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HomeMy WebLinkAboutCC Minutes 2003-12-15SRCC Minutes (Regular) 12/15/2003 Pagel IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, DECEMBER 15, 2003 AT 8:00 P.M. Regular Meeting: San Rafael City Council Also Present: Rod Gould, City Manager Gary T. Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk OPEN SESSION — COUNCIL CHAMBER — 8:00 PM: Mayor Boro announced Closed Session items. Present: Albert J. Boro, Mayor Gary O. Phillips, Vice -Mayor Paul M. Cohen, Councilmember Barbara Heller, Councilmember Cyr N. Miller, Councilmember Absent: None CLOSED SESSION — CONFERENCE ROOM 201 — 8:00 PM and at the conclusion of CC meeting. 1) a) Conference with Legal Counsel — Anticipated Litigation Government Code Section 54956.9(c) One Case b) Conference with Labor Negotiators — Government Code Section 54957.6 Negotiators: Ken Nordhoff, Lydia Romero, Daryl Chandler Employee Organizations: • San Rafael Fire Chief Officers' Association • San Rafael Fire Association • San Rafael Police Mid -Management Association • San Rafael Police Association • Marin Association of Public Employees, Supervisory Unit • Marin Association of Public Employees, Miscellaneous Unit Mayor Boro announced at 10:32 p.m. that no reportable action was taken. ORAL COMMUNICATIONS OF AN URGENCY NATURE: 8:11 PM a) Print Shop Layoff: - File 9-3-11 x 8-5 Jim Firth, SEIU 949 representative, distributed a document to the City Council, and stated he was addressing the Print Shop reorganization recently approved. He urged Council to reconsider this decision prior to the proposed layoff and leasing or purchasing of digital equipment. He stated that until a detailed analysis of the cost savings could be determined, this layoff made no sense. Mr. Firth indicated that this cost analysis must include rehabilitation of the current City Hall location, lease and maintenance costs of the equipment, time and efficiencies caused by centralizing the copy machine and contracting out the work a digital copier could not do. Mr. Firth indicated that the material distributed contained some of these questions, to which the most frequent response was "we don't know." He stated that the idea of reorganizing the Print Shop was considered and rejected in the past as being too costly and inefficient. Mr. Firth quoted a response from the Employee Workgroup: "Do not close or order new copiers. Printers, existing machines are paid for. New technology requires training support, maintenance and staff time. Determine the fully burdened rate for Print Shop personnel." He stated that to the union, this was about a person, and a good City employee. Reporting that currently the Print Shop produces over 4 -million impressions annually on equipment that is in excellent working order, Mr. Firth identified some of the documents printed and he invited those who had not visited the Print Shop to do so to observe what is done on a day-to-day basis serving every City department. Mr. Firth stated that the so-called efficiency of digital copiers is well documented and concludes that breakdowns are frequent and replacements within five years are common -place. Additionally, he indicated that the type of copying done by digital machines is far less complex than by a printer, noting that an envelope could not be processed on most digital machines. More importantly, he stated that triplicates used by Police, Fire and other essential services would have to be contracted out and SEIU was adamantly opposed to the continuance of contracting work out. SRCC Minutes (Regular) 12/15/2003 Page 1 SRCC Minutes (Regular) 12/15/2003 Page 2 Mr. Firth stated they did not believe that as yet a thorough investigation had been carried out to determine the cost of having any items produced at a qualified or prevailing wage or union shop. No Print Shop reorganization or staff reduction should be taking place and the current Print Shop should continue to function as normal until proof is given to the City Council that actual long-term savings are possible. City Manager Rod Gould explained that the proposed reorganization of the Print Shop was discussed at two Council Study Sessions and one regularly scheduled Council Meeting, as well as the Employee Budget Workgroup, as referenced. He stated he could not answer all of the questions raised this evening; however, staff's analysis indicated that this reorganization would save some $28,000 per year and had been approved by the City Council. While attempts could be made to answer the questions, Mr. Gould indicated he did not believe it would alter the conclusion that the reorganization would save money. He stated the City was in a financial crisis, about which more would be heard later this evening, and which would involve other City employees. Mr. Gould stated that Eric Kruse was a valued employee who had done a fine job for the City. Mr. Kruse would be eligible for the layoff benefits approved recently by the City Council and it was hoped he would apply for a vacant position in the Parking Agency, so that perhaps he could be retained within the City family. Mr. Gould stated this decision was not taken lightly. Regarding contracting out in general, Mr. Gould stated he believed it was incumbent upon the City to occasionally test to see whether or not municipal services could be provided most efficiently and effectively through public employees, the private or non-profit sectors, or some combination thereof. He indicated that the entire Print Shop was not being contracted out, rather this was taking a 2.5 person operation and turning it into a 1.5 person operation. It was not a matter of purchasing all new equipment, rather the equipment would be leased; therefore, some of the issues raised this evening concerning breakdowns, etc., would be taken care of as part of the lease. Mr. Gould stated this was very common in the private sector and other public agencies the City was aware of and should it be Council's pleasure, staff would endeavor to answer Mr. Firth's questions. Councilmember Cohen stated he would like to have some of these questions answered. Councilmember Miller moved and Councilmember Phillips seconded, to approve the Consent Calendar as follows: ITEM 2. Approval of Minutes of Special Meeting of Monday, December 1, 2003 (CC) 4. Resolution of Intention to Support Fundraising Campaign for the Local Taxpayer and Public Safety Protection Act (CM) — File 9-1 5. Approval of Plan for Fire Department Implementation of 2 x 4 Work Schedule and Trial Period (CM) — File 9-3-31 x 9-1-2 x 7-8-2 x 7-8-5 7. Annual Update on Investment Policy (MS) — File 8-18 x 8-9 9. Resolution Authorizing an Agreement with Hilton, Farnkopf and Hobson, LLC to Perform a Review of Marin Sanitary Service's 2004 Rate Application (MS) — File 4-3-306 x 4-3-32 10. Resolution of Appreciation to Jim Forsythe, Assistant Supervisor, Street Maintenance, Employee of the Quarter Ending September, 2003 (PW) — File 102 x 9-3-40 x 7-4 RECOMMENDED ACTION Minutes approved as submitted. RESOLUTION NO. 11461 — RESOLUTION TO SUPPORT A FUNDRAISING CAMPAIGN FOR THE 2004 LOCAL TAXPAYER AND PUBLIC SAFETY PROTECTION ACT Approved plan to implement the 2 x 4 work schedule in the San Rafael Fire Department on a one-year trial basis, commencing January 5, 2004 for Fire Mid -Management and the Fire Association. Accepted Annual Update on Investment Policy. RESOLUTION NO. 11462 — RESOLUTION AUTHORIZING AN AGREEMENT WITH HILTON, FARNKOPF & HOBSON, LLC TO PERFORM A REVIEW OF MARIN SANITARY SERVICE'S 2004 RATE APPLICATION (Agreement ending on June 30, 2004) RESOLUTION NO. 11463 — RESOLUTION OF APPRECIATION TO JAMES FORSYTHE, ASSISTANT SUPERVISOR