allocation indicated for Fiscal year t65-2, In response to a question, Mr. Scott announced that the funds received from the City will be spetst entirely on business within the City limits. MV4 Laing stated that the Chamber is interested in top caliber business for the City of Cupertino rather than the type located along the outside fringes of the City. He noted that the outdated City map and Chamber brochure are not conducive to the promotion of business. The Chamber, he explained, has advertised in newspapers and journals situated throughout the country and they have been able to make tremen- dous advertising headway on the $6,000 allocated by the City in the year now closing., Mr. Spiers stated that four ldrge Stores are now interested in locating within the City of Cupertino and that any two of these stores would return more sales tax to the City than: Gemco. He said that he has been employed by Chambers of Commerce for more than twenty years and would characterize the present interest in Cupertino as "terrific", especially in response to outside advertising. Councilman Noel asked if the Chamber would prepare a mid -year report. Mr. Scott said that they would be very willing to do this. He said the Chamber is asking the City for $12,000. Walter Ward, General Manager of Vallco Park, took the position that the allocation delivered in one installment would enable the Chamber to plan their annual program with more efficiency. If the"money is paid by install- ments_with half delivered initially and the other half contingent on the Council's approval of the mid -year report, the Chamber will be somewhat hampered. He said that an advertising campaign often takes. a couple of years to bring results. This has been the experience with. Vallco Park. The Mayor thanked the Chamber officers for the presentation stating that their request will be considered in their study of the budget. III WATER DEPARTMENT BUDGET - 1965-66. The City Manager then reviewed his proposed budget, which indicates the estimated revenue comprised of domestic meter service, industrial, irrigation, miscellaneous, such as fire hydrants and meter installation. The estimated total amounts to $194,000 plus a fund balance on June 30 165 of $24,000 making a total of $218,000 available for 165-66. Estimated expenses including bond principal and interest total $197,9o4 leaving a balance of $20,096 as of June 30 166. He then reviewed the individual items in the proposed expend- itures. Councilman Finch asked about the $95,000 authorized in the 1960 Water Revenue Bond Election. Is it possible to sell those bonds in the coming year? The City Manager answered that it might be possible to sell these bonds in the coming year. Heestimated that a surplus of $50,000 yearly would be one of the criteria necessary to sell the remaining bonds and the City should achieve this status within two years. Moved by Councilman Finch that the 1965-66 Water Department budget be adopted as submitted in the City Manager's report of June 3; seconded by Councilman Stokes. Motion carried, 5-0 IV CITY BUDGET 1965-66. The Council reviewed the" City budget page by page .including,the estimated revenues by fund and all''the department budgets. The Chamber of Commerce allocation will be placed in the City Council.budget. After some discussion about the Chamber's new budget - 2 and the manner in which the Council could justify the allocation and gauge the value of