City of Redwood City

rwclogo_orange.gif (3044 bytes) City Council Minutes

May 4, 1998

REDWOOD CITY CITY COUNCIL
MAYOR DIANE HOWARD
VICE MAYOR IRA RUSKIN

CITY COUNCIL
COUNCILMEMBER RICHARD S. CLAIRE
COUNCILMEMBER JIM HARTNETT
COUNCILMEMBER JEFF IRA
COUNCILMEMBER MATT LEIPZIG
COUNCILMEMBER IAN BAIN

CITY COUNCIL MEETING
CLOSED SESSION
CONFERENCE ROOM 2B
CITY HALL
REDWOOD CITY
MAY 4, 1998
CALL TO ORDER - 6:35 P.M., Mayor Howard presiding

ROLL CALL

Council Members present: Hartnett, Ira, Leipzig, Ruskin and Mayor Howard

Council Members absent: Bain, Claire

Staff present: City Manager Everett, City Attorney Schricker, Finance Director Ponty, Billing and Collections Manager Holmquist-Rogers and Bob Hilton of Hilton Farmkopf and Hobson, Consultants

1. PUBLIC COMMENT - None

2. CONVENED IN CLOSED SESSION - 6:36 p.m.

3. SUBJECT

A. Held a Conference with Real Property Negotiator, Brian Ponty, regarding terms and conditions of agreement pursuant to Section 54956.8 of the Government Code.

Prior to the Closed Session, the City Council described the property:

225 Shoreway Road, San Carlos, California

4. RECONVENE IN OPEN SESSION - 7:09 p.m.

5. REPORT OF ACTION TAKEN IN CLOSED SESSION, IF ANY - None

6. ADJOURNMENT

After motion duly made, seconded and carried, the Closed Session adjourned at 7:10 p.m.

Ed Everett
City Manager




CITY COUNCIL CHAMBER
1017 MIDDLEFIELD ROAD
REDWOOD CITY

REGULAR MEETING
MAY 4, 1998


CALL TO ORDER - 7:35, Mayor Howard presiding

ROLL CALL

Council Members present: Hartnett, Ira, Leipzig, Ruskin and Mayor Howard

Council Members absent: Bain and Claire

Staff present: City Manager Everett, City Attorney Schricker, City Clerk Jorgenson, Community Development Director Nelson, Parks, Recreation and Community Services Superintendent Centeno, Public Works Services Director Ingram and Superintendents Rosas and Adams, Senior Engineer Chang and Council Volunteer Art Balsamo

PLEDGE OF ALLEGIANCE - Council Member Leipzig
INVOCATION: Steve Converse
Grace Bible Church

1. SPECIAL ORDERS OF THE DAY

None

2. ORAL COMMUNICATIONS

None

3. CONSENT CALENDAR

M/S: LEIPZIG/IRA WAIVE READING OF THE CONSENT CALENDAR, ADOPT
THE RESOLUTIONS AND THE ORDINANCE, AND APPROVE OTHER ITEMS.

ADOPTED BY UNANIMOUS ROLL CALL VOTE OF MEMBERS PRESENT.

A. Approve the Minutes of April 27, 1998 Closed Session and Regular Council Meeting, as submitted;MINUTE ORDER 98-108

B. RESOLUTION NO. 13329 APPROVING AND AUTHORIZING EXECUTION OF
AGREEMENT FOR THE DISPOSAL OF SOIL IN CONNECTION WITH THE
JEFFERSON AVENUE UNDERPASS PROJECT (CHEVRON PRODUCTS COMPANY)

C. Community Development Block Grant (CDBG) Funding Agreements for FY 1997/98;

1. RESOLUTION NO. 13330 APPROVING AND AUTHORIZING EXECUTION
OF AGREEMENT FOR CHILDREN'S SAFETY PROJECT (FAMILY SERVICE AGENCY);

2. RESOLUTION NO. 13331 APPROVING AND AUTHORIZING EXECUTION
OF AGREEMENT FOR FACILITY RENOVATION (POPLAR RECARE);

3. RESOLUTION NO. 13332 APPROVING AND AUTHORIZING EXECUTION
OF AGREEMENT FOR HEALTH AND WELLNESS PROGRAM (YMCA OF THE MIDPENINSULA, SEQUOIA BRANCH);

4. RESOLUTION NO. 13333 APPROVING AND AUTHORIZING EXECUTION
OF AGREEMENT FOR ACQUISITION TO ACQUIRE AFFORDABLE HOUSING FOR SPECIAL NEEDS POPULATION (KAINOS HOME AND TRAINING CENTER);

5. RESOLUTION NO. 13334 APPROVING AND AUTHORIZING EXECUTION
OF AGREEMENT FOR YOUR HOUSE SOUTH REHABILITATION (YOUTH AND FAMILY ASSISTANCE);

D. INTRODUCTION OF ORDINANCE and motion amending the contract with
PERS to provide for G.C. Section 21354 "2% at 55 Full Formula: benefits, for all local miscellaneous members;

1) MOTION TO APPROVE SUPPLEMENTAL AGREEMENTS TO
MEMORANDA OF UNDERSTANDING WITH THE REDWOOD CITY
MANAGEMENT EMPLOYEES ASSOCIATION, THE EXECUTIVE GROUP
AND THE SERVICE EMPLOYEES INTERNATIONAL UNION (S.E.I.U.) TO
PROVIDE FOR SUCH BENEFITS;

MINUTE ORDER 98-109

2) ORDINANCE APPROVING AND AUTHORIZING EXECUTION OF
AMENDMENT TO AGREEMENT BETWEEN THE CITY OF REDWOOD
CITY AND THE BOARD OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE GOVERNMENT
CODE SECTION 21354 ("2% @ 55") FULL FORMULA FOR LOCAL
MISCELLANEOUS MEMBERS; (Approved for first reading.)