STREET MAINTENANCE, EMPLOYEE OF THE QUARTER ENDING SEPTEMBER, 2003 SRCC Minutes (Regular) 12/15/2003 Page 2 11. Report to Mayor and City Council on Local Streets and Roads Funding Shortfall and Resolution Supporting Enhanced Regional Funding for Maintenance of Local Streets and Roads (PW) — File 11-15 x 11-1 x 9-3-40 12. Resolution Approving the Condominium Map of a Subdivision Entitled "Map of 4300 Redwood Highway Business Center" (PW) — File 5-1-349 13 14 AYES: NOES: ABSENT: Resolution Approving the Parcel Map of a Subdivision Entitled "Map of Villa Margarita" (PW) — File 5-1-350 SRCC Minutes (Regular) 12/15/2003 Page 3 RESOLUTION NO. 11464 — RESOLUTION SUPPORTING ENHANCED REGIONAL FUNDING FOR MAINTENANCE OF LOCAL STREETS AND ROADS RESOLUTION NO. 11465 — RESOLUTION APPROVING CONDOMINIUM MAP ENTITLED "MAP OF 4300 REDWOOD HIGHWAY BUSINESS CENTER" (APN: 155-110-05 AND 06) RESOLUTION NO. 11466— RESOLUTION APPROVING MAP ENTITLED "MAP OF VILLA MARGARITA" (APN: 015-250-56) Acceptance of the Annual Report, Including a Accepted reports and authorized Blight Progress and Agency Owned Property transmission to the State Controller's Reports from the San Rafael Redevelopment Office. Agency (RA) — File 8-18 x 8-9 x (SRRA) R-62 COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro COUNCILMEMBERS: None COUNCILMEMBERS: None The following item was removed from the Consent Calendar at the request of Mayor Boro: 3. SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 1816 —AN ORDINANCE OF THE CITY OF SAN RAFAEL APPROVING A DEVELOPMENT AGREEMENT TO ALLOW FOR A THIRTY -MONTH DELAY IN THE CONSTRUCTION OF A PREVIOUSLY APPROVED 116,427 -SQUARE -FOOT OFFICE COMPLEX AT 2350 KERNER BOULEVARD (APN: 009- 291-10, 32 AND 34 (PTN) (RE: DA02-001, 2350 KERNER BOULEVARD AND 111 MORPHEW STREET; AP NOS. 009-291-10,31,32 AND 34 [PTN.1) (CD) — FILE 5-1-346 x 2-9-23 x 12-4 x 4-1-535 x 4-3-363 x 12-14 x 10-2 Mayor Boro indicated he had requested this item be removed from the Consent Calendar in order to take a roll call vote as he had voted "No" previously and intended to do likewise tonight. The title of the ordinance was read: "AN ORDINANCE OF THE CITY OF SAN RAFAEL APPROVING A DEVELOPMENT AGREEMENT TO ALLOW FOR A THIRTY -MONTH DELAY IN THE CONSTRUCTION OF A PREVIOUSLY APPROVED 116,427 -SQUARE -FOOT OFFICE COMPLEX AT 2350 KERNER BOULEVARD (APN: 009-291-10,32 AND 34 (PTN) (RE: DA02-001, 2350 KERNER BOULEVARD AND 111 MORPHEW STREET; AP NOS. 009-291-10,31,32 AND 34 [PTN.])" Councilmember Cohen moved and Councilmember Phillips seconded, to approve final adoption of Ordinance No. 1816. AYES: COUNCILMEMBERS: Cohen, Heller, Miller and Phillips NOES: COUNCILMEMBERS: Mayor Boro ABSENT: COUNCILMEMBERS: None The following item was removed from the Consent Calendar for discussion, at the request of Councilmember Heller: 6. RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT BETWEEN THE CALIFORNIA STATE LIBRARY AND THE CITY OF SAN RAFAEL FOR GRANT AWARD NO. 2004 (CS) — FILE 9-3-61 x 8-5 x 4-3-394 x 9-3-65 x 9-3-66 x 12-5 Councilmember Heller stated the record should note that Mayor Boro went to Sacramento and stood for 2 '/2 hours in order to put the City's case to the Board, which resulted in receipt of the grant. She noted Community Services and the Library had done a wonderful job and believed the City owed them a great debt of gratitude for working so hard together to obtain this grant money. SRCC Minutes (Regular) 12/15/2003 Page 3 SRCC Minutes (Regular) 12/15/2003 Page 4 Mayor Boro stated it should also be noted that a City staff member, who is also a member of the community (Jeanette Sotomayer) , participated in the hearings and was a great help. Councilmember Heller moved and Councilmember Miller seconded, to adopt the Resolution. RESOLUTION NO. 11467— RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT BETWEEN THE CALIFORNIA STATE LIBRARY AND THE CITY OF SAN RAFAEL FOR GRANT AWARD NO. 2004 AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None The following item was removed from the Consent Calendar for discussion, at the request of Councilmember Phillips: 8. ADOPT DEPRECIATION METHOD OF REPORTING INFRASTRUCTURE ASSETS FOR THE CITY OF SAN RAFAEL AND APPROVE CITY OF SAN RAFAEL FIXED ASSET CAPITALIZATION AND INVENTORY CONTROL POLICIES (MS) — FILE 8-9 x 9-3-20 Councilmember Phillips stated he was intrigued to note there was a cost savings element under Cost Savings that could exceed $100,000 annually, and requested further explanation. Assistant City Manager Ken Nordhoff explained there were two methodologies to choose from in terms of infrastructure assets, and staff was recommending the depreciation approach. He stated that choosing the modified approach would mean he would be spending significant time with his Public Works counterparts valuing the level of infrastructure and maintenance performed and staff estimated this would cost approximately $100,000 per year to keep that database alive. The money would not actually be going into streets, sidewalks or something productive, rather carrying out a lot of analytical work, ultimately generating data to end up in a financial report. Mr. Nordhoff stated there was a cost avoidance by not using the modified approach. On Table One, Councilmember Phillips noted some lives exceeding those he was normally not accustomed to seeing, i.e., Appliances/Frig/Dishwashers using 15 years. Mr. Nordhoff explained it was heavier, commercial grade equipment intended to last that length of time. With regard to Computer Systems/Servers at 10 years, Mr. Nordhoff stated this related to the big server infrastructure, not the actual desktops, laptops, etc., and while inventorying these items, they were not being capitalized or depreciated. On Table Two — Sedans and SUVs at 8 and 10 years, Councilmember Phillips inquired whether staff was comfortable that these were reasonable in terms of use. Mr. Nordhoff explained the entire table was an excerpt from the Fleet Advisory Board policies and on conducting the last review and inventory analysis, these were the life cycles agreed upon with no changes proposed. Councilmember Phillips moved and Councilmember Miller seconded, to adopt the Depreciation Method of Reporting Infrastructure Assets for the City of San Rafael and approve City of San Rafael Fixed Asset Capitalization and Inventory Control Policies. AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SPECIAL PRESENTATION: 15. PRESENTATION OF RESOLUTION OF APPRECIATION TO JIM FORSYTHE, ASSISTANT SUPERVISOR STREET MAINTENANCE, EMPLOYEE OF THE QUARTER ENDING SEPTEMBER, 2003 (PW) FILE 102 x 9-3-40 x 7-4 For the benefit of the audience Mayor Boro explained that Jim Forsythe was recently honored by the City Council for an act of heroism he performed in saving a life and that his help and assistance kept that person alive. This evening Mr. Forsythe was being honored for a different reason and Mayor Boro explained that Mr. Forsythe's fellow employees had elected him Employee of the Quarter for the third quarter of 2003. Mayor Boro stated he had received a $100 dollar bill and would be eligible to compete for Employee of the Year. More importantly, Mayor Boro stated that Mr. Forsythe had been a member of the City for twenty-three years, is Assistant Street Maintenance Supervisor, does a great job with a great attitude, lives in the City and has a newborn child. On behalf of SRCC Minutes (Regular) 12/15/2003 Page 4 SRCC Minutes (Regular) 12/15/2003 Page 5 the City of San Rafael, Mayor Boro presented Mr. Forsythe with a Resolution of Appreciation and Gold Star engraved with his name. He congratulated and thanked Mr. Forsythe. Expressing gratitude, Mr. Forsythe stated it was an honor