the Chamber to the City, Councilman Noel moved that the City grant $10,000 to the Chamber of Commerce for the 1965-66 fis- cal year asking for a 6-month report showing the disposition of the City money. Seconded by Councilman Stokes for the purpose -of asking a question. Councilman Stokes subsequently withdrew his second. Councilman Noel then withdrew his motion. Councilman Finch proposed that a formula be established which would amount to $8,000 or $9,000 with the City to add an additional $3,000 or $4,000 to reach the $12,000 being sought for this year. In future years the City would then rely on the formula. In general discussion the amount of $.03 per assessed valuation was used: Lengthy discussion followed as to whether a formula would be a good idea. Councilman Noel moved his former motion) namely, that the City grant $10,000 to the Chamber of Commerce for the 1965-66 Fiscal year asking for a 6-month report showing the disposition of City money; seconded by Mayor Dempster. AYES: Councilmen: Noel, Dempster NAYS: Councilmen: Finch, Fitzgerald, Stokes Further discussion followed after which Councilman Stokes moved that the City give the Chamber of Commerce $12,000 for the ensuing fiscal year; seconded by Councilman Noel. The Mayor emphasized the fact that the City allocation should be strictly for promotional purposes and advertising purposes. He elaborated on this several times. Councilman Finch moved to amend the motion before the Council to the effect that $.03 multiplied by the assessed value be allotted to the Chamber of Commerce in the future; seconded by Councilman Fitzgerald. Mayor Dempster proposed a second amendment to the effect that the money be used strictly for advertising; seconded by Councilman Stokes.. Vote on the second amendment, 5-0 AYES: Councilmen: Finch, Fitzgerald, Noel, Stokes, Dempster NAYS: Councilmen: None Vote on the first amendment, 4-1 AYES: Councilmen: Finch, Fitzgerald, Stokes, Dempster NAYS: Councilmen: Noel Vote on the main motion, 5-0 AYES: Councilmen: Finch, Fitzgerald, Noel, Stokes, Dempster NAYS: Councilmen: None Council then proceeded to review the remainder of the budget by departments. With respect to the budget of the Planning Department, Councilman Stokes moved that the City proceed to hire a junior planner; seconded by Councilman Noel. Motion carried, 5-0 After concluding a review of the entire budget, Councilman Stokes moved that the budget presented by the City Manager for fiscal year 1965-66 be adopted with the additions and alternatives as indicated, specifically $12,000 allocation to the Chamber of Commerce, appropria- tion of $57,582.40 for police service, and $10,000 for street mainten- ance; seconded by Councilman Noel. Motion carried, 5-0 - 3 - The City Manager said that the City Clerk would prepare a resolu- tion establishing the property fax rate for 1965-66 based upon the budget adopted, being 260 per $10.0.00 of assessed valuation. V STUDY SESSION - CITY PARKS: Omitted VI MISCELLANEOUS - None VII ADJOURNMENT The Mayor adjourned the meeting to personnel session at 11:16 P.M. The meeting reconvened at 11:25 P.M... and adjourned to the regular Council meeting of July 6, 8:00 P.M., at the Library, Portal School, A TEST: City Clerk APPROVED: /s/ J. Robert Dempster Mayor - 4 - 10)21 SOUTH SARA'l'OOA-;Ju..xVALE ROAD CUpertino. Ca11tom1a 9501. " CITY OF CUPER~INO caurom1a -1'IPV'.mS OP THE ADoTOURIIIID RIIÏIULIR COOIICIL MBBTDiO - ',~~28) 1965 PLACB:- Cj,ty Ban " .' " ~: 8:00 P.II. " ".. ", 252-4505 . , ..'