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HomeMy WebLinkAboutCC Minutes 2009-08-03SRCC Minutes (Regular) 08/03/2009 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, AUGUST 3, 2009 AT 8:00 P.M. Regular Meeting: San Rafael City Council Also Present: Ken Nordhoff, City Manager Robert F. Epstein, City Attorney Esther C. Beirne, City Clerk OPEN SESSION — COUNCIL CHAMBERS — 7:00 PM Mayor Boro announced Closed Session item. CLOSED SESSION — CONFERENCE ROOM 201 — 7:00 PM Present: Albert J. Boro, Mayor Barbara Heller, Vice -Mayor Greg Brockbank, Councilmember Damon Connolly, Councilmember Cyr N. Miller, Councilmember Absent: None (a) Conference with Labor Negotiators- Government Code Section 54957.6(a) Negotiators: Jim Schutz, Leslie Loomis, Cindy Mosser, Rob Epstein, Ken Nordhoff Employee Organization(s): San Rafael Police Mid -Management Assn. San Rafael Police Association Assn. of Confidential Employees (Local 1) SElU Child Care Unit (b) Public Employee Performance Evaluation (Government Code Section 54957) Title: City Manager City Attorney Robert Epstein announced that no reportable action was taken. ORAL COMMUNICATIONS OF AN URGENCY NATURE: 8:15 PM Campaiqn Reform — Independent Expenditures: 9-1 x 9-4 Jonathan Frieman indicated he wished to comment on Campaign Reform regarding Independent Expenditures. As Mr. Frieman began to comment on alleged remarks made by Elissa Giambastiani, Mayor Boro requested that he confine his comments to the issue he wished to raise and not personalities. A dialogue ensued with regard to protocol to be adhered to in Open Time, subsequent to which Mr. Frieman left the Council Chambers. Councilmember Brockbank believed Mr. Frieman's comment was hearsay; his allegation of what someone else stated. With regard to the proposed campaign pledge, he clarified that members of the League of Women Voters indicated at a meeting he attended recently that this was a very divisive issue. CONSENT CALENDAR: Councilmember Miller moved and Councilmember Connolly seconded, to approve the Consent Calendar as follows. ITEM Approval of Minutes of City Council/Schools Annual Jt. Dinner Meeting of June 17, Regular City Council Meeting of July 20, 2009 and Special City Council Meeting of July 24, 2009 (CC) RECOMMENDED ACTION Minutes approved as submitted. SRCC Minutes (Regular) 08/03/2009 Page 1 4 SRCC Minutes (Regular) 08/03/2009 Page 2 Resolution Authorizing Professional Services Agreement with RESOLUTION NO. 12797 Jones Hall for Bond Counsel Services in Connection with General RESOLUTION AUTHORIZING THE Obligation Bond Proceedings (CA) — File 4-3-503 x 9-4 CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH JONES HALL FOR BOND COUNSEL SERVICES IN CONNECTION WITH GENERAL OBLIGATION BOND PROCEEDINGS Call for Applications to Fill One (1) Unexpired Term on the Approved staff recommendation: Marin/Sonoma Mosquito & Vector Control District Board With a) Called for applications to fill one Term to Expire End of December, 2009 (CC) — File 9-2-9 unexpired term on the Marin/Sonoma Mosquito & Vector Control District Board — Term to expire end of December, 2009 b) Set deadline for receipt of applications on Tuesday, August 25, 2009 at 12 noon in the City Clerk's Office, Room 209, City Hall; and c) Set date for interviews of applicants at a Special City Council meeting to be held on Tuesday, September 8, 2009, commencing at 6:30pm Resolutions of Appreciation for Members of the Critical Facilities RESOLUTION NOS. 12798 Committee (CM) — File 102 x 9-2-57 PHIL ABEY, NO. 12799 — DIRCK BRINCKERHOFF, NO. 12800 — GLADYS GILLILAND, NO. 12801 —JOHN JONES, NO. 12802 — KEVIN KRONCKE, NO. 12803 — MARK LUBAMERSKY, NO. 12804 — LARRY LUCKHAM, NO. 12805 — GORDON MANASHIL, NO. 12806 — KAREN NIELSEN, NO. 12807 — STEPHEN PATTERSON, NO. 12808 — SEAN PRENDIVILLE, NO. 12809 — JEFFREY SCHOPPERT, NO. 12810 — ROGER SMITH Resolution Adopting the Memorandum of Understanding (MOU) RESOLUTION NO. 12811 Pertaining to Compensation and Working Conditions for the PERTAINING TO COMPENSATION Public Employees Union — Local One Confidential Bargaining AND WORKING CONDITIONS FOR Unit (July 1, 2009 through June 30, 2010) (MS) — File 7-8-7 EMPLOYEES REPRESENTED BY PUBLIC EMPLOYEES UNION, LOCAL 1 - CONFIDENTIAL (One year agreement from July 1, 2009 through June 30, 2010) Resolution Approving and Authorizing the Interim Director of RESOLUTION NO. 12812 Public Works to Execute Amendment No. 2 to the Professional RESOLUTION APPROVING AND Services Agreement with Alta Planning + Design, Inc. for "Canal AUTHORIZING THE INTERIM Street Pedestrian Access and Safety Improvements" Project DIRECTOR OF PUBLIC WORKS TO Under the Federal Lifeline Transportation Program, to Extend the EXECUTE AMENDMENT NO. 2 TO THE Contract End Date (PW) — File 4-3-480 x 9-3-40 PROFESSIONAL SERVICES AGREEMENT WITH ALTA PLANNING + DESIGN, INC. FOR "CANAL STREET PEDESTRIAN ACCESS AND SAFETY SRCC Minutes (Regular) 08/03/2009 Page 2 SRCC Minutes (Regular) 08/03/2009 Page 3 IMPROVEMENTS" PROJECT UNDER THE FEDERAL LIFELINE TRANSPORTATION PROGRAM, TO EXTEND THE CONTRACT END DATE Adopt Plans and Specifications for Corporate Center Storm Water Approved staff recommendation. Pump Station Renovation, Project #11131, and Authorizing the City Clerk to Call for Bids (PW) File 4-1-612 AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None The following item was removed from the Consent Calendar for discussion at the request of Kate Kershefskv RESOLUTION APPROVING USE OF AND ACCEPTANCE OF FEDERAL JUSTICE ASSISTANCE GRANT FUNDS IN THE AMOUNT OF $109.195 TO BE USED TO FUND THE CITIZEN POLICE ACADEMY UNTIL FEBRUARY. 2013 (PD) — FILE 9-3-30 Kate Kershefskv — resident of the Lincoln/San Rafael Hill neighborhood, graduate and advocate of the Citizens Police Academy, requested that the grant be modified so that a portion of the moneys could be used for a graffiti abatement program. She noted Linden Lane and the Coleman overpass as examples of areas that needed improvement, especially with lack of lighting and refuse. Understanding that the graffiti abatement program had been curtailed due to budget cuts, she suggested that cameras be used to prevent further vandalism of the specified neighborhood. Chief Odetto responded to Ms. Kershefsky, stating that the staff report requested authorization and acceptance of a federal grant to operate the Citizens Academy and to purchase the equipment needed to implement the Academy. He noted that the grant had a specific purpose and by augmenting it or amending it, the Police Department risked losing the grant. Chief Odetto, added that staff had met with representatives from TAM (Transportation Authority of Marin), Caltrans and Mike Burke, a concerned citizen, to talk about issues concerning graffiti, lighting and the possibility of cameras and they would be working with Caltrans on these issues. Councilmember Connolly reported that he had received a lot of public comment on the issue and commended Chief Odetto for being on the "right track." Councilmember Heller added that she and Mayor Boro were graduates of the Citizens Police Academy. Mayor Boro stated the City was working closely with Caltrans and noted that Mr. Nordhoff and Chief Odetto were pursuing the issue. Councilmember Heller moved and Brockbank seconded, to adopt the Resolution. RESOLUTION NO. 12813 - RESOLUTION APPROVING USE OF AND ACCEPTANCE OF FEDERAL JUSTICE ASSISTANCE GRANT FUNDS IN THE AMOUNT OF $109,195.00 FOR USE FOR THE SAN RAFAEL CITIZEN POLICE ACADEMY THROUGH FEBRUARY OF 2013 AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SRCC Minutes (Regular) 08/03/2009 Page 3 SRCC Minutes (Regular) 08/03/2009 Page 4 PUBLIC HEARINGS: 10. a) CONSIDERATION. SECOND READING AND ADOPTION OF ORDINANCE CALLING A GENERAL MUNICIPAL ELECTION AND ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION. CONSTRUCTION AND COMPLETION OF PUBLIC SAFETY FACILITIES TO THE QUALIFIED VOTERS OF THE CITY OF SAN RAFAEL AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3. 