City Council Sept 17, 2024

Sep 17

City Council Meeting Summary

Time	Item	Item Summary	Motion Summary	Comment Summary
00:00:07	None: None	The meeting begins with roll call and acknowledgement of the broadcast on cable TV, Zoom, and the city website. (00:00:07) The council then goes into closed session to discuss real property negotiation at 100 Humboldt Avenue, South City Yacht Harbor, and returns at 7 PM. (00:01:11) Upon return, the council resumes with the Pledge of Allegiance, (00:01:19) followed by a special presentation on the completed Edwards Avenue repaving project, costing $1.57 million. (00:01:46) Kevin McGowan, Public Works Director, introduces Andrew Davidson, senior engineer, to present the project details. (00:02:03) Andrew Davidson provides a history of the project, explaining that Edwards Avenue was initially part of the 2022 Street Resurfacing Project but was separated due to its steepness, concrete paving, and necessary sanitary sewer work. (00:02:37) He notes that the work on Gerard, Johnson, and Platt was completed in October and November 2022. (00:03:01) He defines the project limits on Edwards Avenue between Marion Avenue and Alexander Avenue. (00:03:17) He mentions that on January 16, 2024, the City Council authorized a construction contract to Majoran Gelati for $1,050,530 plus bid alternatives, a contingency of $121,920, for a total of $1,172,450. (00:03:38) The City Council also approved a professional service agreement for inspection and construction management to CSW Stuber-Stroh for $107,550, bringing the total construction authorization to $1,280,000. (00:04:05)	No Motion	0 Total: 0 In Favor 0 Against 0 Neutral

00:04:25	1: SPECIAL PRESENTATIONS/MAYOR'S ANNOUNCEMENTS	Andrew Davidson presented an overview of the Edwards Roadway and Sewer project, detailing the replacement of the road surface with asphalt and concrete, as well as the replacement of the sanitary sewer main using a bursting method. The Marin Municipal Water District also replaced the water main and services during the project. The project faced challenges due to the full closure of Edwards, requiring coordination with the fire department and police for emergency access (00:09:36). The total allocation for the work completed in 2022, plus the Edwards project was 3.5 million (00:10:59). The cost of the completed Edwards Roadway and Sewer project, including MMWD, is about $980,000 (00:11:20). The presentation concluded with a thank you to the residents and contractors for their cooperation during the disruptive construction period (00:12:51).	Motion to push the July 30th minutes to the next scheduled city council meeting and approve the September 7th and the September 9th city council minutes as written (00:17:54).	2 Total: 1 In Favor 0 Against 1 Neutral
00:13:36 Paul Albritton was In Favor: Expressed his pleasure at the completion of the Edwards Street paving project after waiting for it for 35 years. 00:14:27 Bep McDougall was Neutral: Expressed gladness that the work was finally getting done and suggested using cobblestones for steep inclines in the future, citing their effectiveness in providing traction and adding charm to the neighborhood.
00:18:05	2: ACTION MINUTES OF PREVIOUS MEETING	The council is considering the action minutes from a previous meeting. Before the vote, the Mayor opened the floor for public comment. A point of contention arose regarding the authenticity of meeting transcripts, with a member of the public alleging a violation of federal law due to the lack of verbatim minutes. The City Clerk clarified that recordings of all meetings are available for public viewing. The City Attorney stated that action minutes are legally sufficient under the Brown Act, and verbatim minutes are not required. The council then voted to approve the minutes unanimously. (00:20:40)	Motion to approve the action minutes of the previous meeting, which carried unanimously. (00:20:40)	2 Total: 0 In Favor 1 Against 1 Neutral
00:18:22 Bep McDougall was Against: Expressed concern over the lack of authentic transcripts of public meetings, claiming it is a violation of federal law. She suggested exploring solutions like AI or court reporters to ensure accurate records and emphasized the importance of reliable transcripts in case of lawsuits. (00:18:29) (00:19:31) 00:20:00 Karen Hollweg was Neutral: Requested the city attorney to respond to the accusation that the city is breaking federal law by not having verbatim minutes. (00:20:00)
00:23:03	3: CONSENT CALENDAR	The council is reviewing the consent calendar. Karen Hollweg notes an amendment to the title of item 3F, changing it to "Bridgeway Bikeway slash Roadway slash Pedestrian Improvements" (00:23:05). Item 3H is removed due to numerous public comments (00:23:20). Councilmember Hoffman requests item 3L, regarding the Yacht Harbor agreement, also be removed (00:23:32). The council then proceeds to public comment on the remaining consent items, excluding 3H and 3L. The discussion then turns to item 3H regarding parking regulations at 22 Atwood, with a presentation by Adam Blair, Assistant Planner, and Andrew Davidson, Senior Engineer. Blair provides background on the project and planning approvals for 22 Atwood Avenue. Davidson discusses the no-parking request made by the property owner to improve ingress and egress to their garage on North Street. A turning study by parametrics indicates potential conflicts with parked vehicles. Davidson explains existing parking regulations and enforcement in the area, referencing a parking spot count conducted by parking enforcement. The presentation addresses concerns about the shortage of parking and potential unauthorized red curbs in the neighborhood. Vice Mayor Hollweg asks questions about the history of the project and encroachment agreements (00:41:50). Mayor Kamele inquires about an audit of red curbs and enforcement of parking regulations (00:45:40). Hollweg asks if Atwood had redlined in front of their house (00:48:39).	Motion to approve all consent calendar items with the exception of 3H and 3L (00:25:00). The motion was seconded (00:25:07) and carried (00:25:11).	2 Total: 0 In Favor 0 Against 2 Neutral
00:24:23 Bep McDougall was Neutral: Bep McDougall makes two points of order. First, she clarifies that she used the word "authentic" not "verbatim" in a previous discussion. Second, she criticizes the use of the consent calendar for handling business in such a sweeping manner. 00:49:02 Simone Waddell was Neutral: No summary provided in transcription.