MINUTE ORDER 98-110

E. Approve warrants dated through may 11, 1998; APPROVED

F. Reject claim of Craig Burleigh, No. 1652;MINUTE ORDER 98-111

4. WRITTEN COMMUNICATIONS

None

5. BOARDS, COMMISSION AND COMMITTEE REPORTS

None

6. PUBLIC HEARINGS

None

7. MATTERS OF COUNCIL INTEREST

A. Mayor Howard reported that the Farmers Market sponsored by the Kiwanis, opened on Saturday morning, May 2, at its traditional downtown location on Middlefield. She invited everyone to visit downtown Redwood City on Saturday mornings through the summer to buy the best fresh fruit and vegetables and meet your neighbors.

B. Mayor Howard reported on the Redwood City Spring Clean-up sponsored by the Pride and Beautification Committee held last Saturday. She said that over 200 volunteers participated in cleaning up very diverse sites including Sequoia High School, the railroad tracks behind Sequoia Station and near Whipple Avenue, and the sluices and levees. Mayor Howard thanked the San Mateo Credit Union for providing a wonderful barbecue for all the volunteers, and thanked everyone for making the clean-up such a success. Mayor Howard said their efforts sent a strong message: "We like Redwood City clean, and we want to keep it that way."


8. STAFF REPORTS

None

9. CLOSED SESSION

None

10. ADJOURNMENT

M/S: LEIPZIG/HARTNETT ADJOURN THE REGULAR COUNCIL MEETING OF
MAY 4, 1998 TO AN ADJOURNED REGULAR MEETING/STUDY SESSION
IMMEDIATELY FOLLOWING THE MAY 4, 1997 REGULAR COUNCIL
MEETING, CITY COUNCIL CHAMBER, 1017 MIDDLEFIELD ROAD, REDWOOD
CITY.

CARRIED BY UNANIMOUS VOICE VOTE AND MEETING ADJOURNED AT 7:40
P.M.

Arlyn C. Jorgenson
City Clerk

ADJOURNED REGULAR COUNCIL MEETING
STUDY SESSION
MAY 4, 1998

1. CALL TO ORDER - 7:41 p.m., Mayor Howard presiding

2. ROLL CALL

Council Members present: Hartnett, Ira, Leipzig, Ruskin and
Mayor Howard

Council Members absent: Bain and Claire

Staff present: City Manager Everett, City Attorney Schricker, City Clerk Jorgenson, Community Development Director Nelson, Parks, Recreation and Community Services Superintendent Centeno, Public Works Services Director Ingram, Superintendents Rosas and Adams, Senior Engineer Chang and Council Volunteer Art Balsamo

Civic Cultural Commissioners present: Ball, Redington and Saye

Civic Cultural Commissioners absent: Britschgi and Distefano

Guests present: Cecil Reeves, Facilitator

3. PUBLIC COMMENT

None. Mayor Howard announced that public input on the Civic Cultural Commission and all related cultural subjects would be encouraged during the Council budget sessions in June and July.

4. SUBJECT

A. JOINT STUDY SESSION WITH THE REDWOOD CITY CIVIC CULTURAL
COMMISSION;

REPORT: Virginia Ball, Chairperson, Civic Cultural Commission, April 29, 1998

Joint Study Session led and facilitated by Mr. Cecil Reeves who outlined the four issues the Council and Commission said they wished to address:

1) Identify issues;

2) Share Work Plan;

3) Guidance requested;

4) Ideas/improve effectiveness.

In response to the first question, "Identify issues" Civic Cultural Commissioners said they wanted to explore:

? more feedback from the Council;
? more guidance from the Council;
? how best to address cultural issues downtown with the Council's help;
? what is Council looking for the Civic Cultural Commissioners to do;
? the Commission needs more money;
? resolve the delay in interviewing applicants;
? make community aware of Commission's needs;
? help in determining which groups to continue funding;

In response to questions concerning "guidance" Civic Cultural Commissioners said they would like guidance on the following issues:

? the Commission budget has been reconstructed and funding will be done in a different manner, so the Commission needs guidance on what type of funding does Council want for the Fox Theatre, schools, concerts in the Parks are underwritten by the Port, Tis the Season, downtown Museum, downtown theaters, Carrington Hall, and the Arts Center;
? how can the Commission make the best use of the Commission's funds for the community;
? a reserve fund would be helpful to address a need not yet identified;
? more cultural opportunities for youth needs to be addresses;
? Civic Cultural Commission involvement at the very beginning for all decisions on public art;
? Carrington Hall - Commission is currently trying to find corporate funding and guidance on who can or cannot be solicited;
? an entertainment tax or hotel tax to raise additional funds for the Commission;

In response to questions regarding "Share Work Plan" Civic Cultural Commissioners discussed:

? having a Council Member to be a liaison to the Civic Cultural Commission, available to provide guidance and accept feedback;
? using the budget process as the tool to establish a Work Plan, discussed applications and grants;

In response to questions regarding "Improving Effectiveness" Civic Cultural Commissioners said:

? they welcomed spontaneous feedback from Council Members at any time;
? need input from Council Members regarding school programs, music programs, arts programs for children, perhaps a teen center downtown;
? children have expressed lots of interest in performing on stage;
? the Commission needs more input from Council regarding youth cultural activities, especially for ages between 13 and 18;
? described accomplishments over the years including Concerts in the Park;
? they always needed more money to match requests;

In response to questions regarding the Commissioners' comments Council Members provided their comments:

Council Member Leipzig said that a liaison was a good idea and would help communications. He said he agreed that soliciting funds from outside sources was a great idea and he believed that anyone could be asked to contribute and help. Council Member Leipzig said the Commission should have a role early on in public art, and staff and the
Commission should discuss that further. He said he did not support a special tax to raise additional funds, and he did not support funding for the Fox Theater, as they "have failed to provide the community with access to a fantastic asset." Council Member Leipzig, member of the Downtown Historic Museum fundraising Committee, said he supported efforts on behalf of the Museum which will be a great help to all aspects of Redwood City, and reported that much of its initial $10 million for Phase 1 has been provided through private funding. He said the Commission's Concerts in the Parks program was one of its best achievements.