to be part of the San Rafael team, indicating he really enjoyed working for the City with a lot of great people. PUBLIC HEARING: 16. PUBLIC HEARING — 1800 FIFTH AVENUE (MIT OUT SOUND) CONSIDERATION OF REQUESTS FOR: 1) MITIGATED NEGATIVE DECLARATION; 2) GENERAL PLAN AMENDMENT FROM HDR (HIGH DENSITY RESIDENTIAL) TO R/O (RESIDENTIAL/OFFICE); 3) REZONING FROM HIGH DENSITY MULTIFAMILY RESIDENTIAL (HR1.8) DISTRICT TO RESIDENTIAL/OFFICE (R/0) DISTRICT; AND 4) AN ENVIRONMENTAL AND DESIGN REVIEW PERMIT FOR PARKING LOT AND LANDSCAPE IMPROVEMENTS; APN: 010-291-16; HIGH DENSITY RESIDENTIAL (HR1.8) DISTRICT; ROTARY MANOR CORPORATION, OWNER; REN KLYCE, APPLICANT; FILE NO(S): GPA03-001, ZC03-002 AND EDO3-039 (CD) — FILE 10-3 x 10-7 x 10-6 x 188 Mayor Boro declared the public hearing opened. Associate Planner Damon DiDonato stated the project consisted of three applications, an environmental review and also a General Plan amendment rezoning from High Density Residential to Residential Office which would enable the applicant to use the site for office uses. It also included an Environmental Design Review permit which would enable the applicant to modify the parking, landscaping and site lighting. As indicated in the staff report, Mr. DiDonato reported that the Design Review Board and Planning Commission had reviewed and recommended approval of the project and the accompanying Mitigated Negative Declaration. He indicated that staff had provided a detailed analysis of the project and in summary, recommended findings could be made for adoption of the Mitigated Negative Declaration and approval of the planning applications as the project would mitigate all environmental impacts to less than significant levels. While the site is currently designated for residential use, it had not been so used in 80 plus years, rather it had been used as a gathering hall. Mr. DiDonato stated the project would increase local economic activity by providing an additional office use near the downtown where office workers would be likely to eat and shop. Noting the Planning Commission minutes attached to the staff report were in draft form, Mr. DiDonato stated the finalized version was distributed to Council and included a revised vote. Explaining, he stated that the minutes contained in this evening's packet indicated at 7:0:0: vote, when in actuality, Commissioner Alden abstained, making the vote 6:0:0:1 = Yes 6; No 0; Absent 0 with 1 abstention. In addition, he stated the fourth recital of the Mitigated Negative Declaration resolution indicated that the project had been noticed at 300 feet. Staff believed it prudent to do additional notification for the project given it included a General Plan amendment and rezoning; therefore, the neighborhood meeting and all hearings were noticed to 500 feet. Mr. DiDonato stated that the resolutions and ordinance had been forwarded to Council reflecting the modified vote of 6:0:0:1 and the 500 foot notification. Mayor Boro confirmed this to be the former San Rafael Improvement Club site and it was his understanding that if passed, it would be a great improvement to the site with respect to its status, completion and landscaping. Councilmember Cohen confirmed that the document received this evening by Council was the revised minutes and the second page was the finalized version of the Planning Commission minutes. He noted it indicated that Commissioner Alden abstained and that the resolution was corrected accordingly; however, the text read "the motion carried by a unanimous vote of the Commission" and the second and third items read similarly. Councilmember Cohen commented that technically, the unanimous vote was incorrect as one Commissioner abstained, with which Mr. DiDonato concurred. There being no comment from the audience, Mayor Boro closed the public hearing. 1) Councilmember Miller moved and Councilmember Phillips seconded, to adopt the Resolution. RESOLUTION NO. 11468 — RESOLUTION ADOPTING A MITIGATED NEGATIVE DECLARATION FOR A GENERAL PLAN AMENDMENT AND REZONING FROM HIGH DENSITY RESIDENTIAL TO RESIDENTIAL/OFFICE AND ENVIRONMENTAL AND DESIGN REVIEW PERMIT FOR COMPLETION OF THE SRCC Minutes (Regular) 12/15/2003 Page 5 SRCC Minutes (Regular) 12/15/2003 Page 6 PREVIOUSLY APPROVED RESTORATION OF THE HISTORIC IMPROVEMENT CLUB BUILDING, AND INSTALLATION OF ADDITIONAL PARKING AREAS, LIGHTING AND LANDSCAPING AT 1800 FIFTH AVENUE (APN: 010-291-16) (FORMER SAN RAFAEL IMPROVEMENT CLUB PROPERTY) AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 2) Councilmember Heller commented that this would be a great improvement. Councilmember Cohen stated it was a shame for the neighborhood to lose this as a gathering place; however, the benefit was that in essence, the structure was being saved by private action, as clearly, the City had no resources to step in and acquire the property, and maintain it as a community resource. Councilmember Heller moved and Councilmember Cohen seconded, to adopt the Resolution. RESOLUTION NO. 11469 — RESOLUTION APPROVING AN AMENDMENT TO THE SAN RAFAEL GENERAL PLAN 2000 (GPA 03-001) TO AMEND THE LAND USE MAP OF THE LAND USE ELEMENT RE -DESIGNATING .56 ACRES OF LAND LOCATED AT 1800 FIFTH AVENUE (APN: 010-291-16) FROM HIGH DENSITY RESIDENTIAL TO RESIDENTIAL/OFFICE (FORMER SAN RAFAEL IMPROVEMENT CLUB PROPERTY) AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 3) The title of the ordinance was read: Cohen, Heller, Miller, Phillips and Mayor Boro None None ""AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AN AMENDMENT TO THE ZONING MAP (ZC03-002) TO RECLASSIFY CERTAIN REAL PROPERTY FROM HIGH DENSITY MULTIFAMILY RESIDENTIAL (HR1.8) DISTRICT TO RESIDENTIAL/OFFICE (R/O) DISTRICT AT 1800 FIFTH AVENUE (APN: 010-291-16) (FORMER SAN RAFAEL IMPROVEMENT CLUB PROPERTY)" Councilmember Cohen moved and Councilmember Phillips seconded, to dispense with the reading of the ordinance in its entirety and refer to it by title only, and pass Charter Ordinance No. 1817 to print by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 4) Councilmember Phillips moved and Councilmember Cohen seconded, to adopt the Resolution. RESOLUTION NO. 11470— RESOLUTION APPROVING AN ENVIRONMENTAL AND DESIGN REVIEW PERMIT (ED03-039) FOR PARKING LOT, LIGHTING AND LANDSCAPE IMPROVEMENTS AT 1800 FIFTH AVENUE (APN: 010-291-16) (FORMER SAN RAFAEL IMPROVEMENT CLUB PROPERTY) AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Mayor Boro thanked staff for their work in getting this done with good results. He agreed with Councilmember Cohen that while it was not what it was, at least the building is there in essence and would be well maintained. SRCC Minutes (Regular) 12/15/2003 Page 6 SRCC Minutes (Regular) 12/15/2003 Page 7 PUBLIC MEETING: 17. CONSIDERATION OF ADOPTION OF NEW AND INCREASED FEES IMPOSED UPON DEVELOPMENT PROJECTS 1) FOR THE INCREASED DETERIORATION OF LOCAL STREETS CAUSED BY CONSTRUCTION TRUCKS AND 2) FOR THE MAINTENANCE OF THE GENERAL PLAN POLICIES, IMPLEMENTING PROGRAMS AND ANNUAL REVIEW (MS) — FILE 9-10-2 x 4-3-32 x 13-2 x 11-15 x 115 Assistant City Manager Ken Nordhoff explained that for over a year, staff had been putting forth a number of ideas to balance the budget, exploring a number of increased or new fees that created some balanced solution for the community. The beginning of that process was before Council this evening and related to fees imposed on development. Regarding Impact Fees, Mr. Nordhoff stated staff had conducted extensive studies through data gathered in the Public Works Department using a consulting firm, and working with Marin Sanitary Service. Particularly, the studies had been focused on the impacts of construction vehicles and also refuse and recycling