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HomeMy WebLinkAboutCC Minutes 2001-05-21SRCC Minutes (Regular) 05/21/2001 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, MAY 21, 2001 AT 8:00 P.M. Regular Meeting: San Rafael City Council Also Present: Rod Gould, City Manager Gus Guinan, Assistant City Attorney Esther C. Beirne, Deputy City Clerk ORAL COMMUNICATIONS OF AN URGENCY NATURE: None. CONSENT CALENDAR: Present: Albert I Boro, Mayor Cyr N. Miller, Vice -Mayor Barbara Heller, Councilmember Gary 0. Phillips, Councilmember Absent: Paul M. Cohen, Councilmember RIP390VA Councilmember Phillips moved and Councilmember Miller seconded, to approve the Consent Calendar, as follows: ITEM Approval of Minutes of Special Meeting of Monday, May 7, 2001 (CC) 2. Call for Applications for Appointment to Fill One, Four -Year Term on the Planning Commission Due to Expiration of Term of Michael W. Whipple, with Term to Expire End of June, 2005 (CC) — File 9-2-6 Call for Applications for Appointments to Fill Two, Four -Year Terms on the Design Review Board Due to Expiration of Terms of Ann Crew, Architect and Jeff Kent, Landscape Architect, with Terms to Expire End of June, 2005 (CC) — File 9-2-39 RECOMMENDED ACTION Minutes approved as submitted. Approved staff recommendation: a) Called for applications to fill one, four-year term on the Planning Commission, due to expiration of term of Planning Commissioner Michael Whipple, with term to expire end of June 2005; b) Set deadline for receipt of applications for Tuesday, June 12, 2001 at 12:00 noon in the City Clerk's Office, Room 209, City Hall; and c) Set date for interviews of applicants at a Special City Council meeting to be held on Monday, June 18, 2001, commencing at 6:00 p.m. Approved staff recommendation: a) Called for applications for appointments to fill two, four-year terms on the Design Review Board; b) Set deadline for receipt of applications for Tuesday, June 12, 2001 at 12:00 noon in the City Clerk's Office, Room 209; and c) Set date for interviews of applicants at a Special City Council meeting to be held on Monday, June 18, 2001, commencing at 6:00 p.m. 5. Summary of Legislation Affecting San Rafael (CM) Approved staff recommendation: File 116 x 9-1 SB 691 Governmental Liability, Attorneys Fees. Senator McPherson - SUPPORT SRCC Minutes (Regular) 05/21/2001 Page 1 6. SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 1766 — An Ordinance of the City of San Rafael Setting the Paramedic Tax Rate, Commencing with Fiscal Year 2001-2002, at the Rates Allowed in Ordinance No. 1747 for Residential and Non -Residential Properties in the City of San Rafael; and Further Confirming the Paramedic Tax Rates, Commencing with Fiscal Year 2001-2002 for Residential and Non -Residential Properties in the City of San Rafael, the Marinwood Community Services District, County Service Area No. 13, and County Service Area No. 19 (MS) — File 9-12-1 x 9-3-31 7. Resolution Authorizing the Renewal of Excess Workers' Compensation Insurance with United States Fidelity and Guaranty Company (USF&G) from July 1, 2001 through June 30, 2004 (MS) - File 9-6-1 x 7-1-31 Resolution Authorizing the Signing of an Agreement with George Hills Company, Inc. to Provide Liability Claims Administration Services to the City of San Rafael (MS) — File 4-10-323 x 4-10-308 9. Resolution Authorizing the Signing of an Agreement with Claims Management, Inc. to Provide Workers' Compensation Claims Administration Services to the City of San Rafael (MS) — File 7-1-31 x 9-6-3 10. Resolutions of Appreciation to Linda Spackman, Phyllis Thelen and Jay Yinger, Former Cultural Affairs Commissioners (Cult. Aff.) — File 102 x 9-2-24 SRCC Minutes (Regular) 05/21/2001 Page 2 Approved final adoption of Ordinance No. 1766. RESOLUTION NO. 10830 — RESOLUTION AUTHORIZING THE RENEWAL OF EXCESS WORKERS' COMPENSATION INSURANCE WITH UNITED STATES FIDELITY AND GUARANTY COMPANY FROM JULY 1, 2001 THROUGH JUNE 30, 2004 RESOLUTION NO. 10831 — RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT WITH GEORGE HILLS COMPANY, INC. FOR LIABILITY CLAIMS ADMINISTRATION SERVICES (JULY 1, 2001 TO JUNE 30, 2003) RESOLUTION NO. 10832 — RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT WITH CLAIMS MANAGEMENT, INC. FOR WORKERS' COMPENSATION CLAIMS ADMINISTRATION SERVICES (JUNE 15, 2001 TO JUNE 30, 2003) RESOLUTION NO. 10833 — RESOLUTION OF APPRECIATION TO LINDA SPACKMAN HAVING SERVED ON THE CULTURAL AFFAIRS COMMISSION FROM MAY 3, 1993 TO APRIL 2001 AND HAVING SERVED FOUR TERMS AS CHAIR OF THE CULTURAL AFFAIRS COMMISSION RESOLUTION NO. 10834 — RESOLUTION OF APPRECIATION TO PHYLLIS THELEN HAVING SERVED ON THE CULTURAL AFFAIRS COMMISSION FROM MAY 3, 1993 TO APRIL 2001 AND HAVING SERVED FOUR TERMS AS CHAIR OF THE CULTURAL AFFAIRS COMMISSION RESOLUTION NO. 10835 — RESOLUTION OF APPRECIATION TO JAY YINGER HAVING SERVED ON THE CULTURAL AFFAIRS COMMISSION FROM MAY 5, 1997 TO APRIL 2001; HAVING SERVED AS BOTH CHAIR AND VICE -CHAIR OF THE CULTURAL AFFAIRS COMMISSION AND CHAIRMAN OF THE HISTORIC PRESERVATION COMMITTEE SRCC Minutes (Regular) 05/21/2001 Page 2 11. Resolution Designating the San Rafael Redevelopment Agency as the Responsible Agency and Designating the City as the Lead Agency for the Environmental Review Process for the Adoption