2009 (CA/CM) - FILE 9-49-2-57 b) RESOLUTION ACCEPTING FINAL REPORT OF THE CRITICAL FACILITIES COMMITTEE (CM) Mayor Boro declared the Public Hearing opened Ken Nordhoff, City Manager, explained that in 2002, Group 4 Architecture had conducted two separate studies -- one for the central service buildings (Police Stations, Fire Stations and Community Centers) and the other for the Library. These studies evaluated the current space configurations and the needs that were in place at that time, and where it was believed improvements were needed to modernize, upgrade and seismically improve (or replace) the facilities. From those studies came the appointment of the first of two volunteer citizen groups. The Critical Facilities Strategy Committee who spent a couple of years, beginning in 2004 and working through 2005, and issued a report. A series of recommendations were made which were accepted by the City Council and which the current committee, Critical Facilities Committee (CFC) appointed in 2007, had been working from. Mr. Nordhoff noted that the current committee had been meeting over the last year and a half and he had codified in the staff report a number of findings, conclusions and recommendations they had put forth. He added that the Committee had provided an interim report in May 2008 and a progress report in August 2008 and he highlighted some of the subsequent work carried out. He reported that the Committee had been acting on City Council goals set out for them. The report provided by them this evening answered these and provided a direction to move forward. Mr. Nordhoff reported that in the last few months the Committee had been working extensively with the staff and with the assistance of some consultants with regard to the bi-annual Citizens' Satisfaction Survey, where there was some interest in moving forward on raising sufficient funds through a bond measure to address facility needs. He stated that the Committee worked through an education phase up to and including recent polling, the results of which were shared with the Council and the community at the Study Session on July 20, 2009. He reported it was found that there was strong public support for considering moving forward with a public safety general obligation bond measure up to a specified limit of funds, which had been identified in the aforementioned Group 4 reports and brought forward through more current cost estimates put together last year. Mr. Nordhoff reported that the polling was structured in such a way that the Committee was looking at a public safety measure and a library measure. Although both of those were considered important needs in the community, he noted it was clear that public safety needs took precedence over the library or other needs as it related to the City's public facilities. Mr. Nordhoff reported that the Committee had been meeting for several months, crafting its final report, but leaving space for the poll findings. Because of the strength of the polling results and the desire to meet what he considered a longstanding and urgent need to address facility needs, particularly in the area of public safety, the Committee had submitted their final report. He noted that their final series of findings, conclusions and recommendations were outlined on pages 4 and 5 of the staff report. Highlighting some of the recommendations, Mr. Nordhoff noted the suggestion to put a General Obligation Bond, up to a limit of $89 million, on the November 2009 election ballot, which would include long-term planning for the core downtown facility area. It was found that this was not the time to address the library or community center needs, rather suggested that these would occur sequentially after that. Once funding was secured for public safety buildings, the next move would be to the library, followed by the community centers. Mr. Nordhoff reported that a great deal of time was spent discussing the need for Capital Replacement Reserve and the concept that in some way the City would generate dedicated funding that would ensure the buildings stayed up to code, with sufficient moneys to replace some of the major components that eventually wear out, such as air conditioning, plumbing and electrical systems. Since the General Obligation Bond would not permit the City to put all of that money away, the Committee recommended as part of their final report that a policy be developed and a long- term funding strategy be implemented. He stated the Committee also suggested that the City Council be afforded the flexibility that, should an opportunity arise to perhaps get a fire station lower on the list completed sooner, they should feel free to take things out of order if prudent. The City Council also should not be precluded from looking at where some of these facility improvements could ultimately be located, particularly in the context of the fire stations. SRCC Minutes (Regular) 08/03/2009 Page 4 SRCC Minutes (Regular) 08/03/2009 Page 5 There should be citizen oversight in the bond measure to ensure that the measure would be put forth in such a way that did not preclude the opportunity for outside sources or money, whether private donations, grants, federal stimulus moneys, etc. Mr. Nordhoff commended the Critical Facilities Committee for their hard work and dedication and acknowledged that the recent work, which may have seemed to be fast moving, was really a product of several years of work. He noted that at the Special Meeting of July 24, 2009, the City Council took a first action to adopt a resolution and had the first reading to introduce the ordinance before the City Council this evening. He noted staff had requested some flexibility to revise the measure wording without changing the content of the measure language to ensure the word count was validated with the County Registrar of Voters. Working through the City Attorney's office and consultant, Charles Heath, the issue was clarified and the ballot language was contained in this evening's ordinance. Councilmember Connolly inquired as to the flexibility in terms of renovation and replacement of buildings. He noted that there was interest in a downtown public safety building and invited Mr. Nordhoff to comment on plans perhaps being contemplated. Mr. Nordhoff stated that the Group 4 studies explored a series of alternatives concerning obtaining efficiencies from the fact that there was a