trucks on City streets. Indicating this was the final report, which had been shared with the Chamber of Commerce, Business Improvement District, Marin Builders Association and (North San Rafael) Coalition and Federation of Neighborhoods, Mr. Nordhoff stated the report essentially indicated that in evaluating all vehicle impacts on streets, autos are by far the greatest percentage of wear and tear, based on volume, almost 99%; however, in considering weight and axle loads, etc., the conclusion was reached that the construction vehicle impact on City streets annualized out to approximately $322,000. (20% of the total maintenance costs contributed by Public Works into maintaining streets). Mr. Nordhoff stated that therefore, to commence the process, with Council direction, staff would put a public hearing process in place. He stated it was staff's recommendation that with the findings attached, a 1 % Impact Fee would be imposed on Building Permits at the time of issuance and the money for these specific construction vehicle impact fees would go into the Gas Tax Fund and be directed specifically towards street maintenance and street projects. Mr. Nordhoff stated the study also addresses impacts from refuse and recycling trucks and this would be expanded on at the public hearing. He indicated the City would be imposing a $196,000 per year fee on Marin Sanitary Service citywide. Again, these funds would be committed as collected to the Gas Tax Fund for street projects. Mr. Nordhoff stated that these two fees combined would assist in alleviating $400,000 being contributed for the last several years (closer to $500,000 going back further) dedicated to street projects. He indicated that this action would begin to alleviate the General Fund tax commitments to streets and put these specific fees in place to do that. Indicating that the second development related item in tonight's report dealt with General Plan maintenance fees, Mr. Nordhoff stated this item is evaluated each time the Business Cost Study is updated, and an Ordinance change and Resolution on an entire Master Fee Schedule were completed and approved in August, 2003. Working with the Community Development Department, he stated staff was proposing to recover approximately one-quarter of the direct costs of running the long-range planning operations, which deal with the implementation of the General Plan. Mr. Nordhoff stated staff proposed that the General Plan maintenance surcharge would be increased from the current 20% to 27% and that 7% increase would be directed to recovering a portion of the cost of the long-range planning program in the General Fund. He indicated this would produce an approximate $38,000 annual revenue on a full year's implementation; this year's would be partial. Mr. Nordhoff stated it was staff's recommendation that Council set the public hearing for January 5, 2004. As part of that hearing, staff would be returning several fee amendments Council took action on in the November 17, 2003 Budget action and this would be combined in one staff report for Council consideration. Councilmember Cohen moved and Councilmember Heller seconded, to set Public Hearing for City Council meeting of January 5, 2004. AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SRCC Minutes (Regular) 12/15/2003 Page 7 SRCC Minutes (Regular) 12/15/2003 Page 8 COUNCIL CONSIDERATION: OLD BUSINESS: 18. a) CONSIDERATION OF RESOLUTION AMENDING FISCAL YEAR 2003-2004 BUDGET b) STATUS OF STATE AND CITY BUDGETS (MS) — FILE 8-5 City Manager Rod Gould stated Assistant City Manager Ken Nordhoff would brief Council on the substance of the report. City Manager Rod Gould reported that San Rafael's financial condition and that of every City in the State of California, as well as the fifty-eight counties, was significantly threatened a week and a half ago when the new Governor lowered the Vehicle License Fee and called upon the Legislature to find the money to keep cities and counties whole. Mr. Gould indicated he firmly believed at the time that people made no connection between the lowering of the so-called car tax and essential services provided at the municipal level. He stated the City was now beginning to see that come home. Statewide, this was a shift of over $4 billion annually, a loss of $300 million monthly to local government, and in San Rafael, takes expected deficits to the $3 million dollar level this and next fiscal years, which puts the City into a state of fiscal crisis. Mr. Gould stated that if immediate action were not taken to begin to slow spending, or dial on new revenues, the City would be burning reserves at the rate of $200,000 per month. In speaking with people who had been involved in California finance for many years, Mr. Gould indicated he was informed this was the worse crisis in the last fifty years for local government, far worse than Prop 13 and the 1991 recession, and was the largest shift of local funds to the state government in history. In addition, he stated the ongoing crisis at the state level of a budget that is not balanced and would remain out of balance into the next year, the tremendous temptation on the part of the state government to shift further local government revenues, i.e., sales tax, property taxes, etc., to help balance the state budget would produce a recipe for a real problem at City level. Mr. Gould stated he believed there would be a massive shakeout statewide at all levels of government where residents of California would have to decide for the first time in quite a while what government services they really prize and are willing to pay for. He indicated this would play out to no one's satisfaction in the coming years as people would pay more tax dollars and more fees and charges for less service because of the huge structural imbalance at the state level. Mr. Gould invited Mr. Nordhoff to discuss the staff report and staff's latest series of recommendations, which were just a minor down -payment of what Council would be required to do to maintain the budget in balance. Mr. Nordhoff stated that at the last formal budget action meeting held on November 17, 2003, Council directed that staff attempt to summarize all items acted on over the past 18 months; therefore, he had generated three handouts, which were attached as part of tonight's report. He referenced a two-page document entitled "The Budget Saga Begins..." and stated it was important to keep in mind that this process had been ongoing for eighteen months and was not finished. It was also important to note that although Council had taken a lot of actions over eighteen months, the impact spanned three fiscal years because much of what was acted on occurred in the prior fiscal year, a number of items this year, and a number of steps were taken that although not memorialized yet in the budget, certainly were built into projections and would be memorialized when the budget is adopted sometime next spring. Regarding the level of impacts, Mr. Nordhoff stated there were deficits of $1.5 million in July of 2002, the City entered this year with a $2.1 million deficit that had grown, and next fiscal year would commence with a $4.3 million deficit. Mr. Nordhoff indicated there were huge obstacles with big portions of the General Fund at risk. He had summarized some of the major reductions in expenses, losses of personnel and some of the various fees or fines put into place either for the first time or increased. Indicating that Summary One (this fiscal year) and Summary Two (next fiscal year) supported that data, Mr. Nordhoff stated he attempted to combine some of the major actions taken while working off the long lists of budget