of an Amended and Restated Central San Rafael Redevelopment Plan (RA) — File 140 x (SRRA) R-140 XIX SRCC Minutes (Regular) 05/21/2001 Page 3 RESOLUTION NO. 10836 — RESOLUTION DESIGNATING THE SAN RAFAEL REDEVELOPMENT AGENCY AS THE RESPONSIBLE AGENCY AND DESIGNATING THE CITY AS THE LEAD AGENCY FOR THE ENVIRONMENTAL REVIEW PROCESS FOR THE ADOPTION OF THE THIRD AMENDED AND RESTATED CENTRAL SAN RAFAEL REDEVELOPMENT PLAN AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen ABSTAINING: COUNCILMEMBERS: Heller (from item #1 only, due to absence from meeting.) The following item was removed from the Consent Calendar at the request of Mayor Boro 4. Request for Amicus Participation: (CA) — File 9-3-16 City of Auburn v. Qwest Federal 91" Circuit Court of Appeals Request for Amicus in Petition for Rehearing by en banc Panel Mayor Boro stated he would abstain from voting on this item due to a conflict of interest. Councilmember Phillips moved and Councilmember Miller seconded, to approve amicus participation. AYES: COUNCILMEMBERS: Heller, Phillips and Vice -Mayor Miller NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen ABSTAINING: COUNCILMEMBERS: Mayor Boro (due to a conflict of interest.) SPECIAL PRESENTATIONS: 12. PRESENTATION OF RESOLUTIONS OF APPRECIATION TO LINDA SPACKMAN, PHYLLIS THELEN, AND JAY YINGER, FORMER CULTURAL AFFAIRS COMMISSIONERS (CULT. AFF.) FILE 102 x 9-2-24 Mayor Boro welcomed all three and expressed regret that they had chosen not to reapply. Presenting the Resolution to Linda Spackman, Mayor Boro remarked that it stated she was the voice of reason, had worked tirelessly as a consensus builder, was involved in the Historic Plaques Project, the Street Painting Artists' Dinner and numerous other projects. He noted she put a lot of effort into her duties on the Cultural Affairs Commission, for which everyone was very grateful, and he offered congratulations. Mayor Boro stated Phyllis Thelen is a very reasonable person, even though it was not noted in the Resolution, which stated she had served four terms as Chair of the Cultural Affairs Commission, worked as a member of the Steering Committee for Strategic Planning, had a big part to play in the Historic Plaques Project and on the side, took care of the Downtown Art Center. Mayor Boro recalled Phyllis was one of the ladies he spoke with regarding the Italian Street Painting Festival at its inception and for this, and her commitment to the community, the City was forever grateful. Congratulating Jay Yinger, Mayor Boro stated the Resolution recognized that he was Chairman of the Historic Preservation Committee, worked tirelessly on the Street Painting Artists' Dinner and the Rose Garden Project, to name a few. Mayor Boro stated Mr. Yinger's enthusiasm is what sets him apart and he hoped he would continue to work with the Downtown Arts Project. Mayor Boro congratulated and thanked all three recipients. Speaking for all, Phyllis Thelen stated they had enjoyed the work and believed that somehow their goal was achieved, in that they did want to bring the Commission from its early good roots as a Committee to save Falkirk, to a position where now it is recognized by the State of California as a SRCC Minutes (Regular) 05/21/2001 Page 3 SRCC Minutes (Regular) 05/21/2001 Page 4 full fledged Arts Commission, and she expressed the hope that it would continue to be moved in that direction. PUBLIC HEARINGS: 13. Public Hearing Re: CONSIDERATION OF RESOLUTION APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE SAN RAFAEL REDEVELOPMENT AGENCY FOR THE SAN RAFAEL COMMONS APARTMENTS (302 FOURTH STREET) (RA) - FILE 229 x 13-16 x (SRRA) R-51 x R-117 x R-442 Mayor Boro declared the public hearing opened. Senior Development Specialist, Stephanie Lovette, stated this was the other half of the item discussed earlier regarding BRIDGE's acquisition of the 83 -unit San Rafael Commons project. This purchase would keep the housing affordable for the next 55 years and the Public Hearing is required as part of the ability to issue tax exempt bonds, which again, would be paid by BRIDGE Housing from project revenues. The City and Agency will not be charged nor will they be liable for those bonds, which the bondholders will be made aware of. There being no comment from the audience, Mayor Boro closed the public hearing. Councilmember Miller moved and Councilmember Phillips seconded, to adopt the Resolution. RESOLUTION NO. 10837 — RESOLUTION APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE SAN RAFAEL REDEVELOPMENT AGENCY FOR THE SAN RAFAEL COMMONS APARTMENTS (302 FOURTH STREET) AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen 14. Public Hearing Re: CONSIDERATION OF APPEAL OF THE PLANNING COMMISSION'S DENIAL OF AN APPLICATION FOR A SIGN PERMIT FOR A MASTER SIGN PROGRAM FOR 1800FORINJURY LEGAL NETWORK AT 550 LAS GALLINAS AVENUE, APN 175-331-20; 0 DISTRICT; NEIL KUVARA, OWNER, CHUCK DRAYER AND PERRY D. LITCHFIELD, REPRESENTATIVES (CD). — FILE 10-11 x 10-6 Mayor Boro declared the Public Hearing opened, and stated he understood the applicant had a revised proposal to put before the Design Review Board and wished to continue the Public Hearing two weeks to the City Council Meeting of Monday, June 4, 2001. The Public Hearing was continued to June 4, 2001. NEW BUSINESS: 