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HomeMy WebLinkAboutSPJT Minutes 2005-06-07(Spec.) SPJTCCRA 06/07/05 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, TUESDAY, JUNE 7, 2005 AT 7:00 PM Special Meeting Present: Albert J. Boro, Mayor/Chairman San Rafael City Council / Redevelopment Agency Barbara Heller, Vice-Mayor/Vice-Chair Paul M. Cohen, Councilmember/Member Cyr N. Miller, Councilmember/Member Gary O. Phillips, Councilmember/Member Absent: None Also Present: Rod Gould, City Manager/Executive Director Gary T. Ragghianti, City Attorney/Agency Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary 7:00 PM BUDGET HEARING: - FILE 8-5 x R-103 1) PROPOSALS TO BALANCE FY 2005-2006 BUDGET 2) PRESENTATION OF TWO-YEAR GOALS AND OBJECTIVES BY DEPARTMENTS INCLUDING REDEVELOPMENT — FY 2005-2007 3) CONSIDERATION OF NEW SERVICE REQUESTS Mayor/Chairman Boro explained that initially, Assistant City Manager Ken Nordhoff would make a presentation on the Budget for Fiscal Year 2005-2006. Subsequently, departmental two-year Goals and Objectives would be discussed, followed by New Service Requests. Mr. Nordhoff explained that section 1 of the binders contained two memos: 1) Redevelopment Agency budget, and 2) City budget. Redevelopment Agency: Mr. Nordhoff stated staff proposed to request the Agency Board to take action on June 20, 2005 to adopt a two-year budget for the Redevelopment Agency for fiscal years July 1, 2005 — June 30, 2006 and July 1, 2006 — June 30, 2007. He summarized what he had written as a steady state and constant budget, at least in terms of finances. Indicating that staffing levels were constant, Mr. Nordhoff stated there were five employees in the Economic Development Department, plus 1.3 employees related to Code Enforcement, paid for from the Housing Budget, specific to carrying out code enforcement in the Agency project area. He indicated there was continued support to pay for Public Works and Executive Director support services, constant funding in the budget for Chamber of Commerce support, the Business Improvement District and several major events such as the Farmers' Market, Car Parade, Parade of Lights, etc. The Agency continues to pay debt that is drawn down from property taxes related to bond issues done in both 1999 and 2002. As could be seen from the charts, he pointed out that a great majority of the budget for the Agency was tied up in debt service obligations. Mr. Nordhoff noted several projects that money had been set aside for since the bond issues were completed: Pickleweed Community Center, Francisco Boulevard Undergrounding related to the freeway widening, funds for the Medway/Canal Intersection. He indicated that these monies would be held and drawn down over the course of the next two-year budget. Indicating that nothing was anticipated for new bonds, i.e., new Capital Project money, Mr. Nordhoff stated that Nancy Mackle, Economic Development Director, would address this when presenting her Goals and Objectives. He confirmed there were no new resources or expected capital projects included. Referring to page 3 of the memo regarding Reserves, Mr. Nordhoff stated that some monies were held in various accounts, some of which was by state law for the low -moderate housing fund, some for future development and administrative costs, and a portion was set aside to meet future tax -sharing obligations to the San Rafael High School District. Mr. Nordhoff pointed out that the Agency had a limited source of income and it really issued debt to sustain its operations; therefore, doing that would be necessary in looking further out into the future. He indicated there were sufficient monies to get through the next five or six years; however, clearly, something would have to be done in order to sustain the operations beyond that period of time. Unless there were changes to the proposals, Mr. Nordhoff stated staff would like direction from the Agency Board that the budget could be returned on June 20, 2005 for adoption. He indicated that at that meeting any necessary amendments to the current fiscal year budget would be included. Noting some charts and graphs were included in the memo, Mr. Nordhoff explained that expenses were (Spec.) SPJTCCRA MINUTES 06/07/05 Page 1 (Spec.) SPJTCCRA 06/07/05 Page 2 listed by function and Exhibits 1 and 2 tried to capture the total revenues and appropriations estimated for the next two years. As mentioned, Mr. Nordhoff stated that Ms. Mackle would discuss Goals and Objectives. Regarding funding for the Business Improvement District, Member Cohen clarified that this budget also included funding for the Chamber of Commerce. Mr. Nordhoff confirmed that no General Fund monies from the City go to the Chamber of Commerce, rather strictly Agency monies, which historically, was the practice. On the issue of what happens should another series of bonds not be issued, Member Cohen confirmed with Mr. Nordhoff that the life could be extended. There being no comment from the audience, Chairman Boro stated the item would be passed to the Agency Board at the meeting of June 20, 2005. City of San Rafael: Mr. Nordhoff stated the City has been through a whirlwind of budget challenges during the past three years and although he would prefer to be before Council this evening to state that the future was different, the City continued to struggle with the General Fund which pays for the bulk of operations. Mr. Nordhoff reported that the City was facing a truly structural deficit problem which would need some resolution. Indicating that the challenges were significant, he noted the City Council had been through a number of actions over the past three years to try to keep the budget in balance; however, it was clear there were big challenges and the choices were severe and significant. Commenting that the memo was 26 pages in length, Mr. Nordhoff stated it was intended to summarize a lot of things, including a little on the past, challenges to be faced and how staff would recommend the City Council consider balancing the budget and closing the gap for the fiscal year 2005-2006. He indicated that staff would be seeking direction on the budget, including consideration of some new service requests, subsequent to Council's consideration of some open issues and recommendations. He stated staff intended to bring the budget back for Council consideration on June 20, 2005 if all the issues were resolved. Highlighting some of the major elements of the report, commencing with page 1, Mr. Nordhoff stated that this did not go back far enough to underscore all of the actions taken by Council; therefore, he had included on pages 17 and 18 a summary of the actions taken to balance the 2004-2005 budget last year (Summary One). Explaining that Council took $6.4 million worth of actions, Mr. Nordhoff stated that almost three- quarters, 74%, were service cuts, including a loss of 30 positions to the General Fund. The balance of options to arrive at the $6.4 million was a combination of either instituting new fees or increasing existing ones to continue the practice of recovering the full cost of service. Mr. Nordhoff stated that pages 2 and 3 were a reminder of some of the activity over the past year. A number of study sessions were held, the most significant on December 21, 2004, where a half-day was spent off site recognizing that even though Council had just finished balancing the budget, challenges were still ahead. He indicated that at that session, deficits in excess of $3 million for the next two years were forecast, very significant numbers considering what had just been accomplished. Indicating that page 2 addressed some of the factors, Mr. Nordhoff explained that some external factors dealt with additional losses of state revenue, some of which was capped under Proposition 1A, which Council was familiar with; nevertheless, local money, particularly property tax, continued to be redistributed back to Sacramento. He stated the City was still suffering from a sluggish or mixed economic growth and tax recovery; some were doing well, some not, which he would discuss later. Regarding imbedded components to how the budget is built, Mr. Nordhoff explained that a set of financial policies had been in place for a number of years, which were used as a foundation to put the budget together. He noted that since the great majority of the budget was centered around people, because of delivering services, the compensation elements integral to building the budget could not be ignored. Regarding early actions staff requested Council to consider, Mr. Nordhoff stated that a summary of these commenced on page 3. He noted some of the items already built into these figures, based on some early direction from the City Council, included using additional reserves and taking back money initially set aside in the Vehicle Replacement Fund. Indicating that the state took some Vehicle License Fees in fiscal year 2003-2004, which they had pledged to pay back (open to interpretation) in August, 2005, Mr. Nordhoff stated he believed Council made a wise decision in joining approximately 146 other municipalities to sell that receivable. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 2 (Spec.) SPJTCCRA 06/07/05 Page 3 Mr. Nordhoff indicated that post December 21, 2004, staff was aware that some additional property taxes were being returned, referred to an "Excess ERAF." Discussing the overall City budget — page 5 onward — Mr. Nordhoff stated that the City had in excess of 40 funds and he was attempting to provide a very macro review of both the revenues and expenses. Referring to charts (pages 19 — 22) on how revenues were broken down in a couple of different ways, he explained that the major categories, also shown on page 5 in a table, identified trends over the three years. Major taxes had also been broken down, as taxes were the most significant part of funds collected to provide major services. Explaining that the table on page 5 indicated a mixed result as far as total revenues were concerned, Mr. Nordhoff stated that revenues would be very flat entering the next fiscal year. They were anticipated to grow in fiscal year 2006-2007, and some of this related to the capping of the property tax shift — the City would begin not to lose money in fiscal year 2006-2007 that was diverted this year and would be diverted next year. Regarding Expenditures, Mr. Nordhoff stated these were growing approximately 6.4% in fiscal year 2005-2006 and approximately 3.8% in fiscal year 2006-2007. He referred to charts on page 25 which identified where the bulk of the money was going, and looking at this functionally with regard to what major operations were using up the budget, it came as no surprise that this was Public Safety at approximately 44%, followed by Public Works, etc. Mr. Nordhoff reiterated that this being the service business, employees needed to be hired, which was the greatest cost categorically, with approximately 70% of the total City budget tied up in salaries and benefits. Noting some of the key budget elements Council should be aware of in terms of putting forth the appropriations and revenues on a Citywide basis, Mr. Nordhoff stated that labor contracts/Memoranda of Understanding were being honored, so to the extent these were making provisions for changes in salaries or benefits, they were included in the forecasted appropriations. He stated it was staff's intention to keep all self-funded programs whole; therefore, to the extent the City had self-insurance programs or dollars set aside to replace vehicles or personal computers or meet the MERA (Marin Emergency Radio Authority) obligations, the budget was built assuming all those self-funded operations needed to continue. Mr. Nordhoff reported that historically, operating costs (all non -personnel costs) had been indexed by a CPI factor, a very modest 1.4% for each of the next two years, staffing levels remained fairly constant and he had identified these on a department by department basis. He explained that at the time of adopting the current year budget the City had 420 fulltime employees and the projection for the coming year was 416. He indicated this was a combination of moving to constant staffing within the Fire Department, minor additions for parking attendants because of the opening of a new garage, and a bilingual librarian was being added which he identified as part of the state grant related to putting those services at Pickleweed. From the capital projects level, chart on page 26, Mr. Nordhoff stated this was very constant, with a couple of exceptions. He indicated this identified the traditional very minor levels of investment in sidewalks and facility improvements and enough was not being done in street maintenance, which was falling behind. He believed Public Works Director Andrew Preston would report that the City was at approximately half of where it needed to be in terms of street paving. Mr. Nordhoff reported that monies had been put aside to meet ADA (Americans with Disabilities Act) requirements under the Settlement Agreement, most of which was tied into curb ramps. He indicated that Library Director David Dodd suggested drawing down some of the Davidson bequest money to carry out some unavoidable improvements at the library. In studying all the funds, Mr. Nordhoff stated it was important to recognize that in each of the two years these funds were expected to end up in a positive balance situation and staff was forecasting this, with one notable exception, which he would discuss later in the evening. Mr. Nordhoff reported that the General Fund Status was identified beginning on page 11 of the staff report and while he would summarize, he indicated he would be glad also to go into any level of detail required by the City Council. Indicating that staff was projecting deficits of $3.2 million for the coming fiscal year and $3.5 million for 2006-2007, Mr. Nordhoff explained this was identified as the net loss shown on the table on page 13. He noted that page 11 gave a sense of how taxes were having some mixed results — Sales Tax, the largest revenue source, had not rebounded to the extent hoped for and while disappointing, it was a reality and helped contribute to the deficit position forecast in the next couple of years. Property taxes were fairly stable and would take a pretty good bounce in fiscal year 2006-2007, again, as mentioned, attributed to Proposition 1A losses returning. Mr. Nordhoff reported that costs of operations in the General Fund were outpacing what the City could afford, which was the structural deficit situation. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 3 (Spec.) SPJTCCRA 06/07/05 Page 4 As outlined in the staff report, Mr. Nordhoff stated that there were only approximately three choices currently in terms of balancing the budget. He indicated he discussed service reductions in the staff report, which Council had heard about since last December, variations of which were discussed in Town Hall meetings, etc. Therefore, should Council choose to balance the budget in terms of reducing services, this would include employee losses or eliminations which would be fairly significant and affect all major service departments. Noting discussions were underway regarding the possibility of placing a Tax Measure on the November Ballot, Mr. Nordhoff stated this was a possibility to balancing the budget. Lastly, while trying to work through this, Mr. Nordhoff suggested that the City Council consider the use of reserves. While this was not new territory for the City Council, he indicated that on page 13 staff made recommendations that identified to what extent these needed to be drawn down. Mr. Nordhoff explained that there had been a financial management policy of trying to hold 10% in reserves in the General Fund for emergency operations, unexpected expenditures, cash flow cycles, etc. When this was discussed a year ago, the City Council already made a commitment entering this next year that should it be necessary, reserves would be drawn down to the level of about 6%. Mr. Nordhoff stated it was staff's recommendation that while the City Council considers the tax measure for the fall, no service reduction actions be taken, rather draw down reserves to the extent necessary. Should it be necessary to draw reserves down by $3.2 million, the target in trying to meet the 10% reserve would actually fall to 4.6%, which he did not believe would actually occur, because sometime between now and the end of next June, the City Council would probably be making decisions regarding the tax measure and the voters would have put something into place negating the need to do this. Should this not be the case, staff would be aware of it fairly soon and he suspected staff would return to Council fairly soon requesting direction on how to close the remaining budget gap. Mr. Nordhoff stated that tonight's recommendation, which was built into the figures presented, was to take the money already acted on this year - excess ERAF and VLF loan receivable — hold it aside at the end of the year and draw it down to help close the budget deficit of $3.2 million projected for next year. Recommending that Council draw down reserves to the extent necessary, Mr. Nordhoff stated that in terms of a balanced budget this would be a reduction to 4.6% or the use of $3.2 million. Staff recommended that the services, programs and staffing levels embedded in the budget be included as part of that action. Noting that a discussion would take place at the end of the meeting regarding New Service Request Options, Mr. Nordhoff explained that some could be self -funding while some were not. To the extent Council took action on those would modify any of the figures in this evening's report. Mr. Nordhoff reminded the City Council that a lot of public meetings had taken place surrounding the City's financial situation. Staff had talked to over 24 homeowners associations, met with a task force of the Chamber of Commerce, three Town Hall meetings were held, the City's website contained a lot of information, and outreach continued in an effort to make the community more aware of the problem than they had been to date. Councilmember Phillips thanked Mr. Nordhoff for the extensive report and the clarity it provided. Referring to page 7, he noted the budget for Public Works for 2004-2005 was approximately $9 million, 2005-2006 approximately $10 million and approximately $11 million in 2006-2007. The narrative spoke to maintaining constant levels of service and staffing, yet each year had a change of approximately $1 million, and he requested further explanation. Mr. Nordhoff explained that in the change from 2004-2005 to 2005-2006, there were a couple of personnel related items. He reported that some reorganizing took place in the Community Development Department, resulting in adding a Land Development Engineering position in Public Works, now for the first time in the budget for the 2005-2006 fiscal year. He indicated that a couple of engineering positions had been paid for from the parking project for the last couple of years. This was a dedicated source of funds; however, the project closed with the opening of the parking garage on May 14, 2005 with the costs returning to the General Fund. Mr. Nordhoff stated he would answer specific questions on 2006-2007 prior to the June 201h meeting. Referring to the section on Insurance on page 8, Councilmember Phillips quoted: "Insurance includes self -funding for dental, liability and workers' compensation..." The second bullet down indicated that Workers' Compensation was almost flat, being $1.8 million and $1.9 million respectively for the two coming years. He noted the number of claims was steady, the cost per claim was rising significantly, yet the provision was about the same for each of those two years. With a significant rise in cost, and the number of claims remaining the same, Councilmember Phillips stated to him that indicated the possibility of increased costs over those periods, yet they appeared to be somewhat similar, and he requested further clarification. Mr. Nordhoff stated that the last sentence in the second bullet point noted Reserves were $4 million. The costs were not necessarily anticipated in the next year, rather in the outlying years as these claims (Spec.) SPJTCCRA MINUTES 06/07/05 Page 4 (Spec.) SPJTCCRA 06/07/05 Page 5 tended to settle out over a long period of time. He indicated that reserves had gone from probably $3.2 million as recently as a year ago and they were projected to be close to $4 million in the middle of the 2005-2007 budget period. He confirmed that the annual appropriations were not being increased, as represented by the $1.8 million or $1.9 million figures; however, staff anticipated having to establish greater reserves. Mr. Nordhoff stated that workers' compensation tended to be adjusted fairly routinely as staff is always trying to assess, working with the third -party administrators, the value of the open claims and how much was currently under obligation versus what needed to be paid in the future. Councilmember Phillips clarified that the reserve was increasing during this period of time for future anticipated needs because of the significant change in the value of those claims. He confirmed that Mr. Nordhoff was comfortable that there were adequate reserves. Mr. Nordhoff stated that adjustments would continue to have those adequate reserves in place for both workers' compensation and liability when the books are closed and the annual audit is carried out each year. He confirmed that it is necessary to show adequate reserves were in place based upon what the third -party administrators calculate; therefore, it was under constant review. Referring to page 10 — Fund Balances and Reserves — Councilmember Phillips quoted: "San Rafael has traditionally been both conservative and practical when...." In making reference to conservative, he assumed that in Mr. Nordhoff's opinion he was not being overly conservative based on historical results, etc. Mr. Nordhoff explained that staff's intention was not to create big year-end surprises for the City Council or the community, whether good or not so good surprises. He stated staff tries to be cautious in revenue estimations; for instance, working with Nancy Mackle to understand what was taking place in Economic Development, looking at historical trends and checking with the County and State. He indicated that expenditures were very straightforward — staff itemizes the cost of each and every employee based upon their bargaining group and salary and benefits. Being fairly accurate, he stated that hopefully, this mitigated big swings one way or the other at the end of the year, and he felt confident in this statement. Noting Mr. Nordhoff had done an excellent job, Councilmember Phillips stated that while difficult, he believed the credibility of Mr. Nordhoff and his department was reflective of the process and he was comfortable that the representation that conservative did not mean that down the road excess funds would suddenly be found. Mr. Nordhoff confirmed it did not mean that. Returning to the Workers' Compensation question, Councilmember Heller inquired why the claims were rising in cost. Mr. Nordhoff stated this was because of paying a lot of open future medical costs associated with these claims. He indicated that in some cases it was found that the duration of the injury had people out of work; therefore, the City was paying for their injury time away from work, particularly for public safety employees. Mr. Nordhoff reported that unfortunately, many of these end up in a litigious status, so rather than being able to resolve the issue between employee and employer, attorneys became involved, which added costs. Although there had been some reform at the state level, no real relief had been directed to public agencies. Responding to Councilmember Heller's question as to whether the trend had changed in the last few years to become more litigious, Mr. Nordhoff stated that it had not necessarily changed, rather was holding fairly constant; however, all the court appearances and associated issues added cost to the process. He explained that this resulted in a slowing down and not getting closure quickly; therefore, the future associated costs continue to rise. Referring to page 5 — Revenue Budget Projections — Councilmember Heller requested further explanation with regard to the Interest and Rents item. Mr. Nordhoff explained that part of this was drawing down monies, similar to using up the reserves; therefore, with less of a pool of dollars to invest, less returns were anticipated. Regarding ERAF, Councilmember Heller noted that the figure for 2004-2005 would be $900,000 and $1.6 million for 2005-2006. She inquired whether the $900,000 was already budgeted for 2005-2006. Mr. Nordhoff confirmed it was in the budget for 2005-2006 and the $1.6 million was in the budget for the following year. Councilmember Cohen echoed Councilmember Phillips' compliments to Mr. Nordhoff and his staff for this report. Referring to the chart on page 7 and noting this was not just the General Fund budget, Councilmember Cohen stated it showed Capital Projects going from $2.5 million to $3.5 million from 2004-2005 to 2005- 2006, yet the text did not provide an explanation, nor did the chart referred to later on in the report, and he requested further clarification on the extra $1 million. Mr. Nordhoff explained that some of these were not necessarily Capital efforts in nature. Monies were held aside to do various projects and subsequent to looking into the data he would break the information down into categories. He noted this came from restricted monies collected over time and now being drawn down. Councilmember Cohen stated it would be helpful to elaborate on this somewhat. Mr. Nordhoff believed part of it referred to grant related activities, etc. and he would provide more detail. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 5 (Spec.) SPJTCCRA 06/07/05 Page 6 Referring to the chart on page 13 — Projected Ending 10% Reserve Balance — Councilmember Cohen confirmed staff was projecting that at the end of this current fiscal year (2004-2005), $5.4 million dollars would remain and at the end of 2005-2006 $2,036,216 would remain. With a difference of almost $3.4 million, Councilmember Cohen noted that it was proposed to spend $3.25 million to close the gap, and he inquired as to the remainder of that money. Mr. Nordhoff stated he would look at the figures and report back to Councilmember Cohen. Referring to page 7 of the staff report- "....maintenance needed on the new Redwood Village Park" facility, Mayor Boro stated it appeared to him that staff should look into a policy whereby as development arose and these types of facilities were added, whether it be for the use of the facility or for the public and the use of the facility, something, such as Mello Roos bonds, be put in place so that the City was not picking up the additional maintenance of these projects. While he believed they were a great asset and great to have, he did not favor continuing to create some of these new facilities and expect the City to maintain them. Mayor Boro stated that in a positive way the burden should be placed (Mello Roos being the approach) on the property owners on that site so that the correct funds were in place to maintain these. Referring to page 8 — Workers' Compensation — Mayor Boro stated that in one way it almost appeared as though the claims were flat and the reserves should stay the same or go down. Noting Mr. Nordhoff's response to the previous questions, he stated he would be interested going forward, in having a review from the administrator of this fund of what they were doing. Being familiar with another agency, he stated they had become extremely aggressive on their workers' compensation claims. They had cut them substantially, conducted education with the employees and rather than letting them age, they aggressively got them resolved as quickly as possible. While he was not attempting to manage those managing this fund, Mayor Boro stated it would be worthwhile to review with the City Council some of the things that were happening and perhaps provide some options for consideration. City Manager Gould pointed out that the City had changed third -party administrators for workers' compensation in the last year with good results. He suggested having a study session on the subject, bring in the third -party administrator and report on what the City could control and what it could not. Responding to Councilmember Heller's questions Mr. Gould, adding to Mr. Nordhoff's remarks, stated that those increases in costs were not going to the injured employees, rather to attorneys, administrators, consultants and consulting doctors. He indicated this was the nature of the system that had gone out of control and as was pointed out by Mr. Nordhoff, the reforms that were put into place last year largely exempted public sector agencies; therefore, the City had not seen the same benefit that a lot of private sector employers had received from workers' compensation reform in California. Mayor Boro thanked Mr. Gould for reiterating these remarks