CITY COUNCIL
REDEVELOPMENT AGENCY
BUDGET STUDY SESSION NO. 2
TELECONFERENCE
JULY 29, 2002
7:00 P.M.

This meeting will be conducted as a Teleconference Meeting
Locales shall be City Hall and 907 Katherine Avenue, Redwood City, CA

(Concurrent Session of City Council and Redevelopment Agency)

The City Council and Redevelopment Agency Budget Study Sessions will be called to order simultaneously. The Redevelopment Agency Budget Session will begin immediately following item 4 on the agenda.

1. CALL TO ORDER – 7:02 p.m.

2. ROLL CALL

Council Members Present: Howard, Jordan, Pierce, Ruskin, Vice Mayor Ira, Mayor Claire

Council Members Absent: Hartnett

Staff Present: City Manager Everett, Brian Ponty/Assistant City Manager Ponty, City Clerk Howe, City Attorney Yamamoto, Assistant City Attorney Brower, Assistant to the City Manager Gonzalez, Police Chief/interim Fire Chief Bolanos, Sergeant Matuszak, Assistant to the City Manager Gonzalez, Financial Services Manager Freeman, Financial Services Accountant Greenhorn, Interim Community Development Services Director Liedstrand, Community Development Services Manager Patterson, Planning and Redevelopment Manager Church, Housing Coordinator Jones-Thomas, Senior Civil Engineer Chang, Human Resources Director Rivera-Pen~a, Parks, Recreation and Community Services Director Centeno, Public Works Superintendent Rosas, Public Works Superintendent Harang

3. ORAL COMMUNICATIONS - None

4. PROPOSED 2002/2004 BUDGET STUDY SESSION No. 2

4.A. INTRODUCTION AND WELCOME - City Manager Everett stated that at Budget Study Session No. 1 on July 22, Council discussed the General Fund, both the revenues and expenditures. The Capital Improvement Program (CIP) Budget was also discussed. Discussion tonight will pertain to the water, sewer and Port of Redwood City Enterprise Funds; and the Redevelopment Agency Budget, both the housing component and General Fund portions.

4.B. FOLLOW-UP ITEMS FROM JULY 22ND, 2002 STUDY SESSION -
City Manager Everett stated that one follow-up item was identified from the last Budget Study Session, that of increasing the parking fines for those violating the ordinance. The Downtown Business Association was contacted and a response was received that stated in general, that there was a favorable response. Some issues and concerns were outlined and would be addressed upon return to Council for consideration if the Council gives direction to pursue this topic.

M/S Ira/Jordan to proceed with pursuing the parking fine increase suggested by staff. The motion passed by a majority voice vote by those present with Council Member Ruskin voting no.

MINUTE ORDER 02-207

Council Member Ruskin stated that although reasons for raising the fines have merit, in an economic downturn, he opposed making up deficits by raising fines from the residents of Redwood City.

Council Member Pierce stated that she would like to propose that Council allocate an additional one time $30,000.00 to the Civic Cultural Commission to apply toward bringing the community together in various venues. The allocation would come from another area in the budget. She stated that in economic difficulty, many people find that they do not have as many options and that the Civic Cultural Commission provides opportunities to get involved in the community.

Council discussion ensued regarding the topic and the concept of fundraising with the City matching the funds was discussed. Council Member Pierce stated that she would work with staff and the Civic Cultural Commission to look at where the money might come from and how the fundraising might work.

Council Member Ruskin requested staff pursue the feasibility of audible traffic signals for people in the community who are either blind or seriously visually impaired. The proposal is to not budget at this time, but to be thinking about the possibility of placement at State highways such as Woodside Road, El Camino Real or near the bus station. The idea being that Caltrans will provide the labor and it is possible there might be State or Federal grants for this proposal.

Public Comment:

Penny Hatfield stated she lives in Woodside Plaza area on the opposite side of Woodside Road and that it is very difficult to get to the other side of the street. She stated she is not obviously visually impaired, but she is legally blind and cannot see the lights and must go up to the crosswalk with no light and is challenged by the cars when trying to cross. She further stated that there are others with more difficulty than her and that many services needed are on the opposite side of Woodside Road. Consensus by Council was for staff to pursue the idea.

4.C. ENTERPRISE FUNDS - Mayor Claire explained the Enterprise Fund concept.

7:38 p.m. - Council Member Howard excused herself from the remainder of the meeting due to an emergency

i) Water - Public Works Services Director Ingram reviewed Council priorities, of which the budget is based; new and increasing regulations on operations; a program proposed through the budget, "Operator Certification Program"; CIP highlights for the fund; a look at the revenues and expenditures and what might be expected in rate adjustments over the next fiscal year.

ii) Sewer - Public Works Services Director Ingram reviewed the Sewer Enterprise Fund in a similar manner as the Water Fund, utilizing a PowerPoint presentation.

8:15-8:30 p.m. - Recess

iii) Port - Port Director Giari introduced Port Commissioner Aikins gave a brief summary of the budget. He began with an overview of the income statement and stated that the total operating expenses are grouped into two major categories, operations and administration. The budget includes a combined total of $2.6M in operating expenses, which is an increase of approximately $400,000.00. This increase includes the impact of continued escalation of the cost of utilities, marketing, insurance and security.

Council questions pertained to clarification of marketing costs, the subvention amount, possible revenue growth expectations, and any possible discussion of a hotel type of development in the area. Concern about the overall debt amount was stated and a request for a detailed report was made.

5. REDEVELOPMENT AGENCY - Planning and Redevelopment Director Church stated that the budget consists of three basic elements: the review of the 2001/02 fiscal year, the proposed expenditures for 2002/03, and proposed indebtedness.

6. GENERAL COMMENTS AND QUESTIONS ON THE ENTERPRISE FUNDS AND REDEVELOPMENT AGENCY RECOMMENDED BUDGETS –
Council questions ensued regarding increased staffing costs applied to the Redevelopment Budget rather than the general fund.

7. SUMMARY OF FOLLOW-UP ITEMS – City Manager Everett stated that an ordinance would be brought to Council at a later date regarding parking fines and issues raised by the Downtown merchants will be addressed at that time. Options and alternatives will also be presented for adding $30,000.00 to the Civic Cultural Commission. A study will be conducted and data returned regarding audible traffic signals and any grant possibilities

.
On August 5, the budget ordinance will be before Council for consideration, and after the State balances its budget, it may be necessary for the City to amend the current budget at a later date.

8. MATTERS OF COUNCIL INTEREST
Mayor Claire stated that Council has received a copy of a request for a response from the Grand Jury on the Port of Redwood City findings. It is anticipated that the response will be ready for the August 5 Council meeting agenda.

8. ADJOURNMENT - 9:38 p.m.