15. APPROVING GRANT OF $200,000 FROM HOUSING IN LIEU FEES FOR THE CANAL HOUSING IMPROVEMENT PROGRAM TO ASSIST BRIDGE IN THE PURCHASE OF 55 FAIRFAX STREET (RA) — FILE 229 x 13-16 x 9-10-2 x (SRRA) R-438 Stephanie Lovette, Senior Development Specialist, stated the City of San Rafael collects Housing In -Lieu Fees in certain situations and generally prefers to obtain the unit rather than In -Lieu Fees; however, through the years some money has been collected and it was considered this would be an excellent place to spend it. The In -Lieu Fee Ordinance requires that the monies be spent to either construct affordable housing, or on activities to keep housing affordable for people of low and moderate incomes. Staff was suggesting that the In -Lieu Fees be used to assist in acquiring 55 Fairfax Street. Councilmember Heller moved and Councilmember Phillips seconded, to adopt the Resolution. RESOLUTION NO. 10838 — RESOLUTION APPROVING GRANT OF $200,000 FROM HOUSING IN LIEU FUND TO THE SAN RAFAEL REDEVELOPMENT AGENCY LOW AND MODERATE INCOME HOUSING FUND FOR THE CANAL HOUSING IMPROVEMENT PROGRAM TO ASSIST BRIDGE HOUSING IN THE PURCHASE OF 55 FAIRFAX STREET SRCC Minutes (Regular) 05/21/2001 Page 4 SRCC Minutes (Regular) 05/21/2001 Page 5 AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen Before proceeding to Item # 16, Mayor Boro welcomed five students in the audience from Drake High School, stating as the Council was about to hear from the Assistant City Manager regarding the Budget, they could possibly fall asleep. He invited the students to ask questions, if they so desired. 16. DISCUSSION OF PRELIMINARY CITY TWO-YEAR BUDGET FOR 2001/2003 AND CITY COUNCIL PRIORITIES (MS/CM) — FILE 8-5 x 9-1 Assistant City Manager, Ken Nordhoff, stated this was a comprehensive report, addressing four major elements of where we are in the two-year budget process. 1. San Rafael Choices: Mr. Nordhoff stated this was a report back on San Rafael Choices, an outreach budget process, which entails going out to the community to seek input in small group settings, to ascertain the important issues in neighborhoods and the requests for services for the next twenty-four months. 2. Projected Financial Condition of the City: This is the projected financial condition of the City's budget for the next two years. 3. Capital Projects: Capital Projects is discussed, a schedule of which is attached to the staff report. 4. New Service Requests: How new service requests lead to the next stage in the budget process. Regarding San Rafael Choices, Mr. Nordhoff reported that five sessions were held over the course of March and April in similar style to what had been done two years ago. There were over one hundred participants providing valuable input, with different issues from different parts of town. All of this detail has been documented; however, synthesized down for the report. Assistant City Manager Nordhoff stated that this information had been contrasted with the Public Opinion Pool authorized by Council and conducted in February 2001. He referred Councilmembers to Attachment A and a series of items which were focused on in four clusterings of service. Objectives and opportunities for service enhancements were provided in the budget process, for consideration. Mr. Nordhoff stated that in the areas of Housing and Development Services the issues which appear to be central to both the meeting process in San Rafael Choices, as well as the Public Opinion Poll, are listed under the "Choices " Theme. Additional Code Enforcement had been a common theme throughout the meetings, not limited to the Canal area or neighborhoods, but throughout the community. Mr. Nordhoff stated the report attempts to demonstrate some initiatives being undertaken, listed in the "Actions Included in Draft Budget" column. The "Reference Documents" are a series of objectives and key result areas, mailed under separate cover to Councilmembers for review. Mr. Nordhoff stated these contain some initiatives for the next two years. "Possible Opportunities" will also be discussed at the forthcoming Budget Hearing, and in this respect it is proposed to take over the Apartment and Hotel Inspection program, which is seen as a means of tying together the results of San Rafael Choices with some additional initiatives for consideration. Assistant City Manager Nordhoff stated that by and large many of the themes which arose two years ago had been satisfied; with the addition of City, State and Federal funds, issues regarding such matters as street paving had subsided. New items which have arisen include the need to carry out some neighborhood based infrastructure work, both in the area of sidewalks and storm drains and it is evident that residents require the level of street paving and other infrastructure continued, together with higher levels of traffic enforcement. The issue of affordable housing is one of Council's central goals for the next five years. In the area of Recreation and Library Services, Mr. Nordhoff stated there is a focus on improving parks and playgrounds, which is somewhat of a new theme when compared to two years ago. There is also a recurring theme of expanding or improving library services in certain parts of the community, as well as the downtown facility, with a focus