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HomeMy WebLinkAboutCC Minutes 2001-02-05SRCC Minutes (Regular) 02/05/2001 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, FEBRUARY 5, 2001 AT 8:00 P.M. Regular Meeting: Present: Albert J. Boro, Mayor San Rafael City Council Cyr N. Miller, Vice -Mayor Paul M. Cohen, Councilmember Barbara Heller, Councilmember Gary 0. Phillips, Councilmember Absent: None Also Present: Rod Gould, City Manager Gary T. Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk OPEN SESSION — COUNCIL CHAMBER — 6:30 PM: Mayor Boro announced the Closed Session items. CLOSED SESSION - CONFERENCE ROOM 201 - 6:30 PM: a) Conference with Real Property Negotiator Government Code Section 54956.8 Property Address: Menzies Parking Lot (Mission Ave. at "E" Street); APN 11-162-017 Negotiating Parties: City of San Rafael, a California municipal corporation and MCF Property Holdings, Inc., a California public benefit corporation Under Negotiation: Instructions to negotiator with respect to terms and conditions City Attorney Ragghianti announced that no reportable action was taken. 8:05 p.m Mayor Boro announced the Council would go back into Closed Session at the conclusion of this meeting to discuss the second agendized Closed Session item. b) Conference with Legal Counsel — Anticipated Litigation Initiation of litigation pursuant to Government Code Section 54956.9(c) One (1) case Continued at end of City Council Meeting. ORAL COMMUNICATIONS OF AN URGENCY NATURE: None CONSENT CALENDAR: 8:05 PM Councilmember Miller moved and Councilmember Phillips seconded, to approve the Consent Calendar, as follows: ITEM RECOMMENDED ACTION 2. Approval of Minutes of Regular Meeting of Tuesday, Minutes approved as submitted. January 16, 2001 (CC) Request for Amicus Participation: (CA) Approved amicus participation. Report to Council. Chevron USA, Inc. v. Cayetano (Petition for Certiorari in the United States Supreme Court) - File 9-3-16 SRCC Minutes (Regular) 02/05/2001 Page 1 CONSENT CALENDAR (Cont.): 4. Resolution Authorizing Execution of License Agreement with Marin Radio Emergency Authority for Installation of Telecommunication Facilities on the City Property Known as Mountain Park Reservation Located on San Rafael/Dollar Hill (CM) — File 4-13-102.1 x 9-3-30 X 9-3-31 X 9-3-40 Resolution of Appreciation to Ross Morrison, Community Services Department Custodian, as Employee of the Quarter for Quarter Ending December 31, 2000 (CS) — File 102 x 7-4 x 9-3-65 6. Monthly Investment Report for Month Ending December, 2000 (MS) — File 8-18 x 8-9 SRCC Minutes (Regular) 02/05/2001 Page 2 RECOMMENDED ACTION RESOLUTION NO. 10764 — RESOLUTION AUTHORIZING EXECUTION OF LICENSE AGREEMENT WITH MARIN EMERGENCY RADIO AUTHORITY FOR INSTALLATION OF TELECOMMUNICATION FACILITIES ON THE CITY PROPERTY KNOWN AS MOUNTAIN PARK RESERVATION LOCATED ON SAN RAFAEL/DOLLAR HILL (Mayor Boro disqualified himself due to potential conflict of interest.) RESOLUTION NO. 10765 — RESOLUTION OF APPRECIATION TO ROSS MORRISON, COMMUNITY SERVICES DEPARTMENT CUSTODIAN, AS EMPLOYEE OF THE QUARTER FOR QUARTER ENDING DECEMBER 31, 2000 Accepted Monthly Investment Report for month ending December, 2000, as presented. 7. Resolution Accepting a Proposal From Jones & RESOLUTION NO. 10766 — Madhavan for the Re -design of Terra Linda Pool RESOLUTION ACCEPTING A PROPOSAL Rebuild in an Amount Not to Exceed $55,000 and FROM JONES & MADHAVAN FOR THE Authorizing the Mayor to Execute the Agreement "TERRA LINDA POOL REBUILD" IN AN (PW) — File 4-10-320 x 12-15 x 9-3-65 x 9-3-66 AMOUNT NOT TO EXCEED $55,000.00 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT 8. Resolution Appropriating $225,000 to Fully Fund the RESOLUTION NO. 10767 — Conversion of the Traffic Signal Lighting From RESOLUTION APPROPRIATING $225,000 Incandescent to Light Emitting Diode (PW) — TO FULLY FUND THE CONVERSION OF File 4-1-528 x 11-10 TRAFFIC SIGNAL LIGHTING FROM INCANDESCENT TO LIGHT EMITTING DIODE 9. Resolution Authorizing the Replacement and RESOLUTION NO. 10768 — Purchase of Miscellaneous Vehicles and Equipment RESOLUTION AUTHORIZING THE (PW) — File 4-2-308 x 9-3-80 REPLACEMENT AND PURCHASE OF MISCELLANEOUS VEHICLES AND EQUIPMENT AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS None DISQUALIFIED: COUNCILMEMBERS: Mayor Boro — Item No. 4 only (Due to potential conflict of interest.) SPECIAL PRESENTATION: 10. PRESENTATION OF RESOLUTION OF APPRECIATION TO ROSS MORRISON, CUSTODIAN, AS EMPLOYEE OF THE QUARTER FOR QUARTER ENDING DECEMBER 31, 2000 (CS) — FILE 102 x 7-4 x 9-3-65 Community Services Director, Carlene McCart in introducing Ross Morrison, Head Custodian at the San Rafael Community Center, stated that in his short tenure with the City, Ross has willingly and enthusiastically taken on the responsibility, not only for the maintenance of the