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HomeMy WebLinkAboutCC Minutes 2004-01-20SRCC Minutes (Regular) 01/20/2004 Pagel IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, TUESDAY, JANUARY 20, 2004 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 — 7:00 PM: None CLOSED SESSION — CONFERENCE ROOM 201 — 7:00 PM: None Present: Cyr N. Miller, Vice -Mayor Paul M. Cohen, Councilmember Barbara Heller, Councilmember Gary O. Phillips, Councilmember Absent: Albert J. Boro, Mayor ORAL COMMUNICATIONS OF AN URGENCY NATURE: 8:02 PM None Councilmember Phillips moved and Councilmember Cohen seconded, to approve the Consent Calendar, as follows: ITEM Approval of Minutes of Regular Meeting of Monday, December 15, 2003 (CC) 2. Report on Proposals and Resolution Awarding Contract to Coordinated Resources, Inc. in the Amount of $98,491.64 for City Hall Third Floor Community Development Dept. Furniture; Project No. CDD 2003-02 (Rebid); Proposals Received on Tuesday, January 6, 2004 (CD) - File 4-2-301 x 9-3-85 3. Resolution Authorizing Amendment to Agreement with General Plan 2020 Environmental Consultant Clearwater Hydrology for Additional Services for Environmental Review (P00-7) (CD) — File 4-3-420 x 4-17-97 x 115 (2020) 4. Resolution Authorizing Amendment to Agreement with General Plan 2020 Environmental Consultant Donald Ballanti for Additional Services for Environmental Review (P00-7) (CD) — File 4-3-419 x 4-17-96 x 115 (2020) 5. Resolution Authorizing Amendment to Agreement with General Plan 2020 Environmental Consultant Live Oak Associates, Inc. for Additional Services for Environmental Review (P00-7) (CD) — File 4-3-383 x 115 (2020) RECOMMENDED ACTION Minutes approved as submitted. RESOLUTION NO. 11474 — RESOLUTION AUTHORIZING AWARD OF CONTRACT TO COORDINATED RESOURCES, INC. IN THE AMOUNT OF $98,491.64 FOR FURNITURE FOR THE COMMUNITY DEVELOPMENT DEPARTMENT PHASE II REMODEL RESOLUTION NO. 11475 — RESOLUTION AUTHORIZING AMENDMENT TO AGREEMENT WITH CLEARWATER HYDROLOGY RE SAN RAFAEL GENERAL PLAN 2020 (P00- 07) (COMMENCING ON JANUARY 16, 2001 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $21,850) RESOLUTION NO. 11476 — RESOLUTION AUTHORIZING AMENDMENT TO AGREEMENT WITH DONALD BALLANTI RE SAN RAFAEL GENERAL PLAN 2020 (P00- 07) (COMMENCING ON JANUARY 16, 2001 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $6,380) RESOLUTION NO. 11477 — RESOLUTION AUTHORIZING AMENDMENT TO AGREEMENT WITH LIVE OAK ASSOCIATES INC. RE SAN RAFAEL GENERAL PLAN 2020 (P00- 07) (COMMENCING ON JANUARY 16, 2001 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $27,584) SRCC Minutes (Regular) 01/20/2004 Page 1 SRCC Minutes (Regular) 01/20/2004 Page 2 6. Resolution Authorizing Amendment to RESOLUTION NO. 11478 — Agreement with General Plan 2020 RESOLUTION AUTHORIZING Environmental Consultant Miller Pacific AMENDMENT TO AGREEMENT WITH Engineering Group for Additional Services for MILLER PACIFIC ENGINEERING Environmental Review (P00-7) (CD) — GROUP RE SAN RAFAEL GENERAL File 4-3-385 x 115 (2020) PLAN 2020 (P00-07) (COMMENCING File 4-3-423 x 115 (2020) x 10-2 ON JANUARY 16, 2001 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $30,500) 7. Resolution Authorizing Amendment to RESOLUTION NO. 11479 — Agreement with General Plan 2020 RESOLUTION AUTHORIZING Environmental Consultant Nichols Berman AMENDMENT TO AGREEMENT WITH Environmental Planners for Additional Services NICHOLS BERMAN for Environmental Review (P00-7) (CD) — ENVIRONMENTAL PLANNERS RE File 4-3-382 x 115 (2020) SAN RAFAEL GENERAL PLAN 2020 Representatives on the Board of Directors of the (P00-07) (COMMENCING ON Newly Formed Marin Visitors Network (CM) — DECEMBER 4, 2000 AND ENDING ON File 266 JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $83,890) 8. Resolution Authorizing Amendment to RESOLUTION NO. 11480 — Agreement with General Plan 2020 RESOLUTION AUTHORIZING Environmental Consultant Rosen Goldberg & AMENDMENT TO AGREEMENT WITH Der, Inc. for Additional Services for ROSEN GOLDBERG & DER RE SAN Environmental Review (P00-7) (CD) — RAFAEL GENERAL PLAN 2020 (P00 - File 4-3-421 x 115 (2020) 07) (COMMENCING ON MAY 19, 2003 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $15,540) 9. Resolution Authorizing Amendment to RESOLUTION NO. 11481 — Agreement with General Plan 2020 RESOLUTION AUTHORIZING Environmental Consultant T.Y. Lin AMENDMENT TO AGREEMENT WITH International/CCS (Formerly CCS Planning and T.Y.LIN INTERNATIONAL/CCS Engineering Incorporated) for Additional Services (FORMERLY KNOWN AS CCS for Environmental Review (P00-7) (CD) — ENGINEERING AND PLANNING) RE File 4-3-423 x 115 (2020) x 10-2 SAN RAFAEL GENERAL PLAN 2020 (P00-07) (COMMENCING ON AUGUST 18, 2003 AND ENDING ON JUNE 30, 2004, IN