on Teen and Youth programs. SRCC Minutes (Regular) 05/21/2001 Page 5 SRCC Minutes (Regular) 05/21/2001 Page 6 The information has been summarized and distributed to all the participants of the meetings to afford them an opportunity to come before Council as part of the budget process on May 30, 2001 to provide any additional input. At this point Assistant City Manager Nordhoff inquired if there were questions on the material presented. Mr. Nordhoff clarified for Mayor Boro that the attendance at the meetings was approximately 120 people over the five sessions. He believed there was a very good cross representation which added a lot of validity to the goals put forward for the next five years. He believed the Council, staff and community were aligned on many of the issues. Regarding the Code Enforcement Officers to be discussed at the Budget Hearing on May 30, Councilmember Heller recalled reading that the City is in a JPA (Joint Powers Agreement) with the County for them to carry out inspections, and inquired if this was something we fund. Mr. Nordhoff stated currently the City does not, in that the property owners are levied a rate by the County through their property tax bills, on a per unit basis, to fund that service, and it will be necessary for staff to return to Council, as part of amending the JPA, to create or modify ordinances which relate to this type of activity. He stated that a fee would need to be established to do this which would in turn be given to the County with continued levying on property tax bills; however, it would be a fee that comes to San Rafael for the service provided. Responding to Councilmember Heller's question regarding whether the City would be receiving some funds to offset the costs, Mr. Nordhoff stated the City fully intends to recover the cost of the program by setting a fee to hire the two Code Enforcement Officers. Responding to Councilmember Heller's question as to whether San Rafael would be required to pay the County anything for them to continue their program, Mr. Nordhoff stated the obligation to the County he was aware of was should San Rafael use their tax processing they charge a per bill amount. He did not believe the City would pay any costs to the County to continue their program in the County areas. Community Development Director Brown stated the JPA would probably cover only one aspect which is in conjunction with the apartment inspections; should San Rafael use County Health staff to investigate vector problems, insects or mould, they would be paid on an hourly basis for that service. Referring to the More Teen and Youth Programs section, Councilmember Phillips stated that apparently there would be some action regarding the expansion of after-school programming, targeting middle school children, Miller Creek and Davidson, and inquired with regard to these two schools and the interplay between the City, what thought staff had given to providing for more youth activities. City Manager Gould stated that Carlene McCart, Community Services Director, would address this issue at the Budget Hearing on Wednesday, May 30, 2001. The thinking is that San Rafael would like to focus on the Junior High children, as this is where the greatest impact could be made and she would address the question of how this would be coordinated with the two middle schools to make this happen. Councilmember Phillips stated he would be glad to wait for the answer until then. Regarding the part-time Community Fire Servicing Coordinator, Councilmember Heller inquired if this was an added position. Assistant City Manager Nordhoff stated this would be an added part-time, half time position. As to the duties, Mr. Nordhoff stated it was probably a question for the meeting of May 30, as this evening's presentation was intended to merely give a preview of some of the new service options, with the intention of delving into them at the hearing, when there would be ample opportunity to ask all the pertinent questions. Regarding Capital Projects, Mr. Nordhoff referred to Attachment E listing the levels of staffing in the various departments and reported that, with the exception of some minor modifications, the positions listed in total are what are included in the Budget; therefore, if there were questions specific to this they could be covered. Attachment B in the report is a listing of the Capital Improvement Projects and Mr. Nordhoff stated that staff had been working through his office and Public Works for several months. A report from the CIP coordinating committee was submitted to Council in January which dealt with some 70 projects, currently under management, in excess of $50 -million. The budget process this evening contains recommendations concerning allocations for new efforts which were not included on that list, some of which are paid for from restricted funds, such as gas tax, franchise or storm water fees and it is proposed to make others general fund obligations. SRCC Minutes (Regular) 05/21/2001 Page 6 SRCC Minutes (Regular) 05/21/2001 Page 7 Analyzing Attachment B, Mr. Nordhoff referred to the first category, ADA, and recalled that in 1994 Council adopted an entire ADA program to deal with compliance on a number of fronts. Over the past several years $100,000 has been contributed per