and suggested that perhaps the City should begin working with the existing legislator and talk to some of the candidates running for Assembly to ascertain what ideas they might have and how the reforms could be put in place in the public sector, (they already were in place in the private sector) as he believed people expected that to happen. Referring to page 13, Mayor Boro noted Mr. Nordhoff's comments regarding eating away at the deficit funds by using ERAF funds of $1.6 million and the VLF sale of approximately $900,000, totaling $2.5 million, and with a $3.2 million deficit, the shortfall was approximately $700,000. He requested that Mr. Nordhoff explain going from a balance of $5.4 million to $2,036,216. Mayor Boro thanked Mr. Nordhoff, not just for tonight's work, but for the great work he had done all year, and for presenting these numbers and keeping the City Council and community apprised. Mr. Nordhoff thanked Cindy Mosser and his staff in Finance, indicating they had worked very long hours and did a lot of the underlying work. Hugo Landecker, Gerstle Park Neighborhood Association, complimented Ken Nordhoff on his outstanding presentation. Referring to page 26 of the staff report, Rocky Birdsey noted under Streets — Street Resurfacing 05-06 and 06-07 of $1.2 million, and inquired whether these funds were already allocated. Mr. Nordhoff stated that the budget was being built for these two projects based on collecting Impact Fees from the construction trade and Refuse Vehicle Impact Fees, Gas Tax monies restricted to street paving and Measure A funds. Those decisions had not formally been made by the City Council; however, recognizing that the City was falling behind in the level of street paving, staff had at least earmarked the Measure A funds anticipated for the next two years for that effort. Mr. Gould stated that the Governor's May Revise for the state budget included funding Proposition 42 obligations for the state for the first time since it was approved by the voters in 2003, and that would add a further $240,000 to the City for road resurfacing in the coming fiscal year if it indeed did go through. He indicated it appeared to be smiled upon by the Democrats and have bi-partisan support; therefore, he hoped the City could do a little better than the numbers reflected. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 6 (Spec.) SPJTCCRA 06/07/05 Page 7 Mr. Gould stated that the strategy Mr. Nordhoff had outlined reflected the direction given by the City Council going back to December of 2004 when they were aware the City was facing at least a $3 million deficit in fiscal year 05-06 and probably again in 06-07. He recalled staff indicating to Council at the time that if they chose to, they could start slamming on the brakes by closing buildings, cutting services and laying off staff, unless they wished to consider some alternative. That alternative was on the revenue side and it was understood that the City Council could not legislate a significant tax increase, rather it would have to be a choice put before the voters. Mr. Gould stated that should that no longer be Council's direction, staff would not recommend this budget, rather they would call for draconian cuts now to preserve emergency reserves and try to restore balance to the budget through deep reductions in staffing and service levels. He indicated this was not what was reflected in the staff report, rather it was a steady state budget for one year to allow the community to come to grips with the City's financial situation and decide on what services were most important to San Rafael and whether or not the community was willing to pay a little more to maintain them. Mr. Gould stated this was the community choice and staff had put together one-time funds to hold things together for nine -twelve months and should the City fail to do something on the revenue side, he was sad to say "we go off the cliff" and subsequent budgeting would become much less pleasant that what was before Council this evening. Mr. Gould stated he wished to ensure this was where the City Council wanted to go, putting it all on the table for one year to hold it together to mount the community campaign to make a community choice on service levels and funding. Mayor Boro stated that this was what he and the four Councilmembers had indicated, along with Mr. Gould, as they had gone to the three community meetings. He believed it was consistent, this was what was reflected and it was the will of the Council to go in this direction. Concurring, Councilmember Cohen stated it had been a prudent goal to maintain a 10% emergency reserve and he believed the City was in what could fairly be called an emergency situation, much of it not through the City's making. Spending money year after year out of reserves and pretending everything was fine was not a prudent course; however, to take reserves down to just under 5% for one year while buying time to make choices was prudent. Councilmember Cohen stated the City needed to ensure the community recognized that it was a one-time shot and that amount of money was not available to take next year even if it were felt prudent to zero out the reserve fund. Given the apparent direction in terms of putting a choice before the voters, he believed it was a prudent way to approach this budget. Mayor Boro noted that a few questions were raised which Mr. Nordhoff would report back to Council on June 20, 2005, at which time the budget would be presented for adoption. Mr. Nordhoff stated that Council would be acting just on fiscal year 2005-2006. Staff would show the projections for the subsequent year; however, Council would not be taking formal action on that. 2. PRESENTATION OF TWO-YEAR GOALS AND OBJECTIVES BY DEPARTMENTS, INCLUDING REDEVELOPMENT — FILE 8-5 x R- 103 Citv Attome City Attorney Gary Ragghianti stated that the City Attorney Department's objectives remained the same as with each previous presentation and were listed in the City Attorney Department's summary. Mr. Ragghianti stated it was worth remarking that over the last couple of years an enormous amount of their energy had been sapped by the litigation the City had endured, not only through MHC, but more recently through the St. Vincent's/Silveira issue. Regrettably, he did not see an end to the MHC case soon, despite the fact that the Lingle case had recently been decided by the United States Supreme Court, and the St. Vincent's/Silveira litigation was just getting underway and would probably continue for at least the next year without abatement. Regarding the remainder of the Objectives set forth, Mr. Ragghianti stated they were Objectives staff had previously brought to Council's attention and they would continue to attempt to discharge all of their responsibilities in connection with managing them. Indicating he was happy to answer any questions Council might have, Mr. Ragghianti stated they remained essentially a service department and responded to requests made by all City departments. He noted they had spent a great deal of time, as previously mentioned, dealing with outside litigation matters. Noting General Plan 2020 required a great deal of their time, Mr. Ragghianti stated it had finally been adopted by the City. While they were glad to see it behind them, he commented that it certainly was not over yet because of pending litigation. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 7 (Spec.) SPJTCCRA 06/07/05 Page 8 On behalf of all, Mayor Boro thanked Mr. Ragghianti and his staff for the great job they do for the City. Sharing an incident that occurred approximately two weeks ago, Mayor Boro reported that a resident who was developing several lots for homes came to City Hall in somewhat of a dither because he needed certain things done and was not having success. He (Mayor Boro) went into the City Attorney's office and Eric Davis being there, he turned the gentleman over to him and left. Arriving back in the office the next day at approximately the same time, Mayor Boro stated the gentleman in question was present and he was extremely complimentary about Eric, the concern he showed, what he did and the fact that he truly respected the gentleman's needs as well as the City's needs. Mayor Boro stated he suggested to him that he call Mr. Ragghianti. Mr. Ragghianti thanked Mayor Boro for bringing this up. He stated he was very fortunate to have Eric Davis, Deputy City Attorney, and Gus Guinan, Assistant City Attorney, assisting him, making his job a great deal easier and putting up with him. City Clerk — City Clerk Jeanne Leoncini stated that the City Clerk Department's goal always was to provide accurate, timely assistance to the public, elected officials and City staff relating to the duties and responsibilities of the City Clerk. Ms. Leoncini indicated that some of the Department's objectives for 2005-2006 were the uploading of Resolutions and Ordinances to the City Clerk's web page (to take place in 2005-2006), coordinating a smooth running election in November 2005 for two Councilmembers and two School Board trustees, as well as a possible tax measure. Deputy City Clerk, Esther Beirne, was participating in classes working towards Certified Municipal Clerk status. Currently, she was attending UC Riverside for session 2, and hopefully she would be attending a further session in September, with the final session in March 2006. Indicating that she had been requested to develop and implement a customer feedback survey for the City Clerk's office, Ms. Leoncini stated staff would be researching this with other City Clerks for input. She also stated staff would explore technology updates, including imaging of records and agenda processing; however, this would be pushed back to 2007 due to extensive costs. Ms. Leoncini stated she was proud to report having recertified as a Certified Municipal Clerk in September 2004, and thanks to her staff, minutes had been approved without amendments for quite a number of years. Regarding coordinating a smooth running election, Councilmember Cohen stated it looked increasingly like the Governor would call a special election for November and he inquired whether this would have any impact on the City Clerk's Office. Ms. Leoncini stated it would primarily be a burden on the County and it could help the City in the fact that it spreads the cost somewhat more. Councilmember Cohen stated he appreciated the work to upload resolutions and ordinances, together with the proposed imaging of records. Having previously mentioned the fact that Ms. Leoncini had for some time been serving as the City's semi-official photographer, he believed a digital camera would now truly be appropriate, and he would like to see this placed in the Departmental Objectives for the coming fiscal year. Mayor Boro stated this was taking as long as it did to go from reel tape to cassette. Councilmember Cohen stated it was beginning to take longer, however, he was aware the City Clerk made that transition smoothly and was confident she could make this one smoothly also. Mayor Boro invited Councilmember Cohen to serve as a volunteer consultant with the City Clerk on this project. Having seen some digital camera photographs, Ms. Leoncini stated she believed her little camera took better pictures. On behalf of all Mayor Boro thanked Ms. Leoncini for the work she and her staff does. Being a legend in San Rafael and throughout the County in many ways, he appreciated her readiness to help and to look out for everyone's best interests. Mayor Boro stated he neglected to state at the beginning of the Goals and Objectives that a number of years ago when this was initiated he recalled meeting Ted Gabler, author of "Reinventing Government" who for a short period was the City Manager of San Rafael. Having informed Mr. Gabler of what Council was doing and how they reviewed these Goals, his comment was "probably 70% or 80% of cities would have goals but only 10% of them actually reviewed them during the year." Mayor Boro stated that not only does San Rafael establish them, but they are reviewed throughout the year. He thanked Mr. Gould, the department heads and their teams and groups, for making these real and a basis on which the budget is produced. City Manager— Lydia Romero, Assistant to the City Manager, stated she had the pleasure of quickly going over the City Manager Department's budget summary. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 8 (Spec.) SPJTCCRA 06/07/05 Page 9 Regarding Goals, as discussed earlier, they were seeking approval of a new revenue source for the City to accomplish services and restore the quality of life and public services. In tandem with that was to continue economic development projects with the Economic Development Department. She stated staff would continue monitoring state legislation with the MCCMC (Marin County of Mayors and Councilmembers) legislative committee, both on federal and state legislation. Ms. Romero stated that the City Manager's Department would ensure ADA (Americans with Disabilities Act) compliance with the federal mandates. She confirmed for Mayor Boro that the City Newsletter, City Focus, would continue and she was evaluating development of a web format for more updated information on the web, making it more interactive. Regarding the Volunteer program, Ms. Romero reported that an anti -litter campaign — San Rafael Clean — commenced on May 22, 2005, headed by Cory Bytof, Volunteer Coordinator, solely using volunteers to help clean up litter on San Rafael streets. Noting Cory Bytof does a great job in his capacity, Mayor Boro inquired as to the number of volunteer hours, number of people who served as volunteers and dollar value. Ms. Romero confirmed the dollar value at $1.3 million. Mayor Boro stated it was a great program and very supportive of all City departments. Mayor Boro thanked Lydia Romero for her great work, also thanking her staff. Community Development — Reflecting back on Community Development's accomplishments over the past two years, Community Development Director Bob Brown stated that first and foremost was completion of General Plan 2020, which was a Herculean effort, and he hoped the City Council agreed that it met their directives for a citizen produced plan. He indicated that large development applications were somewhat sparse over the last two years due to the economic downturn; however, Redwood Village and the Vineyards projects were completed and recently, Best Buy was approved. Mr. Brown reported that because development was down staff took the opportunity to update many ordinances for the City, including the Sign