AN AMOUNT NOT TO EXCEED $15,624) 10. Approval of Appointments of Jennifer Berk, Approved staff recommendation to General Manager, Embassy Suites Hotel, and appoint Jennifer Berk, General Michael Scott, General Manager, Four Points Manager, Embassy Suites Hotel, and Sheraton as the City of San Rafael's Michael Scott, General Manager, Four Representatives on the Board of Directors of the Points Sheraton, as the City of San Newly Formed Marin Visitors Network (CM) — Rafael's Representatives on the File 266 Board of Directors of the Newly Formed Marin Visitors Network 11. Resolution Authorizing City Manager to Execute RESOLUTION NO. 11482 — a Special Project Grant Agreement in the Amount RESOLUTION AUTHORIZING A of $134,123 with the U.S. Department of Housing SPECIAL PROJECT GRANT and Urban Development for the Pickleweed AGREEMENT IN THE AMOUNT OF Community Center Expansion Project (CS) — $134,123 WITH THE UNITED STATES File 202 x 2-1-55 x 9-3-65 x 4-3-427 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE PICKLEWEED COMMUNITY CENTER EXPANSION PROJECT, PROJECT NO. B -03 -SP -CA -0078 12. Resolution Rescinding Resolution No. 11437 and RESOLUTION NO. 11483 — Authorizing City Manager to Execute Contract RESOLUTION RESCINDING with Class Software Solutions LTD. for Purchase, RESOLUTION NO. 11437 AND Support and Maintenance of eConnect Software AUTHORIZING CITY MANAGER TO (CS) — File 4-2-329 x 9-3-65 EXECUTE AN AGREEMENT WITH CLASS SOFTWARE SOLUTIONS LTD. FOR PURCHASE, SUPPORT AND MAINTENANCE OF eCONNECT SRCC Minutes (Regular) 01/20/2004 Page 2 SRCC Minutes (Regular) 01/20/2004 Page 3 SOFTWARE, IN THE AMOUNT OF $31,875 13. Resolution of Appreciation to Candy Friesen, RESOLUTION NO. 11484 — Retiring Library Volunteer (Lib) — RESOLUTION OF APPRECIATION TO File 102 x 9-3-61 CANDY FRIESEN, RETIRING LIBRARY VOLUNTEER (10 YEARS OF SERVICE) 14. SECOND READING AND FINAL ADOPTION OF Approved final adoption of ORDINANCE NO. 1818 — An Ordinance of the Ordinance No. 1818. City of San Rafael Amending Section 3.34.040 of Chapter 3.34 of the San Rafael Municipal Code Establishing a Fee and Service Charge Revenue/Cost Comparison System (to add new fees and increase certain other fees) (MS) — File 9-10-2 x 9-3-20 x 9-3-30 x 9-3-40 x 9-3-65 x 115 x 10-2 x 10-6 15. Monthly Investment Report for Month Ending Accepted Monthly Investment Report November 2003 (MS) — File 8-18 x 8-9 for month ending November 2003, as presented. 16. Resolution of Support for Dominican / Black RESOLUTION NO. 11485 — Canyon Neighborhood Landscaping Grant RESOLUTION APPROVING THE Application (PW) — File 9-3-40 X 202 APPLICATION FOR GRANT FUNDS FOR THE ENVIRONMENTAL ENHANCEMENT AND MITIGATION PROGRAM UNDER THE SECTION 164.56 OF THE STREETS AND HIGHWAYS CODE FOR THE DOMINICAN/BLACK CANYON NEIGHBORHOOD LANDSCAPING PROJECT AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE THE NECESSARY DOCUMENTS 17. City of San Rafael Emergency Dispatch Center — RESOLUTION NO. 11486 — Resolution Authorizing the Execution of an RESOLUTION AUTHORIZING THE Amendment to the Agreement Between the City EXECUTION OF AN AMENDMENT TO and Hannum Associates for Additional Services THE AGREEMENT BETWEEN THE to Design the Fire Suppression System and CITY OF SAN RAFAEL AND HANNUM Structural Changes (PW) — ASSOCIATES FOR ADDITIONAL File 4-3-415 x 9-3-31 x 9-3-40 SERVICES TO DESIGN THE FIRE SUPPRESSION SYSTEM AND STRUCTURAL CHANGES FOR THE CITY'S EMERGENCY DISPATCH CENTER 18. Resolution Accepting Proposal from Group 4 RESOLUTION NO. 11487 — Architecture, Research + Planning, Inc. for RESOLUTION ACCEPTING A Professional Services in the Preparation of PROPOSAL FROM GROUP 4 Contract Documents and Construction ARCHITECTURE, RESEARCH + Management for the Pickleweed Community PLANNING, INC. FOR Center Renovation, Library and Gymnasium, in PROFESSIONAL SERVICES IN THE the Amount of $804,120 Plus 5% Contingencies, PREPARATION OF CONTRACT and Authorizing the Mayor to Sign Agreement DOCUMENTS AND CONSTRUCTION (PW) — File 4-3-427 x 9-3-40 x (SRRA) R-435 MANAGEMENT FOR THE PICKLEWEED COMMUNITY CENTER RENOVATION, LIBRARY AND GYMNASIUM IN THE AMOUNT OF $804,120 PLUS 5% CONTINGENCIES, AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT 19. Approval of Plaza Permit for Downtown's Approved staff recommendation: Cooking Event on Thursday, February 19, 2004 Approval of Plaza Permit for from 6:00 p.m. to 10:00 p.m. (RA) — Downtown's Cooking Event on File 256 X 140 Thursday, February 19, 2004 from 6:00 p.m. to 10:00 p.m. SRCC Minutes (Regular) 01/20/2004 Page 3 20. Resolution Authorizing the Temporary Closure of City Streets for the Weekly Downtown Farmers' Market Festival on Thursday Evenings from April 8 — September 30, 2004 (RA) — File 