year to chip away at the deficiencies with respect to ADA.. Two projects are proposed with the same $200,000 over two years, but split differently. The bulk of the money in year one would cover most, but not all of the requirements for the Gerstle Park restroom and the second piece would be used to carry out some counter and workstation remodeling at the San Rafael Community Center. Regarding street resurfacing, Mr. Nordhoff stated this is a combination of gas tax and franchise fees. Staff has spread monies to projects which were evaluated in January, including Miracle Mile and Second Street, with the bulk of the money being committed to the annual street re -paving project which covers eight to nine miles per year. Mr. Nordhoff stated that sidewalks was a theme initiated last year, to chip away at very nominally, and was part of San Rafael Choices. A little higher level of funding from the General Fund is proposed in the next two years and staff is requesting that the first year's funding, $325,000, be committed to the Lincoln Avenue project. Discussions have taken place with regard to deferring this project and evaluating some curb, gutter and sidewalk work in concert with a major effort to regrind and repave the street, and it is believed that since this is addressed only every 30 years it would make good sense. It is highly visible and highly used with a lot of pedestrian traffic. Prioritizing sidewalks for the second year would be considered, committing $481,000 for this purpose, which would most likely be spread around town. Mr. Nordhoff reported that there is a list of unfunded drainage needs from Public Works and staff has generated a preliminary list identifying some specific projects and addressing some of the isolated discussions in San Rafael Choices meetings concerning particular drainage issues in certain areas of town. With respect to Beautification, it is proposed to allocate $50,000 per year to deal with median issues; this does not return us fulltime into the median maintenance business; however, it provides some seed money, with matching requirements from neighborhoods, to help share in the cost of engineering or nominal capital work. Mr. Nordhoff felt this was an appropriate level in that it limits a level of activity, given the other Public Works projects under consideration, and helps to address an issue in the San Rafael Choices meeting process, albeit low. Mayor Boro recalled that the two-year Budget had funds for Freitas, Bellam and part of San Pedro, and requested Assistant City Manager Nordhoff recap what was done over this period, at the Budget Meeting of May 30, 2001. Mr. Nordhoff stated $247,000 was committed to Freitas, $25,000 to Montecito and other options were presented to Council which included Bellam; however, he did not believe, at least through General Fund monies, any additional dollars were committed to Bellam. Mr. Nordhoff stated he would report on this and any other partnership projects accomplished over the last couple of years and how those have been structured. Mayor Boro recalled that $100,000 was to have been spent on each of the three and being aware additional funds were expended on Freitas, requested that Mr. Nordhoff check what the budget actually stated. Referring to page 2 — Attachment B, Mr. Nordhoff stated some traffic signalization and improvement projects are proposed. Staff had evaluated a number of signalization improvements relating to the arms which hang, or should be hanging, over the intersections, and are a safety concern, as on occasion, motorists causing accidents claim they are unable to see some of the signals; therefore, it is intended not only to be a traffic improvement, but also a liability reduction. Regarding Parks, Mr. Nordhoff reported that $481,000 has been allocated through Proposition 12 funds, adding that when the list was generated last week this was the CIP committee's recommendation; however, subsequently, the Park and Recreation Commission had met and made some minor adjustments. Mr. Nordhoff stated that at the Budget Hearing of May 30, 2001, he would illustrate staff's proposal and that of the Park and Recreation Commission, both of which reflect a similar amount of funds; however, allocated differently. Addressing Building Maintenance, Mr. Nordhoff stated there is not currently an actively funded ongoing source of money to maintain facilities. The committee believed that rather than allocating money here and there, it would make prudent sense to carry out a deferred maintenance study, similar to the fleet, where a full inventory of assets is obtained, maintenance needs assessed, together with the level of funding required to bring buildings up to date. This has been built in as a recommendation. SRCC Minutes (Regular) 05/21/2001 Page 7 SRCC Minutes (Regular) 05/21/2001 Page 8 Mayor Boro referred to page 3 of the staff report and the section on the City's Replacement Fund and inquired if this was what Mr. Nordhoff was referring to. Responding, Mr. Nordhoff stated this only dealt with vehicles and equipment and did not include buildings. Clarifying, he stated that the three types of assets tracked did not refer to buildings, rather roofs, carpeting, painting, air conditioning systems, etc. Mayor Boro requested that this be covered