00:49:49	3.H: Adopt a Resolution Amending Parking Regulations to Establish a NO PARKING ZONE opposite the driveway and garage of 22 Atwood Avenue, APN: 065-203-02, located along the 301 North Street frontage	This agenda item concerns a request to establish a NO PARKING ZONE opposite the driveway and garage of 22 Atwood Avenue on North Street. Several community members voiced their concerns about the potential loss of parking spaces in an already congested area. The discussion included historical context of parking regulations on North Street, the impact of larger vehicles on parking availability, and whether or not the garage at 22 Atwood can be realistically accessed with cars parked across the street. Councilmember Cox presented a garage plan from 2014 and mentioned that at the time of approval the planning comission was very concerned about ensuring and creating off-street parking (01:12:05). There was discussion of an idea to shift parking spaces to the west without reducing parking spots to allow access to the garage at 22 Atwood. Councilmember Hoffman states the problem is the homeowner is not able to access the two-car garage (01:20:37).	Vice Mayor Cox made a motion to deny the request to establish a no parking zone, but directed staff to investigate renegade red curbs and the possibility of reconfiguring parking spaces without reducing the number of spots. The motion was seconded by Mayor Kamele and passed unanimously. (01:13:29)	12 Total: 1 In Favor 8 Against 3 Neutral
00:49:15 Unknown was Against: A long-time resident of Sausalito spoke about the importance of community and respecting existing rules, referencing past alterations to the curb on North Street. 00:50:50 Unknown was Against: A resident from Second Street highlighted the lack of public parking for residences on the stairs and the challenges of parking on North Street, urging the council to maintain all parking spaces. They noted the property at 22 Atwood has two spaces on Atwood that are accessible and a two-car garage. 00:52:45 Niels Carlsen was Against: A resident of 3rd Street questioned the logic of moving the parking problem from one property to the neighbors, arguing it doesn't solve the owner's issue. 00:54:01 Ted Barton was Against: Presented a visual aid demonstrating the increase of red-lined (no parking) zones in the area. He recounted a past incident where a previous owner of 301 North Street altered the curb and painted it red, which was later corrected by the city. He suggested that the current owners are benefiting from this precedent and that if the new property owners can get two cars in the garage, then they should. 00:56:06 Carolyn Rebell was Against: A resident of North Street who went through a permitting process to create her own parking place spoke on behalf of the neighbors, expressing sympathy for their parking situation. She referenced an earlier decision regarding the garage approval, emphasizing that it should not impact ingress and egress, and urged consideration for the neighbors' plight over the garage owner's convenience. 00:56:55 Nora Waddell was Against: Seconded her mother's comments, emphasizing the importance of defending the public good over individual interests. She mentioned a previous instance of red curbing granted to a homeowner with a parallel garage and the reduction of parking space due to garbage cans placed in a parking space. She stated they have always parked on the street and coexist in a small, dense area. 00:59:15 Lori Volt was Neutral: Expressed support based on her own experience of getting a red box in front of her house to allow access to her garage. She also reported rouge red markings on Central Avenue where a homeowner painted the curb and added white lines to create a second parking pad and requested an audit of red curb markings. 01:00:46 Frederick Lewis was In Favor: The owner of 22 Atwood Avenue stated that he has never used red paint and that the unanimous opinion of the street engineer and planning commission was that it's impossible to access his garage when cars are parked across the street. He mentioned it is a mistake that the encroachment was allowed and the city should correct a mistake. 01:03:19 Skylar was Against: A resident mentioned that they don't have a garage and rely on street parking. They felt that red striping the zone would make the parking situation even worse and thought it was possible to get a car in and out of the garage. They urged the council to vote against the new spot. 01:05:02 Jonathan Leon was Against: Argued that granting the request would be conveying a special privilege. He suggested an alternative of moving a fire hydrant to open up a red space on North Street. He thought the city has larger goals of affordable housing and multi-unit buildings, and removing spaces from the streets would make it harder to meet those goals. They represent the community and defend the basic needs of the community. Off-street parking is a basic need of the community, especially in Old Town, where many structures, particularly in this neighborhood, have no off-street parking and rely on the on-street parking to meet the needs of their either owners or renters. 01:07:18 Eva was Neutral: Asked if the city has noticed how much the squeeze on parking is exacerbated by the size of cars. She suggested that Sausalito needs regulations on the size of cars. She mentioned the city could create tax incentives for people who have small cars because now there are electric vehicles becoming bloated. 01:09:37 Bep McDougall was Neutral: Commented on the neighborhood being a good beta example of high-density housing. She said Sausalito is already maxed out and suggested that the Metropolitan Transportation Commission has an answer, including large boxy apartment structures. She mentioned residential neighborhood code requirements that called out vehicle size and the suburbans had to be parked down in the ancillary police parking lot. Apparently, all the residential neighborhood codes have been rescinded and everything that used to govern sanity for parking no longer exists.
