May 10, 2011 > Milpitas City Council
Milpitas City Council
May 3, 2011
Received progress report on the emergency contract work to replace the Variable Frequency Drives and pump/motor assemblies for the Ayer Pump Station. The cost for the contract work is not to exceed $650,000; the project is currently within the budget.
Received the City's investment portfolio status report for the quarter, ended March 31, 2011. The principal cost and market value of the city's investment portfolio was $157.2M, and $158.4M respectively.
Council authorized advertisement and bid proposals for repair and resurfacing of the city's parking lot under the Calaveras Boulevard overpass. The project is estimated to cost $100,000 for pavement repairs, asphalt overlay and new painted striping; this sum has been budgeted. No fiscal impact to the General Fund.
Council authorized Swenson and Associates to install chair rails and wall protection in Senior Center classrooms that are damaged by chairs and tables pushed against the walls. Estimated installation and repair costs not to exceed $16,000, covered by the warranty and service provisions of the original contract.
Council held a public hearing to consider the proposed water and sewer rate increases. The proposed ordinance establishes water rates for FY 2011-12 and maximum rates for FY 2012-13 to FY 2014-15. The San Francisco Public Utilities Commission (SFPUC) and the Santa Clara Valley Water District (SCVWD) are increasing their water rates by 47 percent (in July 2011) and 60 percent respectively, while the City of San Jose expects to double what it charges for sewage treatment. All rates are expected to double over the next five years. The increased revenue will fund rehabilitation projects currently undertaken by all three agencies and help fund water and sewer infrastructure improvements for Milpitas. The city received 523 letters of protest, less than 50 percent (or 8,572) required to block the water and sewage rate increases; Council adopted the proposed water and sewer rates increases.
Joint Redevelopment Agency and City Council
Received financial status report for the nine months ended March 31, 2011. The city's General Fund revised revenue estimated to be $51.3M, $2.5 M above the original projected amount of $48.88M. Staff anticipate property tax revenue will be $16.2M, which is $1M below budget; sales tax revenue at $16.9M, approximately $1.58M above budget; transient occupancy tax revenue is projected to be $4.67M, $608,000 above budget; permit and inspection fees from the Building and Fire Departments revised to $2.54M and $928,000 respectively, $664,000 and $208,000 above budget; consumer service charges declined to $276,000 below budget. General Fund expenditures at the end of March were at 71.7 percent of budget appropriations, with projected cost savings of about $2M for the year. Unanticipated revenues and expenditure savings mean that use of $2M will not be needed from the General Fund Reserve but a loan repayment from the Redevelopment Agency will be less than the $5.4M budgeted. Council adopted a motion for a presentation following audit of the General Fund and other budget reviews.
Council adopted a resolution approving Memorandum of Understanding (MOU) agreement with the Milpitas Police Officers Association to negotiate a new one year contract, between January 1, 2012 to December 31, 2012 and will save the city $1.18M for the General Fund. (3 YES votes, 2 NO votes (Esteves, Giordano)).
Mayor Jose Esteves Yes
Vice-Mayor Pete McHugh Yes
Debbie Giordano Yes
Jose Gomez, Jr. Yes
Althea Polanski Yes