CLOSED SESSION  After discussing the matter in closed session, the City Council approved in open session a $125,000 arbitration settlement in Gomez v. City of Santa Monica, a bus accident case.  

DISCUSSION OF CONTRACTING  Council received a report from the City Manager on policies, procedures and practices related to contracting for city services, rather than having city staff provide the services, and limits on administrative versus Council approval.  One issue discussed was custodial service contracting as a supplement to staff-provided custodial service at various city locations, including the Public Safety Facility.  Council will take up several policy issues related to contracting at a late summer/early fall workshop on a variety of budget-related matters.  

2006-07 CITY BUDGET  In introducing the proposed 2006-07 budget, the City Manager noted the challenge posed by the potential loss to the city of $12 million in utility user tax from phone and wireless services [see details at santa-monica.org/cityclerk/council/information_items/2006/UUT.pdf) owing to a late-May decision by the IRS.  Because of this challenge, the City Manager presented a slightly reduced budget from that considered during budget study sessions in May and recommended setting aside $8.2 million in discretionary one-time funds to buttress Santa Monica’s financial position should legal challenges against loss of the UUT go against cities.  He also recommended filling some of the 24.9 new positions in the budget, but holding 10.1 positions open until at least mid-year when the city should have a better understanding of the impact of UUT loss, if any.  After hearing from more than 20 community members on issues including funding for solutions to homelessness, Red Cross supplies, schools, Sustainable City Plan implementation, early childhood education and branch library security, the City Council adopted a $443 million budget, with a $239.7 million general fund (operating) budget and related resolutions on fees, classifications, and other matters.   

Council changes to the proposed budget as proposed included:

• adding $150,000 to the Environmental Programs Division budget (from four Enterprise Funds) to be allocated for first-year implementation of the Sustainable City Plan (ongoing funding, for two years, with $160,000 needed in year 2)

• adding $120,000 to the Community Forest Renewal program (in addition to the $100,000 in the budget already) (one-time funding)

• $5,000 for a flagpole at the Veterans Memorial (one-time)

• $6,000 for closed captioning inside the Council Chamber (one-time)

• $50,000 in bridge funding for the Infant Family Support Center (one-time)

• $30,000 for additional library inspectors for security at the branch libraries (one-time)

• $10,500 for Santa Monica Conservancy walking tours (one-time)

• $4,500 for Red Cross community disaster preparedness supplies (one-time)
  
  (All but the first are one-time General Fund allocations, covered through salary savings from putting a six-month hold on filling of 10.1 new positions.)

Council discussed adding $350,000 to speed up the traffic signal synchronization project by contracting for expert services; however, Council instead directed staff to spend the next six months looking at alternatives for accelerating the project.

Council allocated $30,000 from the Council contingency fund to the 18th Street Arts Complex to help the group obtain a matching grant.

Council directed that $5,000 be allocated out of Big Blue Bus funds to pay for no-smoking signs at bus stops.

Council directed staff not to spend the budgeted funds for greening the perimeter of the RAND property until an analysis of potential funding for greening the entire park-designated area between Main Street and Ocean has been completed.

Council thanked the City Manager and staff for all their hard work on the budget.

Complete information on the budget is posted at www.smgov.net, including an information item answering questions asked by Council at the budget study sessions.

Item 13-A was continued.

ADJOURNMENT  The meeting was adjourned in memory of Betty Black, mother-in-law of Councilmember Richard Bloom, who passed away on Friday, June 16.  Mrs. Black is survived by her husband, Frank, son Harold, daughter Robbie Bloom, son-in-law Richard and grandsons, Emmet and Zach Bloom.  Council expressed condolences, thoughts and love to the family.  Council also adjourned in memory of Deputy Police Chief Phil Sanchez’s father, Prez Sanchez, who recently passed away and will be greatly missed by his loving family and friends. 

The next regular meeting of the Santa Monica City Council is scheduled for Tuesday, June 27, 2006, beginning at 5:45 p.m. 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.

NOTE: This wrap-up is not an official record of Council action. The official record is posted by the City Clerk on this website at http://www.smgov.net/cityclerk/council/agendas/2006/ as soon as possible after the meeting. (Click on the June 20 agenda link.)

SPECIAL NOTE: Council meetings are now video streamed on the web (http://santamonica.granicus.com/ViewPublisher.php?view_id=2) and re-aired on CityTV2 cable channel 20.