01:26:26	3.L: Authorize City Manager to Execute Side Letter / License Agreement with Sausalito Yacht Harbor for Use of 47 Parking Spaces in Bay Street Parking Lot for Public Parking	The item concerns authorizing the City Manager to execute a side letter/license agreement with Sausalito Yacht Harbor for the use of 47 parking spaces in the Bay Street Parking Lot for public parking. Councilmember Hoffman begins by questioning the 60-day operability clause in the agreement. The City Manager clarifies it's a one-year lease with a 60-day notice before the end of the lease period. Hoffman then requests a financial breakdown, to which Chad Hess, the finance director, replies and says that the 47 spots are expected to generate approximately $312,000, with the city's share being around $151,000. Startup costs are estimated at $3,000 to move a pay station and $2,000 for signage. There's also a $400 monthly administrative fee to the Yacht Harbor, and the city would forego its 25% revenue share on existing parking. Hoffman challenges Hess' revenue figures, estimating the city's revenue at $94,000 and the finance director agreed that he would review his math. The discussion covers the 25% revenue share on all parking in Madden, and Councilmember Hoffman, Blaustein, and Hollweg discuss revenue from parking tickets and current revenue from the Madden lot and the yearly auditing of revenues from the parking lot. (01:37:02) Councilmember Hoffman mentions that since there are spots available in parking lots two, three, and four, that directing people to lots two, three, and four would keep 100% of the revenue in the city's pocket. (01:43:09) Councilmembers discuss the lease, its termination clauses, audit rights, and expected revenue. Other Councilmembers express concerns regarding lack of maximum capacity at the other city lots.	Councilmember Hollweg moved to authorize the City Manager to execute a side letter/license agreement with Sausalito Yacht Harbor for use of 47 parking spaces in the Bay Street Parking Lot for public parking, with an audit of the revenue after 6 months of operation and the agreement having an effective date for the end of September. The motion was seconded. (02:06:49)	6 Total: 3 In Favor 0 Against 3 Neutral
01:46:57 Peter Van Meter was In Favor: He supports the agreement. He emphasizes the Madden lot has never had daily paid parking. These 47 spaces will enhance parking and generate new revenue for the city. 01:48:10 Hank Baker was In Favor: He is a downtown resident and business owner, supports the agreement, saying the Maddens are doing the city a favor by monetizing unused real estate, and downtown merchants are requesting parking. 01:49:50 Adrian Brinton was In Favor: He supports the agreement, but urges the council to keep in mind the bigger picture. Emphasizes the importance of solving merchants' parking issues. 01:51:39 Bep McDougall was Neutral: He raises concerns about negotiating the agreement without considering a new policy in the making and seeks clarification on the matter. 01:53:03 Jonathan Leon was Neutral: He encourages careful negotiation due to disputes over land ownership. Suggests documenting the agreement without conveying any ownership claims. Also advises accounting for administrative time and ensuring marina parking requirements are met. 01:55:25 Sandra Bushmaker was Neutral: She is a tenant in the harbor. She questions whether the city receives 25% of slip rent or parking revenue, noting a significant difference. She is also confused on the fees the harbor currently pays and on an ability for tenants to pay rent via QR code.