Vice Mayor Ruskin said the Council hadn't publicly thanked the Commissioners enough, and he said the Commissioners were doing a good job. Vice Mayor Ruskin said the Commissioners, past and present, had come up with valuable cultural ideas for the community and perhaps were in a better position than the Council to address the cultural needs of the City. He said that better and more frequent communications would be helpful for both groups, but what the Commission has been doing has been terrific.

Council Member Hartnett said he agreed with Vice Mayor Ruskin, and suggested that joint sponsorship of cultural activities, without Commission money, wouldhelp others raise money. He said he agreed that it would be appropriate to focus on cultural activity for youth, but expressed concern that programs cover all levels in the schools. He said another concern was that "we ought not to be attempting to be a regular, institutional funder of cultural activities for youth, but we should be a catalyst for the schools and see ourselves phasing out... but be a catalyst to reestablish programs that have long since passed." Council Member Hartnett asked that the Commission not duplicate what the City's Park and Recreation programs offer.

Council Member Ira described the current recruitment process that has begun for boards, committees and commissions, and asked the Commissioners to be involved in that process. He said the Civic Cultural Commission has been honored and recognized for its accomplishments over the years, and he encouraged the Commissioners to build upon that history, and to discuss that success with former Commissioners. He agreed that a strong focus should be on cultural activities for youth. Council Member Ira said the Council hadmany, many projects "on their plates" and depended on the Commission to come up with new ideas and to be creative addressing the cultural activities of the City.

Mayor Howard said the Civic Cultural Commissions over the years have created "sparks in the community for the arts." She described the many programs the Commission started and how the commission has motivated people to get involved in art and culture in the City. Mayor Howard said that when the Council approves the budget every year, that is "almost the last time we really talk about the different programs and events that (the Commission sponsors.) We try to go to them, and we read the Minutes. But we don't really have much communication, as to what we are looking for together." Mayor Howard thanked the Commissioners for asking for more guidance and said she was sure that the Council and the Commission could devise a way to satisfy both their needs. She said a liaison and/or a monthly report from the Commission would be very beneficial. Mayor Howard said a list of the Commission sponsored programs shows activities for all ages.

Facilitator Reeves asked the groups to discuss the Work Plan.

Council Member Hartnett said he saw the work plan (in the Report) as a process where values are established by the size of grants, historical review is considered, and criteria established. He asked the Commissioners if they had other goals they wished to share that weren't apparent in their guidelines.

Vice Mayor Ruskin said the Commission's work plan was a process describing how the Commission "was going to approach things." He said this allocation process was a great improvement and had been badly needed. He suggested that the Commission establish priorities and somehow let it be known that those programs would be given more weight. He said, "I'm concerned about the lack of teaching of the arts in the schools... If we are going to have cultural activities from adults, it is very difficult to do that if they don't begin as young kids, no matter what that activity is, whether it is appreciating literature or going to the theater, or music." He commended the Commissioners for their efforts in bringing music back to Redwood City schools and their support for the Education Foundation. Vice Mayor Ruskin said the Education Foundation supported programs that "jump started" programs that would eventually continue on their own. He said would like to see support for jump starting a program for fine arts instruction in the schools. Vice Mayor Ruskin described the art exhibit at Saint Ignatius High in San Francisco that he saw, and commented that the obvious art instruction that went into the student's artwork was evident and much appreciated.

Council Member Ira said he agreed, but cautioned that the Commission not get into an area that is someone else's responsibility. He said schools with great programs usually have great parent involvement. He said he didn't feel that the Commission "should feel responsible to fund the Peninsula Center Stage for $30,000 a year." Council Member Ira said, "I feel it is your (Commission) responsibility to determine how best to allocate your budget, and if the Council wants $30,000 to go to the Peninsula Center Stage, then say 'go fund it.'... If we are going to tell you how to spend your budget, we might as well do yourbudget for you. We are depending on you to tell us how to best spend those funds, and I don't think you should feel a commitment to fund these things on a regular basis." Council Member Ira reminded everyone that the Housing and Human Concerns Committee was very careful with its funds but also had made independent decisions that had not always pleased certain agencies in the community. He said he did not have any commitment "that I want you to make with your budget. I want you to utilize it as you feel best, as it meets the needs of our overall Council goals and objectives."

Council Member Hartnett said that in the past Council had indicated it wanted $30,000 to go the Fox Theater. He said, "It is my understanding that that lump sum of money was in fact designated for that purpose. Then it got institutionalized more than anything else.... that money was intended to bring people downtown. The issue in my mind is not whether or not the Fox Theater performances are supported by it, but whether or not that bulk of money is used for cultural events... that get people downtown. I wouldn't want to see that money spent on some other purpose. I personally would rather have it spent on getting people downtown for cultural events, whatever they might be in the Commission's judgment, including the Fox or something else."

Vice Mayor Ruskin said the Fox Theater issue had been troublesome and it needed to be resolved. He said, "I'm not necessarily for removing that subsidy to the Fox Theater. But what I don't like is if we are going to say, let's subsidize the Theater, then I think we should do it directly. I don't like the idea of giving money to a group and saying you have to disperse it. It doesn't make sense.... it leads to a feeling of impotence, of being perfunctory." He said if the Council wished to subsidize an activity, the Council should take it out of the General fund and "send it on."

Mayor Howard said, "I would like to see us negotiate a better deal with the Fox. The reason we are giving money to the Fox is because we want more action downtown." She said that downtown restaurants depend heavily on customers who attend productions at the Fox. Mayor Howard said the Civic Cultural Commission was the most qualified entity to negotiate a better deal, a better contract with the Fox Theater people. She said if the Fox didn't meet the Commission's terms, the Commissioners could choose to support other cultural activities that would bring people to downtown Redwood City. Mayor Hartnett said the Council should consider increasing the Commission's budget, "because if we are going to commit to the Fox in order to help support the downtown, then we have to give you other money to work with to provide other services.