11-19 x (SRRA) R-181 x R-140 #8 SRCC Minutes (Regular) 01/20/2004 Page 4 RESOLUTION NO. 11488 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF CITY STREETS FOR THE WEEKLY DOWNTOWN FARMERS' MARKET FESTIVAL ON THURSDAY EVENINGS, FROM APRIL 8 — SEPTEMBER 30, 2004 AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Vice -Mayor Miller NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Boro SPECIAL PRESENTATION: 21. PRESENTATION OF RESOLUTION OF APPRECIATION TO CANDY FRIESEN, RETIRING LIBRARY VOLUNTEER (LIB) — FILE 102 x 9-3-61 Vice -Mayor Miller stated that acknowledging and appreciating the contributions of great citizens were actions Council loved to take and this evening, Candy Friesen was the recipient of such an honor. He indicated that the Resolution of Appreciation spoke of Candy as the voice of the library, using her publicity skills to project the City and library in a most professional manner. It also addressed the ten years she spent with Friends of the Library, acting as their president for one year and with her husband, setting up an office in the library for this august group. Vice - Mayor Miller stated Candy also helped to improve the sales of books, the proceeds of which helped to make the library even more comfortable and friendly for citizens. Vice -Mayor Miller quoted from the Resolution: "WHEREAS, because of her personal interest in art history, Candy worked with library staff to broaden the appeal of the First Wednesday Art Lectures and to publicize the lectures to attract a larger audience. NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Council hereby express sincere appreciation and gratitude to Candy Friesen for her substantial contributions towards the betterment of the San Rafael Public Library, through her dedication and involvement with the Friends of San Rafael Public Library." Expressing thanks, Candy Friesen stated she appreciated the Library staff putting this together and indicated she hoped to spend more years helping the library. She expressed a wish for a new library. COUNCIL CONSIDERATION: OLD BUSINESS 22. CONSIDERATION OF RESOLUTION AMENDING FISCAL YEAR 2003-2004 BUDGET (MS) — FILE 8-5 Assistant City Manager Ken Nordhoff stated this was the third amendment to the current year's budget. Information was included on the fiscal status for this current year, together with next year, and he indicated he had also outlined some of the key proposals put forth in the Governor's budget released on January 9, 2004. By way of background, Mr. Nordhoff reported that budget amendments were made on November 17 and December 15, 2003 and he had provided information on the extent of those items and the impacts to the various departments. Mr. Nordhoff stated that a number of operating expenses had been reduced, programs cut, positions eliminated and either new fees imposed or existing fees increased as part of those actions. He reported that as of December 15, 2004, the deficit in the General Fund was $800,000 for the current fiscal year and $1,132,000 looking ahead to next year. Mr. Nordhoff stated that the Study Session held with Council on December 22, 2003, was the essence of the report this evening and the items proposed by staff and the City Manager were listed on Schedule A. Addressing changes that occurred since the last budget discussion, Mr. Nordhoff noted the loss for the current fiscal year of the Vehicle License Fee (VLF) backfill monies for the period between June 20 and October 1, 2003. He stated the loss of those funds had been estimated to be $730,000; however, new information was received to the effect that the losses actually SRCC Minutes (Regular) 01/20/2004 Page 4 SRCC Minutes (Regular) 01/20/2004 Page 5 increased by $301,000. Explaining, Mr. Nordhoff stated that when the state adopted its budget last summer, provisions were made for cities that received a significant portion of their revenues from Vehicle License Fees (in the region of 35% - 40%). He indicated that in the event a General Fund was that high or higher, driven by vehicle license fees, the remainder of the cities in the state contributed to ensure that those cities were held harmless and would not go bankrupt because of losing money proportionate to others. Mr. Nordhoff stated the calculations had been revised for that reimbursement to the cities on the edge and this was causing the additional $300,000 loss. He commented that this information was new since the last meeting and unfortunately, raised the $800,000 deficit from the last meeting to $1.1 million. Looking ahead to next year, Mr. Nordhoff referred Council to page 2 of the staff report which summarized some of the major statewide Governor proposals. Focusing on San Rafael, he