recommendations emanating from either the Employee Budget Workgroup, Management or possibly other sources, and tried to capture some of the major themes, whether it be personnel reductions, cutting across expenses or raising fees. He reported he also broke all those down by department because Council requested an explanation of where those impacts occurred. Mr. Nordhoff stated the dollar impacts were identified on the first page of Summaries One and Two and the right-hand column depicted the revenues. He stated that generally speaking over the two years, for every three dollars reduced in expenses, one dollar's worth of revenue had been raised. SRCC Minutes (Regular) 12/15/2003 Page 8 SRCC Minutes (Regular) 12/15/2003 Page 9 Mr. Nordhoff stated Council had gone a fairly significant way towards resolving the budget, at least as of last November; however, as mentioned by Mr. Gould, there had been a shift in the last couple of weeks. Mr. Nordhoff stated that on going through the Study Sessions this past fall and giving the departments targets to measure what 2.5%, 5% or 7.5% reductions in operations would look like, Council had a menu of choices put forth by each department. He indicated that staff attempted to measure the percentage reduction in the various departments, and referring to Summary Two, he noted that Public Works had reduced their projected costs for 2004-2005 by over 13%. Below that he identified a listing of the staff reductions, i.e., 17 positions looking ahead to next year. Some of these pertained to this year, some to next year and most, but not all, were vacancies and were broken down by department. Mr. Nordhoff stated the second part of the report dealt with putting forth some additional recommendations, and as mentioned by Mr. Gould, the shifting of the Vehicle License backfill had created some huge problems. Explaining, he stated that based on everything done through November 17, 2003, Council believed this year's General Fund still had an approximate $1.3 million deficit and an approximate $1.2 million deficit going into next year. Mr. Nordhoff stated that anticipating a complete loss of backfill this year, adding a further $1.7 million to the $1.3 million problem for this fiscal year, would bring the deficit to $3 million. Looking ahead to next year, albeit it was difficult to assess at this time as changes occur, Mr. Nordhoff stated staff had assumed an 80% loss in that somehow the state would replenish some of the Vehicle License loss back to the City. However, this would still mean an additional $1.9 million, probably permanently, of lost revenue going into next year, bringing the deficit for 2004-2005 up to $3.2 million, which was an approximate 6% additional reduction in all of the General Fund supported services should Council take an action (not under consideration) across the board. Mr. Nordhoff reported that two meetings were held over the last week attempting to re -sort items in a way staff believed could identify additional actions Council might wish to consider this evening. He indicated that Council had already seen many of these items; however, should there be specific questions, department representatives were available. Referring to Schedule A, Mr. Nordhoff stated the list was sorted at the Department Management level, with current recommendations identified as 1 and other groupings 2. He clarified that these were sorted in departmental order and were not prioritized. Mr. Nordhoff stated that of significance was the elimination of a non -vacant Building Inspector position in the Community Development Department, necessitating a layoff, and there were a number of operating cost reductions in the City Clerk, City Manager and Community Services Departments. Reporting that there had been numerous discussions in Study Sessions and other Budget Hearings concerning three vacant positions in the Fire Department, Mr. Nordhoff stated staff had evaluated various ways of generating combinations of service reductions Council might wish to consider. These were policy decisions and the proposal was to move two ambulances to Station 2 and reducing an Engine Company at that location. He believed the Fire Chief and City Manager had met with some Councilmembers over the past week to discuss that in more detail. Interjecting, City Manager Gould stated that as indicated by Mr. Nordhoff, a number of conversations had taken place with the Fire Association and now with a sub -committee of the City Council concerning the options of reducing an engine North and South of the Hill, one involving the Marinwood contract and the other involving lowering the level of service in Central San Rafael. Mr. Gould stated staff believed Council needed to act on one of those options; however, this evening he had a meeting with Ken Martin, President of the San Rafael Firefighters Association and John Gray, Legal Counsel to the Firefighters Association, and they made a proposal which he believed worthy of Council consideration. Explaining, he stated they inquired whether Council would postpone action on one or both of these reductions in service in San Rafael for six months to one year if the Fire Association in turn, would relax provision of the Memorandum of Understanding that currently requires the City to provide up to three firefighters the opportunity to be on vacation at any given time while backfilling every one of the positions. Mr. Gould stated that instead of three persons off, two persons would be off for the period of six months or a year. Mr. Gould stated it was staff's feeling that if this were done for a period of one year, it would generate the same level of savings as the options currently under discussion. He indicated it would also provide more opportunity for the Fire Association, Council and perhaps the new Fire Chief to evaluate these options and make a better recommendation as to what should be done, as spending needed to be curbed and Council made very clear that the Fire Department needed to participate. Mr. Gould stated that should the Fire Department return by next Monday with the understanding that for a period of a year there would be no more than two firefighters off with full backfill, it would save the same amount of money and afford more time to consider SRCC Minutes (Regular) 12/15/2003 Page 9 SRCC Minutes (Regular) 12/15/2003 Page 10 these options. Mr. Gould stated that should this be the offer from the firefighters, he would recommend it and he welcomed their participation. Noting extensive discussion had taken place regarding reducing the level of service at the library, Mr. Nordhoff stated staff was again proposing a reduction of hours on Sundays which are currently running through the school year, as well as Thursday evenings from 5:00 — 9:00 p.m. He explained that these did not involve layoffs of permanent positions but instead would require some realignment of the permanent staff; however, temporary or on-call staff would be reduced as part of those reductions. Mr. Nordhoff reported that $50,000 in rent was received for vacant properties, which Public Works Director Andy Preston had worked through with the Congestion Management Agency. Vehicle replacement, an item on the Employee Workgroup list, was also evaluated and rather than propose permanently to adjust the replacement cycles of the fleet, staff proposed to eliminate the entire charges of approximately $836,000 annually. Approximately $418,000 would be a half-year reduction; however, the General Fund portion would be approximately $303,000. Mr. Nordhoff stated this would be a one-time adjustment that would put a fairly significant additional down -payment on this problem and as part