building, but for improving the facilities; he is a leader amongst the custodial staff, is the front person on weekends and evenings representing the department and the City to customers and renters, a task he carries out flawlessly. Many commendations have been received regarding Ross, stated Ms. McCart, adding he is hard working and anticipates needs, which is a valuable asset in a public employee. SRCC Minutes (Regular) 02/05/2001 Page 2 SRCC Minutes (Regular) 02/05/2001 Page 3 Mayor Boro thanked Ms. McCart, and for the benefit of the audience, explained each quarter there is a selection process where employees of the City recognize the "Employee of the Quarter" and Ross Morrison was being recognized this evening as "Employee of the Quarter" for the 4t" quarter of 2000. The Resolution, noted Mayor Boro, speaks to his accomplishments, but he felt Ross's biggest accomplishment was that he had only been with the City for little over a year, yet the employee body had recognized him for his wonderful efforts. Mayor Boro stated Ross should be very proud, as was Community Services Director McCart, and on behalf of the City Council, presented him with the Resolution of Appreciation, together with a Gold Star, stating he understood Ross had already received his $100 award. On behalf of the City Council, Mayor Boro congratulated Ross on his achievement. Responding, Ross thanked the Council, stating it was a big honor PUBLIC HEARING: 11. HIGHLAND AVENUE AND DEER PARK AVENUE - REQUEST FOR RE -ZONING OF 5.41 ACRES FROM PLANNED DEVELOPMENT — HILLSIDE OVERLAY (PD -H) ZONING DISTRICT AND PRE -ZONING OF 1.28 ACRES TO PLANNED DEVELOPMENT — HILLSIDE OVERLAY (PD -H) ZONING DISTRICT WITH ADOPTED RESIDENTIAL ZONING REGULATIONS, A MASTER USE PERMIT, ENVIRONMENTAL AND DESIGN REVIEW PERMIT AND TENTATIVE PARCEL MAP FOR SUBDIVISION OF A 6.69 ACRE SITE AND DEVELOPMENT WITH SINGLE-FAMILY RESIDENCES ON EACH PARCEL, LOCATED IN THE DOMINICAN -BLACK CANYON NEIGHBORHOOD, APNS 015-163-02 AND 04 (DOMINICAN HEIGHTS) (CD) — FILE 10-3 x 10-5 x 10-7 Kraig Tambornini, Associate Planner, stated the project was reviewed by the Design Review Board and Planning Commission. At the Planning Commission meeting, he reported, the home sizes and construction logistics were discussed; the issues with the home sizes primarily focused on Lot 2, where there was concern regarding the color and landscaping. Public comment and Planning Commission comment basically resulted in a recommendation which concurred with the Design Review Board, to the effect that the building material colors of Lot 2 be darkened and landscape treatments included, subject to final Design Review Board evaluation. Regarding construction logistics and staging, Mr. Tambornini stated concern was expressed by the neighbors regarding parking and construction traffic in general. Staff expanded on an existing condition requiring a construction logistics plan to be prepared which would include a requirement that signs be posted on the site, identifying a contact on site and within the City, should an issue arise, together with a requirement that additional noticing be done to the neighbors prior to soils export off the site, as well as other major activities. Mr. Tambornini stated this briefly summarized any changes since the Planning Commission meeting, and confirmed the project is for a 3 -Lot subdivision; it is being proposed at the lowest density range allowed by the General Plan, includes a planned development district with single family residential zoning standards and is consistent with the policies of the General Plan, as well as the regulations in the zoning ordinance. He stated he was in a position to answer questions and the applicant was also present to address the Council. Mayor Boro declared the Public Hearing opened, and invited the Applicant to address the Council. Applicant, Michael Smith, Waterford Associates, stated that accompanying him were Civil Engineer, Lee Oberkamper, Greg Barton, Hunt Hale Jones, Architects and Pete Peterson, Peterson Associates, Landscape Architects, who were present to answer any questions. As there was no further public comment, Mayor Boro closed the Public Hearing. Mayor Boro stated the report speaks of the visibility of the site and slope but he was curious about the appearance of the homes from a distance and understood that with the existing vegetation, with minimal being taken away, the homes would be well screened. Responding, Mr. Tambornini stated that was the conclusion based on the Planning Commission hearing where there was a visual presentation depicting distant views; the primary concern, however, seemed to be with regard to views from the adjacent residences; the offsite views were found to be distant and filtered by mature tree growth. Regarding Lot No. 2, Councilmember Heller inquired if it has been