stated that going back to the early 1990s, the state has had a habit of reaching into local property taxes when times got tough. That practice exists today and the Governor proposed to do even more by increasing the ERAF shift (property taxes that go into an Education Revenue Augmentation Fund) to help pay for schools. Also, Mr. Nordhoff stated there would be a further permanent shift of approximately 24% in ERAF dollars, amounting to an additional $303,000 loss to the General Fund in San Rafael. He noted these are all proposals for next year. Mr. Nordhoff stated the Governor had proposed to keep the backfill in place as committed to a month ago, and it remains in his budget. Reporting that an ERAF shift is also proposed for all cities having Redevelopment Agencies, Mr. Nordhoff stated that San Rafael Redevelopment Agency's loss is $266,000; however, because a number of taxing agencies, including the City, share in those redevelopment tax dollars, the General Fund loss of property taxes is estimated at $41,000, going into next year. Mr. Nordhoff reported that the Governor is also proposing to eliminate Booking Fee reimbursements. He explained that the City was mandated to pay booking fees to the County, currently to the tune of $215,000 annually; however, $162,600 of that is reimbursed. Should this reimbursement be lost, Mr. Nordhoff indicated there was a possibility that the Legislature would repeal the County's authority to charge the City, and should both these actions occur as part of the budget, the City would end up $52,400 to the good. Reporting additional losses of Transportation and Proposition 42 funds, Mr. Nordhoff stated there was no way to assess the impact of this yet; however, it was an ongoing practice also in the Legislature and further reduced the City's ability to maintain streets and roads. Mr. Nordhoff reported that public library funding remains constant, albeit far less than it used to be, at approximately $25,000 in San Rafael. Looking to next year, Mr. Nordhoff stated staff believes that in the Governor's proposal there is probably $500,000 potentially, plus or minus, of lost revenue. The Legislature would convene and take up a number of these issues. He indicated they would have their own proposals and it would not be surprising to have no outcome by next summer. Concerning the City, Mr. Nordhoff referred Council to Schedule A, indicating he would address the specific recommendations emanating from the December 22, 2003 Study Session. At the top of Schedule A — Page 1 — Mr. Nordhoff stated the deficits for the entire year were projected; therefore, it included not only the items just discussed, rather the aggregate since last July. He noted there is a $2.1 million deficit for this year, which included adding in the $300,000 of additional Vehicle License Fee backfill loss, and a little over $2.2 million looking ahead to next year. Through actions on November 17 and December 15, Mr. Nordhoff reported that the General Fund deficit for 2003-04 had been reduced to approximately $1.1 million and very similar in 2004-05. He indicated that a series of recommendations were being proposed this evening, totaling $633,000 this year and slightly over $1.1 million next year, which would leave a deficit in the current fiscal year of $461,000. As mentioned in his staff report, should Council choose to take no further action beyond that proposed, this would reduce the City's reserves by a like amount, to approximately 8.5%, and as Council was aware, the standing policy for a number of years had been 10% reserves. Mr. Nordhoff stated that the second year's budget would actually show decisions before Council that tally slightly more than needed. He argued that this could help restore some of the lost reserves in the current year, and as pointed out in the staff report, it should be anticipated that something is coming and, therefore, not assume this to be a balanced 2004-05 budget. There were some cost issues regarding health insurance, workers' compensation, etc., needing SRCC Minutes (Regular) 01/20/2004 Page 5 SRCC Minutes (Regular) 01/20/2004 Page 6 review, which would likely cause the deficit to rise, as well as whatever came down from the state next summer. Going through the items departmentally, Mr. Nordhoff stated the first two dealt with operating expense reductions in the City Clerk's department. The third item related to the contracted elections cost and he reported the City Clerk had informed him that the actual estimated amount for elections was higher than that needed to pay the election costs for November, 2003; therefore, on a one-time basis, $14,500 could be taken out of that budget. Regarding proposals from the Community