downtown fire station, including the administrative offices of the operation, together with a police department located downstairs in City Hall and in a second building. He indicated that along the way, emergency services functions had been added and noted the Council Chambers was being used as an Emergency Operations Center, which did not function as such. Combining all of these uses in one facility had been studied; however, no formal determination had been made about where this would occur. He believed efficiencies could be gained by co -locating the different uses. Roaer Roberts, resident of San Rafael, indicated he had hoped the staff report would contain some information regarding the capital budget and what the plans entailed and that the City's intention would be to follow previous Group 4 studies and cost estimates. He was aware of the recommendation of prioritization in the report, which he hoped the City took seriously and intended to follow. With regard to the ballot measure, Mr. Roberts believed it would be important for the City's citizens to have this information at hand so that they were aware it was a well thought-out process. He indicated he would not like to see something like the staff report used to promote the bond issue. Noting in the staff report that $25 million of the $88 million General Obligation Bond -- 28.4% -- would be used for detail, design concepts, engineering, drawings and required environmental and planning reviews, Mr. Roberts stated this was a very generous figure and he would be surprised if the City would have to spend the entire $25 million. He hoped that would not be the case as spending 28.4% on initial planning would not achieve the City Council's goals. Requesting clarification on the $88 million, Mr. Roberts stated he understood that the original figure was $80 million with $8 million to be used for maintenance of the facilities. He noted that there was no mention in the ordinance about including a portion of the money for maintenance of the facilities to be built over this period. Noting the ordinance addresses how much money would be borrowed, Mr. Roberts stated it made no mention of the maturities that the City would seek. The staff report implied that the City would seek up to 30 -year money; however, he felt that over time, with the change in interest rates that would occur, the ordinance should state that the City would borrow up to 30 years, but could borrow on shorter terms if the interest rates were more favorable. Noting the ordinance also called for allowing the City to borrow at a rate of up to 12%, he discouraged borrowing at double-digit rates and urged the Council to omit this number in favor of choosing another figure as the maximum allowable interest. He acknowledged that the City would have bond counsel and good investment advisers; however, the ordinance as written did not provide him with a lot of comfort. Referring to Section 4, Mr. Roberts inquired whether the language included the City's allowing itself to acquire property in order to build the facility. Should the language not permit purchasing property or paying ground leases, the City should ensure that the language covered this. Regarding accountability measures, Mr. Roberts noted that all the proceeds would be put into a public safety building construction fund to be held by the City. He did not note anything else that indicated how the money would be invested, as typically with bonding the money is invested for a period of time and the money used as needed. He believed the public should be informed in the ordinance exactly how the money would be held, how it would be invested and in what instruments. Albert Barr, resident of the Loch Lomond neighborhood of San Rafael, felt that the bond measure would not be an "easy sell." Referring to the meeting of July 24, 2009, he noted a speaker raised some questions with regard to the recession and the fact that taxpayers might find it difficult to pay additional taxes. On the other hand, he believed it was a good time due to rates being historically low and the public should realize that it was a unique opportunity. He SRCC Minutes (Regular) 08/03/2009 Page 5 SRCC Minutes (Regular) 08/03/2009 Page 6 indicated that once the maturity of the bonds became set, opponents would look at this over a period of time, including the interest, and the City would have to be prepared for arguments. Using the analogy of the Administration selling the health plan, he believed the Administration had been advised to inform the public how individuals would benefit. Similarly, the City would have to tell individual taxpayers how their lives would be improved by the construction of a public service building. Gary Ford, resident of San Rafael, urged the Council to oppose the measure for 2009 and to postpone it until 2010. Having listened earlier this evening to a discussion regarding finding the funds for one police officer position, he stated he was astounded that the City Council in this kind of environment, with a deficit of $ 3.2 million, which could increase with mid -year revisions from the State, could go to the citizens for an $88 million bond. While acknowledging the great work of Ken Nordhoff and the Critical Facilities Committee, he believed citizens felt this was a "race to replace." Subsequent to July (January deleted) 24, 2009 — basically three months — the City would have to make a decision on the financing mechanisms. Agreeing that the average building age was 53 years, Mr. Ford stated less than one-half of one percent of the time was being spent in analyzing the financing mechanisms on these buildings. He questioned the rush. Mr. Ford noted that homes in San Rafael had gone down in an aggregate value of $500 million, which he called a phenomenal decrease in household wealth, and given the economic environment, he felt that the measure needed to be scaled back dramatically. Mr. Ford noted that subsequent to July- (January deleted) 24, nothing had been engaged to the public to discuss a public/private partnership or doing a sale leaseback. Nothing had been discussed about the effect of having great buildings and not being able to afford the police and fire personnel to staff them. He noted that, due to the budget, the City was short 4 police officers and inquired how the City would find the money to staff the proposed public safety building. He reiterated that the timing of the initiative was inappropriate and encouraged the Council to dramatically scale back the measure or postpone it until 2010, when he felt the economy would recover. Acknowledging the bond proceeds could not be used to fund the City, and noting the economy was in dire shape, he believed the bond issue was much too ambitious for fatigued voters to approve. Marc Levine, resident of San Rafael, noted that there were no children in his neighborhood 5 years ago and currently there were 13, including 2 of his own. He believed there was a lot of promise in San Rafael and a lot of people who believed in the future which could be invested in. He applauded the Critical Facilities Committee for their work and for narrowing the measure to public safety facilities, and he encouraged