02:17:07	5.A: Discussion and Direction, and Possible Adoption of Draft Policy Related to City Leasing Practices	The City Manager introduced the draft policy on city leasing practices, which was created in response to the City Council's request (02:17:39). The policy aims to address how leases are accepted, reviewed, and adopted. The City Manager emphasized that the draft is a starting point and not a finished product due to the complexity of city leases (02:18:03). Key points include maximizing revenue from for-profit leaseholders, considering community benefits for nonprofit leases, managing risk, incorporating revenue escalators, increasing transparency, and planning for the future of lease construction (02:20:09). Leaseholders should not discriminate, adhere to federal and state laws, maintain an active business license, pay rent promptly, and comply with city land use laws (02:22:06). The city will honor lease terms, provide accurate property descriptions, and have a review process for tenants in good standing. (02:23:30) The City Manager stated that the Council would not approve a policy tonight and will seek more input. (02:23:30) Councilmember Hollweg inquired about capital improvements, enforcement, and financial wherewithal, including audit rights (02:25:01). She also asked how to distinguish between for-profit, non-profit and community benefit (02:28:27). She noted that nonprofits actually provide more revenue than for-profit leases (02:31:16). She is wondering how to reconcile encouraging city serving businesses while maintaining financial feasibility. (02:31:50) Councilmember Leon asked about defining market rate (02:32:21), how to categorize nonprofits (02:34:04), and if there is a recommendation to have an elevator on all leases annually. (02:36:23) Councilmember Hoffman inquired about a breakdown of the leases (02:37:00), and a map showing the square footage of the properties. (02:38:42)	No Motion	6 Total: 3 In Favor 0 Against 3 Neutral
02:39:50 Peter Van Meter was Neutral: Suggested including square footage and acreage information in the city's property data to create a complete rent roll (02:39:50). He noted that 18 leases have expired (02:40:38) and requested more detail on the methodology for comparing fair market rent for profit versus community benefit for nonprofits (02:40:58). 02:42:09 Bep McDougall was In Favor: Expressed pleasure with the initial draft (02:42:09) and highlighted the importance of qualitative choices in negotiations. Emphasized the need for rental decisions to reflect the city's values and avoid embarrassing the city. (02:43:38) 02:44:20 Stephen Woodside was In Favor: Appreciated the effort to open up the leasing process and suggested transparency in lease negotiations, particularly with nonprofits. Proposed that prospective tenants present proposals outlining their mission, tax status, financials, and community benefits. (02:44:20) He submitted a redrafted proposal, presumably related to the Madden property. 02:46:37 Susan Kendall was In Favor: Spoke on behalf of the Sausalito Cruising Club, highlighting their increased membership and community involvement. Emphasized the importance of clubs and membership organizations and mentioned the club's 70-year history in Sausalito. (02:46:37) 02:48:26 Hank Baker was Neutral: Suggested using standard elements in commercial leases and hiring local commercial brokers for expertise (02:48:26). Proposed setting the basic lease at market rate for nonprofits and then discussing city donations to reduce the lease amount (02:49:32). Recommended selling excess properties that are not being leased (02:50:13). 02:50:38 Lorna Newlin was Neutral: Mentioned inaccuracies in the rent data (02:50:38) and expressed concern about a potential 181-unit building near the bus barn. She is worried about the high density housing development and the impact on the art community. (02:51:52)
03:08:29	5.B: Consideration of Staff Recommendation to Amend the Sausalito Center for the Arts Existing Lease from $11,095.25 per month to $8,058.50 per month with an annual CPI escalator effective December 1, 2024	The City Council is considering a staff recommendation to amend the Sausalito Center for the Arts (SCA) lease. The City Manager explains that deferring the lease increase for six months saved the SCA $42,403.50, but cost the city the same amount in revenue. The city has debt service on the building, averaging $157,000 per year for the next 10 years, and receives $24,000 annually from Bank of America for an ATM on the property. The City Manager believes the rent should be between $4,000 and $11,000. He asks Chad Hess to present an analysis of the SCA's counterproposal of a flat $6,000 per month for the next 10 years. Chad Hess presents a financial analysis showing debt service, carrying costs, and opportunity costs. He compares debt service payments to cumulative rents at various rates, including the existing $4,000, the proposed $11,095, and the City Manager's recommended $8,058.50. He notes that only the $11,095 rate covers the entire debt service payment (principal and interest). He estimates that the SCA is responsible for about $49,000 of parking revenue generated through their guests' parking in the city's parking lots. Councilmember Hoffman questions why the lease is being negotiated in open session instead of closed session and requests fair market value assessment for the Center for the Arts. (03:29:26) The City Manager shares that Cushman Wakefield provided a number of $3.21 a square foot, and under the current lease, the amount is $18,377. She also asks about the Wells Fargo building sale price, and how they arrived at the original $11,000/month lease. The City Manager clarifies that the $11,000 amount was slated for 18 months to give them time to get up to that amount and says he backed into that number by adding in the Bank of America payment ($2,000) and estimated parking and sales tax revenues. Vice Mayor Hollweg asks about the potential cost to the city if the SCA were to go out of business. (03:21:34) Hollweg inquires whether the SCA expected to share the lease with a co-tenant and asks about challenges with the rooftop facility (03:25:42). The City Manager replies it was part of the discussion. Hoffman asks why the lease is being negotiated in open session (03:27:59), and the City Manager replies to avoid scuttle about the city trying to make a deal behind closed doors. (03:28:23)	Motion by Councilmember Kamele, seconded by Councilmember Hollweg, to match the Vice Mayor suggestion of a $6,000/month lease, have the city take on major capital improvements while retaining the triple net lease for interior improvements, increase city governance to three board members, 50% of event sharing over $15,000. Motion carries 3-2 (05:00:08)	16 Total: 12 In Favor 2 Against 2 Neutral