Services Department that dealt with various ways to staff and operate the community centers and Falkirk, Mr. Nordhoff stated that this evening's proposal was for a reduction to 3 afternoons per week for public access to Falkirk, as well as Saturday hours of operation, 10:00 a.m. — 1:00 p.m. He indicated this would involve eliminating one currently filled position, resulting in a layoff commencing in July, 2004. Mr. Nordhoff reported that Community Services Department Director Carlene McCart had generated a separate memo related to the impacts of this decision. Mr. Nordhoff reported that staff had been working for some time to come to closure on ways to reduce costs in the Fire Department. Indicating that Ken Martin, President, San Rafael Firefighters Association was present this evening, Mr. Nordhoff indicated that restructuring vacation signups had been agreed upon, resulting in a reduction from 3 to 2 persons, and this would take place for the balance of this calendar year, saving $300,000. He commented that he had a signed side letter which was not part of the staff report. For the back six -months of 2004- 05, January through June, Mr. Nordhoff stated staff proposed that when the new Fire Chief Bruce Martin commenced employment, staff would look for ways to save another $150,000. This could be in the form of a continuation of the vacation sign-ups or some combination of changing service delivery that would either reduce costs or raise revenues, without being specific this evening. Mr. Nordhoff stated staff had a couple of proposals for further reductions in library hours. Council was aware of Monday closing and it was proposed to discontinue Sunday hours, commencing September 2004, and discontinuing Thursday evenings, commencing in July, 2004. On the receipt of public library funds, Mr. Nordhoff stated there was an accumulation of those funds of approximately $41,600. He indicated staff thought this would end up in 2003-04; however, due to what is referred to as a Maintenance of Effort Requirement, i.e., in order to continue to receive those funds, the General Fund needed to be at least equal to or greater than the prior year, staff's recommendation was to make that reduction in 2004-05. This would not jeopardize the current or next year's Maintenance of Effort Requirement; therefore, dollars would be eliminated in the General Fund for purchases of books and materials and replacing them with the public library fund dollars. Mr. Nordhoff reported that extensive discussions took place last month concerning various possibilities regarding elimination of staffing in the Police Department. He indicated that two vacancies were anticipated by July 1, 2004, and the cost savings would be slightly over $250,000. Reporting that the Public Works Department was working cooperatively with the Fire Department in training and being prepared in the USAR (Urban Search and Rescue) team, Mr. Nordhoff stated staff believed training could be handled without incurring some overtime costs, estimated to be $30,000 per year for the training of fire personnel, resulting in costs being cut in half for each of the two years. Mr. Nordhoff reported that confirmation had been received from MCSTOPPP that the City's fees would be reduced by $10,000 next year; therefore, it was possible to take part of the cost of an engineer and apply that to those savings, reducing cost to the General Fund. Reporting that Public Works Director Andrew Preston had stated at the Study Session that STIP monies would be received, Mr. Nordhoff stated $516,000 of STIP monies was anticipated to pay for the Second Street repaving and Miracle Mile paving carried out this last fall. Noting the City Council acted on various impact fees at the last meeting, Mr. Nordhoff stated that the full value of savings of franchise fees could not be taken because some of it had already been acted on; therefore, the balance of $261,000 being acted on meant there would be no franchise fees in the current year budget committed to street paving. This would be done in other ways, and the STIP monies would actually provide the ability to free up some gas tax dollars to the tune of $255,000, which would be extended into street paving efforts next fall. Mr. Nordhoff reported that Page 3 of Schedule A broke the expense items out separately from the revenue options. He noted Council indicated some preference in terms of budget balancing SRCC Minutes (Regular) 01/20/2004 Page 6 SRCC Minutes (Regular) 01/20/2004 Page 7 for these items and they included: • Increasing the fees for Long Range Planning (surcharge). This would be included in the fee schedule, bringing an additional $50,000 of revenue into the General Fund to help pay for