Ordinance, Telecommunications Ordinance, a new Boating Sanitation and Dock Safety Ordinance, the Eichler ban on second stories and improved public hearing noticing. Because of stable staffing, Code Enforcement was able to greatly increase its productivity in the apartment inspection program. Looking ahead to the next two years, Mr. Brown reported that staff's major focus would be on re -staffing and re-engineering the building permit process. This would include coordination with other departments, improving processing times and being more attentive to disabled accessibility issues. He indicated that new building official, Thomas Ahrens, would spearhead that effort. In current planning, Mr. Brown stated staff was still processing the Loch Lomond Marina Village project and he indicated that there were several major projects anticipated, including revisions to the Masterplan for the San Rafael Corporate Center, potential reuse of the Marin Technology Center, redevelopment at Marin Square, a major Kaiser Hospital Masterplan, Dominican University's new Science and Technology building, and an expected proposal for development for portion of the Elks Club property. Mr. Brown stated that huge strides would not be made in implementing the new General Plan. Council would recall that as part of cost saving efforts, a position had to be eliminated in long-range planning (now just Linda Jackson). Mr. Brown reported that Linda Jackson, Principal Planner, would continue working on the SMART (Sonoma/Marin Area Rail Transit) proposal and reviewing the EIR (Environmental Impact Report) with LAFCO on the City's Sphere of Influence study, with the County on their Countywide plan update, and with ABAG looking at their next housing needs allocation process. He indicated that Ms. Jackson would also have a major role in the Canal Mobility Study being coordinated by TAM (Transportation Authority of Marin). Mr. Brown stated that to tackle some of the more meaty General Plan programs, some specialized assistance would be needed, which has an attendant cost, as would be seen in New Service Requests; however, these were not being recommended for funding at this time. Lastly, Mr. Brown reported that he expected Code Enforcement would continue to be very effective. Noting the Goals included creating an educational program on City Planning for elementary and high schools, Mr. Brown stated staff believed it was time to start recruiting future Planning Commissioners at a very young age. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 9 (Spec.) SPJTCCRA 06/07/05 Page 10 Noting the Schools Career Program (Mr. Brown reported that the City was a participant), Mayor Boro stated it was great to get young people involved, especially those with an interest in the building arena, whether an architect or engineer. Mayor Boro thanked Mr. Brown for his and his department's work. He commented that Linda Jackson had done a superb job on the General Plan and continued to work on issues such as SMART, TAM and other areas of great significance to the City, in a quiet and effective way. Regarding the recent update to the notification process, Councilmember Cohen stated that the signs that were developed really made a difference and was a much more noticeable way to get the word out and he appreciated the work done on it. Mr. Brown stated that originally 20 signs were ordered and there now were 40. Councilmember Heller inquired whether a lot of questions were being received from the community as a result of these signs or whether people just took the information from the holders. Mr. Brown stated he did not believe there had been a huge increase in participation. The signs were noticeable and their effectiveness or otherwise would be seen over time; however, staff believed they were getting the word out. Communitv Services — Community Services Director Carlene McCart reported that in the last two years Community Services had reinvented itself by rearranging and adjusting operations, reassigning staff to operate in a leaner budget time and yet they were proud of the major accomplishments they attained - first and foremost being the progress on the Pickleweed Community Center and Library. She indicated that along with their colleagues in other departments, they had taken the project through the design process, through planned development, all of the reviews, got the project from bid to construction and they now sit at the construction management table as end users participating in some of the day to day decisions. Ms. McCart reported that with Mayor Boro and Councilmember Miller, staff had been working steadfastly on the funding scenario and they were proud that up to this evening they had over $2 million in grants amassed for the project, over $600,000 in private donations and combined, over $4 million in federal, state, county and Redevelopment Agency funds and they were certain that under this leadership, they would realize their funding goals. Ms. McCart reported that other accomplishments in the last couple of years included a collaborative effort to produce the best skate park in Northern California. With the way it was being used and the number of people using it, she believed it was truly appreciated by not only the skaters but the families of the skaters, and it was a wonderful success story. Reporting that they had worked with other staff to move the Redwood Village Park through design reviews and construction, Ms. McCart stated they also had completed renovations at Santa Margarita, Gerstle and Bret Harte parks. Having received grants for Pickleweed, Ms. McCart called attention to the fact that staff had actively been seeking grants for other areas of operation in Community Services. Grants had been received for programs, specifically in the Canal area, Childcare Division - Pre-schools, Falkirk and park development projects had all been recipients. Under new management at the pool there had been increases in revenues and uses, in some categories up to 50%. The Childcare Division expanded by one campus, pre-school programs had been expanded and after-school programs for both youth and teens had increased. Ms. McCart reported that recreation programs through contract services had increased, particularly in teen sports and senior travel and with Council's support they had moved their operations forward by using technology, which was now becoming more common in the industry. Ms. McCart reported that their objectives through the next two years were to focus on internally upgrading services to attract and maintain a larger market share of customers and to capitalize on opportunities to partner in the provision of services and development of facilities. Ms. McCart stated that in the next two-year budget they wished to expand their joint use agreements to include more schools. Use Agreements were currently in place with Dominican University, Marin Academy High School and to a certain extent, with College of Marin; however, they realized that all of the outdoor recreation facilities in San Rafael were either held by the City or the School District; therefore, they would work more diligently towards more joint use agreements. Indicating they would update their in -lieu parkland dedication policy, understanding there were few opportunities now for additional housing projects that would contribute either to new recreation facility inventory or to support existing inventory, Ms. McCart stated staff wanted to ensure that the City's policy for in -lieu parkland dedication was contemporary. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 10 (Spec.) SPJTCCRA 06/07/05 Page 11 Throughout the various division objectives, Ms. McCart stated Council would see staff had focused on two things across the board — professional development and marketing. In the professional development area she indicated staff was being requested to do more with less and a primary goal was to ensure everyone was cross -trained. She stated that when the Pickleweed Community Center is opened the entire management staff would be there to support Dave Donery in operating what they believed would be the most active facility. From custodial up, staff was gearing up towards this. Ms. McCart stated that the marketing strategy was due to be updated; this had not been done for approximately five to six years and staff wanted to be less reliant on printing, publishing and mailing, and more on website and electronic communication with the customer base. Reporting that in the next two years they would launch into planning a cultural arts vision plan for the City, Ms. McCart indicated they now were recruiting members of the community to help serve on that study process that would go into other communities in California to ascertain how they had incorporated arts as a policy communitywide. Ms. McCart stated they would upgrade and boost their recycling program, specifically for the community centers and Falkirk. They would conduct customer surveys across the board in the five divisions and they would focus also on the DOJ (Department of Justice) as it applied to services and employee training. Ms. McCart stated that her dedicated and capable staff was present this evening should there be questions concerning particular division goals or objectives. Councilmember Heller stated she was amazed through the past few years at how many new facilities were put together. She realized Ms. McCart was not anticipating this when she was recruited; however, they had arrived fast and furiously and Ms. McCart and her entire staff had done a wonderful job of taking hold of projects, putting them together and seeing them to completion. Councilmember Heller commented that she would not rest until she received her south of the hill swimming pool. With hats off to Ms. McCart and her staff, Councilmember Phillips inquired as to what types of changes were taking place in Childcare. Indicating there were two major trends affecting the Childcare Division, Ms. McCart explained one was that the school districts were tending to elongate the Kindergarten day, which meant that younger students would be starting school at 8:00 — 8:30 a.m. and finishing with the other elementary grades — 1:30 or 2:00 p.m. Currently, centers open and are fully staffed and operating at noon, with a half-day Kindergarten program, now these staff people were not being engaged until 1:30 p.m. or later. She indicated that this would cause a readjustment of staffing and conversion of some full-time positions into part-time positions. The other end of that trend was a statewide and probably a national movement to institute pre-school across the board; therefore, pre-school programs were being increased also. Explaining that there currently were three classes of pre-schoolers at Pickleweed, Ms. McCart reported this would be expanding that program to Gallinas school next year. This was a grant supported service and subsidized pre-school. She reported that Parkside had readjusted its programming to include a half-day pre-school fee based class. Learning of a possible decline, Councilmember Heller inquired as to anticipated numbers of school system entrants. Having heard similar comments, Ms. McCart stated she was unaware of specific percentages. Looking at the trend with respect to summer programs, Councilmember Cohen indicated he had heard an interesting radio program about the increasing level of interest in enrichment programs. He indicated that his family at times had to travel out of the county to find such programs. In terms of content he believed it would probably be more appropriately done by either the San Rafael School District or Dominican University; however, in terms of the mechanics of putting on a program, registering it and making it work, he suggested it could be more suited for the City. He inquired whether Ms. McCart had any discussions with either school system about trying to make something like this available. Ms. McCart reported that San Rafael was offering scores of different types of camps this summer, only two of which were general recreation types of experiences. She indicated that the remainder ranged from robotics, language, gymnastics, etc. While they had not entered into more of an academic arena, they had made a proposal to the Dixie School District to partner with them to run an elementary school and middle school summer school program to include the academic curriculum they offer during the summer, and they were still in the discussion phase. Councilmember Cohen encouraged Ms. McCart to also have discussions with Dominican University as he believed there was a lot of interest in the community in these types of programs. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 11 (Spec.) SPJTCCRA 06/07/05 Page 12 Noting Bret Harte and Santa Margarita Parks were mentioned, Mayor Boro inquired whether the playground equipment was now up to current requirements in all parks. Ms. McCart stated she would defer to Public Works Director Andy Preston before indicating that everything was up to speed. She indicated that everything that could be done in-house was done and the playgrounds referred to were those that needed complete replacement, which was finished. As pieces of equipment break down they are being replaced with code compliant equipment. She confirmed that at this point the project that began approximately four and a half years ago was 90% - 95% finished. Mayor Boro noted that the Marin History project - an objective for next year - was already started, and due to open within the next year and would be a great addition to the City. As visitors came to the site, he commented that it could be a real opportunity to interact with and complement Falkirk and perhaps help with rentals. Mayor Boro complimented Ms. McCart and her department on their many accomplishments. Noting Childcare was an amazing project in the City, he stated that at last count there were 1,400 children — approximately 1,200 families. It was a great community service, completely paid for by those who use it and in today's environment and society he believed it important to provide a safe place for children to go when their parents were at work. Noting an initiative concerning preschool down to 2 years old would be on the November ballot, sponsored by Rob Reiner, Mayor Boro stated he would be interested in what the legislature would do and questioned whether it was intended to be borne by the schools or whether organizations such as the City's could be licensed to participate. Complimenting Ms. McCart and her staff, Mayor Boro stated he particularly wanted to thank Dave Donery for the great work he had done with Pickleweed. It was a tremendous project for the City and Mr. Donery had done an excellent job on it. Ms. McCart expressed thanks for all the City Council support. Economic Development/ Redevelopment Agency - Economic Development Director Nancy Mackle stated that the small Redevelopment Agency staff, consisting of three full-time employees, a part-time Events Coordinator and the Economic Development Director, were part of a larger team. Noting projects on Community Development, Community Services and Public Works lists were also on her list, she explained that Redevelopment works very closely with the other departments to put projects together. Ms. Mackle forecasted where staff's energy would be focused for the next two years: • East and West Francisco Boulevard — staff was working hard to create new car dealerships and improve some of the older ones — Toyota, Dodge and others on the West Francisco side, along with the Highway 101 improvements. • It was hoped to bring a hotel to the downtown. • Staff would work with Phase II of the San Rafael Corporate Center to see what would be best for the downtown on that site. • The grand opening of Kimballs downtown. Ms. Mackle indicated that while they had been slowed down by some extra costs, they would locate to San Rafael. • In the area of public and quasi -public projects, staff would work hard to bring the Marin Community Clinic to the Canal neighborhood. Ms. Mackle reported having talked to the Executive Director and they both were committed to working together to try to find them a home in the Canal. • Public Projects — Medway/Canal and West End sidewalks — staff was working closely with Public Works to bring these projects to fruition. • In the area of housing, infill sites would continue to be worked on downtown, as well as at Northgate Mall, Marin Square and the Windward Way site. Regarding Windward Way, the General Plan called out that a portion could be developed if there was a park on the site. • Continue working with non-profit agencies for acquisition and rehabilitation as projects arose. • Events — staff was always working to promote the downtown to bring new events to the area, noting the Italian Street Painting Festival would take place this weekend. Classic traditional (Spec.) SPJTCCRA MINUTES 06/07/05 Page 12 (Spec.) SPJTCCRA 06/07/05 Page 13 events include: Italian Street Painting, May Madness Classic Car Parade, Parade of Lights and Winter Wonderland and Snow, and the Farmers' Market, and staff had been working hard over the past several years, and would continue, to bring new events. She indicated they would help events such as the Wine, Blues and Artworks events to grow, and of course, the Great Race 2006. Regarding funding, Ms. Mackle reported that for some time staff had been working to try to secure a better future for funding for a couple of projects, including operating; however, this had been made more complicated by state budget problems — ERAF shifts, etc. She indicated that Mr. Gould, Mr. Nordhoff, consultants, legal counsel, she and her staff all were working on this and hopefully, they would make something work. Regarding the Chamber of Commerce and Business Improvement District (BID), Ms. Mackle reported that their funding was cut back a couple of years ago when Redevelopment Agency funding was slashed to try to extend available funding at the time. She indicated that staff was working with the BID under Goals and Objectives for the next two years to ascertain if there were ways to improve their funding, whether to increase their geographic area or change who became a member. This would be a large task as it was an assessment district with a particular process, and the Agency was trying to help plan for when or if it did not have its own funding. Ms. Mackle stated they hoped to work with the new Chamber of Commerce Director to see what other revenue sources might be available. Councilmember Heller commented that Redevelopment had been one of the most wonderful tools this City and many others had been able to use, and she inquired as to its future. Indicating she did not know what was next, Ms. Mackle stated that prior to Redevelopment there were block grants and different types of federal funds. Indicating there always would be a need for blight removal, economic development and affordable housing, she was confident there would be something. As reported in the staff report by Mr. Nordhoff, there was an end in sight for the Redevelopment Agency. In terms of department objectives over the next couple of years, Councilmember Cohen believed it was time to put some effort into retail, not large retailers or retail infill development so much as looking at opportunities when vacant spaces appeared. In looking at income figures for San Rafael and Marin County and the outrageous, unbelievable real estate prices, he believed some demographic change was taking place in the community and he questioned whether some outreach should be done. He recalled some years ago visiting Fourth Street in Berkeley to look at some of the work they had done and the type of retail they were able to attract. He stated there was a theoretical upper limit to the number of expensive coffee shops San Rafael could support; however, Pete's very clearly demonstrated that this had not yet been reached. He questioned whether more could be done to attract high caliber retail. Ms. Mackle stated she did not include this in her Goals and Objectives; however, they had discussions in this regard with the Chamber of Commerce recently, specifically concerning working with property owners and brokers. Mr. Gould stated that the biggest opportunity site for retail in San Rafael was by far the Northgate Mall. There had been so many discussions over the years with nothing to show that neither Ms. Mackle or Mr. Brown had shown it as an objective for the next two years. He indicated that the vice-president for development continued to state he had a bold vision and would present his latest ideas in a week and a half. Mr. Gould stated that at some point the company would realize they were losing the mall and must reinvest in it to begin to turn it back to profitability. By reinvesting in and renovating the mall and creating more excitement there, better retailers would be attracted which would increase commerce, benefiting the owners and the City, and staff saw a great opportunity to facilitate that. Reporting that Macerich constantly wanted the City to participate financially in the renovation of the mall, Mr. Gould stated this was not something the City had encouraged; however, staff would be happy to entertain an application to work with the community to make the most of it. He reiterated that this was where he saw the major opportunity to upgrade retail in town. Regarding the term "saturation marketing", Councilmember Heller questioned why a small town like Mill Valley could have a Banana Republic on their main street. She noted that when Mr. Jim Schafer was looking for retailers to come into San Rafael he did not find any satisfied with the market they might find in San Rafael. Ms. Mackle stated that the feedback she had been getting, not just from Mr. Schafer, but from other brokers and representatives of properties, was that it was very hard to get, or there was a price to get some of those big names in town. She reported having a discussion at the Citizens Advisory Committee on Redevelopment meeting recently about who they were attempting to get to fill in the Beverly's fabric store. A national retailer was mentioned; however, so much had to be given up to obtain this retailer there was uncertainty it would come to fruition and perhaps, more could be achieved with the locals. She indicated the other feedback was that some retailers wanted to go where anchors (Spec.) SPJTCCRA MINUTES 06/07/05 Page 13 (Spec.) SPJTCCRA 06/07/05 Page 14 were already established; therefore, it was a question of getting the first one in. She noted spaces downtown were mostly smaller and commented that some feedback favored not having chains and looking like every other downtown, while others wanted chains. Mayor Boro stated he liked the idea of working with the BID and Chamber of Commerce and perhaps two or three representatives of property owners. Noting this had been wrestled with for a long time, he commented that there had been a big change in the downtown — 700 housing units was a whole new base — together with the activity taking place at night, during the week and on weekends. He suggested that perhaps this data should be refreshed and made available. Regarding the tax sharing agreement with the agencies, Mayor Boro suggested that after the November election it could be worthwhile to have one or two Councilmembers work with Ms. Mackle and perhaps one of the three Board of Supervisors members who represents the City to discuss Redevelopment needs and the benefits to the County and City. He suggested also working with the school districts as he believed a couple of policy makers needed to be involved. Councilmember Phillips reported having the pleasure of meeting with the Chamber of Commerce and BID with staff members Gould, Nordhoff and Mackle monthly and indicated that they represent the City well in that setting. He noted their enthusiasm and knowledge of the community was evident and said a lot for the City. Further to the comments made by Mayor Boro and Councilmember Cohen specifically concerning the infamous PG&E site, Albert Barr stated that the Redevelopment Agency was negotiating with the Corporate Center to perhaps reconfigure this. He indicated that the Vision in Action Committee of some years ago generated the infamous statement "No Big Box." Mr. Barr stated it was incumbent upon the City, in light of the revenue shortfall, to take a second look at that as it did not make sense to have residents of San Rafael going to Novato to do a significant amount of their shopping. While he was not suggesting a Costco be located there, he believed some retail component to that project was appropriate. As to who would take that second look, Mr. Barr noted the Redevelopment Agency was keen on focusing in on a cinema or hotel and he suggested that should a retail component be considered for that site, an independent consultant or committee should be appointed to work with the Redevelopment Agency and City Council in coming up with a different strategy that would generate more revenue from that site. Mayor Boro stated that staff had been working with the current owner - the new owner about to come on board - and would continue to do so. He noted some other PG&E sites, particularly where their administrative building is currently located, where staff had been working with PG&E and Century Theatres and this would continue as he believed multiplexes in a downtown bring people which in turn bring sales tax, etc. Should changes be decided for the Corporate Center he indicated that members of the public would be invited to work on the issue. Councilmember Cohen stated the City was certainly faced with revisiting the appropriate use of that site, some of which was driven by the market. He issued an assurance that the Council sub -committee consisting of himself and Mayor Boro and staff, were looking at every opportunity to see in a reconfigured site a way to address the revenue needs of the City. He believed one of the challenges of retail there was the circulation impact, explaining that essentially, it needed to be fitted, in terms of its traffic footprint, into the existing capacity allocated for what was proposed to be 450,000 square -feet of office. He noted there were not a lot of options on existing City streets to reconfigure further and add traffic capacity to do significant retail; however, they were constantly looking at ways to achieve that. Mayor Boro thanked Ms. Mackle for her and her staff's work who were always a delight to see and be with. Fire Department — Division Chief Ritt Hewitt stated that the loud and clear message from the public during recent community meetings was that they wanted the Fire Department there fast and know what they were doing; therefore, most of the initial goals reflected that. He indicated this involved the ability to respond and be configured in such a way that they could continue to do that even as the workload picked up; therefore, all the first goals addressed times and effective response. While an easy priority to set, he commented that it was a difficult one to always maintain. As part of this he indicated they wanted to review and gather accurate data to be able to demonstrate that they were accomplishing their goals. Division Chief Hewitt indicated that the Critical Facilities report clearly indicated that the fire stations needed some work and as part of that process, staff wanted to look at opportunities to perhaps consolidate stations. He indicated that they wanted to conduct some research into whether this could be done while maintaining their response capability. Fire Station #1 dates back to 1918 and the later stations in the 1950s and 1960s, and obviously the City had changed a lot in that time. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 14 (Spec.) SPJTCCRA 06/07/05 Page 15 Division Chief Hewitt outlined the following: • Staff wanted to prepare for the Paramedic Tax Measure which requires a two-thirds majority. • They wished to implement a work group performance building, noting a significant turnover in staff in the Fire Department, top to bottom, and wishing to ensure they maintained their momentum, it was hoped to hire a national expert in this field, who happened to reside in Terra Linda. • Staff was reviewing the operation of the Fire Prevention Bureau and its relationship with the Community Development Building Division to try to ensure the City's priorities, apartment inspection program, plan checking for development, etc. were being met, and he suggested that perhaps they needed to stop doing some things in other areas to carry out these tasks better. • The Fire Department wanted to continue the work done by the City Council with Marinwood. Staff was looking at the anticipated unfortunate loss of that relationship as of July 1, 2005; however, hopefully the vote tonight would be to continue that. • Staff wanted to evaluate and implement engine company paramedic delivery. The proposal to do this citywide could not be funded; however, there was a pilot project that could be funded in the Loch Lomond/Peacock Gap area, which had worked very well, particularly when the downtown ambulance was unavailable and it was necessary to wait for the Terra Linda ambulance to respond, and having a paramedic there had made a huge difference in some cases. Regarding recent accomplishments, Chief Hewitt noted: • The Fire Dispatch Center was up and running; the Fire Prevention Bureau had moved there and staff would spread out in the administrative headquarters. • Some positions had been created and filled and some more would need to be filled, which would be a challenge. • A new schedule had been implemented for firefighters, along with a different staffing pattern, some of which was the result of labor negotiation and some as a result of attempts to cut costs. Equipment had been moved around to try to better respond to the pilot program at station #5 where the paramedic and a ladder truck had been moved from that same station down to the Canal area, with good success. Regarding Department Objectives, Councilmember Phillips noted the references to Maintain; however, the second point did not reference Maintain, and he questioned whether this was a new standard. Responding, Chief Hewitt stated this was a new way of phrasing what they always tried to do. It was not only talking about getting there quickly, but being effective. He confirmed for Councilmember Phillips that it was an improved service and probably a more practical way to term for Council and the public what it was they try to do. Regarding Department Objectives with respect to Marinwood, Councilmember Cohen stated he would like to see it revised a little, assuming, hopefully, that the Marinwood Community Services District did vote this evening to accept the agreement negotiated with a couple members of their board. Chief Hewitt stated he was assured that the comments made by the gentleman last evening were not shared by all those in the Marinwood meeting tonight. Councilmember Cohen stated he was pretty confident it would be approved, and that being the case the intent was not to explore the long-term relationship but to redefine/reinvent/restructure the relationship and the way the City provides fire service to North San Rafael and Marinwood within the next year. To paraphrase former Fire Chief Martin, Chief Hewitt believed they were dating with the intention of having a deeper relationship. Councilmember Cohen stated the goal for the next year was to finish the exploration in the next couple of months and implement through the remainder of the fiscal year, so that twelve months hence, a new structure would be in place. Chief Hewitt stated that it was important not only in terms of governance and budgeting, but operationally, they were as close as they could be given the current circumstances; however, it could be better. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 15 (Spec.) SPJTCCRA 06/07/05 Page 16 Regarding "Evaluate and Implement Engine Company Paramedic delivery", Mayor Boro stated he believed it was supported by all and he was to glad see it was operational at station #5. He understood that going forward in hiring, new hires would be paramedics. Chief Hewitt confirmed they currently were in the hiring process for two, possibly three, firefighter/paramedics, all of whom were certified paramedics, and the intention was to continue to do that until a robust number to provide choices was achieved. When personnel gets thin at that particular position, they have to be pulled back to primary rescues; however, with more, different choices could be made. Mayor Boro believed it made great sense as often times people ask why it was necessary to roll out an engine and paramedic unit. This had been answered in different ways, one of the reasons being that often the engine can get there first and initiate some type of life-saving service and obviously, with a paramedic on the engine they could really intervene. The other reason for both showing up was that often the patient was in a position that two people could not handle and more help was needed, and the mere fact of striving to have a paramedic on every engine arriving at the scene was a great goal and he hoped it could be accomplished. Chief Hewitt stated that currently, depending upon staffing, approximately half of the companies — station #1, station #6 and station #5 — most of the time had that capability. Mayor Boro thanked Chief Hewitt for his personal contributions and for being in attendance this evening and requested that he thank all in the Fire Department for a great job. Library — David Dodd expressed thanks for being able to talk about San Rafael's great library. He indicated there had been a lot of accomplishments in the last couple of years, most of which he was not in San Rafael for; however, he was very aware of them. Mr. Dodd outlined some of these accomplishments, including securing the grant for the Pickleweed Library from the California State Library, and major website upgrades. With the provision of electronic resources, it was now possible to download audio and e -books from the website. Thanking Kay Noguchi, Mr. Dodd stated that as Interim Director, from what he could tell, she had turned the organization around in a big way. He noted there now were regular staff meetings and a much broader sense of communication and participation among the staff, which he believed was largely due to Kay taking the reins. Mr. Dodd thanked the entire staff, noting the library had a broad and deep collection, and with 120,000 items in that small building, it was possible to find out anything one wanted to know, which was the big accomplishment of a library. Mr. Dodd stated that staff had set some goals for the coming two years that sought to expand what they did, given the limited resources: • The need to improve services to the Spanish speaking community, particularly in light of Pickleweed. A major goal was to bring a bilingual librarian on board and a grant was being applied for from the State Library to expand and improve services to the Spanish speaking community. • A major goal was to plan for and open the library at Pickleweed. This was not a light matter in that the collection needed to be expanded and a lot of work needed to be carried out. • Improve technological capabilities, both for staff and the public. The library had the excellent cooperation of the City's IT (Information Technology) department and cooperating with Mark Rinkel, IT Manager, and his crew had already proven to be a huge leap forward in terms of response time and getting things done quickly. • Staff would like to look at the facilities issue, both as a long-term issue in terms of getting a new library, and as a short-term issue, how to be good stewards of the already available resources; therefore, he proposed some work on that building while evaluating how to position the library to move forward towards a new facility. Councilmember Heller requested expansion on the physical problems of the building. Mr. Dodd explained that the building was comprised of two parts: A 1908 building and a 1960 addition which added approximately 10,000 square -feet to what originally was a 5,000 square -foot facility. He indicated that oddly enough the new addition was probably the part giving the most trouble in that it appeared to be absorbing water like a sponge. There was evidence that the rebar inside the concrete (Spec.) SPJTCCRA MINUTES 06/07/05 Page 16 (Spec.) SPJTCCRA 06/07/05 Page 17 was rusting from the inside out and corners of the building where the concrete had broken away could be seen. Mr. Dodd indicated that black lines could be seen along the concrete which staff believed was evidence of mildew inside the concrete. On the Carnegie building he indicated there was an issue with the windows which were large, tall aluminum windows set inside wood frames, and apparently over the years, aluminum and wood contract at different rates, causing stresses and failure of one window. Councilmember Cohen complimented David Dodd and his department for the enhanced web presence and web services. Noting the department objective of adding wireless internet access, he thought this was great and really liked the idea of being able to broadcast from the lawn. Mr. Dodd stated he had it on good authority from Mark Rinkel that this could be done. Mayor Boro stated that in the short time David Dodd had been with the City he had made a great impression. He thanked Kay Noguchi and all the library staff and commented that whenever he goes in the library helpless, he comes out helped, which he appreciated. Management Services — Assistant City Manager Ken Nordhoff stated that Management Services was a fairly diversified grouping of services and four people in the back of the room put the majority of objectives and indicators together — Cindy Mosser, Finance Manager, Mark Rinkel, I.T. Manager, Chad Lynn, Parking Services Manager and Adela Gonzales, substituting while Sharon Andrus, Human Resources Manager, recovers from a serious automobile accident. Mr. Nordhoff stated the City Council was aware the City had been doing a lot more ADA (Americans with Disabilities Act) compliance and while this had not been ignored historically, staff was certainly more attuned to it. He noted the City has a Settlement Agreement that attention has to be paid to that contained some very specific deadlines and some objectives to be met, some of which were program issues and some barrier removals at facilities. Serving as the City's ADA Coordinator, he stated he actually involves a number of departments who have to assist in getting all this done. Mr. Nordhoff stated Council did not have to be reminded that staff spends a lot of time on fiscal matters and would continue to do so, and would be spending many meetings over the coming two years working through keeping the budget balanced. Indicating that all of the labor agreements would lapse in the middle of this two-year budget cycle — end of June 2006 — Mr. Nordhoff stated that staff would be working ahead of time with Council to obtain some strategic thinking about where that goes and then sitting down and negotiating upwards of nine bargaining unit contracts over the next year or so. On the technology front, Mr. Nordhoff stated that websites had sprung up throughout the City in various shapes and formats when there was not really a cohesive effort, and Mark Rinkel had generated a committee of in-house staff who were working on how to consolidate that and improve the website. This would include not only static information and ADA compliance, but would try to accommodate interactive needs of various departments, etc. Hoping to see some kick-off in the fall, he indicated that staff would work with the ADA committee and others to ensure everything was compliant. Mr. Nordhoff stated he was unsure as to how old the City's telephone system was; however, like many of the aged infrastructure in the City, it needed some attention, and Mr. Rinkel would work across the organization to ascertain a way to make a phone system upgrade and improve some technology capabilities. In the area of Parking, Mr. Nordhoff stated that from the menu of items, he called out some of the more community based initiatives dealing with offering parking validation and other opportunities to downtown businesses. He indicated that there was a lot of technology that Mr. Lynn had been instrumental in putting into place which now could be taken advantage of for events, etc. He indicated that staff would be working cooperatively with the Chamber of Commerce and BID to accomplish this. Regarding the upcoming labor negotiations, Councilmember Cohen stated that in the area of Workers' Compensation, an objective needed to be set over the next fiscal year to really evaluate this issue more aggressively. Not having familiarity with the public sector, he indicated that on the private side, there had been a lot of stuff happening. Should it be a legislative problem it should be looked at, as well as considering what was happening on the private side. He indicated that his reason for tying this into labor relations was that it was not just in the insurance market, rather some of the legislation did create some opportunities in the context of collective bargaining. Specifically, he reported that he was involved with a consortium of building trades unions and employers that had put together an ADR (Alternative Dispute Resolution) program, which speeds the processing of claims, reduces litigation, thereby getting injured employees back to work quicker, getting them the needed medical attention, cutting down on the bureaucracy and attorneys fees and saving employers money while maintaining or improving, if not benefit levels, speedy resolution of problems that injured workers face. Councilmember Cohen stated they had been very pleased so far with the success of that program. While it was a private sector (Spec.) SPJTCCRA MINUTES 06/07/05 Page 17 (Spec.) SPJTCCRA 06/07/05 Page 18 model, he believed it was worth exploring prior to getting into negotiations and he would be happy to work with Mr. Nordhoff on this. Throughout the City in general with regard to computer systems/work stations, etc., Mayor Boro recalled that several years ago putting standards in place was discussed and he assumed this had been accomplished from work location to work location. Mr. Nordhoff stated that there were standards for both hardware and software and as new equipment was acquired it had to meet those standards. He noted that the standards continued to move and Mark Rinkel was working through a process that as equipment was acquired the standards were re-evaluated in concert with replacement equipment. Mayor Boro stated that at one time there was an effort on some internal conversions, payroll systems, property records, etc., and there were issues with the Police and Fire Departments with regard to their data bases, and he inquired whether these had been resolved. Mr. Nordhoff reported that major upgrades had taken place in the Police, Fire, Finance and Human Resources; Community Development had done permit permitting installations and there was registration software in Community Services. He confirmed that all the major system conversions first raised in the five-year technology plan had been accomplished. He indicated there would come a time when it would be necessary to start recycling through that; however, hopefully, they would not have to be bundled as tightly as previously because so many had been neglected for so long. Mayor Boro stated these had been silent accomplishments which was a great way to conduct a conversion takeover. Indicating that Mr. Nordhoff had received all the accolades he was going to get this evening, Mayor Boro stated he had a great staff with Cindy Mosser