of that, staff proposed to push out the replacement of all those vehicles on a one-time basis at one additional year. Therefore, anything scheduled for 2004-2005 would move to 2005-2006. Having discussed this with Frank Prim, Assistant Public Works Director, staff believed this did not present a significant deferred or increased maintenance cost and believed it to be prudent. Mr. Nordhoff reported some operating expense reductions were proposed in Management Services. There were some position eliminations which he did not believe would require layoffs, i.e., taking a sergeant out of the directed patrol unit (a three-person operation), together with eliminating an officer position currently assigned to the front desk. These being the major changes, Mr. Nordhoff stated that Council, choosing to act on all of these items this evening, including that proposed by Mr. Gould, would produce an additional reduction of $711,832 in expenses for this budget year. Should Council be satisfied with the items looking ahead to next year, he indicated the $3.2 million remaining deficit could be reduced by $878,349. Adding this evening's totals to what had already been done, Councilmember Miller inquired how this compared to what must be done. Mr. Nordhoff referred him to the top of Schedule A which identified $2.3 million this year and $2.1 next year. He added that since it was now half -way through the fiscal year, it would be very difficult to achieve this; therefore, it was likely the City would be dipping into reserves at some level in order to maintain the General Fund in balance. Mr. Nordhoff confirmed for Councilmember Miller this would mean $2.3 million worth of reserves unless and until the City Council took further action to either reduce expenses or find new revenue. Mr. Gould stated staff was requesting that Council hold a Special Study Session on December 22, 2003 to consider further reductions to the budget, both this and next year, in hopes that after discussion and deliberation, staff could return further budget amendments at the January 5, 2004 meeting, to commence slowing spending as rapidly as possible. He indicated the City would still dip deeply into reserves and get into real jeopardy; however, staff wished Council to come to grips with as many choices as possible, as soon as possible, which was the reason for a Special Study Session just prior to the Holidays. Mr. Nordhoff stated that should Council take these actions tonight and took no further actions, the 10% reserve valued at $3.8 million would be depleted by approximately next October or November. Mayor Boro stated he found it alarming that on going through this process on November 17, 2003, the deficit was $1.3 million for the remainder of this year and $1.2 million for the following year; however, this had now doubled because of the VLF. He cautioned that at this rate, the reserves would be depleted extremely quickly; therefore, a way to cease the bleeding had to be found. Mayor Boro thanked Mr. Nordhoff for this evening's presentation and for the two-page summary identifying the significant happenings over the last eighteen months. Shannon Perez, Political Director SEIU Local 949, stated she was present to request there be some guiding principles associated with the budget deliberations over the next few weeks. She noted that the missing VLF had a huge impact on city governments all across the State and at some point, her union believed critical mass would be reached and the Legislature would have to deal with the issue. She indicated it was a politically untenable situation that even the politically neophyte Governor understood, as evidenced by the recent special session. SRCC Minutes (Regular) 12/15/2003 Page 10 SRCC Minutes (Regular) 12/15/2003 Page 11 Until it became clear in early spring what, if any, replacement funds would be available to local government, Ms. Perez stated the missing VLF should be viewed as a shortfall and not a structural problem. She indicated they stated this because already City staff was insisting that furloughs would not be sufficient, being only one-time fixes, rather they required permanent reductions with their eye on the 10% reserve requirement. Ms. Perez stated that the days of the 10% reserve were gone. She indicated she was pleased to hear that temporary cost reductions for firefighters were acceptable and hoped union members would be afforded similar considerations in negotiating their way through this process. Additionally, Ms. Perez stated they wished to see retirement benefits, retirement incentives and further reductions to travel, bonuses and car allowances before layoffs were implemented. She inquired how non -mandatory travel expenses could be justified in this climate. Finally, Ms. Perez requested that in cutting departments, trends in funding over recent years be considered. She noted the library's budget had shrunk for many years as a percentage of the budget. She inquired as to which departments had experienced the most growth, indicating that unless that growth produced revenue, it should be considered first. Ms. Perez stated that today she called City staff requesting a name to be associated with the Building Inspector position and was informed that it was policy not to associate faces with layoffs. She indicated she believed this was a wrong policy, as these were people with families and some respect should be given to that concept. Expressing the hope that the budgeting process be inclusive, Ms. Perez stated there should be opportunity for public comment and the union wished to be very involved. She thanked the City Council for giving serious consideration to the thoughts conveyed this evening. Mayor Boro noted staff had characterized the latest effect of the VLF as an approximate 6% across the board cut and he inquired whether the service impacts of this cut on each department citywide could be available for the Study Session scheduled for December 22, 2003. He noted some departments had taken substantial cuts to date while others had not yet had the opportunity; some departments had taken some cuts and possibly could take more. Mayor Boro stated he would like to hold off on the library one more time, as he did not have a good feel for how the library is staffed - part-time and full-time - and he would like to have a better understanding as to how the general public would be affected. He noted a 43 -hour week had been discussed which reverted to the level of some years ago. Mayor Boro stated that even adopting these changes, there still remained a $2,287,173 shortfall for this year and noted the City would be in a cash drought pretty quickly with that level of takeaway from the reserve fund. He stated the City would obviously have to cut more this fiscal year. He believed the item brought forward from the firefighters made sense at this time and savings would be generated; however, getting into the next year other changes would need to be made also. He stated this was a sign of trying to do something in the short-term; however, there were longer- term needs, both over the next months and beyond. Following up on the library, Councilmember Heller stated other departments also used on-call staff, and these needed to be released prior to laying off any full-time staff. She inquired as to what departments used on-call staff and how many were in that category as opposed to permanent staff. Mr. Gould stated that next Monday the City Council would be provided with a very clear explanation of the staffing patterns in the library, what the options are, what they would constitute in terms of level of service and changes to staffing, including on-call people and permanent