Commissioner Saye said that as a downtown merchant, as well as personally, he supported the subsidy to the Fox Theater. He said, "It is, beyond a doubt, the one thing that makes Redwood City known on the Peninsula." Commissioner Saye described other local performing art centers, and said his feeling about the $30,000 subsidy was "Hands off!" He described his plans to seek corporate sponsorship, and said he believed the community deserves the City's efforts to further the performing arts in Redwood City.

Commissioner Ball, member of the Fox Theater Task Force, provided the background of the $30,000 subsidy to the Fox Theater. She said the Commission's budget was $65,000. Deducting $30,000 to the Fox and $25,000 to the Schools so they could leverage it for the Music in the Schools Program, only left $10,000 for all the other cultural activities the Commission wanted to support. She said, "In all fairness to the Culture Commission, I don't feel we should put out that $30,000 to the people at Fox.... If we are going to fund it, then I want some restrictions, some demands on them to get some cooperation. If they want to have more performances to bring downtown, if they want to have some type of school for young people to learn how to become artists, stage performers, fine. But the idea of just handing them $30,000 a year and no questions asked - I do not agree with it.... We have asked them repeatedly what performances they were going to have the following year before we fund them the money, and they refused to tell us. They said they didn't want anyone to know..... That is not right. You don't hand out money to somebody unless you know what you are getting for your money.... We need to have a stricter agreement with them, and get something in return. If we don't... then we should not fund it."

Commissioner Saye said he had already requested to speak at the Fox Theater's Board of Directors meeting next week, and said he would bring a report back to the Commission.

Facilitator Reeves described the themes he had heard expressed and the outcomes desired:

? The Commission establish its priorities in a manner that is consistent with the overall objectives of the City;
? There is a need to attract more business downtown and that cultural aspect would be an advantage;
? There is the feeling that once the priorities are established the Commission will be empowered, will have discretion in terms of choices, budget and what to support;
? The Fox Theater is a recurring issue and there is a need to negotiate a better deal, to establish concrete commitments with some accountability;
? Possibly augmenting the Commission's budget;
? More communication than just the brief discussion at budget time, more throughout the year;
? The Council really depends upon the Commission to trigger ideas, the Commission is the "brain trust"; the Council will give feedback, but relies on you and values that role;

Vice Mayor Ruskin further described Council's dependence on the Commission for cultural decisions, and encouraged the Commissioners to take on the controversial issues and "put up with the fireworks" to achieve their desirable goals. He said he hoped they weren't disappointed that the Council didn't want to directly guide them in their decisions, but again expressed confidence in their decision making ability and said he believed more communication would be helpful for both groups. Vice Mayor Ruskin said Council read the Minutes of the Commission's meeting and he would welcome a monthly Report at Council Meetings if it were about issues and events which were not in the Minutes.

Mayor Howard said she would welcome a brief overview of the June 4 Commission meeting where applications for grants will be considered, and perhaps the August meeting where recommendations will be considered. She said that what transpires at those meetings could provide insight "on how you weight the different types of activities and the quality of activities that you receive." Mayor Howard said the Commissioners could share with the Council the difficulties they had in the process and "how you think you could make it better, or if it worked just fine."

Council Member Leipzig said he felt there were two main issues. He said the first was communications, and "that's what we are doing here tonight. Opening up that communication process" as we are with all Council-appointed board, committee and commission. Council Member Leipzig said the second was money. He suggested that the Commission engage in fund raising activities. He said, "I will pledge my support for that kind of effort if you choose as a Commission to do that. I think that that is a reasonable, attainable goal if we all work together... That's the kind of thing I would like the Commission to try to achieve as opposed to just coming with hat in hand, saying we need more money - because you probably do.... But we have, as you look at our agendas, many, many more issues on our table that are pressing needs, police, fire, roads. We will be talking about sewers later tonight.... not a very sexy issue, but it is critical to the functioning of the City."

Commissioner Ball said volunteers to boards, committees and commissions spend a lot of time and put a lot of effort into the work they do, and "I do not feel that it should be their position to do fund raisers." She said a fundraiser once a year would be fine, but fund raising shouldn't be required of volunteers to Council appointed boards, committees and commissions.

Facilitator Reeves restated the outcomes:

? the idea of a liaison has merit
? the Commission wants to establish priorities and make sure they are within the framework of the Council's goals and objectives;
? you are the Council's brain trust, they rely upon you and trust your judgment and respect you;
? the Council has said the Commission should negotiate a better deal with Fox and hold them accountable - true for everyone who receives a Commission grant;
? focus on youth, 13-18, but be sure you stay within your area, that your role can best be characterized as a catalyst for change, careful you don't institutionalize certain grants;
? by far, what you are trying to do is to attract people downtown through cultural activities;
? continue to improve communications internally as well as with the Council;

Facilitator Reeves asked Council Members and Commissioners to use adjectives to describe this evening's meeting:

Helpful, good beginning, cathartic, reminder of goals, best of both groups, and positive.

Commissioner Ball said the meeting was "a realistic view of what we are doing and the fact that the amount of money we had for the citizens of Redwood City is less than $1 per person, and I think we should be able to spend a little bit more money than that."

Mayor Howard asked that Mr. Reeves easel notes be transcribed and distributed to Council and the Civic Cultural Commission.MEMO 5/5/98

Commissioner Ball announced that Bill McKenna was performing May 22 and 23rd at Carrington Hall, and next month will be the first of the Concert in the Park programs. She said that San Francisco has a donation "bucket" at their concerts in Stern Grove, and said she would be willing to try that if the Commission agreed. Commissioner Ball said that in February the Commission had funded a program by Bill Markey which was very, very well attended. She said they were trying to find better ways to reach the public and get them to attend their other sponsored activities. "Any help you can give us on that, we can certainly use," Commissioner Ball said.