long range planning. It would also help support the implementation of a variety of programs from General Plan 2020. Discussions took place regarding the Footbeat Program and staff believes that for the balance of this fiscal year, the Parking Fund could absorb the cost of two Footbeat Officers and their related expenses. Staff would return in the spring with options on how to either expand or increase rates that would help pay for the full cost of that program next year, $320,000. Council having directed staff to work with the community, Mr. Nordhoff stated he would be working with the Parking Services Manager and other staff members to begin that process next month. • Encroachment Fees and Canal Dredging Fees relating to Public Works, are one-time sources of money; however, do contribute to the overall solution. Mr. Nordhoff stated this was $633,000 of budget balancing recommendations from the City Manager and staff for the current year, with an accompanying Resolution. Approximately $1.1 million is recommended for next year, for which Mr. Nordhoff stated there was no formal action this evening; however, should it be Council's direction, these items would be rolled in as staff continues to modify and develop next year's budget. Should the Bond Measure for $15 billion not pass and presuming that assumption was not factored in, Councilmember Phillips inquired whether this meant further reviews of the budget could be expected. Responding, Mr. Nordhoff stated it would depend on the consequences from the State. He explained that this is a significant source of money and it would not be inconceivable to believe that monies that now flow to the cities, such as the backfill for VLF, etc., could cease fairly rapidly. With such a short timeframe, Mr. Nordhoff cautioned that by the time the impacts were understood and presented to Council, it could be down to sixty days remaining in the year. Should there be some cause and effect to local government, he believed the additional loss would have to be taken from reserves temporarily, with the expectation that Council would be taking actions in 2004-05 to correct that course. City Manager Rod Gould stated that in the event the March Bond Issue were not approved by the voters of California, California's deficit for the next fiscal year rises from $14 billion to $29 billion. Therefore, the Governor's proposals, which included reductions in state services and the theft of local dollars, approximately $6 billion, would have to be tossed out and they would have to return to the drawing board. To keep to his "no new taxes" pledge, Mr. Gould stated would mean even more draconian cuts to the Social Welfare safety net, the community colleges, U.C. system and the prison system. Education would have to suffer more than proposed and no doubt, more money would be sought from local government than the $1.3 billion contained in the Governor's proposal, to be shifted permanently to the state. Mr. Gould stated that fiscal chaos would ensue if the Bond Measure should fail in early March. Councilmember Cohen stated some would argue that should the Bond Measure not pass in March, the Governor would be forced into the position of defending the Davis proposal for the short-term bond that has been challenged in court, for $10.8 billion. He indicated that the $15 billion Bond includes money to cover some of the gaps, so it clearly would be worse next year if the $15 billion Bond does not happen; however, he was not entirely convinced that the state would go bankrupt should the Bond not pass. Councilmember Cohen stated he realized it was in the Administration's interest to make that argument at the moment. City Manager Gould stated he believed the reason the Schwarzenegger Administration is recommending the $15 billion Bond Issue is that they recognize what Governor Davis proposed was probably unconstitutional and would fail the legal test, which is why they are going to the risk and expense of putting it before the voters on March 2, 2004. Mr. Gould concurred with Councilmember Cohen that approximately $4 billion of the $15 billion would go to help balance next year's budget for the state; however, the $11 billion proposed by former Governor Davis is by no means secure. Councilmember Cohen concurred Assuming Council approved this evening's actions, Councilmember Cohen confirmed with Mr. Nordhoff that reserves would be drawn on to see the City through this year with next year appearing temporarily balanced; however, should the Governor's budget be adopted as proposed, the City was looking at a further $500,000 in cuts, plus increased expenses in the areas identified. Councilmember Cohen stated that this Administration's appetite for