the City Council to vote to approve the measure. David Maver, resident of San Rafael, concurred with Mr. Ford's comment that voters were fatigued. He added that by excluding the library, the City would incur a duplication of cost, which he believed was a waste of limited taxpayer resources. Sharlene Moss, resident of the West End neighborhood of San Rafael, stated that she had toured all of the facilities and saw the need for renovating or rebuilding the facilities for the City's police and fire departments. She added she was appalled that they had to work in less than favorable conditions; however, in light of the financial crisis that the City, State and residents faced, she questioned whether the timing of the bond was appropriate. She added that she would vote from her heart to support the bond, but would vote from her pocketbook to reject it. She questioned the specifics on how the $88 million would be spent, which facility would be prioritized, whether fire station #7 would be combined with the County's facilities, etc. She believed the report lacked a specific plan and therefore, would have a difficult time voting on the measure. She considered herself still undecided on the topic because she needed more solid information. Dirck Brinckerhoff, resident of San Rafael and a member of the Critical Facilities Committee since 2007, stated that although the economic times were trying, more than 80% of the City's residents had shown support for the measure to the Committee when the members were out in public. He added that polling data backed a positive reaction to the measure. With regard to the design and construction, he believed it would take some time to get to that position. Regarding the location of facilities and the facilities that would be worked, he noted the possibilities were contained in the Group 4 report. Believing the facilities were necessary, he recommended approval of the ordinance. Larry Luckham reported that he had served on both the Critical Facilities Strategy Committee and the current Critical Facilities Committee. He understood the concern of a lot of people that this was a difficult economic time to ask for support for an $88 million bond measure. He offered that this was the beginning of a process. It had taken some time to get to this point in the equation and would take considerably longer to get the actual facilities built. He hoped that by the time bonds were issued and interest payments became due times would be better. Mr. Luckham stated that the fact that the City's public safety buildings had an average age of upwards of 50 years (in SRCC Minutes (Regular) 08/03/2009 Page 6 SRCC Minutes (Regular) 08/03/2009 Page 7 one case, approaching 100 years) was a good indication that there had not been a good time in the past to do this. He noted that there often was never a good time for more taxes or expenditures; however, public health and safety depended on the facilities., i.e. they depended on a three-legged stool: highly -trained public safety personnel (firefighters, paramedics and police officers), the equipment provided to them to work with and the facilities they worked from. Mr. Luckham added that when any one of these was missing, something was missing from the entire equation. He believed that addressing the facilities issues was as important now as it ever would be. Timing was not necessarily on the City's side and to those concerned about whether it was an appropriate time to proceed, he suggested they stop and think whether they could postpone a heart attack or the fire in their house, etc. He urged the Council to follow the recommendations of two committees, the consultants and staff and approve the measure. Gladvs Gilliland, resident of Glenwood and a member of the original and current Critical Facilities Committees, quoted De La Fuente: "People are more willing to give their money to the City Council than they are to the Governor." She believed it would be difficult, but people trusted their local government much more than their state or federal governments. She added that 9 out of 11 bond measures passed in the last election and agreed with Mr. Brinckerhoff's assessment that over 80% of the people they had spoken to while walking in public supported the measure. To the community in downtown San Rafael she stated that, if the freeway went down and the fire station on C Street went down, no one would be available to fight a fire because the fire engine would be under the bricks. Adding that she lived through the fire on Fourth Street, she urged the Council to support the measure. There being no further comment from the audience, Mayor Boro closed the public hearing. Ken Nordhoff, City Manager, introduced Bill Madison, Bond Counsel, Jones Hall, who helped work with the City Attorney's staff to help create and review the language of the measure. Responding to Mr. Roberts' questions, concerning issuing the indebtedness in phases, and whether the first $25 million would be used for "soft costs" (engineering, architecture, conceptual design, etc.), Mr. Nordhoff stated the intention was to highlight how that first series would be used in part, but not necessarily in full — it could be used for construction or other related costs. It was not the City's intention nor was it in the cost estimate to anticipate spending 28% - 30% of the $88 million on design and construction and therefore, constraining what could be spent on the actual building of the facility. In response to Mr. Robert's comment of the total going from $80 million to $88 million, the additional $8 million going toward maintenance, Mr. Nordhoff explained that General Obligation bonds by law could not be used for maintenance. He added that, as stated in section 4, they could be used to acquire property, as well as to construct, improve, renovate, modernize, expand, etc. — building the shells of the buildings. General Obligation bonds did not cover maintenance, furniture, fixtures or equipment. Mr. Nordhoff stated that the scope of the indebtedness was set in looking at the sizing of the bond issues and the tax rates that had to be set as part of the ordinance. They were set in 30 -year cycles; however, should these projects be approved by the voters, there was nothing that prevented issuing debt on a shorter term basis or doing other creative things that would minimize the length of the indebtedness and ultimately, minimize the interest rates' impacts, which would be the burden of the taxpayers. As far as where the money would go, Mr. Nordhoff stated that the dollars coming from the measure would be put into a public safety construction fund. The City had an investment policy guiding a number of its daily operating investments and, prior to issuing the indebtedness series, staff would have to return to the City Council. The bond documents would define specifically how the moneys could be invested. They could follow the City's guidelines or there could be reasons to invest them in even more restrictive ways. They would not be invested in the stock market, etc. In response to Mr. Barr's comments on the timing, low cost of indebtedness currently and the benefits, Mr. Nordhoff argued that it all gets