Mayor Howard said that as the City becomes more technologically sophisticated with the Web, they will be able to help publicize the Commission's activities.

Commissioner Ball said the volunteers for the Tis the Season advertising were absolutely wonderful, but for some reason, "we did not get the response to a lot of the things we had." She said all the programs were very good, but for some reasons the public did not attend. She said, "We need to find another way."

The Commissioners and Council Members thanked each other for the opportunity to openly communicate and share ideas that will help both groups understand their roles and achieve their mutual goals.

Mayor Howard announced that public input on the Civic Cultural Commission and all related cultural subjects would be encouraged during the Council budget session in June and July.

Mayor Howard declared a recess at 8:47 p.m.
The meeting reconvened at 9:00 p.m.

2) Storm Water Management Program / Flooding Issues

REPORT: Utilities Committee of the City Council, May 4, 1998

Update: Discussions with Friendly Acres and Centennial Neighborhood Associations
Update: February Storms Damage Repairs and Discussions with FEMA
Proposed Next Steps in Addressing Flooding Problems

Vice Mayor Ruskin, Chairman of the Council Utilities Committee, said he would concentrate his remarks on a specific aspect of the far ranging Report, the most challenging aspect of it - flooding of various neighborhoods in Redwood City. He said, "the flooding has bought an outpouring of feeling recently, because of advent of El Nino, which was in a sense the straw that broke the camel's back. Recently there have been a series of meetings in the neighborhoods.... at Fair Oaks the Neighborhood Association as well as the special Flood Committee of that Neigghborhood where I was present representing Mayor Howard. Peter Ingram and staff were present. The Centennial Neighborhood Association meeting with special emphasis and discussion about the flooding where both the Mayor and I were present along with Peter and staff.

"Before the flooding occurred the Utilities Committee made a decision to look into the flooding to see if we could come up with a plan to provide a solution to the challenge. I'm here tonight to talk about the recommendation of the Utility Committee. It is a unanimous recommendation. There are three members on the Committee, Council
Member Dick Claire who is not here tonight, Council Member Jeff Ira and myself.

"We have a strong, unanimous recommendation, that we face the problem. And we have looked into the situation and think there is only one workable approach to the problem. It is a massive problem demanding significant resources in the millions of dollars. And we feel there is only one workable approach and that is, to combine the sanitary sewer system with the capital improvement of the storm drainage system into one Enterprise Fund. The purpose of that would be to be able to issue Revenue Bonds. We feel that the issuance of Revenue Bonds is the only workable option that the City has to face the challenge of flooding.... We also feel strongly that it is the right thing to do, not only because we are all in this together, and what affects one neighborhood really ought to affect us all, but also because everybody who is upstream contributes to the run-off that eventually impacts the bottom of the basin in the neighborhoods where flooding occurs. It is also imprudent to continue to operate in the way we have, becausewe are forced into a reactive mode. And every winter when there is a serious storm problem, the entire Public Works Services Department is forced to go into a reactive mode rather than to be in a proactive mode able to do the work we really want them to do.

"Although we are unanimously recommending that we take action on this, we also want to bring up the fact that it is a multi-agency problem. It is not simply Redwood City that needs to deal with this. The County needs to be brought in because its run-off is part of the problem, and other jurisdictions, neighboring cities need to be brought in. We feel that unless we take leadership, the solutions will not come. And there is only one way to lead and that is by action. So we are asking, we are recommending that you follow our recommendation to combine the storm drainage capital improvements into the sewage system fund in order to raise the resources necessary to really face this challenge.

"One other item, at some point during the budget process, Mr. Ingram is going to recommend that we hire a coordinator for this effort. This is something that has been discussed at some of the neighborhood meetings. We think this is essential, because the staff does not have the time to marshal the efforts necessary to make this happen. But a coordinator is essential to carry on the public campaign, in a sense the political campaign.... It is all part of one package. We feel unless the entire package is taken, the coordinator will have no wherewithal to work, unless we give him or her the ability to carry some funds with them to the bargaining table when they meet with the other agencies.

"It is a difficult problem, but we recommend that we face it now rather than pass it to the next generation for whom it will be even more expensive. In summary, we recommend unanimously the inclusion of storm drainage infrastructure in the sewage Enterprise Fund as the one mechanism that can really work. That is the essence of the recommendation."

Peter Ingram, Public Works Services Director, introduced staff members Public Works Services Superintendents Manny Rosas, William Adams and Senior Engineer Chang. Director Ingram described his Department's work with the Utilities Committee for many months. He said that staff was looking for broad direction from the Council so they could decide "how best to come back to you later on during both the budget process and the CIP approval process.... scheduled to occur in a public hearing on June 22, 1998. We will do rates specifically then and CIP as early as next week and formally in June/July."

Director Ingram said, "I think we are at a crossroads here of needing a sense from the Council as a whole, if we are ready to commit resources, time and money and credibility to the problem solving the flooding in Redwood City. It is important that we recognize that there is a high level of awareness right now throughout the peninsula and the state about flooding, and certainly in the neighborhoods there is a high level of angst and concern, and creativity in terms of ideas and energy to contribute to approaching this. What makes sense to me at the staff level is a broad citywide effort that would involve a coordinated process with community input so that you could get assistance and feedback on setting priorities. Because no matter what decisions you make.... there will be questions from different sectors of your community. And so it is important that we try to reach as far as we can. My sense is that in the past, part of what was missing from Council decisions about flooding, may have been that community process. There are some good models out there that we would like to borrow on. A coordinated effort is very important, and you will see a recommendation in the CIP that will begin to bring some money to that. Staff can support, provide leadership and assistance, but in my eyes it really requires if not a full time, a fairly serious continuous effort to get this process moving ahead.