possible to appease the neighbors by turning the residence a little, as early on there had been questions regarding how much it would impact on the neighbors close to the loop. Mr. Tambornini stated the result from the first Design Review Board Hearing indicated the solution was to break the front elevation with an additional roof element and save two trees along the driveway, which provide significant screening; also to require additional screening and darkening of the colors. He noted the neighbors who spoke at the meetings appeared satisfied with this solution. SRCC Minutes (Regular) 02/05/2001 Page 3 SRCC Minutes (Regular) 02/05/2001 Page 4 Councilmember Heller confirmed the homes were beautiful. Councilmember Phillips stated he had some concern in reading Planning Commissioner Jeff Kirchmann's letter, noting he was a pretty astute Planning Commissioner, where Mr. Kirchmann had expressed reservations he deemed to be significant, including in paragraph 2, Page 2, - "Even if the walls are `only' 20 feet high and the rooftops are under the 30 foot maximum height limit allowed for `flatland' single-family dwellings, our regulations prohibit two story houses on ridgeline lots."— and asked Mr. Tambornini to address this issue. Mr. Tambornini reported that Mr. Kirchmann's concern centered primarily on the fact that his interpretation of the hillside guidelines is that it contains language stating two-story homes should not be permitted on ridgelines; this language, he noted, is in the guidelines and is an indication that, in general, it is not acceptable. However, when considering the entire context of hillside guidelines, there are always alternatives to hillside development, one of which is to push it down and step it along the hillside; the conclusion by the Design Review Board, Planning Commission and Staff was that this results in impacts which appear to be far greater than a two-story home, which is minimized by wall height and the use of colors, materials and appropriate design. Rather than moving it down the hill with the ensuing impact, and noting this was not the chosen direction, Councilmember Phillips inquired if an alternative would be to require just one story, not two. Mr. Tambornini stated there are alternatives with ridgeline development should it be deemed appropriate, given visual impacts, which include reduction in the size or mass, or confining it to a one-story home. This, stated Mr. Tambornini, was discussed by the Planning Commission, with the conclusion that given the fact that the views are distant filtered, modification would not dramatically result in an improvement of the project. He stated the footprint could be spread out which would involve more grading or smaller homes but was not deemed necessary in the present case. Councilmember Phillips stated he was aware that this was the conclusion, appreciating Mr. Tambornini's amplification, and although slightly concerned regarding this issue, he would let it go at that. Councilmember Heller moved and Councilmember Phillips seconded, to adopt the Resolution a) RESOLUTION NO. 10769 - RESOLUTION ADOPTING A MITIGATED NEGATIVE DECLARATION FOR A PLANNED DEVELOPMENT (PD) ZONING ORDINANCE AMENDMENT (ZC 00-7), MASTER USE PERMIT (UP 00-30), ENVIRONMENTAL AND DESIGN REVIEW PERMIT (ED 00- 85) AND TENTATIVE PARCEL MAP (S 00-4) FOR A THREE LOT, SINGLE-FAMILY RESIDENTIAL SUBDIVISION DEVELOPMENT LOCATED AT HIGHLAND AVENUE AND DEER PARK AVENUE (Dominican Estates) (Located at the intersection of Highland Avenue and Deer Park Avenue) (APNs 015-163-02 AND 04) AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS None b) The title of the Ordinance was read: "AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING THE ZONING MAP OF THE CITY OF SAN RAFAEL, CALIFORNIA, ADOPTED BY REFERENCE BY SECTION 14.01.020 OF THE MUNICIPAL CODE OF SAN RAFAEL, CALIFORNIA, SO AS TO RECLASSIFY CERTAIN REAL PROPERTY FROM PLANNED DEVELOPMENT - HILLSIDE OVERLAY (PD -H) DISTRICT TO PLANNED DEVELOPMENT — HILLSIDE OVERLAY DISTRICT AND PREZONING (PD ORDINANCE NO. 1759) TO ALLOW FOR THREE SINGLE FAMILY RESIDENTIAL LOTS LOCATED AT HIGHLAND AVENUE AND DEER PARK AVENUE (DOMINICAN ESTATES)" (RE: ZC99-7, Intersection of Highland Avenue and Deer Park Avenue) (AP NO. 015-163-02 AND 04) Councilmember Phillips moved and Councilmember Miller seconded, to dispense with the reading of the Ordinance in its entirety and to refer to it by title only, and pass Charter Ordinance No. 1759 to print, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT COUNCILMEMBERS None SRCC Minutes (Regular) 02/05/2001 Page 4 SRCC Minutes (Regular) 02/05/2001 Page 5 Councilmember Phillips moved and Councilmember Miller seconded, to adopt the Resolution. c) RESOLUTION NO. 10770 - RESOLUTION APPROVING A TENTATIVE PARCEL MAP (S 00-4), MASTER USE PERMIT (UP 00-30), AND ENVIRONMENTAL AND DESIGN REVIEW PERMIT (ED 00-85) FOR A THREE LOT, SINGLE-FAMILY RESIDENTIAL SUBDIVISION DEVELOPMENT LOCATED AT HIGHLAND AVENUE AND DEER PARK AVENUE (DOMINICAN ESTATES) (Intersection of Highland Avenue and Deer Park Avenue) (APN: 015-163-02 and 04) AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT COUNCILMEMBERS None 12. 