local government revenue to balance the state budget appeared no less than the prior Administration's. While tonight's actions involved a layoff, which was not pleasant for anyone, SRCC Minutes (Regular) 01/20/2004 Page 7 SRCC Minutes (Regular) 01/20/2004 Page 8 he stated the City had managed to figure out a way to temporarily not fill three Firefighter and two Police Officer positions. He believed it important that the City ensured, with help of the local press, that the residents of San Rafael understand that the budgets the City is being forced to adopt involve cuts to public safety service, which would have an impact, albeit perhaps not immediately, on the ability to deliver a level of public safety people expect and deserve in this community. Councilmember Cohen stated that State Government would have to be called on to cease raiding local treasuries to do that. He believed there was no choice but to proceed with tonight's actions; however, sooner or later, local residents needed to say "enough is enough" and their help would be needed in getting that message to Sacramento. City Manager Gould stated he was happy to note today, that PORAC (Police Officers' Research Association of California) and the State Firefighters Association had agreed to endorse and co- sponsor the Local Taxpayers and Public Safety Protection Act Measure being brought forward by the League of California Cities, the California State Association of Counties and the Special Districts Association. This would probably be on the November ballot and would give voters the choice of whether or not the local revenue should stay local to fund local programs, or be sent to the State to fund state obligations. Councilmember Heller commented that the State appears to be able to take money more rapidly than cities can find it to pay for their own bills. Mr. Gould stated it would be retroactive to November, 2003; therefore, whatever the State does this year regarding shifts of local funds would be undone if this Bill is successful next November. The State would have to decide whether or not to put the budget shifts on the ballot, and the belief was that it would not. Vice -Mayor Miller stated he was comfortable with all the items, with the exception of the library. Rather than locking in the Sunday and Thursday evening closings, he suggested staff conduct a re-examination of staff assignment options, hours of operation, etc. City Manager Gould confirmed that Vice -Mayor Miller's direction was to provide some staff analyses on what hours would provide the greatest level of service to the largest number of library patrons should the library be open 43 hours per week. Councilmember Phillips noted the staff report was very specific with regard to Sunday and Thursday; therefore, he assumed staff had explored that issue. City Manager Gould stated it was staff's recommendation that Council cease to provide Sunday services beginning next (fiscal) year, and also Thursday night service as Thursday nights are considered the slowest in the library; however, should Council wish, this could be revisited to provide additional information. Mr. Gould stated that Mayor Boro expressed a similar concern before his departure to the National Mayors Conference and he believed that with Vaughn Stratford, Library Director, and Head Reference Librarian Gail Lockman's help, staff could provide more information so that Council could either affirm this decision or change it accordingly. Councilmember Cohen stated that Council had discussed this a number of times, had requested a number of reports and had extensive input from line staff as well as the administration on the alternatives. Should an alternative be presented that permits a different approach, he indicated his openness to considering this and changing this direction; however, he favored proceeding and making a decision. Councilmember Cohen stated he did not wish to close the library or lose any library hours whatsoever, but given the cuts being made in public safety, everything had to be put on the table. With respect to the library he believed that decisions needed to be made at some time; therefore, he favored adopting the recommendations as presented, with the willingness to add a request that staff revisit the issue and return it to Council should there be an alternative for a better way, at which time, the budget could be revised once again. He anticipated that Council would be further amending the budget before the end of this fiscal year and there would be opportunities to revisit this decision; therefore, he favored proceeding this evening and providing some direction, rather than endlessly circling around the decision. Cognizant of the fact that the