wrapped up in a campaign process. Should the City Council choose to act on the ordinance this evening, city staff would change gears. Staff could not go out and campaign or advocate for the measure, but could provide information and clarification for the public. He noted the City Attorney's office was meeting next week with City staff to help articulate very clearly where employees cannot be involved in a campaigning process. With respect to timing, Mr. Nordhoff suggested that, should the ordinance be approved this evening and in November, voters would not see tax levies occurring until the 2010/2011 fiscal year. These would be occurring in a ramping fashion; therefore, staff was just looking at the first level of indebtedness and graduating the tax rate over a period of years. Recognizing the difficult times and that people were fully aware that putting money into buildings did not balance the City's operating budget, Mr. Nordhoff stated this was the reason he was advocating for this. He noted it would take several years to get these projects done. The results were favorable and polling indicated that the time to act was now. Noting some discussion regarding better delineating some of the information related to the project, Mr. Nordhoff reported that there had been a couple of dozen noticed public meetings as well as ample information available, including cost estimating for all of the facilities. The dollars associated with the downtown building had been SRCC Minutes (Regular) 08/03/2009 Page 7 SRCC Minutes (Regular) 08/03/2009 Page 8 specifically evaluated. There would be improvements to fire station #2 on Union Street, fire station #4 on Castro Street, station #5 in the Peacock Gap/Glenwood neighborhood, together with minor improvements to station #6 in Terra Linda, and station #7, where there could possibly be an opportunity to partner with the County of Marin to create cost efficiencies in creating a new fire station at the County building alongside their emergency operations facility. Mr. Nordhoff reported that he and Fire Chief Gray had been actively working with their County counterparts to see if this could come together. He illustrated this particular example as tying into one of the recommendations of the Critical Facilities Committee -- creating the issue of flexibility around prioritization. He indicated that there had been many discussions at the committee level attempting to decide whether prioritization kept changing because polling told something or people told something and he believed the committee finally understood that they really should prioritize the facilities in the order they believed they should be addressed. The funding would then flow and align how those things occurred. Although the library was in the middle of the pack, which was intentional in terms of the committee's recommendations, they recognized that the problems would be solved in multiple phases and decisions. Mr. Nordhoff stated that the various facilities had been studied extensively, including their needs, prioritizations, different taxing options and different financing structures. Quite a bit of time was spent early on in the committee process on education because the work was very complex. Mayor Boro inquired as to the sequencing of priorities, and whether there would be something on the ballot that would describe timing, etc. Mr. Nordhoff stated that the intention was to honor the recommendations of the Committee; therefore, one of the first areas of emphasis would be the downtown public safety building, in part because of the need, and in part because of the complexity and some of the values that came from co -locating. However, while the focus was on the downtown public safety building, there would be opportunity to begin some of the processes on the other fire stations. Mayor Boro inquired whether there would be a follow-up to the ballot measure, i.e., an additional statement. Mr. Nordhoff stated that an additional statement would be prepared and reviewed by the City Attorney's office or bond counsel; therefore, additional work would come back to the City Council. Mayor Boro inquired whether the subsequent description would address the overall program -- where the money would be spent, not necessarily by date, rather what the dollars would be spent on. Mr. Nordhoff commented that a level of specificity had not been reached; however, he reported that the project included upgrading, replacing or renovating the police station on Fifth Avenue, including the leased annex, and a variety of improvements, up to and including replacing fire stations for all six of the stations in San Rafael. He added that across the community, there would be improvements made to each one of those facilities. He noted the work Group 4 did was at a conceptual level; therefore, the level of specificity had not been reached for him to answer the question. Mayor Boro stated he wanted to ensure that the ballot statement would assure people that the moneys would be going to the facilities articulated. Mr. Nordhoff stated this would be more in the campaigning process, i.e., clarifying the money raised, how it was being spent, which projects or improvements would be completed, etc. This would be a task of the committee assembled for a campaign, assuming the City Council moved forward. They would have to help articulate this in public meetings, face-to-face contact, prepared information, etc. He noted that the City's website contained information on the work done to date, clarified the facilities in question and the level of improvements needed. Councilmember Heller stated that the question of how the money would be spent was a valid one from the public. She believed Mayor Boro's statement was that satisfaction had to be given to that in the actual ballot. She reiterated that the public needed as much comfort as possible in where the money would be spent and why. Mr. Nordhoff stated there was a body of evidence that demonstrated that and it would certainly be presented in moving forward over the next few weeks. Concurring on the campaign, Mayor Boro stated that the ballot measure should be self-explanatory and should have sufficient specificity concerning the facilities in question. The sequencing and timing were not the issue, rather what was hoped to be accomplished. Mr. Nordhoff believed that, as outlined in the staff report, the intention was to get the work completed within a span of 5-6 years, and beginning in 2010, it would go through 2015. SRCC Minutes (Regular) 08/03/2009 Page 8 SRCC Minutes (Regular) 08/03/2009 Page 9 William Madison, Bond Counsel, Jones Hall, stated he would elaborate on Mr. Nordhoff's comments and in the process would attempt to answer some of the questions raised by the first speaker as well as Mayor Boro. Mr. Madison explained that the procedure for submitting a General Obligation Bond to the voters for a city, which he noted was a different process than for a school district, was very specific and the rules were laid out in the statutes and in the constitution. He reported that the ordinance was required by the government code and must specify the maximum interest rate payable on the bonds. 