18 -MONTH CITY WORK PLAN REVIEW (CM)- FILE 237 City Manager Gould reported that in June 1999 the City's first two-year performance based expenditure control budget was adopted, and besides setting forth the spending plan for the two-year period, the budget included some 460 individual goals, objectives and key performance areas for directing the outputs of spending - the services and projects to be provided in that two-year period. Mr. Gould stated at that time, staff promised to return every 6 months, not only to report on the financial condition of the City, in both revenues and expenditures to allow for mid course corrections, but also to report on collective progress toward the goals and objectives, priorities and indicators set in June 1999. Mr. Gould stated this would be the third occasion in the budget period that such a report had been provided, noting Mr. Nordhoff, Assistant City Manager, would report the financials. Continuing, Mr. Gould stated he was pleased to confirm that, based on meetings with the departments and offices, great strides had been made toward meeting the objectives for this period, and used the analogy of the forest to illustrate the changes which had occurred in the City over this period of time. He explained that to examine the changes in the forest at the root level, Councilmembers should refer to the 1" thick document, forwarded under separate cover, which listed every goal and objective and their current status, based on the performance and actions of all of the departments and offices. Mr. Gould noted that since 1996, the Council had adopted a series of priorities, indicating where it wished to see additional emphasis placed, beyond the normal services provided. For the two-year budget, some 40 priorities were adopted and a report was provided, comparable to midway up the tree trunk, to give a sense of the status. From an aerial view, to look at the canopy or tree roof line, Mr. Gould stated that in evaluating the five- year report card, attached to the staff report, it attempts to take a look back to the spring of 1996, through spring 2001, to gauge what has been achieved against the major goals set by Council. Therefore, Mr. Gould explained, that by using these three documents, he felt a very good picture could be obtained on progress, at whatever level of specificity required, and confirmed he was very satisfied with accomplishments to date, hoping Council felt likewise. Mayor Boro complimented Mr. Gould on his leadership and great work personally, and for the work that his department managers and each employee of the City had put out over the past several years. He noted the accomplishments were many and great, stating everyone was very proud of Mr. Gould, including the people of San Rafael, who are very pleased with what they see happening here; he thanked Mr. Gould. Councilmember Heller noted specific areas she would be interested in learning more about: The Mercado for this year and what was happening with it; Medians - all over the City; Safe routes to School, as she felt there would be more money available to tap into at the State level; she felt it should be a high priority to secure some money for the Canal routes to Davidson, as this is a problematic school. Commenting, Mr. Gould stated it is expected a report will be presented to Council on March 19, 2001 regarding civic events to be run, and offer options for increased events, one of which would be to consider whether support of the Mercado should be continued, furnishing the first two years' experiences. Regarding median landscaping, Mr. Gould stated the Freitas Landscaping would be out to bid in March or April and hopefully, in place this summer; Point San Pedro would be out to bid before the end of this SRCC Minutes (Regular) 02/05/2001 Page 5 SRCC Minutes (Regular) 02/05/2001 Page 6 fiscal year, and two other neighborhood partnership efforts are currently being proposed. Mr. Gould stated that should more median landscaping be required, it should be addressed in the next two-year budget. Concerning Safe Rides to School, Mr. Gould agreed there are a lot of schools in this category and it would be necessary to get direction from Council as to where the greatest emphasis should be placed. On this subject, Mayor Boro stated that some weeks ago Congressman Jim Oberstar, ranking Democrat on the Transportation Committee, was in Marin, and according to Mr. Oberstar he was the person who offered the Bill "Safe Routes to School". Mayor Boro