at the budget hearing. Addressing Parking — Attachment B — Mr. Nordhoff stated, not surprisingly, all the meters need replacing at an estimated cost of $1,000,000. All of the required funds are not in place; therefore, there is a financing issue to be resolved to do this, yet staff believes it needs to be carried out in concert with building the new parking structure downtown. Similarly, the Revenue Control System needs to be replaced and staff believes this should match whatever is ultimately selected for the new structure, to allow for consistency of parking in the downtown area in terms of meters and other equipment in the garages. Mr. Nordhoff stated there is approximately $4 -million proposed and built into the first year budget and $2.6 -million of new capital efforts in year two. City Manager Gould reminded the Council that it is hoped the Congestion Management Agency would vote next month to allow Cities and Towns to recapture some of the State Transportation Improvement Funds which should be spent, in large part, to assist in improving streets and roads. Should this be the case, it will be possible to carry out significantly more street maintenance than that shown in the budget. Mr. Nordhoff stated the intention was to come back through the CIP Committee process and make further recommendations if this moves forward. Addressing the overall health and financial condition of the City, Mr. Nordhoff stated that Exhibits 1 and 2 of the Staff Report illustrate that there is roughly a $49 -million proposed operating budget for year 1 and a $51 -million proposed operating budget for year 2. All funds are projected to be in balance and in a positive position with capital figures having been built in. There was a series of meetings with the City Manager regarding New Service Requests and Mr. Nordhoff stated his report references where the City Manager had built in a series of cost items. Mr. Nordhoff stated staff has made fairly modest projections in revenues and particularly taxes, and while there is a lot of uncertainty concerning the economy crashing and how hard, some modest increases have been built into the budget which it is believed are achievable over the next two years. Also, as part of the budget one of the options to be discussed in more detail at the budget meeting of May 30, 2001, is to assess the consideration of increasing the current practice of a 10% reserve to 15%, over this two year period, thus affording an extra cushion to ensure no services are compromised or items built in which would cause a long term concern. Regarding expenses in terms of projecting the costs, Assistant City Manager Nordhoff stated staff goes back to the bargaining unit contracts to make these projections. Nothing has been done with respect to additional benefit options, particularly as they relate to retirement; however, there is a cost this year of an additional $500,000 to maintain the current plan up to date. This reverses a trend of the last several years where the rates have been declining. Not surprisingly, 50% increases have been built into gas and electrical expenses and should this need further correcting, it would be returned to Council in six months for further consideration. Mr. Nordhoff stated the figures at $400,000 plus per year are very sizable, and cover everything from buildings, to irrigation systems, to traffic signals. Overall, Mr. Nordhoff believed the City was in very good financial shape going forward into the next two years; there are some opportunities and discretionary funds to be discussed, together with enhancing some ongoing or one-time services. Regarding cost recovery, Councilmember Phillips stated staff had done an excellent job studying the cost of operations, and inquired if the cost recovery system would be modified as a result of the higher gas and electrical costs. Mr. Nordhoff stated that updating the business cost study this fall is contained in the finance objectives, and a new fee schedule would be presented in the first part of 2002, which would include all relevant costs. Referring to page 6 on Capital Projects, and looking at the Facilities Deferred Maintenance Study, Councilmember Heller inquired that if such a comprehensive report is done, which is a great idea, if there was a way to incorporate into it the ADA report to assess the status on the buildings. She felt that having the report would render it possible to follow along through the years to evaluate upgrading of facilities for ADA, as they all need improvement. SRCC Minutes (Regular) 05/21/2001 Page 8 SRCC Minutes (Regular) 05/21/2001 Page 9 Mr. Nordhoff stated there is a good list of work carried out and also a comprehensive inventory from the study; therefore, he felt it would be possible to show what progress had been made, some of which has been carried out by private sector investment. Noting there is a Vehicle Replacement Fund, Mayor Boro inquired if the Equipment Replacement Fund would include only rolling stock and vehicles tied to the fleet study. Mr. Nordhoff stated there were various kinds of equipment in one set of accounts, and it is proposed to create improved internal accountability by segregating out the vehicle equipment which related to the study and tracking it separately, to demonstrate what