12% was the statutory limit, although in the current market, he noted that it would be closer to 5 — 5.5%. He stated that the ordinance would have to live throughout the full term of the bonds. Governed by statute, the bonds could never mature more than 40 years from the date they were issued. He added that it was not required that this be specified in the ballot measure's limit of 75 words and at the time of bond issuance, the City Council would have the discretion, up to that maximum, to issue them at whatever maturity advised by the financial advisor to be the most advantageous. For improvements with a useful life of 40-50 years, it was considered prudent to borrow 25-30 years. He noted it was difficult in this particular market to go beyond 30 years. In terms of the actual interest rate on the bonds, the City would be required by law to sell the bonds at competitive sale; therefore, whatever the interest rate was at that time for AA Credit. He believed the City would be successful at selling at 5 — 5.5% range. He indicated it was important not to guess what interest rates would be, as this would have to live throughout the full 40 years of bond issuance. Reiterating Mr. Nordhoff's comments, Mr. Madison stated that these bond proceeds could not be used for maintenance costs as this was prohibited by the California Constitution. The bond proceeds could only be used for the acquisition or improvement of real property. In terms of investment of the bond proceeds, Mr. Madison stated that generally, the same rules applied as for current investments; however, there was a provision in the government code that stated that the City could change the rules for the investment of particular bond proceeds if this were specified in the document under which they were issued. He added that at one time investment contracts were not uncommon, although they were not popular currently. This could be specified in the future, should it appear to be a good idea; however, it was not recommended currently. He explained that that decision would be made at the time of issuance of the bonds. Mr. Madison stated the process was to submit to the voters the question "Shall the City of San Rafael be authorized to issue one or more series of bonds up to $88 million." The actual issuance of the bonds would be an action item for the City Council at a future date, should the measure be successful in November, perhaps in 2010. A much lengthier document at that time would specify how the bonds were to be sold, the maturities, the redemption features, how the bonds would be invested, etc. He noted that it would not be appropriate to have the voters involved in this much detail with the ballot measure language restricted to 75 words. Mr. Madison stated the real effort was to craft those 75 words in such a way that it was clear about the types of projects to be built but not the priority. This was not required or recommended, as flexibility was needed. Councilmember Connolly recognized the outstanding work of the Critical Facilities Committee and City staff, and the members of the public who spoke on both sides of the issue. Economic times were tough and he could empathize with those who had concerns regarding whether this was the right time to go forward with a measure, particularly at the amount involved. His response however, was that it would be irresponsible not to act now. He explained that currently there was a critical need to upgrade, replace and repair the City's public safety facilities. Having toured all the public safety facilities, he observed that many of the buildings were outdated, and in many cases decrepit, and therefore, were not properly serving the purposes for which they were needed. This had a direct and immediate impact on the health and well-being of the City of San Rafael's residents. Through the process undertaken the City Council heard the priorities the public had in mind, and what had been accomplished through this ordinance was a reflection of those priorities. It began with the public safety facilities as a first step, being mindful that ultimately the Council recognized that the library facilities also needed upgrading and that they fully intended getting to those priorities as soon as possible. Councilmember Connolly argued that at a time when the state government and economy were in fiscal crisis this was a time to use local money for local needs. He believed the community was aware of the situation and that right now was a time to have local money to control and use towards local needs. Noting a two-thirds vote was needed for the measure to pass, which was not easy, he believed strongly that, should the public be made aware of the critical need, it would be successful. He, therefore, would support the measure. Councilmember Miller concurred with Councilmember Connolly's remarks. The criticalness affected the services provided to citizens for their growth, protection and safety. Indicating it was a matter of risk management, he believed that affected the delivery of services by very qualified fire and police personnel, who could provide even more given the enhancement of the facilities. They carried with them not only ability but a great spirit of sacrifice in order to protect the community; therefore, now was the time to begin this effort, which he would support. SRCC Minutes (Regular) 08/03/2009 Page 9 SRCC Minutes (Regular) 08/03/2009 Page 10 Councilmember Heller concurred with Councilmembers Connolly and Miller. She believed the measure would pass, the public would understand the reason for it and now was the best time. Councilmember Brockbank expressed his gratitude to the members of the public, staff and especially the Critical Facilities Committee for their hard work and expertise. As to the specificity of the projects, he believed that for a variety of reasons, legal and practical, it could not be very specific. However, the most important reason for not being more specific was cost. All the work to date was done on a shoestring by volunteers and staff. He noted it cost millions of dollars to develop a specific work plan and priority list; therefore, it was only subsequent to passage of the bond measure could the money be spent to develop the specificity being sought. Addressing comments by Mr. Ford, Councilmember Brockbank noted Mr. Ford remarked that next year other issues would be on the ballot, which was all the more reason he (Councilmember Brockbank) believed it should be on the ballot this year. Regarding timing, he believed this year was correct. Noting the comment "success breeds success" he believed it important to go forward this year because of the momentum and because of the good poll numbers and information received demonstrating that, if everything was done right, the measure would pass. Councilmember Brockbank stated he intended to vote affirmatively. Clarifying the issue of being specific, Mayor Boro stated he was not interested in the sequencing, rather believed that the City Council had an obligation to put in writing on the supporting statements, what would be accomplished on completion, i.e., the buildings the City intended to repair or replace, etc. He was satisfied this would