03:49:18 Peter Van Meter was Neutral: Suggests the council decide if they want to provide a public benefit by reducing fair market rent. 03:50:49 Bep McDougall was Against: Questions the SCA's financial viability, stating that they are an untested brand new startup foundation and that a whole structure of a lease arrangement was created based on wishful thinking. 03:52:54 Tom Anderson was In Favor: Supports the SCA, stating it's brought interest and activity downtown and needs support from the city. Urges the council to read an article about bolstering large startups. Suggests a 10% increase per year for the $4,000 rent is fair and considers the benefits of an art center versus an empty bank building. 03:54:54 Shiva Pactao was In Favor: Highlights the SCA's dynamic nature, recognition beyond Marin County, and attendance numbers. Mentions recent media coverage, a new membership program, and efforts to increase grant funding and ticket sales. 03:57:06 Stephen Woodside was In Favor: Mentions the plein air art event and emphasizes that the SCA is not just about economics, but about the art. 03:57:48 Dan Christ was Against: As treasurer, he states that at $11,000 a month rent, the SCA will not make a profit this year. States that $133,000 rent a year will represent 62% of the overhead, and at 11,000 per month there's no way that we can reinvest in the organization and the initial lease lacked information. Notes this is an interfund loan to the bank of america fund 03:59:53 Luis Briones was In Favor: Argues the SCA generates positive press for Sausalito, citing features in The Guardian and The New York Times, and is providing publicity that the city would have to pay $96,000 a year to replicate. 04:02:23 Kate Carlson was In Favor: Argues Sausalito deserves an art center and that SCA is bringing value and economic impact to the county. Mentions the building is in bad condition and the triple net lease is not feasible. Notes it smells, there are broken bathrooms upstairs and describes generating revenue through Sausalito Art Festival and the paint Sausalito show 04:04:35 Hank Baker was In Favor: Argues a professional broker is needed and that the lease was based on a post-COVID economy. Notes that setting the lease rate based on debt service is illogical, says to look at real cost and just your interest, not the principal pay down. The building needs a lot of work but that that Shiva and volunteers are doing a tremendous job. 04:06:38 Unknown was In Favor: Requests the city reconsider the lease with SCA, citing its economic, social, and cultural value. Seeks a partnership to scale SCA's success. Notes SCA are paying all the interest on the loan and that is was a 50% increase in our rent, and that is only a 7 percentage points of the projected SCA deficit 04:10:07 Diane Johnson was In Favor: Feels SCA is an asset to the city that is beyond dollars and cents, and it brings goodwill to the city. She sees people coming and enjoying the art, music and cultural programs. To kick them out or charge more money will be another empty storefront. She saw people who she had not seen since before covid to be at SCA and thinks its important in this expensive community 04:12:09 Raylene Gorham was In Favor: Comments from Raylene Gorham to look from a different angle to see the wield that art has in community. Has concerns how getting thousands extra dollars will impact art and culture quality in activities brought to the town. There needs to be a balance between what is brought to the collective experience and not have it vault to only being subject to economic tropes 04:13:57 Carolyn Rebell was In Favor: Supports and sees benefits in and synergy between art center location to landing and BID. That the building the City purchased needs support and that the City purchase was full of wisdom. Support rent approach will make it possible for them to survive 04:15:00 Adrian Brinton was In Favor: Said the key to the discussion is that we have assets, but that the city has problems running in operations. How to invest resources in order to grow economy. If they take the money they invest in city which is much needed 04:17:01 Dennis Conway was In Favor: A location other than BofA will not work. You should get what there for and make sure they are where they are at 04:39:11 Unknown was Neutral: States it was not here when the city purchased, but that good luck of the good market should not get in the way that we should be above $11000 to at least try to cover debt. It was part of the agreement, not just a revenue source. It's been two years and it looks like with the data shown the project is clearly not working
05:02:50	5.C: Introduction and Waiver of First Reading of Ordinance No. 05-2024 An Ordinance of the City Council of the City of Sausalito Repealing and Replacing Chapter 3.30, “Purchase of Supplies, Equipment and Services and Procedures for Public Works Projects	The council is considering the introduction and waiver of the first reading of Ordinance No. 05-2024, which would repeal and replace Chapter 3.30 regarding the purchase of supplies, equipment, services, and procedures for public works projects. The Mayor opened the floor for public comment and then made a motion to continue the item, which was seconded and passed unanimously after a roll call vote (05:03:26).	Motion to continue the item, seconded and passed unanimously (05:03:26).	2 Total: 0 In Favor 1 Against 1 Neutral
05:04:05 Eva was Neutral: Eva spoke about a briefing from physicians who had recently returned from Gaza and an alleged terrorist attack in Lebanon. She then raised concerns about Melissa Blaustein's trip to Israel paid for by the JCRC, stating that it was not properly disclosed and might be in non-compliance with FPPC regulations. She requested answers from the council. 05:06:19 Bep McDougall was Against: Bep McDougall expressed frustration with the council's performance, particularly addressing the newer council members as they approach an election. She criticized the perceived chaos and lack of progress during their terms.