assets are in place, independent of computers or other types of equipment. This is an internal issue to allow for better tracking and in totality would not make any difference to the level of assets or funding in the budget. Referring to page 4 of the staff report, Mayor Boro stated that the potential unknown is whether or not the motor vehicle tax could be in jeopardy. Mr. Nordhoff stated this could be upwards of $1.8 to $1.9 - million, which is approximately two-thirds of the projections, and since the economy has been so good the tax cut has been accelerated which puts the City's funds at greater risk. Mayor Boro inquired if this is the year we begin payment for the new radio system. Mr. Nordhoff stated it commences in August of 2001 with a half-year payment and a full year's payment in August 2002, which is built into the budget. Mayor Boro thanked Assistant City Manager Nordhoff for his work in taking the San Rafael Choices data and survey and rolling it all together, which demonstrates to all interested what has been done with the input. Mr. Nordhoff stated that Attachments C and D are the Service Options which remain after the City Manager's review and will be discussed in more detail at the budget hearing. He pointed out that some of the items are self -funding; therefore, they appear simple choices, but nonetheless, choices which need direction. There will also be some one-time items and Mr. Nordhoff stated the available funds would be itemized to meet the ongoing or one- time obligations. Attachment F in the staff report contains a breakdown of where the monies related to the Fair, Issac, Wilson/Equity transition have been allocated. Approximately $700,000 remains and Mr. Nordhoff suggested retaining this for some capital needs which are either underway or unmet, and as they come forward there will be opportunity to choose how these funds should be allocated. Councilmember Phillips moved and Councilmember Heller seconded, to approve the preliminary report on the City's two-year budget for 2001/2003 and City Council priorities, as presented. AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Cohen CITY MANAGER'S REPORT: 17. City Manager's Report (CM) — File 9-3-11 (Verbal a) Court Street Plaza: In light of a very difficult bidding environment, the following steps are being taken regarding the Court Street Plaza project: 1) The bid deadline is extended to June 12, 2001, to afford additional bidders time to receive the bid documents in hopes of spurring additional bids; 2) The bid specifications will be revised to trim some of the costs in the project and changes will be recommended which will be imperceptible to the public and will in no way cheapen the quality of the overall project; 3) Means are being explored to solicit, as part of the bid specifications, contributions by prospective contractors in exchange for recognition in the project, in an effort to offset costs higher than anticipated; 4) Discussions are being held with Rafael Town Center developer concerning in-kind construction instead of the $150,000 contribution, as a means of further stretching those dollars. These actions will be taken and will be further discussed at the Budget Hearing on May 30, 2001. SRCC Minutes (Regular) 05/21/2001 Page 9 SRCC Minutes (Regular) 05/21/2001 Page 10 a) League of California Cities: - File 9-11-1 City Manager Gould reported that the League of California Cities is now interested in receiving our Resolution of Support on the grassroots network proposal, which was discussed on several occasions, to hopefully improve cities' clout in Sacramento, and with vehicle license fees and other monies in question as the State finds itself in a deficit position, cities have to do everything possible to protect themselves. The Resolution will be presented at the next Council meeting for consideration. b) Canal Dredging:- File 12-10 Lydia Romero, Assistant to the City Manager, stated she had spoken with lobbyists, Meg Allen, E. DE Smith and Paul Schlesinger, Alcande & Fay, who stated that the Appropriations Committee believed the Bush budget cut the Corps budget too extremely; therefore, they have asked House members to submit members' requests for Corps budget projects, and Congresswoman Lynn Woolsey has done this on San Rafael's behalf. The sub -committee evaluating these requests is the Energy and Water Development Committee, and lobbyist, E. Del Smith will be meeting with Paul Visclosky, the ranking Democrat from Indiana, and will personally carry the request and push it forward, emphasizing the fact that San Rafael has not been funded for seven years for the Canal Dredging Project. Both have specified that it will be approximately June 15 when the Appropriations sub- committee will make their determination on which proposals go to the full Appropriations sub- committee for recommendations. c) National Fire Protection Association: - File 9-3-31 x 7-8-2 Fire Chief Marcucci reported that the National Fire Protection Association held its annual meeting in Anaheim last week and approved Standard 1710, the standard by which a private non-profit company can inform Cities what type of staffing there should be on engines and what the response time should be. As there was no statistical analysis done to support the criteria