"The critical mix in terms of what you are looking at tonight is different from what you looked at in the past. Some of you were on the Council several years ago when the notion of storm water fees was looked at. That was a fee specifically to support the operations of maintaining your storm drain system, to get that out of the general fund, because it is now a regulated activity. What is different about the current suggestion is that you would make no change in your operation budgets, and the funding of those budgets for storm water or sewer maintenance; but you would fold the two activities together so you could leverage the value of your sewer system to borrow money to fix your storm drain system. So you would have a capital component folded in, but your operations would essentially stay funded about the same as they are now. That is an essential difference from the last discussion that occurred at the Council level about two years ago. It doesn't mean the same issues won't come up, about equity, about what is fair, who should pay what, about how much of the leadership should Redwood City provide versus how much other agencies should bring to the table. If you provide coordination, if you provide leadership, and if you provide a funding mechanism that you could then make choices about later down the road, you would probably have a much stronger place at the table when it is time to get other cities or the County or the State or even the Federal Government to entertain seriously bringing dollars to the table. Part of what you should think about tonight is leverage, both political leverage and financial leverage that you could apply."

Director Ingram provided a handout and explained each item on the Potential Time Line: 1) Combine sewer/storm water ordinance, 3 months; 2) hire program coordinator, 3 months; 3) program coordination services, on-going; 4) reach consensus on projects and priorities, 6 months; 5) design bid documents, 12 months; 6) permits and possible EIR; 7) complete sewer rates, 5 months; 8) variable sewer rates take effect, 3 months; 9) issue Revenue Bonds, 3 months; and 10) beginning construction of improvements.

Director Ingram said this program assumes that there will never be enough money to take care of every single flooding problem, and there was a real need to develop a consensus, so that everyone "understands the priorities... and support the decisions made around them." He said there were some existing documents that could be used as a base to build new studies, but nothing like that exists for Cordilleras Creek, which will need engineering and options developed. Director Ingram described all the agencies that will have jurisdictions as soon as the City moves on the Bayfront Canal, and explained why it
might take a long time to get the permits, and possibly an EIR. He said at that point the City would have to have a professional rate study done for the Sewer Enterprise Fund "that will give the financial credibility to lending institutions just to position you to be in that market." He said the Utilities Committee had discussed for years, the possibility of moving to a variable rate rather than a fixed monthly rate. Director Ingram said senior citizens have been asking for that for years, as it will give them more control over their utility bills. He said bond counsel would be helpful throughout the process.

Director Ingram said the beginning of the fiscal year is the best time to enact a change. He said if the Council wished to make changes in both rate structure and rate according to the Utilities Committee's recommendation, then July 1, 1999 would be the target date.

Director Ingram described the projects that could be funded through this process to address flooding, the same projects Senior Engineer Chang described during the CIP presentation to Council and said had to be done in concert to get it all to work:

1) Replace 5th Avenue pump station;
2) Dredge Bayfront Canal and improve/add height to levee;
3) Construct new tide gate at south end of Bayfront Canal;
4) Improve Friendly Acres/5th Avenue collection system.

Director Ingram said the "rough order of magnitude of these projects would be $12 million" and the benefits would be, to increase flood protection up to a 10 to 30 year storm event. He said that right now the system could handle about a 3-year event, although it actually appears to be a one-year in some places, since there is flooding every year in some areas. Director Ingram said the flooding problem would never be "solved - you can never do that reasonably without dramatic and unpalatable changes. But you can at least raise the level of protection to a level that is consistent with other communities in the area."

City Manager Everett cautioned everyone not to lock onto the $12 million guesstimate, as that might be off by 50% on the low side, and he didn't want anyone to be disappointed. He repeated that "we will not solve the flooding problems. We can become 30 times better because it is a one year flood and we go to 30 which is a huge difference... but all last January and February we would have been flooded. We cannot put an expectation out that once we do this they shouldn't flood."

Director Ingram described the other projects and funding requirements that are known.

5) Multi-jurisdictional improvements (south), about $1-2 million?
6) Cordilleras Creek improvements, about $1-3 million?
7) "Sub-standard" streets drainage improvements, cost unknown;
8) Redwood Creek(s) storm repairs about $.6 million, possibly reimbursable by FEMA.

Director Ingram said staff had arbitrarily picked $5, $10 and $15 million dollars and "ran the numbers" to see how that amount of funding would impact sewer service charges, both by fixed costs and variable costs described in the Report (on file in the City Clerk Department.) He described the changes in service charges over the next four years and the causes of one-time costs, labor costs and overtime costs.

Vice Mayor Ruskin said to his colleagues that although there were very few people attending tonight's meeting, there were many, many people at the Neighborhood meetings, and many, many more who were concerned about this issue.

Director Ingram described the tracking and record keeping his department employs during extraordinary storm events that are above and beyond the normal scope of work. He said that in February, 1998 the measurable, quantifiable City dollars spent on storm related activities were between $75,000 and $100,000, $700,000 in damage to creeks, etc., plus unknown private property damage.

Council Member Ira said that the Committee recognized the magnitude of the proposed projects, and there were other ways to approach funding that have not been stated, such as assessment districts for actual street repairs. He said he supported Engineer Chang's recommendations and line of reasoning at the CIP meeting, and asked for Council's direction on how far the City should go. He said, "we realize the only way we will get money from other jurisdictions is through litigation. We are ready, as a Committee to take those steps.... We want to take the lead as Vice Mayor Ruskin said, and expend the money, and then try to get the money back where we feel we are rightfully due reimbursement from other agencies. But that could take many, many years.... It may
never come in, but we are willing to" go forward.

Mayor Howard said that the City's policy regarding substandard streets has been to have the neighbors participate in the improvements.

In response to Council Member Leipzig's questions regarding time lines, Director Ingram said that the tasks listed are all leading up to consttruction which could begin inabout one and a half or two years from now, which would be a pretty tight time frame.