., . .' -,' , X ROLL CAU. . -," . '..\' Coun&lMD 1;1'8_t;: ~·,(8:1$). P1ta~ld. tfo,l,Stokes, _ ,·~ter ~011åm a~; , .... , , statf pre..ntt: I .atfRu.ael'. Pb11 stol'!ii" , .' 'Cj,ty Clerk. 1&r17 Martin :U CHAMBER OP \òUPMftcZ : ,,- " Bob Scott, 20301' si:e..na creek Boulevar4. pres1dent ot the Chulbel'. reterred -totbe tolder .tWIt d1str1buted by the Chamber.ot CÓlllDerce. He sa1d he wuld Uke the Co~..dl to uai:d.ne the brochure to $ee whet it means and to see what It ca.~ d.>. He also reterred to the recent progress ed1t10n ot the SUNNYVAlE STANDARD. Br1etl~, the Cupert1i1Ò Chamber.at ,;o~e distributed 5,000 III&~ in the past year. _~ 1Iècelve on !ill average 425 phone calls per r.onth, 460 letters per iDonth. and 450 v1s1t:>rs pel' month. In the past eleven months the dues paid by"'tbe membership totals $5,530 as contrasted with total dues ot $2,)00 tor the 12-month period ot last fiscal Y'!ar. One tull t1me man 1s--elllployed aI""! one tull time girl. In the œtter or populatlon growth, cupert1no and Santa Clara County rate as second In the nation. Mr. Scott 881:1 that the ¡»tent1al market 1"or cOlll!lerce has so tar been neglected. The Clty COW1Cl1 has zoned property tor co_erclal purposes Ind1cat1ng that the City wants to encoU-;."'&ge ~'ñ toster the expansion or the b'181ness ooønm1ty. The road network Is coming al<;)ng rapidlY as ..ell as everyth1ng needed except prompt1cn. This takes monel. Mr. Scott rererred to a list wh1ch st.ows that 65 (&pprox1matt;171 tJpes ot business cannot be tound within the City 11lldta ot .::u.pertll1O. He polnted ')ut that this list Is not otficial nor exhaustive but merely hi/! observation of the 10('&1 commercial sltuatlon. Book sto~s, otfioe mach1ne ~ales, delicatessens, and motor repa1r shops would be examples. A successtul advertls1ng and pT.>mOtlonal campaign could res;,¡lt dlrectl~ In a regional shopping oenter vh1ch voul~ directly benet1t the entlre collllll1nity. satlst'y1n¡¡: the needs or the c1ty residents. He reterred to the J$ Cj,ty sales tax and the property tax as increased revenue tor tbe clt)". A regional shopping center voulG dra.. customers rro. outslde the City l1lll1ts. speclt10ally Sara~ga. SUrlnyVale. DeAnze. Colle.se w1ll mean potential customers. ~mot1.m 1s r.eeded no.. In oreSe:&" to estabUah bIQ1ng habits and sec1,1l'l! the lQcat10n ot l' major de¡artment store. Heest1lll&ted the ~ate _rket as 75,000 people and repeated tllat the tunda allocated by the City to the Chamber w111 be retumed 18117 t_..1n the tom ot tax receipts. aldng It an In1/i!st- mant In the tuture - ot the C1 ty. - . . '. "- Dave Laing, Seoreta1'7 ot tne ChIomhA'I' or Co_rce. stated that the CUpertinO Chamber Is start1ng out 1n a poslt1on tar ben1nd the nearbJ' Chulbers. The BUIII'Ot $12.000 being asked. t.y.tbe Cbulber ot the O1ty . represents roughly $1.00 per capita. {e'aa1d-lt will take $2.,00 ~r cap1t& at a later date to acc~adi tbt liecesaal7 taa1c8 and put the CbaJlber In a proper ~U.on to timctiona .1~ tbi):are not able to get go1nC with a U2,OOO approprJ.atlon troll the O1ty 'tor- the '65-66 t1soal y~. . Councllman Noel asked wbi the CbaIIIber 1s reed ving leas than ',,:'~ - 1 - , l , ! I ~rl)' fro:: the Count7. Al Spiers, Man'\ger of the Chamber of ~l'Ce, ansvereø that it 1s merely a booJdceep1ng factor. It lappmed that the accounts show a two-year allocation tor the pNIIent year as oppose.! to the one-year allocat1on 1.,d1cated tor ftacal year '65-66. In respo:ose to a quest10n. !fr. Scott announced that the funds ~Yed tron the C1t7 â11 be spent entlrelJ' on business v1th1n the C1Q 11m1ts. Mr. I&1DS .tated that the Chamber is interested In top eal1t.er bua1ness tor tile C1tJ' ot Cupertino rather than the type located .1-. the outside tr1J!