number of hours had been agreed upon, Vice -Mayor Miller stated the only request was that further consideration be given to how these hours are configured. Councilmember Cohen stated the only argument he had heard to indicate some other configuration relied on the use of volunteers to replace paid professional library staff, and he was not supportive of that option. He suggested moving the recommendation as presented, adding a request that staff revisit the library issue, and should there be an alternative, return it to Council as quickly as possible. Vice -Mayor Miller stated there was no implication that volunteers would take staff positions, rather he believed other configurations could be found, and he would be happy to proceed with the understanding the issue would be revisited. SRCC Minutes (Regular) 01/20/2004 Page 8 SRCC Minutes (Regular) 01/20/2004 Page 9 Councilmember Cohen moved to adopt the Resolution, and with no second, the motion died for lack of a second. Vice -Mayor Miller moved and Councilmember Heller seconded, to adopt the resolution, instructing staff to return with alternatives and options on the 43 -hour configuration. City Manager Gould clarified that Council was taking the decision to reduce library hours to approximately 1996 levels, 43 hours per week, resulting in the budgetary savings identified. Council was holding off on the decision as to what the schedule would become pending further analysis and options. For clarification Councilmember Phillips stated the resolution amending the 2003-2004 budget included a reduction of library operating hours at figures of $27,000 and $20,300; therefore, the motion stated that the budget would be reduced by those amounts, with staff returning to Council with a reconfiguration of the days and times this reduction would reflect. City Manager Gould concurred. RESOLUTION NO. 11489 — RESOLUTION AMENDING THE 2003-2004 BUDGET AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Vice -Mayor Miller NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Boro City Manager Gould stated that while Councilmember Cohen's remarks that the budget would be revisited before the end of the fiscal year were absolutely true, staff did not propose to be before the City Council with any more budget items for at least three months. Mr. Gould thanked all those involved for the last seven months in the ongoing attempts to keep the budget balanced. He expressed appreciation for the work done in this process by the employee associations, the Employee Budget Workgroup and Commissions; however, he singled out Assistant City Manager Ken Nordhoff for special commendation. He indicated that this process is fairly debilitating because everyone prized these services and no one wished to see the loss of employees. Mr. Gould thanked Mr. Nordhoff particularly for his Herculean labors in providing the best possible budget analyses and options as Council continued to make adjustments to keep the budget in balance. Councilmember Heller stated that Council concurred and she thanked Mr. Nordhoff. COUNCILMEMBER REPORTS: 23. a) Responses to Questions Posed by SEIU 949 re Print Shop Reorganization — File 9-3-11 x 8-5 Having been presented this evening with a memorandum dated January 12, 2004 in response to questions concerning the print shop reorganization posed by SEIU Local 949, Councilmember Cohen inquired whether a copy had been presented to the Union, to which staff responded affirmatively. He thanked staff for their timely response on the issue. b) Flooding in the Contempo Marin Area: 12-9 x 3-2-97 x 13-7-1 As he had been confronted on the issue of flooding in the area of Contempo Marin during some of the recent storms, Councilmember Cohen inquired whether Public Works Director Andrew Preston had been approached on this issue. Mr. Preston stated that Contempo Marin was a private mobilehome park and he was not aware of any flooding in the area. Councilmember Cohen stated he was informed that flooding occurred during some of the storms and there was some question as to whether or not grading at some of the development up stream from there might have been responsible for flooding that had not previously occurred. He indicated he would have the resident in question contact Mr. Preston. While it was private property, he stated no one was alleging the City was responsible; however, should grading have occurred on one of the projects which resulted in a change of drainage patterns, the City would wish to investigate. There being no further business, the City Council meeting was adjourned at 8:45 p.m. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12004 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 01/20/2004 Page 9