Tonight the council received it’s quarterly report for the 2009-2010 fiscal year as of December 31, 2009. The review includes the general fund, special revenue funds, enterprise funds and capital improvement budgets. In addition to the quarterly review, the council also received a report regarding the outreach conducted for the implementation of the sustainable food packaging ordinance effective April 1, 2010. Furthermore, a public hearing was held to hear and adopt resolutions authorizing the city of San Bruno to participate in the California FIRST program and authorize the applications for energy efficient grant funds from the California Energy Commission.
As part of the council’s commitment to sustainable energy, the council is moving the city forward in implementing policy standards and providing financial incentives for sustainable energy practices. The California FIRST program is intended to provide financial incentives for property owners that wish to install sustainable energy systems. Currently in use by the city of Berkeley, the idea is that property owners who wish to implement a sustainable energy system (such as solar, for instance) may receive money to cover the costs in the form of a moderate interest loan to be paid off through property taxes. The advantages of the program include little upfront investment to the owner and increased job growth through the use of certified energy auditors and contractors. The disadvantage is that it is a loan that runs with the property at around 7% rate of interest that the homeowner is obligated to pay back through special property taxes for a fixed term. Plus, the property must fully comply with city residential or commercial ordinances in order to qualify for the program, among other parameters. Aside from the FIRST program, the city has authorized its liaisons to move forward with the application for grant funds from the California energy commission. In association with the San Mateo County Regional Energy Assistance Program (REAP) and the Association of Bay Area Governments (ABAG) energy watch and as part of the American Reinvestment and Recovery Act, San Bruno will be submitting applications for energy efficiency grants from the California Energy Commission. The overall idea is to continue to implement policy standards, encourage energy efficient retrofits and offer financial incentives to promote sustainable energy initiatives.
The quarterly report for the 2009-2010 fiscal year was presented to the council. The report is intended to update the council on the current performance of all city funds against the current budget. Performance wasn’t wildly off from the budgeted expectations however the major problem that the city is experiencing is the steady decline of revenues. Property tax revenue has been hit by declining assessed property values and a 9% increase in property foreclosures. Taxable sales have continued to decline. Over the last year alone, the shops at Tanforan report a 10% decline in revenue, both San Bruno auto dealerships are reporting a 50% drop in sales and the top 10 San Bruno merchants are reporting a cumulative 24% drop in sales. Due to the decline of business and leisure travel, the TOT tax has reached a 13 month period of steady decline. To add to the malaise, the state is grabbing 1.9billion from cities from the redevelopment act in order to balance the state budget. (There is litigation pending). Because of these continued economic woes and continuing trend of falling revenue, city manager Jackson is requesting the council engage in a special study session to assess the situation. The study session date has yet to be determined but should be open to the public. Public participation will be strongly encouraged.
The council received a report regarding the outreach conducted for the implementation of the sustainable food packaging ordinance slated to go into effect on April 1, 2010. As part of this ordinance, all polystyrene package provided by food service will be banned. All restaurants as well as beverage purveyors will be required to use biodegradable or compost able products. The outreach program worked to reach out to all San Bruno businesses who would be impacted by the new ordinance. By all accounts, feedback is positive and the ordinance was expected. 35 business all already in compliance with the remainder to be compliant by the April 1 date after using their current stocks. The major issue revolves around the use of No. 6 hot beverage tops for which there is not yet a viable replacement. Enforcement of the ordinance is done though the city’s code enforcement department. Code violations can be reported to them at (650) 616-7025.
In other business, the council adopted resolution accepting the independent auditor reports for the fiscal year ended June 30, 2009. The council also adopted resolution to purchase 3 vehicles totaling $140,740. These funds were budgeted with the remainder coming from city reserves.