reported that Debbie Hubsmith, Marin Bicycle Coalition Group, was present at the meeting he attended, where the success achieved in Mill Valley was reported. He, Mayor Boro, commented at that meeting that there was a real challenge in San Rafael, albeit the needs being somewhat different; it was not a case of getting the mothers out of the SUVs, rather a matter of ensuring the children had safe routes to walk and ride their bicycles to school. He stated Debbie Hubsmith assured him she would work with Dave Bernardi, Public Works Director, adding Ms. Hubsmith had a good relationship with Congressman Oberstar, who would be pleased with this particular activity. Councilmember Heller noted there would also be additional State funding. Dave Bernardi, Public Works Director, stated it was a reconstituted Bill from last year, where the standards for applications were revamped; these standards had not been received from Caltrans as yet. Councilmember Heller inquired as to the status of Sun Valley, to which Mr. Bernardi replied they had not qualified, as fortunately no child had been killed. Mr. Bernardi stated the standards had been revised to be more receptive to real issues. Commenting on the "canopy", Councilmember Cohen stated that the City Manager, in his report, had referred Council back to the process of recruitment, and he was reminded of something Mr. Gould had shared with him when commencing his employment with San Rafael; part of the process was to be placed in front of a video camera and requested to speak on accomplishments, one of which was the addition of the Paramedic ambulance based in Terra Linda, noting that at that time the bragging list was not long. One of Mr. Gould's responses was "I have got to give this guy a longer list of things to brag about". Councilmember Cohen stated Mr. Gould had certainly done this and he thanked him. Confirming that Mr. Gould had brought so much to the City, Councilmember Phillips stated that when asked what is going on in the City he can provide a lot of positive responses, which is driven by Mr. Gould's leadership and a terrific staff. He stated he could not be more proud; it was pretty amazing as he had no realization when he first got involved that he would be so profoundly impacted by the staff and professionalism, so hats off to each and everyone. On the question of Code Enforcement, in the "root section", Councilmember Phillips commented on the consequences and wondered if there was need to review or perhaps develop a philosophical statement as to what it is and at what level it will be enforced. This may be intuitively known, or perhaps it is in writing, but he felt as a Council it ought to be revisited. Responding, City Manager Gould stated there would be an opportunity sooner rather than later, and reported that Community Development Director, Bob Brown had a meeting with his counterparts at the County on Friday last, to explore whether or not the County would relinquish responsibility to the City for Code Enforcement in the City's housing, transferring the fees also, to give full responsibility for inspection and enforcement throughout the City of San Rafael. Mr. Gould noted Mr. Brown had a positive meeting, with the County recognizing that the City of San Rafael would provide a higher level of service. Mr. Gould stated this would be a policy decision for the City Council; there would be a review of what the stepped up Code Enforcement meant to San Rafael and what the next step would be. He confirmed with Mr. Brown this could be presented, hopefully, at the City Council Meeting on March 19, 2001. Councilmember Phillips agreed this would be fine and he thanked City Manager Gould for his efforts. Expressing appreciation, Councilmember Miller stated City Manager Gould had brought the City to the time where the City Council, City Management, City employees and workers all engage the City communities throughout, with everyone growing together. He commented that Mr. Gould had contributed mightily in enabling the City to go in that direction, and thanked him. In response, Mr. Gould stated he deeply appreciated the City Council's compliments and trust, confirming that the City of San Rafael had an extraordinary management team, being bright, committed, innovative and team players, which made it such a pleasure. He noted it all starts and ends with the five City Council Members because of the way they treat each other, the way they treat staff and the way they listen to the community, with great things being accomplished. SRCC Minutes (Regular) 02/05/2001 Page 6 SRCC Minutes (Regular) 02/05/2001 Page 7 Councilmember Phillips moved and Councilmember Heller seconded, to accept the 18 -Month City Work Plan Review. AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT COUNCILMEMBERS None 13. RESOLUTION ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL TWO-YEAR BUDGET FOR 1999/2001 (MS) — FILE 8-5 Assistant City Manager Nordhoff stated he would comment on a few highlights of the report and would then be happy to answer questions. Referring to the Background, Mr. Nordhoff stated he had included several items in the staff report, which were before Council last October, and on which action was taken; therefore, they were not new items. In terms of revenues, Mr. Nordhoff stated it was being requested that the budget be amended by $10.6 -million, the key factor having to do with the economy in terms of ongoing revenues. Sales tax is up $7 -million per annum, or 60% higher than on an annual basis five years ago, which is very significant. Also, the majority of these revenues emanated from donations, grants and outside sources, which covered a series of capital projects listed in the report. On the expense side, Mr. Nordhoff alluded to the Study Session on January 16th where 75 capital projects were discussed. He stated that a number of these actions were incorporated this evening: Action was taken recently on the full funding for the rebuild of the Terra Linda Pool, the dollars for which are committed as part of the staff report; Action was taken this evening on LED Traffic Light Conversion, the funds for which are included and committed in the report. Mr. Nordhoff stated that smaller items not seen before had been incorporated, including funding for an update of the public opinion poll which was carried out in the last two-year budget process and folding in costs of $24,000 to run the outreach meetings, San Rafael Choices; a study and Initial analysis was done of grant capabilities for various departments at a cost of $16,000, and there are some obligations to entities which were involved with MTA (Marin Telecommunications Agency) and LAFCO (Local Agency Formation Commission), a new state mandate which needs to be funded. Regarding the City's Vehicle Replacement Fund, Mr. Nordhoff recalled that a study was carried out with the Public Works Department where a series of issues were evaluated concerning best management practices, size of the fleet and life cycle of the vehicles. He reported that the Fleet Advisory Board had been working on the results of this study for several months and were recommending a fleet size of 185 units; a breakdown schedule was contained in the staff report. He stated staff was suggesting a two- tiered approach to ensure that the replacement of those assets be continued as in the past, and would be requesting this evening a one time infusion of $171,000 to account for vehicles that are identified in the study as having been re -deployed for services such as Code Enforcement; staff was also evaluating adjusting the rates as part of the two-year budget, which was not an action for this evening, but the rates proposed in the report would be used as a matter of building the budget for the next two years. Mr. Nordhoff stated that when the available resources of the City were evaluated, and in particular the General Fund, there was a total of approximately $3 -million at the close of this fiscal year, which he broke into two portions. A little over $700,000 remained of all of the Fair, Isaac funds received, and a schedule included in the staff report depicted where the monies were committed to date; this money remains for future one-time actions, it was not being recommended that anything be done with it this evening, but there were some capital projects considered on January 16, 2001, which may warrant some additional financial consideration at a later date. The General Fund overall surplus is approximately $2.3 -million; there were some items listed in the report, the vehicle replacement infusion and funding for the skatepark and to take these two actions would mean approximately $2.1 -million of the General Fund money, and approximately $700,000 of the Fair, Isaac money would remain, for a total of $2.8 -million. Mr. Nordhoff stated the budget, as amended, would be a total of $67.2 -million, broken down as: $48.3 -million operating budget, with the balance of approximately $19 -million for capital projects. SRCC Minutes (Regular) 02/05/2001 Page 7 SRCC Minutes (Regular) 02/05/2001 Page 8 Councilmember Phillips inquired as to the status of funding for the Radio System. Mr. Nordhoff stated that the Radio System was fully funded and explained that when the two-year budget was presented last time, four options were brought forth: A surplus of approximately $1.2 -million had been built up and as there was some concern that the project would span a long period of time because of the financing. Council took an action to infuse an additional $180,000 into the fund for two years, to obtain a balance of approximately $1.5 -million which would mean the lease payments would begin on August 