05:06:52	6: COMMUNICATIONS	The Communications section of the meeting included public comments and discussion of future agenda items. Bep McDougall criticized fiscal oversight and the voting bloc on the council (05:07:52). A member of the public expressed support for the council's decision-making process, using a Croatian saying to emphasize that everything happens in its time (05:08:39). Councilmember Karen Hollweg requested the consideration of an audit of the red and white zones in Sausalito as a future agenda item (05:10:12).	No Motion	2 Total: 1 In Favor 1 Against 0 Neutral
05:06:52 Bep McDougall was Against: Bep McDougall criticized the council's fiscal oversight, pointing to the budget deficit and unplanned expenditures. She accused a three-member voting bloc of not thinking independently and suggested that the city would benefit from council members with more direct experience. 05:08:34 Unknown was In Favor: A member of the public expressed support for the council's decision-making process, emphasizing that they were impressed the council found a 'yes' within a difficult situation. The commenter stated that everything happens in its time and the people giving comments were supportive of the council.

City Council Meeting Transcript

Adrian Brinton

City Council Oct 1, 2024

Time	Speaker	Text
00:00:07.59	Unknown	Thank you.
00:00:07.61	Mr. City Clerk	So tonight's meeting of our special and regular city council meeting will be broadcast live on cable TV channel 27. It's also being broadcast on Zoom and on the city's website.
00:00:21.33	Mayor Kamele	Thank you, Mr. City Clerk. Could you please call the roll?
00:00:25.18	Mr. City Clerk	Councilmember Blaustein.
00:00:27.49	Mr. City Clerk	Councilmember Hoffman.
00:00:29.09	Mayor Kamele	Here.
00:00:30.07	Mr. City Clerk	Councilmember Kelman.
00:00:31.25	Karen Hollweg	Here.
00:00:32.31	Mr. City Clerk	uh, vice mayor, uh,
00:00:34.83	Mr. City Clerk	Cox
00:00:35.69	Mr. City Clerk	Thank you.
00:00:35.70	Karen Hollweg	Here.
00:00:35.82	Mr. City Clerk	I'm here.
00:00:35.91	Karen Hollweg	All right.
00:00:35.98	Mr. City Clerk	Bye.
00:00:36.16	Mr. City Clerk	And Mary Sobieski.
00:00:37.34	Mayor Kamele	I'm here. Today's only item in closed session is Conference with Real Property Negotiator. The property is 100 Humboldt Avenue, South City, Yacht Harbor. Is there any public comment on this item?
00:00:47.37	Mr. City Clerk	We do have the city attorney with his hand up.
00:00:53.83	Mr. City Clerk	I think I'm promoting him, I'm trying to promote him as a panelist.
00:01:06.40	Mr. City Clerk	Thank you.
00:01:06.42	Unknown	Thank you.
00:01:06.43	Mr. City Clerk	He's a panelist.
00:01:07.03	Unknown	I'm sorry.
00:01:07.95	Unknown	Yeah, I was just asking to be made about. Thank you.
00:01:10.69	Unknown	Okay.
00:01:11.38	Mr. City Clerk	Thank you.
00:01:11.60	Mr. City Clerk	So there's no
00:01:11.97	Mayor Kamele	no public comment okay public comment is closed and we will adjourn to closed session and return at 7 p.m
00:01:19.61	Mayor Kamele	We return from closed session and are going to resume our meeting. We're going to begin. There are no announcements from closed session. We'll begin the meeting with a recitation of the Pledge of Allegiance.
00:01:30.73	Karen Hollweg	Thank you.
00:01:30.92	Karen Hollweg	to the flag of the United States of America.
00:01:34.60	Unknown	Thank you.
00:01:35.12	Karen Hollweg	and two of the comments forward
00:01:36.98	Unknown	So,
00:01:37.10	Bep McDougall	one nation under God, indivisible, with liberty and justice for all.
00:01:43.96	Mayor Kamele	Thank you very much.
00:01:46.33	Mayor Kamele	The first item of business will be a special presentation on a infrastructure project, which has just been completed. The Edwards Avenue repaving project at a cost of $1.57 million dollars.
00:02:03.61	Kevin McGowan	Good evening, Mayor, members of City Council. I'm Kevin McGowan, Public Works Director. I'd like to introduce Andrew Davidson, who is our senior engineer. He will give our presentation on this specific project.
00:02:04.03	Mayor Kamele	Good evening, Mayor.
00:02:15.44	Unknown	Ooh.
00:02:20.21	Andrew Davidson	Good evening, Mayor, Council members. I'd like to thank you, the City Manager and Director of Public Works, for the opportunity for this special presentation on the 2023 Pavement Improvement Project, Edwards Avenue.
00:02:32.90	Andrew Davidson	My name is Andrew Davidson. I'm senior engineer in your Department of Public Works.