staff, to enable Council to make informed judgments concerning the level of library service the City could afford to provide. To obtain a clear understanding of the term "on-call," Mayor Boro inquired whether these were basically part-time employees. Mr. Gould stated that while they were part-time employees, they were somewhat different from permanent part-time, being hourly. Mayor Boro stated it was necessary to have an understanding of what they actually do, and should a permanent person be laid off, he inquired as to what type of base operation was available at the library that could be supplemented with volunteers. He noted the Friends of the Library had indicated they wished to help in an effort to maintain the library open as many hours as possible. Mayor Boro stated it was necessary to see what options, if any, were available with that approach. Mr. Gould stated he anticipated devoting a substantial period of time next Monday to discussing these types of issues and answering Council questions. He noted Vaughn Stratford, Library Director and Gail Lockman, Head Reference Librarian, were present and taking notes this evening and staff would be prepared to give Council a good presentation and answer questions. SRCC Minutes (Regular) 12/15/2003 Page 11 SRCC Minutes (Regular) 12/15/2003 Page 12 Councilmember Phillips thanked Mr. Nordhoff for the outstanding job he had done assisting the City Council through this difficult time. Noting the comments made by Shannon Perez, he stated he believed things were in a state of flux and everyone was scrambling in an attempt to arrive at solutions. He indicated he was somewhat concerned with over -reacting and while not suggesting this was the case, Councilmember Phillips stated he believed things could change or shift over a relatively short period of time; therefore, he would not jump at some of the remaining recommendations automatically until some real movement was evident from the State. Councilmember Heller reported that the Legislature was out of session and would not even look at the Governor's budget until January, 2004, with passage of this budget scheduled for June, 2004. Recognizing this, Councilmember Phillips stated he saw things in a state of flux and this was a period to use due caution in all directions. City Manager Gould stated he was an optimist by nature; however, was paid to be a realist. Having studied the state budget problems for some time, speaking with lobbyists and financial experts and legislators in an attempt to steal their thoughts, he stated he would dearly like Ms. Perez to be absolutely correct that this would be a temporary shortfall and sometime in the next few months, all or a great portion of the Vehicle License Fee backfill would be restored to local government; however, he did not see this in the cards. The state was in such terrible financial shape that without increasing taxes the choices simply were to put $4 billion back into city governments for the monies that would not be collected as part of the car tax cut, they would have to either "savage" the UC and CSU system, open prisons and free lots of non-violent felons, lay off every state park worker, state firefighter and state patrol officer, or absolutely shred the health, safety and welfare net for the most vulnerable, and he did not envision them doing any of the above at this time. Mr. Gould stated the state would commence this next budget year between $10 billion and $15 billion in the hole even if the voters approved the Governor's package on the ballot in March, 2004. Having met with Senator Burton's office, the comment was "you're on your own, the Governor cut your tax, you work it out with the Governor." Mr. Gould stated that unfortunately, the Governor cannot allocate funds from the state budget. He had called on the Legislature to find the money; however, refuses to tell them where to look. Mr. Gould reported that Assemblymember Joe Nation was sympathetic and indicated he might even sponsor a bill that would require the state to backfill the cities and counties; however, it was not allowed out of his Rules Committee until last week and then was voted down straight party lines, the Democrats refusing to allow this bill to move forward across party lines. Mr. Gould stated it appeared the Democrats wished to use the plight of the cities and counties as a bargaining chip with the Republicans and did not believe the Republicans would agree to a tax increase if they had to cut Health and Human Services. They believed there might be a chance to get the Republicans to knuckle under and provide a tax increase if local police and fire services were cut and the Republicans were blamed for it. Mr. Gould stated this was the cynical game being played in Sacramento presently and he assured the City Council it would not be resolved in the next few months. Bound up in the state budget, he stated it would be lucky if it were decided by mid—summer next year, or more likely next fall. He commented that while the City was bleeding at $200,000 per month, it could not wait for someone at the state to bail it out, rather action needed to be taken. Mr. Gould stated he was not suggesting Council make $3 million worth of cuts this evening to balance the current year budget. The recommendations discussed by Mr. Nordhoff represented only $711,000 towards the $3 million deficit to be faced this year, with a similar amount next year. Mr. Gould stated staff suggested Council make as many decisions as they felt comfortable with in the next few weeks and months in an attempt to keep the budget in balance, in the knowledge that it would be necessary to dig deeply into the reserves. He believed it would be imprudent and reckless to assume that someone would bail cities and counties out of the Vehicle License Fee fix. He did not see it anytime soon; however, should it take place, it would be pennies on the dollar. Councilmember Phillips stated he was not suggesting recklessness. He was attentive to the presentations made; however, believed some due caution should be used. Not wishing to over- react on either side, he recognized the seriousness of the situation; however, believed things changed over time. Mr. Gould reported that yesterday the City received the results of sales tax receipts for the third quarter of this year. They were flat compared to last year, and in fact, dropped by .28%; therefore, the anticipated rebound in sales tax did not materialize. SRCC Minutes (Regular) 12/15/2003 Page 12 SRCC Minutes (Regular) 12/15/2003 Page 13 Councilmember Phillips stated that in talking to one of his partners, who lives in Orinda, he learned that Orinda has virtually no sales tax and therefore, would be putting pressure on the state also. Relatively speaking, he believed San Rafael was in better condition than a lot of cities. Mr. Gould concurred, indicating that a lot of cities would go into bankruptcy should they lose the Vehicle License Fees. He stated he could name four cities that would dis-incorporate because they could not operate basic municipal services without the Vehicle License Fees. He indicated this precipitated a crisis in local government and would play out over the next few months and years. Mayor Boro stated he agreed with Councilmember Phillips in that with regard to next year's budget especially, caution was needed. Realistically between now and June the budget under discussion would be for the next fiscal year and unless there is sufficient pressure in the Legislature to begin to do something in the first quarter, Mayor Boro believed the City would be on its own this year and pretty much lose the entire VLF, thereby facing the $2.3 million