contained within Standard 1710, various organizations are coming together to try to overturn the standard, which takes effect in July in San Francisco. Chief Marcucci stated San Rafael and other Fire Chiefs believe that local Government should make these decisions through a process of accreditation or self-assessment. Chief Marcucci noted there has been a sprinkler ordinance in effect in commercial buildings in San Rafael since 1972, and also a residential sprinkler ordinance. San Rafael would initially need to add 21 people; however, this would not achieve the response time criteria and could possibly necessitate the addition of two further stations, as the requirement is to be on scene in four minutes, which noted Chief Marcucci, would be impossible with the existing stations in the 90% of time that the standard proposes. There are other requirements regarding the number of Paramedics that you must have on scene and the way San Rafael operates in an efficient manner with four ambulances, would curtail us from doing that; therefore, Chief Marcucci believed the standard to be out of line. He had spoken with the Fire Chief of Fremont, whose City Manager is well versed on the issue. The City Managers in Alameda County will take a firm position and he believed in the next couple of weeks more would be forthcoming concerning how to orchestrate a means by which the standard could be overturned. Chief Marcucci stated that a high level of service is being provided, at least in San Rafael, and when customers are polled regarding response time there is a high rating. He believed the self- assessment process and local government is the way to go in determining how a Fire Department, Police Department or Public Works Department should be configured. For the benefit of visiting students from Drake High School, Chief Marcucci summarized his presentation as follows: There is an organization called the National Fire Protection Association which establishes standards for a whole host of issues, including building construction and techniques and is now getting involved with the issue of the number of firefighters who must be on each fire engine, the number of paramedics who must arrive at the scene and the amount of time needed to respond to the scene of an emergency. Chief Marcucci stated he believes that decisions concerning the number of people on fire engines should be made at the local level by the governing body who can spend the money where it is considered best spent. City Manager Gould confirmed that Cities in Alameda County are hiring attorneys to mount a legal SRCC Minutes (Regular) 05/21/2001 Page 10 SRCC Minutes (Regular) 05/21/2001 Page 11 challenge to prevent the NFPA from formally adopting rule 1710 and they will be encouraging other cities to join them. Whether or not San Rafael should join will be assessed. d) Former City Manager, Bob Beyer: - File 9-3-11 City Manager Gould stated former City Manager Bob Beyer would be visiting tomorrow and requested information on the duration of his tenure and the status of San Rafael at that time. e) Family Visit:- File 9-3-11 City Manager Gould reported his family, visiting from Pennsylvania last week, enjoyed attending a lot of the civic events, and noted everyone was so happy in San Rafael. f) Police Promotions:- File 9-3-30 Police Chief Cronin will make a series of promotions next week and Mr. Gould requested ten minutes at the beginning of the Budget Hearing on May 30, 2001, to afford Chief Cronin the opportunity to announce these publicly. This will be followed by a reception at Cafe Arrivederci for the Officers and their families. COUNCILMEMBER REPORTS: 18. League of California Cities, North Bay Division: - File 9-11-1 Councilmember Heller reported that the North Bay Division held their meeting last week in Vallejo which was addressed by the transportation managers from the four counties. MCCMC Legislative Committee: - File 113 x 9-1 Councilmember Heller stated the Legislative Committee met on Monday and will be going to Sacramento for the League Legislative Days. Congestion Management Agency: - File 191 Mayor Boro stated he had forwarded to Councilmembers a memorandum from Farhad Mansourian (Assistant County Public Works Director) regarding the Congestion Management Agency and the creation of the new agency (Marin County Transportation Authority) to oversee a potential ballot measure. Reactions will be considered at the Congestion Management Agency meeting on Thursday, and Mayor Boro stated he would report that San Rafael is on board and happy with it. Blue Ribbon Committee on High Schools: - File 9-2-1 x 9-1 Councilmember Phillips reported that the Blue Ribbon Commission, comprised of approximately 50 people, including Councilmember Phillips, which San Rafael Schools appointed to review the unification petition which would result in High Schools being unified with the Elementary School Districts feeding into them, presented the committee's report last week, with the recommendation not to favor the petition which would result in the unification. There being no further business, Mayor Boro adjourned the City Council Meeting at 8:55 p.m. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12001 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 05/21/2001 Page 11