00:02:37.83	Andrew Davidson	First, a little history. As part of the 2022 Street Resurfacing Project, the city resurfaced portions of Gerard, Johnson, and Platt. Edwards Ave. was included in the initial list of roads to be resurfaced. However, because Edwards is very steep, includes concrete paving and sanitary sewer work, it was separated from the 2022 project.
00:03:01.71	Andrew Davidson	This was also done so that we could get the work on Gerard and Johnson and Platt completed. The work on those streets started in October of 2022 and was finished the following month.
00:03:12.76	Andrew Davidson	If you can go back to slide two. Thank you. That's all right.
00:03:17.05	Andrew Davidson	So the Edwards Project limits are generally between its intersection with Marion Ave to the west –
00:03:24.12	Andrew Davidson	uphill and alexander ave to the east downhill and which you can see in yellow here in general when i speak of edwards i'm speaking about this portion of the street
00:03:34.60	Andrew Davidson	Next slide, please.
00:03:38.93	Andrew Davidson	So on January 16th, 2024, the City Council authorized award of the construction contract to Majoran Gelati for the base bid plus three bid alternatives in the amount of $1,050,530, a contingency in the amount of $121,920 for a total authorization of $1,172,450.
00:04:05.12	Andrew Davidson	The City Council also approved a professional service agreement for inspection and construction management to CSW Stuber-Stroh in the amount of $107,550. Total construction authorization was $1,280,000. Next slide, please.
00:04:25.71	Andrew Davidson	So the date of the notice to proceed was February 22nd, 2024.
00:04:31.65	Andrew Davidson	Here you can see some of the existing pavement, which consisted of either a concrete surface or a thin layer of asphalt on the concrete road. The old asphalt was separating and crumbling away from the concrete, while the old concrete was highly cracked, separating, spalling, and had vertical displacements.
00:04:50.94	Andrew Davidson	In addition to the road replacement, the sanitary sewer and lower sewer laterals needed to be replaced. Next slide, please.
00:05:00.34	Andrew Davidson	So we'll start with the sewer. It was the first order of business. The sanitary sewer main was replaced by bursting, where the new plastic pipe was attached to a bursting head and pulled through the existing clay pipe.
00:05:13.94	Andrew Davidson	So to the left, you can see an excavation for a bursting pit from where the new sewer main was pulled into the existing clay pipe.
00:05:22.71	Andrew Davidson	The middle picture shows the bursting head being pulled through the old clay pipe. Attached to the bursting head and out of the picture is the new plastic sewer main. So you can see the bursting heads sort of the top of the picture and it's silver. It's amongst the rock there. It's a little hard, but it's there.
00:05:39.25	Andrew Davidson	To the right, staged on Edwards, is the new plastic sewer main prior to its installation.
00:05:46.56	Andrew Davidson	Next slide, please.
00:05:50.47	Andrew Davidson	On the left is a portion of the newer sewer main in place. The middle photo shows a concrete base of a new sanitary sewer maintenance hole. And to the right is a new sanitary sewer lateral connecting to the new sewer mains.
00:06:05.39	Andrew Davidson	And the next slide, please.
00:06:08.51	Andrew Davidson	So during the course of construction, the water district, the Marin Municipal Water District determined that the existing water main and water services should be replaced. On May 7th, the city council approved a reimbursement agreement with MMWD to replace their facilities at their cost.
00:06:27.97	Andrew Davidson	The work started in early May and was completed in mid-June.
00:06:31.75	Andrew Davidson	This work was managed and inspected by the water district and constructed by the city's contractor, Majora and Gelati. Next slide, please.
00:06:41.98	Andrew Davidson	After installation of the water main, we got to the business of the road replacement. So replacement of the road was in both asphalt and concrete. The project portion of Edwards is about 900 feet in length. The upper flatter 600 feet of Edwards was replaced with a new asphalt roadway, while the steeper and narrower downhill 300 feet was replaced with a new concrete roadway.
00:07:07.14	Andrew Davidson	Here we see work at Edwards intersection with Marion. The replacement here was both in asphalt and concrete, concrete in the steeper portion.
00:07:18.06	Andrew Davidson	This was actually a field revision done in order to minimize the amount of time that the intersection needed to be closed to traffic.
00:07:25.40	Andrew Davidson	By doing this, it was possible to keep a single lane open to traffic while the concrete was curing.
00:07:32.15	Andrew Davidson	Next slide, please.
00:07:34.58	Andrew Davidson	Here we're leaking eastward, downhill, and you can see demolition of the old concrete road taking place.
00:07:41.71	Andrew Davidson	Next slide.
00:07:45.43	Andrew Davidson	So now we get to see some new stuff. On the left, new asphalt and concrete at the intersection of Marion and Edwards. And on the right, new asphalt being compacted along the upper portion of Edwards.
00:07:57.27	Andrew Davidson	You can see a roller approaching us. Next slide, please.
