CONSENT CALENDAR  Council adopted a resolution supporting AB 1612, the Cigarette Pollution and Litter Prevention Act of 2005; and authorized a contract with Kema, Inc. to provide customer service, financial management and inspection service for the city’s water conservation Bay Saver program. 

CLOSED SESSION  After discussion in closed session, Council approved in open session a bond-related dispute settlement with Arch Insurance Group, in which Arch will pay the city $200,000 and relinquish claim on another $140,000. 

WATER RATES  After discussion of the need to bring water fund expenditures and revenues into balance, Council directed staff to do a study of service delivery costs and water rates, including a revisiting of the tier structure to encourage water conservation, with any rate changes recommended to go into effect January 1, 2006; and adopted a rate increase of 6%, including a 3.8% CPI increase, effective July 1, 2005 or as soon thereafter as legally possible. 

SOLID WASTE RATES  After discussion of the need to bring solid waste fund expenditures and revenues into balance, Council directed staff to do a detailed rate and cost study, including program and operating efficiencies analyses, with rate changes to be considered for July 1, 2006; and adopted a 10% rate increase, including a 3.8% CPI increase, effective July 1, 2005.  Council also asked the city manager to return on June 28 with a framework for a Council-appointed committee to work with staff on assumptions, request for proposal process and other factors related to the solid waste rate study. 

WASTE WATER RATES  Council directed staff to take all comments made during the prior two rate increase discussions into account when studying waste water rates and making recommendations regarding them to Council next year.

2005-06 BUDGET ADOPTION  After hearing public requests for funding and discussing staff responses to Council questions asked during the study sessions in May, Council adopted the proposed city budget for the fiscal year beginning July 1, 2005, with the following one-time and ongoing funding additions:

• Restoration of arts grantee COLA ($41,000 ongoing)

• Restoration of early childhood subsidies ($60,000 ongoing)

• Conduct historic resources inventory ($144,000 one-time)

• Install Automatic Electronic Defibrillators at 13 more sites ($43,000 one-time, $13,400 ongoing)

• Fund homeless “secretary” position ($200,000 one-time)

• Add more Human Services staff to work on homelessness ($170,000 ongoing)

• Restore Santa Monica Symphony funding ($12,200 ongoing)

• Give preservation grant to Santa Monica Historical Society ($50,000 ongoing)

• Conduct Ocean Park traffic/parking/crosswalk study ($75,000 one-time)

To help fund these additions, $60,000 was allocated from the increased utility tax expected to be received from water/solid waste rate increases in the coming year and the following funding cuts were made, with the condition that these be first priority for restoration should funds be available at midyear, and with direction to staff to explore ways to restore the Santa Monica Festival cuts sooner than midyear if possible:

• Borderline study reduced by $100,000

• Annual street repaving CIP reduced by $231,000 (7 blocks)

• Ongoing facilities maintenance CIP reduced by $25,000

• Santa Monica Festival funding reduced by $23,000

OTHER MATTERS  The Council approved the Annual Consolidated Plan required for the CDBG and HOME grant programs administered by Housing and Urban Development; adjusted the Land Use and Circulation Element Planning Process to allow one month (rather than one week) for public review of reports at various stages of the project before reports are agendized by the Planning Commission; voted to oppose state budget cuts to the California In-Home Supportive Service program, to support the Million Solar Roofs Bill and to allocate $333 from the Council’s discretionary fund for the New Directions Choir to purchase performer permits.

ADJOURNMENT  The meeting was adjourned in celebration of the Class of 2005 at Santa Monica’s public and private high schools, with special recognition to Robert and David Moutrie and Zak Bloom!   

The next regular meeting of the Santa Monica City Council is scheduled for Tuesday, June 28, 2005 beginning with a closed session at 5 p.m. and the public session beginning at 7 p.m. (beginning with consent calendar—a change from the usual schedule) in the wheelchair-accessible Council Chamber at City Hall.  Council meetings are aired live on CityTV Channel 16 and on the Netcast on the city's website and, for regularly scheduled meetings from 8 p.m. to midnight on KCRW 89.9 FM.