making Mr. Nordhoff look good all the time. He gave a special thanks to Mark Rinkel and Getty Ejigou, Network Analyst, for getting his new Palm Pilot off the ground, noting he had not had to visit the IT Department in three weeks, and like the Police Department, they had not given him the combination to the door so he had to knock before entering. Mayor Boro stated he was aware how Mark Rinkel worked so well with everyone throughout the City in all departments and he thanked him and everyone in the IT department. Police Department — Adding his own thanks to Management Services, Police Chief John Rohrbacher stated that the Police Department, being a large department in the City, probably rivaled Mayor Boro in time demands for Management Services and Information Technology. He noted that the type of technology now in the Police Department, Dispatch, Cars and Desktops, was amazing and the support received from IT to keep that going was appreciated. He commented that Mark Rinkel was their's first and they still received a lot of service from him. Chief Rohrbacher stated that as the new department head and Chief of Police he really appreciated the work Ken Nordhoff, Cindy Mosser and Van Bach had done in helping him and his new Captains to develop their budget. He stated that in addition, having requested in-house classes for the accounting software, Ken Nordhoff and Cindy Mosser conducted a number of half-day classes which were really appreciated. Regarding the Police Department's overall goals, Chief Rohrbacher stated that the main department goal remained the same. Staff believed the primary mission was to reduce crime and disorder and the fear of crime. He indicated that this was done through commitment to the community and use of resources. Chief Rohrbacher reviewed overall department objectives for the next two years: • Partnership with the City Schools — a grant that pays for half of a second school resource officer, which covers the time the officer spends in the classroom with "Project Alert" — an anti-drug information and education component for middle school students, replacing the DARE program. • Continue pursuing the public involvement with officers attending community meetings — several dozen were attended starting last September when he did his first mailing to the community groups inviting them to invite him and the beat officers to attend their meetings. This was repeated beginning in March. • Other items related to the use of technology and how it aided staff in doing their jobs. They wanted to work on auto theft, gang -related crimes, street prostitution, pimping, quality of life complaints concerning public drinking, litter, larceny crimes, auto burglary and identity theft, and without the use of technology to work smart this would be very tough to do. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 18 (Spec.) SPJTCCRA 06/07/05 Page 19 • Staff would like to work on a customer satisfaction survey. Chief Rohrbacher stated that for a lot of years staff relied on looking at how many complaints were received versus how many good comments were received. Noting the complaint rate was very low, he indicated they would like to have a customer survey component, probably using the website. Chief Rohrbacher stated that the Police Department was divided into two large programs — Operations and Support Services — and he had listed individual division goals and objectives for these. Some were overall department goals; however, Operations covered everyone in uniform — traffic and beat officers - continuing to work on reducing injury and fatal traffic collisions through enforcement. He noted the Pedestrian Safety Program and the "Avoid the Marin 13" Program and the use of radar trailers which now were permanently attached to two cars originally scheduled to be retired. Chief Rohrbacher stated they would be using their Records Management System under the RIMS (Records and Information Management System) software to assist in gauging results with part 1 crime, and to move further with the AED program. Addressing the issue of so many new officers with less experience, he noted turnover through retirement, resulting in lower seniority and experience; therefore, staff was pursuing issues such as accident investigation team training, auto theft, hi -tech crime, field evidence and working with the District Attorney and courts to get the patrol officers the type of training they needed to maintain job skills and learn new ones. With regard to Support Services, which was everyone else in the Police Department, Chief Rohrbacher stated this represented quite a few units — Dispatch, Records, Property and Evidence, Business Office, Investigations, Youth Services, Training and Personnel. Noting a mix of objectives for these work units, he stated the department wished to use its own Records Management System to provide crime statistics, whereas, before they counted on federal and state crime statistics that traditionally, were approximately two years behind. With the Police Department's own Records Management System in place since the beginning of 2003, staff could provide its own data on a daily basis. Regarding new ventures, Chief Rohrbacher stated staff wanted to work on replacing the payroll software system to incorporate payroll accounting, scheduling and time and activity. While he believed this important he stated it was not as important as reduction in crime. Noting the long time Property Clerk was retiring after 35 years of service, Chief Rohrbacher stated it would be a chore to replace her. Councilmember Heller inquired as to staffing, and noted she had not read about bank robberies recently. Chief Rohrbacher stated there had not been a bank robbery in a while and indicated that staff noted a trend of bank robberies occurring Bay Area wide simultaneously. He reported that staffing remained constant with some planned retirements and relocations; however, they endeavored to have replacements ready. He noted replacement and learning the job took time and someone new would not be working alone for approximately one year. Councilmember Phillips inquired as to how police radios were working. Chief Rohrbacher stated that the MERA system was working very well and San Rafael was happy to be the first recipient of this; however, it would be enhanced when all agencies were using it. Councilmember Heller inquired whether Fire and Public Works Departments used the MERA system. Chief Rohrbacher stated that the Fire Department was going through the installation process currently and Public Works had theirs installed concurrently with the Police Department. Congratulating Police Chief Rohrbacher on a good job and referring to "Project Alert", Councilmember Cohen stated that the feedback he received was that this was a much more effective program which appeared to engage students more. Regarding what was happening in the Marin County Sheriff's Department, Councilmember Cohen stated he was pleased to note that even people raising concerns were quick to contrast the San Rafael Police Department with remarks such as "we're not lumping everybody together because San Rafael has got their act together, they are very respectful to people, they get there to get the job done and do it in a respectful manner." Councilmember Cohen complimented Chief Rohrbacher and everyone in the Police Department. Chief Rohrbacher stated he was very proud of the program and the employees understood their jobs so well, which he believed lent a lot to their confidence and ability to do their job and he was proud of the Police Department's record in terms of service and lack of complaints. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 19 (Spec.) SPJTCCRA 06/07/05 Page 20 Referring to the Police Department Objectives — Maintain current levels of service with even further reduced resources — regarding Community Policing, Councilmember Cohen noted a conscious decision was made to cut the officer dedicated to that; however, with turnover in the department he believed staff had to work at creating and maintaining a culture that this was critical and important to the department. Suggesting that perhaps technology could be used, he noted an e-mail beat box on beat 1 appeared to be very effective. Chief Rohrbacher stated there were beat mailboxes on every beat; however, he believed a lot of the success with community policing under retired Sergeant Jim Kelly was the face time involved. Indicating that staffing was not available to dedicate to this, he stated that should more staffing be available it would be necessary to fill in the beat structure first. Chief Rohrbacher stated he looked at this as a means of re -introducing officers to the neighborhoods which was his reason for starting the letter -writing campaign last September, and repeated in March, bringing officers to those meetings. He indicated that this worked so well that for tomorrow evening's meeting the officers were invited in place of him (Chief Rohrbacher). Councilmember Cohen commented that he had to read through the material twice to convince himself that the word radio was not included, which was a wonderful thing. Mayor Boro stated that the almost complete void of citizens' complaints was a tremendous compliment to the Police Department leadership, command staff and men and women on how they comport themselves. Mayor Boro stated he also admired the aggressive use of technology which aided the job. Lastly, Mayor Boro personally thanked Police Chief Rohrbacher for the work he had done to date and especially his personal involvement in getting out to the community, from the letters he had written to the visits made. He recalled accompanying Chief Rohrbacher to see some troops off to Iraq and thanked him for being out in the community. Public Works — Public Works Director Andy Preston stated he had one of the most exciting and rewarding jobs in the City because he got to build stuff — all he had to say to Mr. Nordhoff, Mr. Gould and the City Council was "you give me the money and / will build it for you. " Mr. Preston reviewed the following projects completed in the past two years: • Design and bidding of the entire Pickleweed project was completed in one year, noting the best prices were obtained of any other jurisdiction in Marin County. • Third & C Street Parking garage completed. Even though the first contractor went bankrupt on the project with a ten month delay, he believed the end result was one of the best looking parking garages in the City. Of note was the less than 4% contingencies on the project even with the delay. • Caltrans design flaws in the North Francisco Pump station corrected and working 100% with no down time or flooding this year due to storms in the San Rafael area. • Grant secured for the Fifth Avenue Bicycle and Pedestrian Path on the fourth application from the TLC Funding for $220,000. This project was now under design. • Rare grant for the Dominican/Black Canyon landscaping for planting trees along Belle Avenue — approximately $220,000. • Worked with the Sun Valley School District and designed a complete new storm drainage system to alleviate flooding problems. • Several park projects completed all of which now had compliant play equipment, which is reviewed, maintained and inspected on a monthly basis. • Funding received for the Medway/Canal Undergrounding project. • Traffic Engineer completed East San Rafael Phase III improvements at Bellam, bringing all of the traffic improvements in the Bellam/Francisco area loop to a conclusion. Mr. Preston reviewed projects going forward: (Spec.) SPJTCCRA MINUTES 06/07/05 Page 20 (Spec.) SPJTCCRA 06/07/05 Page 21 • Managing the Pickleweed Community Center project and gymnasium. An aggressive contractor was working on this project with two very aggressive female engineers monitoring every move. Scheduled completion April 2006. • Working with Caltrans and commencing construction work on the San Francisco Boulevard Undergrounding District in January 2006. A co-op agreement would be presented to Council for review and approval at the next City Council meeting. • Continuing with traffic modeling of different areas in the City to maximize capacity and develop mitigation projects accordingly. • Seeking grants in accordance with Council's five-year goals — Fourth Street Rehabilitation, Medway/Canal, Bay Trail and Bicycle and Pedestrian Masterplan. Funding not available currently for the Bicycle and Pedestrian Masterplan. • Ensuring compliance with the Department of Justice Settlement Agreement. All new CIPs designed are completely compliant with related ADA issues and are reviewed by a consultant before going out to bid. • Downtown plaza — railing retrofit and reduction in ramps that are slightly out of compliance. • Curb ramp project — 700 ramps due in ten years. Staff anticipated doing 70 per year over the ten year period at a cost of at least $200,000. Working with Community Services on the Sun Valley Park bathrooms and access ramps. • Storm drain assessment of the deteriorating and decaying storm drains in the City, many of which are over 100 years old. At least ten miles of corrugated metal pipe have no bottoms and need some type of replacement. An assessment needs to be done in the first instance to come up with some type of future funding. • Working and collaborating with TAM (Transportation Authority of Marin), SMART (Sonoma/Marin Area Rail Transit) and Caltrans with the HOV project and its development through San Rafael, especially concentrating on the Puerto Suello/Lincoln Avenue bike path. Noting this started off very poorly, Mr. Preston was pleased to report making headway with it. Regarding the Street Maintenance Major Program — Maintenance on Roadways and Annual Street Resurfacing - Mr. Preston stated that unfortunately, with available funds that performance measure had now dropped down to four miles of streets being overlaid per year. With 176 miles of streets, this had now dropped down to a forty-four year cycle for repaving the streets in San Rafael. He noted that a street has a design life of twenty years after which it turns to dust; therefore, he needed a minimum of $2 million yearly to maintain the status quo. This would not improve the overall condition, rather maintain it as is. Councilmember Cohen expressed thanks to Mr. Preston for sticking with the Bike Path project and he was pleased to hear of the progress. With no roadway solution, using this north/south connector for bicycles he believed was key. Councilmember Cohen inquired as to the status of (traffic signal) countdown heads. Mr. Preston reported that Traffic Engineer Nader Mansourian had gone out for grant funding to obtain more countdown heads; however, there were far more applicants for the grants than money available. He believed he could secure approximately $180,000 which was probably only about one-third of the funds required for that program. He stated staff would reduce the scope of work and go out again in the next year. Councilmember Cohen stated he was glad to see these countdown heads being implemented Mayor Boro expressed the hope that collectively or individually between Mr. Preston, Ms. Mackle, Mr. Nordhoff and Mr. Brown, someone would take the beautiful garage and enter it in some type of national contest where awards are given for design, etc. He believed it was a beautiful site and deserved the recognition. Mr. Preston stated that when Richard Landis returned from his European vacation he would make it one of his goals. Regarding the Bicycle Path, Mayor Boro inquired whether Mr. Preston was the key person for the City on this issue. Mr. Preston responded affirmatively. Mayor Boro stated he wished to have a discussion with Mr. Preston concerning where the path needed to go in relationship to the proposed wall from Caltrans versus the need for its relocation. Mr. Preston stated he could answer this question tomorrow. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 21 (Spec.) SPJTCCRA 06/07/05 Page 22 Mayor Boro stated that apparently HUD (Housing and Urban Development) funding was now under a different jurisdiction - TTHUD (Transportation, Treasury, Housing and Urban Development) money now available — HUD money that could be used for road construction — and he would discuss this with Mr.Gould. Expressing thanks, Mayor Boro stated that Mr. Preston and his department had taken tremendous cuts; however, continued to provide a great level of service and maintain City assets. Councilmember Heller inquired as to the status of grants for the Fourth Street Rehabilitation, and E Street to H Street which desperately needed repaving. Regarding Fourth Street, Mr. Preston stated that $400,000 had been received from the TEA (Transportation Enhancement Act) funding and was approved by the TAM board last week. He indicated there was now $1.4 million for the project and he was proposing to use some of the Measure A funds to complete funding of the project. He confirmed this would include gutting the entire roadway from back of sidewalk to back of sidewalk and doing everything correctly. He noted that all of the liquid amber trees would have to be harvested and replaced with a more suitable type of tree with conduit in the ground for twinkle lights to be fitted at a later stage. Referring to the schedule on Page 7 which identified figures for Public Works of $9 million for 2004- 2005, $10 million for 2005-2006 and $11 million in 2006-2007, Councilmember Phillips inquired as to why it was going up $1 million per year. Mr. Preston stated he would have to defer to Mr. Nordhoff, noting the size of the department was not being increased, rather they were two positions down. He stated there was the addition of the position from Community Development — Land Development Engineer — which was now shown on Public Works' budget. He added that two engineers previously paid from the parking garage funds were now included in the Public Works Budget. Mr. Preston stated there also had been an increase in the San Rafael Sanitation District budget which was part of the Public Works budget also. Councilmember Phillips agreed with Mr. Preston that it appeared to be a lot of money and while he believed it was appropriate, prior to the meeting of June 20th he would like to understand it a little better. Mr. Gould stated that even though staff was calling for stable funding for the next fiscal year, he believed it was evident from all the departments' presentations it would not be a static year for San Rafael, and every department was looking to improve services, quality of life and safety in San Rafael . He was very proud of the Department Directors for putting these initiatives forward and he commented that they would be held to them. 3. NEW SERVICE REQUESTS — Mr. Gould stated that of the eleven departments, only three had the temerity to bring New Service Requests forward while the City faces a $3 million deficit. Community Development: - Mr. Gould stated there were nine different requests being made for projects and activities suggested in General Plan 2020, and while all were worthy, good and would help the community, none came with a separate funding source; therefore, would require general funding, none had to do with the health and safety of the community and none jeopardized a grant opportunity or some other funding opportunity. Mr. Brown stated staff could not recommend funding any of these and it was made clear during General Plan 2020 that all of these initiatives would have to wait for new funding. Should Council wish to discuss any one of these projects, Mr. Brown was present. Mayor Boro inquired as to the issue with respect to Hillside Design Guidelines. Mr. Brown stated they were a number of years old and explained that the Design Review Board had seen a couple of projects and suggested that the design guidelines be re-examined. He believed the DRB felt them too prescriptive in many ways and staff believed that in situations where homes were built prior to the hillside guidelines, the additions of those homes subject to the guidelines became very problematic. Personally, Mr. Brown believed the guidelines had done the City a great service and reduced a lot of the controversy in the community. While not perfect, he believed they had taken the City a long way. Regarding the Historical Building Inventory, Mayor Boro inquired whether with minimal oversight an intern could be attracted to help. Mr. Brown stated there was a lot of interest from members of the public who would like to volunteer; however, unfortunately, to make the effort productive it would be necessary to have the oversight of someone very familiar with the Secretary of the Interior guidelines, who knew how to train people on research techniques, who could do good quality control, and lastly on getting the inventory, who could help evaluate which buildings were appropriate to preserve and which were not. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 22 (Spec.) SPJTCCRA 06/07/05 Page 23 Mr. Brown stated he had talked to a number of consultants who did this type of work, as well as a number of cities, and frankly the best way was to have consultants do it all, because the quality was assured. However, other cities had used consultants to oversee a volunteer effort, such as St. Helena most recently, and these had been reasonably good efforts. He confirmed for Mayor Boro that it still needed someone with that expertise. Library - Mr. Gould stated that Library Director David Dodd had brought forward a number of New Service Requests, many of which had alternative funding sources and merited the Council's closest consideration. Bi -lingual librarian — Mr. Gould stated this was promised as part of the grant application for $1.3 million from the state and was necessary to perform on; therefore, it was built into the budget. Councilmember Heller stated that when this was discussed previously, it was stated that it would be difficult to find someone to fill the position. Mr. Dodd stated that part of the strategy was to go out early in the year with an eye towards not hiring the person until January which would buy time and comply with the state requirements. He stated that the State required the position be online three months into construction, which would be July, which staff did not wish to do. He indicated this was a way of beginning the process, showing good faith towards hiring the position, still getting the person on in plenty of time to learn the ropes, build the collection and make the community contacts. Mr. Gould stated Mr. Dodd listed some of the many inadequacies of the current building; therefore, staff requested that Council permit them to dip into the Davidson Bequest monies up to $150,000 to do some of the deferred maintenance critical for the library, until a new building was achieved. Literacy Program: Mr. Gould stated that for a number of years the Literacy Program, largely run through grants, had positioned itself to become integral to the library, using it as its central location with most of its services emanating from the library. He noted the retirement of the two co -directors who had been working on contract for some years without benefits and the thought was that to sustain the literacy program it would be necessary to go to one position instead of two; however, this should be a paid position with benefits, with the costs being split between the County and City. Mr. Gould stated that these requests had always been pushed off because the desire was to try to fund the primary library service to the best possible level, and since hours and staffing were being cut back it seemed difficult to discuss absorbing any portion of the literacy program. He indicated that staff recommended as a step in the right direction that Council pick up half of the benefits cost of this new director's position, which in the first fiscal year would be approximately $7,000 and the second $14,500. Mr. Gould stated this would recognize that literacy was indeed integral to the services provided by the library, noting many were aware of the tremendous benefits people achieved through gaining literary; therefore, staff recommended this as an add item. Temporary help: Mr. Gould stated that the library, due to its staffing, was very dependent on temporary employees (on-call employees) and Mr. Dodd wished to use funds from the Transaction Based Reimbursement received from the state to pay for the on-call people that make the schedule work. Mr. Gould stated there was no effect on the General Fund for doing this. Charging for the Use of Audio-visual material: Mr. Gould noted the City had done this for many years, resulting in the building of a beautiful collection and generating over $60,000 annually. The problem, however, was that San Rafael was alone in Marin County in charging for this material and Mr. Dodd believed that as part of running a free library, the City should lend those materials on a free basis also. Mr. Gould stated that pursuant to investigation by the City Attorney's office, there was nothing to prohibit San Rafael from continuing to charge; however, Mr. Dodd believed that if the City conformed with the practice of the other libraries in Marin County by lending these materials for free, the City would achieve Transaction Based Reimbursement funds of approximately the same amount. Mr. Gould stated he recommended this based on the new information on the transaction based reimbursements from the state. As he was unsure of how much state reimbursement would be received, Mr. Gould suggested that Council could experiment with lending the video tapes and music CDs, for free, and monitor how much reimbursement was returned before lending the entire AV collection this way. Mr. Gould stated he was satisfied that this was a reasonable risk as if the City did not receive a 100% dollar for dollar reimbursement from the state, the library would not purchase that many new AV materials. (Spec.) SPJTCCRA MINUTES 06/07/05 Page 23 (Spec.) SPJTCCRA 06/07/05 Page 24 Councilmember Heller inquired as to how firm the funding was. Mr. Dodd stated that anything from the state could disappear. He noted that in the current Governor's May Revise it had not been touched for the coming year; therefore, he believed it would be good for at least another year. Mr. Dodd stated that the entire library community rallied around this year after year. Responding to Mayor Boro's question as to whether there were complaints about charging, Mr. Dodd stated he receives a number of complaints, although not excessive. He commented that over the years patrons had been trained not to complain. Mayor Boro stated the flip side was to ensure the funding was received as the caliber of the collection was very good and he would not wish to sacrifice it. Keeping it revenue neutral and sustaining the collection was great; however, should the collection be jeopardized, he favored going back. Councilmember Cohen stated that eliminating the fee base and then restoring it should the funding go away would generate complaints from everyone using the service. He believed there was some potential downside and while he was not opposed to it, he was a little concerned. Mr. Dodd commented that it would solve Councilmember Cohen's problem of not being able to reserve a DVD. Mr. Gould confirmed Council's direction was to ease into it. Police Department - AEDs - Mr. Gould stated that the Police Department had been pretty successful in getting individual grants and funding to purchase a certain number of AEDs (Automatic External Defibrillators) to place in patrol cars to provide another response alternative to heart attacks. He stated the thought was that this program had really proven itself and to cement it, it would be necessary to obtain a further eleven devices, which would make the most efficient use of the training provided for all police personnel in the use of these devices. Mr. Gould stated this was a one-time cost of $34,000 and staff recommended it as an enhancement of service and good investment in the safety of the community. Mr. Gould stated that the Police Department had bundled together a number of the regulatory services provided as regards burglar alarms, massage permits, firearms and solicitations, and staff hoped to offset the cost of the enforcement officers (two half-time positions) with the fees collected through permits, renewals and penalties. There would be no impact on the General Fund; it would be started and if it did not look like it was paying for itself, staff would return to Council to make a change. Mr. Gould thanked the City Council for the long meeting tonight, their attention to the finances, goals and objectives and new service requests and staff appreciated the direction received. Addressing Department Directors, Mayor Boro stated that he, like a lot of others present, attends a lot of public meetings and interacts with a lot of public officials and he was so proud of and pleased with San Rafael staff. There being no further business, the Special Meeting of the San Rafael City Council and Redevelopment Agency was adjourned at 10:00 p.m. JEANNE M. LEONCINI, CITY CLERK /AGENCY SECRETARY APPROVED THIS DAY OF MAYOR OF THE CITY OF SAN RAFAEL , 2006 (Spec.) SPJTCCRA MINUTES 06/07/05 Page 24