be done. Also thanking the Critical Facilities Committee, Mayor Boro stated that until about a month ago he was skeptical about going forward at this time. Having gone through a very deliberate process of walking door-to-door, issuing publications and writing stories, public awareness became much higher. Polling results demonstrated a 66% support, or somewhat supportive, which convinced him there was a good chance of the measure's passing. Believing the need was evident, Mayor Boro noted there had been a discussion regarding a measure in 2010; however, there already were local measures being considered at the County and elsewhere that could be on the ballot. State measures would be on the ballot in June and a Governor's election in November, 2010. Mayor Boro stated this was a good time to put the measure on the ballot when people were running for the City Council. Candidates could state their positions and have good debate and the community would certainly know more by the time the election was over. He reiterated that the timing was right and he would support the measure. a) Councilmember Brockbank moved and Councilmember Connolly seconded, to approve final adoption of Ordinance No. 1876 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL CALLING A GENERAL MUNICIPAL ELECTION AND ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF PUBLIC SAFETY FACILITIES TO THE QUALIFIED VOTERS OF THE CITY OF SAN RAFAEL AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2009 AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None b) Councilmember Connolly moved and Councilmember Heller seconded, to adopt the Resolution. RESOLUTION NO. 12814 — RESOLUTION ACCEPTING THE FINAL REPORT FROM THE CRITICAL FACILITIES COMMITTEE AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SRCC Minutes (Regular) 08/03/2009 Page 10 SRCC Minutes (Regular) 08/03/2009 Page 11 c) PRESENTATION OF RESOLUTIONS OF APPRECIATION TO MEMBERS OF THE CRITICAL FACILITIES COMMITTEE (CM) — FILE 9-2-57 Gladvs Gilliland stated that the Critical Facilities Committee had never before had a better leader or moderator than Ken Nordhoff and that without him, they could not have accomplished the work they had. She and Mayor Boro thanked Mr. Nordhoff for his work on the Committee. Quoting from one of the Resolutions, Mayor Boro stated: "Whereas, Dirck Brinckerhoff served on the Critical Facilities Committee from November, 2007 to July, 2009; and Whereas, the Critical Facilities Committee created a communication plan and took appropriate steps to educate and inform the community about current conditions and needs and improving our essential services building; and Whereas, through extensive research, the Critical Facilities Committee developed findings, conclusions and recommendations to advance the priorities set by the former Critical Facilities Strategy Committee, including implementation strategies for important San Rafael public facilities; and Whereas, each committee member on behalf of our committee displayed leadership, knowledge and commitment in formalizing these strategies to address the needs of our essential services buildings as codified in the committee's interim progress and final reports. NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Council of the City of San Rafael hereby thank Dirck and each member of the Critical Facilities Committee for dedicated service and hard work on behalf of the San Rafael Community." Mayor Boro presented Resolutions of Appreciation to Dirck Brinckerhoff, Gladys Gilliland, Larry Luckham and Sean Prendiville. Phil Abey, John Jones, Kevin Kroncke, Mark Lubamersky, Gordon Manashil, Karen Nielsen, Stephen Patterson, Jeffrey Schoppert and Roger Smith were unable to attend. 11. CONSIDERATION OF ORDINANCE ADDING NEW CHAPTER 2.11 TO THE SAN RAFAEL MUNICIPAL CODE ENACTING DISCLOSURE AND REPORTING REGULATIONS FOR INDEPENDENT EXPENDITURES IN CITY ELECTIONS - Continued to a date to be determined, at reauest of staff (CA) FILE 9-4 Robert Epstein, City Attorney, stated his office was charged by the City Council to work on this ordinance; however, the matter was found to be complex regarding statutes implicated by the proposed ordinance -- the Political Reform Act and the regulations of the Fair Political Practices Commission (FPPC), and in particular, questions that had arisen in the City Attorney's office's analysis concerning the mechanisms for enforcement that would fall upon staff. He reported that the City Attorney's office was continuing to study the matter and intended to return to Council as soon as they could get their questions answered with an ordinance staff was comfortable with to recommend for the City Council for consideration. Councilmember Brockbank moved and Councilmember Miller seconded to continue the item to a date to be determined. AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None OPEN TIME MONITORING OF COMMENT: FILE 9-1 With regard to monitoring of comment, Mr. Epstein stated that having conducted some research he wished to confirm some items concerning the boundaries of the public in a public meeting of this nature. He noted an often -cited federal case for authority regarding the limits of public comment and nature of the management of the public meeting process -- White v. the Citv of Norwalk, a Ninth Circuit Case. He quoted citations from that case: "Courts balance the right of the public to address the Council with the need to ensure public comment does not unduly disrupt the orderly conduct of the meeting. The public has the right to testify on all matters within the jurisdiction of the Council, but the Council may limit speech which is irrelevant to the issue at hand." He also noted the case of Leventhal v. Vista Unified School District, quoting: "The right to express one's views in a public place is fundamental to a free SRCC Minutes (Regular) 08/03/2009 Page 11 SRCC Minutes (Regular) 08/03/2009 Page 12 society. However, it is not absolute and is subject to valid regulation and the legislative body may limit public comment to matters that serve the purpose for which the Council holds meetings. This aim is not achieved if public comment addresses items outside of the jurisdiction of the Council." In reference to the White v. the Citv of Norwalk case, Mr. Epstein quoted: "A moderator is vested with a great deal of discretion to determine at which point speech becomes unduly repetitious or irrelevant and, in particular, attacks against the character or motives of any person may be ruled out of order." Mr. Epstein hoped this would continue to be a guide and would be glad to provide more authorities should Mayor Boro desire. 