City Manager Everett described the money available in the CIP to do emergency storm related repairs (Cordilleras Creek), and that will be done more quickly than any of the others.

In response to Council Member Leipzig's questions regarding other capital improvements ancillary to the four major projects suggested by Engineer Chang, Director Ingram said that the Committee and staff focused on the larger projects that needed to be done in concert to seriously address the flooding issue. He added that it was hoped that surrounding jurisdictions would be more inclined to get involved if Redwood City's plan were dramatic and significant. Director Ingram described the discussions staff had with property owners in the affected areas, and said that the owners had asked what could they do to help with the project.

In response to Council Member Leipzig's questions, Council Member Ira said there was no way of knowing without further study, what percentage of the improvements would be Redwood City's responsibility.

Vice Mayor Ruskin described the analysis done that "showed how much of the run-off was due to areas outside of our City, that was affecting our own neighborhoods. It was very substantial, extremely substantial. So, in a just world… we should be able to get back, to persuade some of these other jurisdictions to get involved…. Our recommendation is that we proceed apace. That we do start the steps to get them involved by asking them to get involved, and where necessary we get them involved by other means. The problem is really not just due to run-off in Redwood City. It is a shared problem, and the County is substantially involved and other cities are. To answer Council Member Leipzig, if things go well, and if our strategy works, our hope is to get some of these costs defrayed…. If we wait for that to happen without taking leadership then probably nothing would happen."

In response to Mayor Howard's questions regarding contact with other jurisdictions, Vice Mayor Ruskin said that the Utilities Committee had been working with staff and the neighborhoods. Public Works Services Director Ingram said his staff had talked to staffs in other jurisdictions just to find out what they were doing in this area. City Manager Everett said he had talked with the City Manager of Menlo Park and she has invited Redwood City to their meetings on Cordilleras Creek. He said he had a discussion with County Manager Maltbie who was now aware that some of the County's plans will cause more problems to Redwood City, and he seemed open to going slowly with their ideas and talking to Redwood City about joint projects. City Manager Everett said he had left phone messages with the City Managers of Atherton and San Carlos.

Mayor Howard called upon people in the audience who wished to speak to this issue.

George McKibbon, representing Centennial Neighborhood, said that he and his neighbors had been talking with the industrial residents of San Carlos about the problems with Cordilleras Creek, but stopped discussions "because we wanted the City staff to go in first, and if they need pressure then we will go with the industrial people in San Carlos, because they got hit pretty heavy, too." Mr. McKibbon said the neighbors were together on this, and they had some short term and long term ideas that they are anxious to share.

Ed Bailey, representing Friendly Acres and East Bayshore Neighborhood Association, described the flooding problems in his neighborhood. He said the neighbors were more concerned with the actual flooding than improving the roads at this point. He said theywanted to eliminate the damage done by flooding. Mr. Bailey said that in the past the City Council had allocated some money to look at this issue, but nothing has been done. He said now City staff and the Council Utility Committee were very involved and that was a good sign. Mr. Bailey said Menlo Park, Portola Valley, Woodside, Atherton and the County are all major players in that area, and they needed to be involved. Mr. Bailey said that one problem he saw, was that the proposal to combine the City's sewer system with the storm drain system may not help his neighbors, because their sewer system was under control of the County. He added that the County and San Carlos should fund the coordinator, for a concerted effort to resolve the flooding in that area. Mr. Bailey said the City had been very cooperative, but all their efforts haven't stopped the flooding. He said that they would like to have a wall constructed to keep that run-off in Atherton and Menlo Park, but since that can't be done, they would really like the City to follow up this time with something constructive. He said there were 30 to 40 people on their flood committee, and 2500 homes in the area. Mr. Bailey said, "we can muster whoever we have to support your efforts." He reported that FEMA had given their flood committee some ideas on how they could move forward, and he had relayed that to City staff.

In response to Mayor Howard's questions, Director Ingram said, "one of the many things that the rate study will have to address is what happens if the systems don't completely cover your jurisdiction. Because sewer systems stop short of our jurisdiction in several areas where the water system goes beyond it." He said options might include some mechanism or some equity process to go through to address this issue.

City Attorney Schricker said any assessment will probably require a cooperative effort, an agreement or waiver of jurisdiction.

David Wolfskill, 751 Canyon Road, said he lived up in the hills, and was not directly affected by the flooding, but understood that the run-off from the hills pooled in those areas. He said he supported the efforts of the staff.

Kathleen S., 3125 Hoover Street, described the flooding that damaged her house this winter. She said she enthusiastically supported their flood committee, and encouraged the City staff to continue supporting their efforts. She thanked Director Ingram and said, "he seems especially motivated."

Dorothy Miramontes, 50 Broadway, said she had lived there for over 50 years and described the flooding that had damaged her house through the years. She said that the water run-off from surrounding jurisdictions pools in their neighborhood and something had to be done.

In response to Mayor Howard's questions regarding the responsibility of Mobile Home Park owners to improve their drainage systems, Director Ingram said improvements accomplished by the City would benefit those parks. He said a coordinated effort to reduce flooding would involve letting the owners of the parks know what they could do to improve their systems. Director Ingram said there was a fine line between private property and public domain, but staff could explore some sort of package that could be offered to "push" the owners in the right direction. He said the owners knew the limitations of their own systems as well as the City's.

In response to Vice Mayor Ruskin's questions regarding enforcing higher standards for property owners, City Attorney Schricker said, "The private internal collection systems are somewhat problematic. Unless they are so substandard that they would create a health hazard on the property itself, we would probably not have much authority. If that were the case however, if we could prove they were substandard then we might be able to implement some laws that would call for retrofitting. That would be fairly new territory in that context."