1; however, if the interest earnings are included in the funds set aside, the financing period should be reduced to ten or eleven years, although it goes on for 20 years. Mr. Nordhoff reported there would be an increase seen, however, in the coming budget because of the lease obligations due. He confirmed adequate funding currently and the budget would be presented next year to be adequately funded also. Addressing the growth in sales tax and the possibility that the economy might slow slightly, with the potential for sales tax revenue to decrease at somewhat the rate it increased, 60% over 5 years, Councilmember Cohen inquired if the figures could be broken down to consider a baseline of businesses which existed 5 years ago, presently selling more product and therefore, generating more sales tax and those coming into existence since then, whose revenues might decrease in a slower economy, resulting in decreased but not entirely evaporated sales tax. He instanced BMW, which was not here five years ago, but which even with slower sales would continue to have an impact in a slower economy. Responding, Mr. Nordhoff stated that using perhaps the top 25 major sales tax producers, the data could be broken down to give a sense of how much revenue emanated from new development versus existing businesses, which have gone through an economic boom. Councilmember Cohen commented that it would be prudent, in terms of allocating money, to ensure commitment to operational expenses to leave a cushion, as the current economy would not continue at the present rate. Mr. Gould stated the point was well taken, reporting he and Mayor Boro had a conversation this morning regarding how much of the increase was permanent and how much was subject to fluctuation with the economy, and the need to ensure that the City's ongoing commitments to salaries, staffing and programming did not outstrip the ability to maintain the new revenues. He confirmed the City Council had adopted financial principles which err on the side of conservatism, both on spending and on one-time versus ongoing obligations. He stated funds are being reserved in various accounts, such as pensions etc., where it is known there can be fluctuations in rates. Referring to the staff report, City Manager Gould stated Mr. Nordhoff was not suggesting immediately programming $2.9 -million worth of new spending; rather the intention was to hold it aside as there would be new obligations coming up in the next year which would need to be met. He, therefore, concurred with the concern, noting it was the prudent way to manage. Mr. Gould commented that as sales tax had grown so rapidly in recent years he did not foresee a return to the 1966 figure because there had been such dramatic growth in sales tax producers in San Rafael; the City had been very successful in economic development efforts and he reported that this afternoon he had welcomed the latest auto dealer to town - Lincoln of Marin had set up business in what used to be the Jaguar dealership - the Jaguar dealership moving into the Lexus dealership, who moved across the street to its new headquarters. He noted San Rafael had the only Lincoln dealership between Burlingame and Santa Rosa, and with the arrival of G.M., was beginning to get a corner on the market for upscale luxury cars, which would do well in Marin, noting that while it was not recession -proof, the base was being built. Councilmember Phillips stated that perhaps rather than looking back five years at what the base was, it would be more germane to analyze current revenue sources, some of which are more elastic than others. He stated the principle outlined by Councilmember Cohen is correct but to analyze the existing was more relevant. City Manager Gould concurred, and reported that although frequently the City is heavily dependent on sales tax for the revenue base, it is well balanced, encompassing all the major industries: • home improvement and construction; • autos and auto related uses; • general merchandise; • restaurants; • hotels. SRCC Minutes (Regular) 02/05/2001 Page 8 SRCC Minutes (Regular) 02/05/2001 Page 9 He stated there is a good mix, which is getting even broader, and agreed that some of these industries are more subject to change than others. Mr. Gould reported that this type of discussion takes place when meeting with Hinderliter, De Llamas, who audits the sales tax every quarter. Mayor Boro thanked Mr. Nordhoff for an excellent report and stated they had a discussion this afternoon regarding the reserve, which he explained, is a sliding reserve, in that when the budget goes up likewise the reserve. Mayor Boro stated that since there is a good surplus and two good years coming with the current strong economy, perhaps a strategy should be put in place to raise the reserve to 12 '/2%, not making it policy