&88 ot the City. Be noted that the outdated City ... aDd ChaIIber brocJuft are DOt conducive to the pI'OIDDt1on ot business. tile Clallber. be ap'.1~" baa advertised 1n newspapers and Joumals ld....t4Id tbl"l.~t tile _Lq and thQ' have been able to IIIIke t~n- ... advertll'.J.ng nea4~ on the $6.000 allocated by the C1ty In the ,... DOwelt>siDS. Mr. Spiers rtate4 t:lat tour large stores are now interested In ~t1ng witb1n the C1Q ot Cupert1no and that &rrI no ot these stores -.øa1d ::oeturn mre sal" taz to the City than 0-0. Be aald that he baa been emploJeC! by ~...~.. ot eo-rce tor lION than twen~ years &lid would cha:ni.cter1"e the ¡;1"esent 1ntereat 1n CupertinO as "terrific", _peo1ally ~ response tn out:òlde advertlB1ng. Councll:.L"l Noel ...- 1t the ~._ber would prapare a mid-year rep!)rt. Mr. Scott aa1d that they would be very willing to do this. Be aald the ~.&Itber 1a aaking the City for $12.000. Walter Ward, General Msn&J;er ot Valleo Park. took the pontlon that the allocation delivered in O!1e Installment would enable the ChaIDL..r to plar. thclr annual progra.::: with lION ettic18ncy. It the money is ¡:old by lnstall- _nts with :-..:f delivered 1nitially and the other halt cor.tlngent on 'he Councll's approval of the dd-year report, the CIIa'Dber w111 be _hat haJt~ered. He 8&ld that an ad'lertis1ng campaign otten takes a oouple ot years to bring results. This has been the experience with Vallco Park. The Ma)'::- thanked the C!'Iamber ott1cers t(',r the p>'esentation sta1;ing tha~ ~~elr request will be considered in their study of the budget. III iiA:¡;:¡:¡ DEPAImŒNT BUDGET - 19«55-66. The Ci~y Manager then reviewed his propo8'~ budget, wh1ch 1ndicates ~:>e esti_ted revenue comprised ot <\omes;;lc meter service, Industrial, ~rr1gatlon, 'D~scellaneous, such as fire hydrants and ..ter instal:atlon. The estimated total amounts tQ $194,000 plus a tund balar.ce 0:: June 30 '65 Qt $24,000 making a total ot $218,000 aftllable for . 65-66. Eat1mated expenses including bond principal and 1nteres~ ~otal tl97 ,904 lellvlng a balance ot $20,096 ..s ot June 30 '66. He ~,-,en N,vlewed the individual items In the proposed expend- itures. Counc1l2n Pinch aske:1 about the $95,000 authorized In the 1960 Vater Reve!1ue !»l1d Election. Is it posB1ble tQ sell those bonds In the coming year'! The C1t7 Hanager answered that it m1ght he possible to .eU tne~~ bonds In ~he CQming year. He estimated that a surplus of $50,000 yearly would be one ot the criteria necessarY to sell the ~1n1ng bonds and the Clty should achieve this !Status' within two 7ears . Moved by Coun.o:llan Pinch that th~ 1965-66 Water Depart~nt budSet be ado!;)te<\ as ..ubM1 ~!:ed in the C1 ty Manager's report ot June 3; seconded by CounclbBn Stoke.,. MPtion carried, 5-0 IV CITY BtJDGET 19€05-66. The Cour.cl1 rev1ewd the City budget page "y page ~,ncluding the ..t~te(l revenu.e. by t\md t'nd all the d~pari;aaent budgets. The Chamber ot C-rce allocatic.