deficit. He did not see anything happening in the short-term; however, by the time it did start happening enough "Cain" would have been raised throughout the state that it should be better into the next fiscal year. He reiterated his alarm that one month ago there was a $1.3 million deficit for this year and now, subsequent to cutting out a further $700,000 there is still a $2.3 million deficit. Mayor Boro inquired whether the Council would be willing to accept the recommendations for this fiscal year (2003-2004) at this point, excluding the two items on the library, and with the understanding that the offer from the Fire Association would pretty much equalize what was depicted in the report as far as savings in the next months for the Fire Department were concerned. Mr. Gould stated that should agreement be reached with the Fire Association on this contract modification for a period of one year, it would be very workable. He also believed negotiations should commence with Marinwood to better understand the options there should contractual services be reduced. On Mayor Boro's question of whether to wait for two weeks before adopting anything, Mr. Gould believed this would be prudent. If it could be ascertained from the Fire Association whether or not the members would accept the suggestion made by the leaders today, action could be taken on January 5, 2004 and it would be agreed not to backfill positions between now and then. Mr. Gould stated it would either be this contract modification for a period of a year or moving into a reduction at Station 2. Councilmember Cohen inquired whether Mayor Boro was proposing action on the other items. Mayor Boro stated that to exclude the Fire Department and Library, there was not much left; therefore, it would be better to wait and take action on the whole package in two weeks, and possibly at the Study Session next week more ideas would be generated. Mr. Gould stated that action could be taken on the non -controversial items this evening, removing them to begin whittling down the deficits in each year, then focusing on those options still before Council. Councilmember Cohen stated that action could be taken on a number of items and while some were one-time, at least it would create some movement. He understood there was a long-term consequence to reducing the vehicle charge; however, hopefully, the vehicle fund could be replenished at some time when the City was doing better. Regarding the Building Inspector position, Councilmember Cohen inquired whether there were fees associated with that and whether the rate at which the City collected fees for doing those inspections would be slowed down. He inquired whether this was a net savings or whether ultimately, fees would be lost by eliminating this position. Community Development Director Bob Brown stated there certainly were service impacts associated with any of these positions at this point. To maintain fees at the same level would necessitate justifying a similar level of expenditures, meaning staff would have to revisit the assumptions used in the last fee study. He believed the same level of expenditure could be reached by simply re -allocating costs; however, in response to the direct question of whether revenue would be received more slowly, Mr. Brown stated he did not believe so. He believed it would not be possible to provide as rapid a turnaround to meet inspection requests; however, in terms of the issuance of building permits and completion of projects, there should not be a significant difference. Understanding the service impacts, Councilmember Cohen stated he did not believe the volume of construction would go down because two days were taken to turn around an inspection instead of one; rather it would be an inconvenience. SRCC Minutes (Regular) 12/15/2003 Page 13 SRCC Minutes (Regular) 12/15/2003 Page 14 Commenting on a point raised by Mr. Brown, Councilmember Cohen stated that should the City have to re -allocate the cost because of not funding the position, the savings might not be as anticipated. While it would probably cost the same amount to process a building permit and carry out the inspection, albeit taking longer, the cost of providing that service remained the same; however, this needed to be justified and charged for appropriately. He indicated that if by cutting the position charges for the service were being reduced, the savings would not be realized, and he believed staff needed to ensure there would be a net savings. Mr. Nordhoff suggested that by taking the total of $711,832, eliminating the two Library options, Fire Department and the Building Inspector options, the remaining figure would be $505,982, should Council wish to act this evening. Should items included in the $505,982 also occur next year, Mr. Nordhoff stated it was his understanding that these would be taken away; however, not necessarily items that could be new to next year. Mayor Boro confirmed that Council could affect a $505,982 movement on the down side, excluding the Fire, Library and Building Inspector options. Regarding Councilmember Cohen's suggestion to also exclude the two Police Department positions, which had no fiscal impact this year, Mr. Nordhoff explained that from discussions in the past with Police Chief Cronin, because of run-up time to hire people, etc., the longer lead time the better; however, he did not believe waiting a couple of weeks would make any difference. Councilmember Heller moved and Councilmember Miller seconded, to adopt the Resolution, as amended. RESOLUTION NO. 11471 — RESOLUTION AMENDING THE 2003-2004 BUDGET (as amended) (Special Budget Study Session scheduled for 12/22/2003) AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT; COUNCILMEMBERS: None NEW BUSINESS: 19. ELECTION OF VICE -MAYOR OF THE CITY COUNCIL FOR YEAR 2004 (CITY COUNCIL) — FILE 9-1 Councilmember Heller placed in nomination the name of Councilmember Cyr Miller to serve as Vice -Mayor of the City of San Rafael for the year 2004. Vice -Mayor Phillips seconded the motion, and Councilmember Miller was elected Vice -Mayor by acclamation for the year 2004. CITY MANAGER'S REPORT: 20. None. COUNCILMEMBER REPORTS: 21. a) Marin County Transit District: - File 143 Councilmember Heller reported having requested that all Councilmembers receive the Marin County Transit District Budget Update with their Friday memo, in order to alert them to the fact that Marin Transit is also suffering financially. The current debt is $400,000 with approximately $25,000 accruing monthly to the Golden Gate Bridge District. She indicated there were very few sources of additional funding or revenue enhancements available. STIP funding would be requested from the CMA; however, hard choices would have to be made. As the delegate to the CMA, Mayor Boro would be voting on this issue. b) ORCA Swim Club: - File 12-15 x 9-3-65 X 4-10-172 Councilmember Phillips stated he had an opportunity to meet with SwimMarin and the ORCAs last week and reported that Community Services Director Carlene McCart did an excellent job conducting the meeting and making a recommendation that all of those in attendance favored, which would permit SwimMarin to be in existence for this year. He thanked Ms. McCart for her thought and participation in that meeting. SRCC Minutes (Regular) 12/15/2003 Page 14 SRCC Minutes (Regular) 12/15/2003 Page 15 There being no further business, the City Council meeting was adjourned at 9:20 p.m. to continue in Closed Session. CLOSED SESSION ADJOURNED AT 10:32 PM with no reportable action. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12003 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 12/15/2003 Page 15