Council Member Hartnett said, "I think we do need to proceed to combine the two functions into one enterprise fund with the capital side of the storm drain run-off coming into the sewer fund. I think we have to be careful in what we set out to do so that we can actually accomplish some measurable results, and that what we set out to accomplish and that which we measure will actually be making a difference. My concern is that even the $15 million revenue bond may not make a difference that people expect it might. That it might even be less than a 10-30 year fix for that amount of money… We have to be very careful that we set out to design and accomplish something that really does make a difference. I am concerned about the rate increase that would be required. On the one hand it is not that much if you look at the difference between just going through normal rate increases without folding these funds together and doing the bonds. We have about a
$1.60 rate increase… over a four-year period for the basic monthly charge. And if we go the $15 million route it is $5.82 overfour years… less than $70 a year to go full bore. But we do hear from seniors and others on fixed incomes that even modest increases have an effect on their ability to function in daily life. When you throw in the extremely high increases in rent that seniors and others have experienced, we have to be sensitive to that. The $15 million scenario for example has one year at 29% bump, and I know these are all preliminary and there are a lot of 'what ifs', but I think we have to be careful how we proceed. I think we need to proceed. I'd like us to approve in concept the melding of the funds with some further study as to what alternatives might make a difference, and I know we have to do the rate studies… I'd like to have more study with respect to the appropriate fixes before we commit. We need to focus on the major programs. I don't think that we should be doing the substandard streets as part of this. I think that is a different project…. I think it is important to have the coordinator on board as soon as reasonably possible because I think as soon as possible we have to start having coordination with other jurisdictions. That is going to help us in our planning process on how much we can do and how quickly we can do it. We should not just work with local jurisdictions, but whatever might be available on the state and federal levels we need to work on as well, because this will be an extremely major undertaking."

Vice Mayor Ruskin said that "if we are willing to commit at least at a basic level to the bringing in of the storm drainage capital program into the sewage fund, that is the key basic commitment, then I think we will be ready to bring on the coordinator, sooner rather than later."

Mayor Howard said she supported the recommendations made by the Utility Committee keeping in mind Council Member Hartnett's comments. She said one of the recommendations was to direct staff to complete a rate study and that was very important. Mayor Howard agreed that bringing the coordinator on as soon as possible was important to let other jurisdictions know that Redwood City was serious about this issue and that we needed their help to make this happen.

Council Member Ira said support of the recommendations didn't mean the City was going to begin all the projects immediately. He said it might take a while to achieve the goals of the recommendations, and there is the possibility that the rate impact might be too significant to be borne by the citizens. Council Member Ira said, "if we can make a commitment to work on it then we know that even if it doesn't start in two years, that it will start at some point in time." He said if it turned out to be a $60 million project there was no way the rate structure could support it, and the City "might have to bite this off a little bit at a time."

Vice Mayor Ruskin agreed that the City needed to be sensitive to seniors. He said it was a complex issue that needed to be a balanced effort. He said, "seniors were having a very hard time now…. That is one of the reasons why we wanted to begin looking at variable rates and fixed costs as a way to begin creating an adjustment or some mechanism to manage the increase. We can't just throw this on the back of seniors who are living on fixed incomes. The committee is sensitive to that. It is a very difficult challenge to do both, but we need to find a way to achieve" it.

In response to Mr. MiKibbon's questions regarding the use of the Utility Tax, City Manager Everett said it could be used for any capital improvement projects, and it would be up to the Council to decide which priorities it wished to fund through that tax.

CONSENSUS: Mayor Howard determined that it was the consensus of the Council to accept the report from the Utilities Committee and support its recommendations.

MINUTE ORDER NO. 98-112

Mayor Howard commended the Committee and staff on the Report and the work they did on this very difficult issue.

Director Ingram advised that the staff would "bring back pieces that are in the front end of that coordinator and CIP recommendations for short term items. We'll make sure that in the operating budget there is a request for supporting the rate study…. You'll see them again in the CIP budget review and the final operating budget reviews in June."

3) Water Enterprise Fund

Review Water Enterprise Guiding Principles
Rates and Service Charges Scenarios for FY 1998/99
Proposed 5-Year Capital Improvement Program Budget
Public Works Services Department Budget Request - Significant Change Requests
Joint Recommendation - Utilities Committee and Staff

Director Ingram said, "The Water Enterprise Fund is separate from all the other activities, like the Sewer Fund. This part is actually fairly straightforward…. The unanimous recommendation from the Utilities Committee is Scenario 1B (Report on file in the City Clerk Department.)… Basically there are two things going on that are important in terms of the water bills in Redwood City. One is… the wholesale rate." Director Ingram described why that rate will fluctuate wildly over the next couple of years due to contractual constraints and inflexibility of the supplier, San Francisco Water. He said the recommendation is for Redwood City not to follow suit, but to keep the ifeline rate stable over two years, and at that time begin to marry the lifeline rate to the wholesale rate.

Director Ingram said the City's internal costs, the operation, and the maintenance of the system drive the other piece of the water bill. He said the average cost increase was about 3.5% distributed over a four-year period. Director Ingram said the Committee strongly recommended approving the four year projection and building the cost of living increase into that number eventually stabilizing it. He referred to the report that showed the increases to the water bills each year for the four-year period. Director Ingram said that 20 units per month would increase the cost of water service about a penny per day. He said this matter would again be discussed at the Council meeting on June 22.

Mayor Howard asked if anyone in the audience wished to address water rates. No one came forward.

CONSENSUS: Mayor Howard determined it was the consensus of the Council to support the Utility Committee and staff's recommendations regarding water rates.

MINUTE ORDER NO. 98-113

5. ADJOURNMENT

M/S: HARTNETT/IRA TO ADJOURN THE MEETING.
CARRIED BY UNANIMOUS VOICE VOTE OF MEMBERS PRESENT AND MEETING
ADJOURNED AT 10:23 P.M.

Arlyn C. Jorgenson
City Clerk

Study Session May 4, 1998




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