but an informal reserve. He noted that "some of us have been around when times have gotten tough and some issues had to be dealt with regarding staffing and how to pay employees", which, he concluded, should be avoided in the future, if possible. Councilmember Cohen moved and Councilmember Phillips seconded, to adopt the Resolution. RESOLUTION NO. 10771 - RESOLUTION AMENDING THE 2000/2001 BUDGET AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT COUNCILMEMBERS None CITY MANAGER'S REPORT: 14. City Manager Reported —File 9-3-11 (Verbal) a) New San Rafael Corporate Center: Economic Development Director Mackle, Public Works Director Bernardi and he visited the site of the San Rafael Corporate Center this afternoon and found the pad had been poured for the first of the two buildings, the second to be poured in the next few days and the project is on schedule. b) Marin Emergency Radio Authority (MERA): Having met this afternoon, The Marin Emergency Radio Authority approved the lease agreement, approved this evening by the City Council, stating the application for the building permit would be submitted on Tuesday, February 6, 2001; Bob Brown, Community Development Director, would ensure expeditious processing and hopefully, it would be under construction soon. c) Town Discussion on Rising Rents: City Manager Gould thanked Mayor Boro and all Councilmembers for attending the Town Discussion on Rising Rents, noting it made a powerful statement that all five took time out of their schedules to attend and listen to the discussion. d) Chief of Police Interviews: Mr. Gould stated he wished to schedule a half-day or afternoon session to conduct interviews of candidates for Chief of Police. Having met with the recruiter, the field had been narrowed to 4 candidates whom it is believed are the most highly qualified, including Michael Cronin, Acting Police Chief. Mr. Gould recommended 50 -minute interviews; therefore, approximately 3'/2 hours would be needed. He suggested the following dates and requested Councilmembers to respond with their preferences, to enable him to schedule the candidates within an appropriate time frame: Friday, February 23, 2001 Saturday, February 24, 2001 Monday, February 26, 2001 COUNCILMEMBER REPORTS: 15. a) Demand for Office Space — File 253 x 9-1 x (SRRA) R-368 (Verbal) Councilember Cohen noted that the dot com demand for office space in San Francisco had imploded, with more space on the market currently, and inquired if there was any indication this was affecting the thinking of Wilson/Equity Office in terms of their schedule in Marin. City Manager Gould responded in the negative, stating that having discussed this with Tom Sullivan, Vice -President, this afternoon, his response was that Marin is such a specialty market, all of the major employers are aware this is one opportunity to obtain Class AA office space, which will not recur, and although Mr. Sullivan is not in a position to sign a lease with anyone yet, there is plenty of interest. Mr. Sullivan does not foresee a problem and in fact, inquired how quickly the City could move into its new Corporation Yard to enable him to schedule phase II of his construction. Mr. Gould added that Ms. Mackle, Economic Development Director, had reported that discussions with Jim Schafer, Samuelson Schafer, (San Rafael Town Center) indicated he could have leased the 40,000 square feet of office space three times over, with the prevailing interest. SRCC Minutes (Regular) 02/05/2001 Page 9 SRCC Minutes (Regular) 02/05/2001 Page 10 Councilmember Cohen inquired as to the status on the retail. City Manager Gould stated the Council had the sign -off for the approval rights on the retail and when ready to sign, Mr. Schafer would be before Council, but he did not wish to signal prospective tenants early as there is a lot of competition in the downtown for such tenants. b) Air Quality Grants — File 13-4 (Verbal) Mayor Boro reported he had received a letter from the County regarding Air Quality Grants, noting there is approximately $600,000 available for competition, some of which, hopefully, the City could secure. Public Works Director Bernardi, stated they had received a copy of this paperwork which staff was currently evaluating. There being no further business, the City Council meeting was adjourned at 8:50 p.m. OPEN SESSION — COUNCIL CHAMBER — 8:50 PM: Mayor Boro announced the City Council would resume Closed Session. CLOSED SESSION — CONFERENCE ROOM 201 (Cont.): 8:50 PM b) Conference with Legal Counsel — Anticipated Litigation Initiation of litigation pursuant to Government Code Section 54956.9(c) One (1) case. Mayor Boro stated that no reportable action was taken. ADJOURNMENT: 10:00 PM JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12001 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 02/05/2001 Page 10