12. BAYPOINT LAGOONS LANDSCAPING AND LIGHTING DISTRICT: RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT AND LEVYING ASSESSMENT FOR FISCAL YEAR 2009-2010 (PW) —FILE 6-48 Ken Nordhoff, City Manager, stated that this was an annual item. The City Council adopted a Resolution of Intent to levy and collect assessments within the Baypoint Lagoons Landscaping and Lighting District area on July 20, 2009 and also adopted a Resolution of Intention to order improvements and set the date for the public hearing. He added that the Council needed to take an action on the Engineer's Annual Report and noted that the assessments were being held at their current level. He recommended that the attached resolution be adopted. Mayor Boro declared the public hearing opened and there being no comment from the audience, he closed the public hearing. Councilmember Miller moved and Councilmember Heller seconded, to adopt the resolution. RESOLUTION NO. 12815 - RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT AND LEVYING ASSESSMENT FOR FISCAL YEAR 2009-2010 BAYPOINT LAGOONS LANDSCAPING AND LIGHTING DISTRICT (Pursuant to the Landscaping and Lighting Act of 1972) AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None CITY MANAGER'S REPORT: 13. State Budaet: - File 9-1 x 8-5 City Manager, Ken Nordhoff, reported that since the City Council last convened the state had taken action on adopting a budget. With regard to the Highway Users Tax (Gas Tax) he noted that one of the ideas being considered by the Legislature and Governor in terms of either taking, borrowing or loaning money, the League of California Cities felt strongly on very solid constitutional and legal grounds that to do so would be a bad idea and had conveyed this to the Assembly. Last minute lobbying had been fairly persuasive, which resulted in San Rafael avoiding an approximate $984,000 loss in the current fiscal year of the Highway Users Tax, most of which was directed to paying for street maintenance programs. With regard to Redevelopment, Mr. Nordhoff estimated the actual loss to the San Rafael Redevelopment Agency would be approximately $1,370,000. Explaining how redevelopment revenues are created, Mr. Nordhoff stated that the tax base is frozen at the year the agency is formed and the growth is shared across several taxing agencies, which in San Rafael's case, included the College of Marin, the San Rafael High School and Elementary School Districts, the County of Marin and the City of San Rafael. Formulas divide up how much each agency shares in the growth; therefore, of the $1,370 million, the estimated hit to the City would be approximately $210,000. Whether it stayed at that level or grew would be somewhat predicated on the existing redevelopment agreement that had some pass-through obligations that might exempt the County from paying their 29% share; therefore, San Rafael's figure could rise to $273,000 or $300,000. Mr. Nordhoff reported and he and Stephanie Lovette were working through this. On a statewide level, the California Redevelopment Agency was spending time looking at the legality of the latest raid or shifting of funds. Mr. Nordhoff noted that Under Proposition 1A, the State was borrowing a couple of billion dollars statewide --$1.6 million from the City of San Rafael. He reported that a number of trailer bills had to be put into place because a number of votings occurred very quickly without a lot of specificity. He explained that several years ago a program called "Securitization" was used as a vehicle to do what he termed Risk Assessment and Risk Shifting. He explained that agencies that chose to participate could take the loss of VLF (Vehicle License Fees) at that time and potentially 1A moneys this time, put them in a pool and let the market essentially buy that obligation. The repayment under SRCC Minutes (Regular) 08/03/2009 Page 12 SRCC Minutes (Regular) 08/03/2009 Page 13 Proposition 1A would go back to the third -party investors and away from the city. Mr. Nordhoff noted that this worked very well at the time; San Rafael participated in the pool and received approximately 95 -cents on the dollar. Mr. Nordhoff reported that it would take approximately 3-4 months to formalize such a program and then have agencies decide whether they wanted to participate. The League of California Cities was working hard to get this accomplished by mid-November. Staff would follow this closely and, given the opportunity, would put it up as an alternative. The City was also exploring the possibility of borrowing money against itself. Should these not come to pass, staff would have to return to the City Council on a General Fund basis with a litany of items such as staffing reductions, use of reserves, etc. Mr. Nordhoff reported that fortunately staff had not stopped taking actions that made good sense in terms of trying to continue to stay ahead of the budget crisis, irrespective of the state. The Firefighters Association had deferred pay raises, which was subject to budget adoption. He was working with the Community Development Department where there were some vacancies and possibly restructuring some Code Enforcement responsibilities to create additional savings. Mr. Nordhoff noted that Carlene McCart, Community Services Director, mentioned that the Latchkey Grant Funds Program payments terminated at the end of July, due to budget actions. Rather than trying to react to those families and give them 48 -hours notice to locate other Child Care providers, the City was extending those families through the current programs until the start of school on August 25, 2009; however, at that time they would be out of City programs and would need services elsewhere. While this was not a General Fund budget problem for the City, Mr. Nordhoff noted it was indicative of other issues where action had been taken or could come. Mr. Nordhoff reported that a meeting would be held with employees next week to discuss campaign do's and don'ts, together with a budget discussion. Staff would present refined Goals and Objectives to the City Council at the next meeting and as some definition was obtained to some state budget actions, formal action would be presented to the City Council. He did not anticipate taking any immediate action; however, should the collateralization or securitization programs not get off the ground, staff would have to begin moving fairly quickly. With regard to redevelopment moneys, Councilmember Heller inquired whether the housing moneys were being excluded or whether they could be transferred to other uses. Responding, Mr. Nordhoff explained that state law requires that 20% of the tax increment be put into housing. There was discussion with regard to being able to borrow against those housing moneys to pay the redevelopment obligation this and next year. San Rafael puts approximately $900,000 into the housing fund annually, which would not cover the obligation. He explained the $900,000 would not just cover the City's piece rather the $1,370,000 to make the remainder of the agencies whole. He stated that some of the details were still unclear. With regard to Councilmember Heller's question on encumbering funds in redevelopment if possible, Mr. Nordhoff reported that not a lot of money remained to encumber. Most of the funds were committed to indebtedness first and housing second with a handful of projects being completed where funds were committed. He noted an encumbrance requires that a vendor be identified and the funds committed. COUNCILMEMBER REPORTS: 14. None. There being no further business, Mayor Boro adjourned the City Council meeting at 10:31 PM. ESTHER C. BEIRNE, City Clerk APPROVED THIS DAY OF 2009 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 08/03/2009 Page 13