{, wiH be plB"ed in the City Councl1 budtet. Att."r ec- d1scuss1.on aboolt the C!Iam),er's ne" budget - 2 - I.1Y1 tbe anneI' In 1Ih1ch the Council could jUllt1f'y the allocat1on and puge tbe value or the Chamber to the City, CouncilJœJ1 Hoe1 8OT~ that the C1~ pant $10,000 to the ~ ot'C')lIIIDerce tor the 1965-66 tis- cal ~ aald.ng tor a 6-lDOnth report lhOWing the d1l1posltiOD ot the Clt7 ~. Seconded b)' Counc1t.aD Stokes tor the purpose ot asld.ng a~. Counc1lan Stolr.ett subeequent17 withdrew h11 ncondp. <, eouncn.an JIoel tben 1I1thdreW Me ~1on. CcW'\c1~ P'1nch "prOi:iéûPd that a t'ol'D&la be .stabUshed. 1dd.Cb would amount to ,8,000 oZ' -$9;"ðoo. with Ute C1t7 to aðd -an 'ad!Ut2.Ola1-$3.0CX> or $4,000 to react. tlié . " $12,000 ~.. lOusbt tor tbil"'. In ,tutureJQ~ 'i1!8 Cit)'.~~ theD øJ7 on tbe formla. In .."....'á1 d1lcuas1on tlie UIOunt ot $.03 per . -~ val_tiOD .. \lUll. 1oeaIt~ 41scuslion to1.la1M4 ..to , ~ a '~.ou14, be a ØlClllSAIa. ' ,,' ',.'" Co .o11>Jan Jlge1 ~n4 Ida tic r ~tion, _~. tbat the cì:i7 paat; .10,000 to the Cbulbel" o~ ^ ree, tor the 1965-66 t1aea~)paI':", ~. ._.. ftø....'~.xIth Npot'V 'åDtdJIS the 41spollltlon ot C1t)' .mt7; see:. - - 117 *701' !MIpster." ".,:.:1.. ;": .. ,", ~!!!,,: CounTø1~: . .1," Ð "_~r ....&~ Counc1t.en: Pinch, fttqerald, Stokes !'tØ'ther 41scWI:!lon tol101led after which Ccuncllman Stokes .øved that ~ City gift the Chamber ot co.aerce $12,000 tor the ensuing t1sca1 ;rwar; seconded b)' C0un01t.aD Hoel. '!be itaj'o¡' ~rœs1zed the tact tbat the City allocatlon should be strict:17 tor proD.'t1onal purposes and advertiS1ng purposes. He elabora~ on thill several tlmes. ~cllman ¡>'1:,:h moved to u.end the notion before the Ccuncll1 to the ettect tl'.a: $.03 multlplled by the assessed value -be .Hotted to tœ Chamber ot =-:"IDIerce In the t'uture; seconded by Councllman Fitzgerald. "-.J?r ;)empste!' propol'ed a second amendment to tt.ê eftect that the T1IC~Æ7 be us~ s:r1ctl~ tor adverti!ling; aeconded by ::ouncllman Stokes. '~~e on the s~:ond amendment, 5-0 AYES: Ccunci12~: Finch, P1tzgera1c1, Noel, Stokes, Dempster NAYS: Ccunci:::e~: None .~u on the :'lnt amendment, 4-1 AYES: NAYS: Co~nc1l:en: Pinch, P1tzgerald, Stokes, Dempster Ccwlcil:ler.: Noel 7~~e on tl~ ~n motlon, 5-0 AYES: NAYS: Councl1=en: Finch, P1tzgera1d, Noel, Stokes, Dempster Ccuncl1=en: None Council then proceeded to review the remainder of the budget by departments. V1.tb rellpect to the ~-tget ot th6 Planning De !)&rtment, CI'".U1cllman Stokes .:¡ved that the Clty proceed to h1re a junior planner; seconded by Coœ-1l111an No".. Mot10n ca.~eå, 5-0 A..t'ter concluc11ng a review ot the entire bw1get, Councl!ÆU1 Stokes 1IIO..'ed Uat the bWget presented 117 th6 City Manager tor t'111C&1 year 1965-66 be adopted with the add.1t1c:11S and a1temat1ves as 1n41cated, spec.l21cal17 $12 000 ILllocation to tbe Chamber ot Co_ree, appropria- tion o~ $57,582.4(; tor p:¡l1ce ae1"'l1.ce, and $10,000 for street mainten- ance. .-candee! b)' councllman Noel. Motion carried, 5-0 - 3 - The City Manager said that the City Cleric would pre~re a resolu- u.aa esta1>Uø1dng the property !:ax rate ~or 1965-66 based upon the . 11 iW't IIdopted. be1rlg ~ per $100.00 ût assessed valuation. v STUD! SESSION - CITY PARKS: Omitted VI Þ.'ISI!RT.T .AJlEOUS - None o VD ADJ01JRNIŒNT t'IIe IIQOr ad.1ourned the meeting to personnel ...81on at 11: 16 P.II. fte'_t1DS reconvened at 11:25 P.M. and adJourned to the regu1.ar ".1 Met1ng of Ju17 6. 8:00 P.II.. at the L11>ft17. 1'Ortal Sc1lOO1. . APhNvlW: /tel J. Robert DellPlter MaJOr b- .!. (~ C1t)' Clerk - 4 -