00:08:04.95	Andrew Davidson	All right, the concrete. This is the lower portion of Edwards where the road was replaced in concrete. On the left, in the left picture, you can see the contractor is placing form boards for the concrete. In the middle photo, you can see a freshly poured concrete pad
00:08:21.02	Andrew Davidson	in the foreground rebar waiting for installation of the concrete, and in the background new concrete being placed from a pumper truck that was actually located downhill on Alexander Avenue.
00:08:33.67	Andrew Davidson	The right photo shows the completed concrete paving on Edwards at Alexander. The work shown here is a repair of a portion of Alexander's asphalt pavement.
00:08:45.70	Andrew Davidson	So this slide gives me an opportunity to describe some of the issues associated with installation of the concrete portion of Edwards.
00:08:53.48	Andrew Davidson	The installation of the concrete road required that Edwards be fully closed between No. 32 Edwards and Alexander Avenue.
00:09:01.58	Andrew Davidson	The full closure was for 24 hours a day, starting the morning of June 24th through the end of day on July 3rd. This was a full closure with no vehicle access to and from driveways and no parking allowed in this portion of the street.
00:09:20.33	Andrew Davidson	Prior to this full closure, we had a field meeting between the Southern Marine Fire Protection District, Sausalito Police Department, contractor, construction manager,
00:09:30.24	Andrew Davidson	and city engineering staff in order to work out access issues in case of an emergency.
00:09:36.14	Andrew Davidson	As a result of this meeting, the Southern Marin Fire Protection District requested that during the full closure and during business hours, that flagger control be made available on the portion of Edwards between Sausalito Boulevard and Marion in case an emergency response was required on Edwards or uphill above the intersection with Marion.
00:09:57.95	Unknown	married.
00:09:59.65	Andrew Davidson	Southern Marin also requested that additional no parking restrictions be placed in constricted portions of Edwards.
00:10:07.97	Andrew Davidson	between Sausalito Boulevard and Marion, further reducing available residential parking in the area.
00:10:16.12	Andrew Davidson	Next slide, please.
00:10:18.55	Andrew Davidson	So some financing, the original budget for the project was identified with the 2022 street resurfacing project
00:10:24.86	Andrew Davidson	and was presented to the city council in March of that year as $2.49 million.
00:10:30.97	Andrew Davidson	The authorization was for Edwards as well as Gerard, Johnson, and Platt.
00:10:37.26	Andrew Davidson	On January 16th of this year, the City Council allocated additional funds from the sewer enterprise to pay for the Edwards sewer work. And on May 7th of this year, the City Council authorized additional funding for the water district work, not all of which ended up being required. And the water district work, as you recall, is fully reimbursable to the city.
00:10:59.46	Andrew Davidson	So the total allocation for the work completed in 2022, plus the Edwards project was 3.5 million, which does include...
00:11:09.24	Andrew Davidson	the it does include the MNWD portion.
00:11:13.38	Andrew Davidson	Next slide, please.
00:11:17.95	Andrew Davidson	The cost of the completed project
00:11:20.09	Andrew Davidson	Sorry, the cost of the completed 2022 project was about $715,000. The cost of the completed Edwards Roadway and Sewer project, so that includes MMWD, is about $980,000. I mean, you could compare that with the bid of $1,050,530. Okay.
00:11:42.25	Andrew Davidson	When adding in construction management and MMWD costs, we get a total cost of construction of that $1,579,900.
00:11:52.33	Andrew Davidson	with $490,000 of that being reimbursable from the Marine Municipal Water District.
00:12:00.70	Andrew Davidson	This will leave approximately $1.2 million available for that Marion Wall project without additional allocations, and which we anticipate being ready for construction next season.
00:12:14.11	Andrew Davidson	Next slide, please.
00:12:17.25	Andrew Davidson	So during the consent, you'll be asked to accept the project as complete and direct the city engineer to file a notice of completion.
00:12:25.10	Andrew Davidson	The project on Edwards was disruptive to the residents in the area. Edwards was frequently closed through traffic and no parking restrictions were often in place, forcing residents and businesses serving residents to find alternative places to park and means of access. Noise, vibration and other disruptions associated with heavy construction were a constant condition for people living and working in the area.
00:12:51.08	Andrew Davidson	The residents and contractors' efforts to work together and adapt to these situations is commendable and help to move this complex project along as quickly as possible. And so I say thank you.
00:13:04.30	Mayor Kamele	Thank you, Mr. Davidson.
00:13:05.75	Mayor Kamele	Is there any public comment on this special presentation?
00:13:11.45	Mayor Kamele	Bep McDougall.
00:13:14.25	Mayor Kamele	Ms. McDougal is first and then you, Mr. Albert.
00:13:17.97	Mayor Kamele	Ms. McDougal was first.
00:13:19.00	Karen Hollweg	I'm sorry, Mayor. As a point of order, this is a special presentation. This item is also on consent, which I think is the appropriate place to take public comment on it.
00:13:26.66	Mayor Kamele	Sorry, I got a note from Sergio Rudin that said I needed to take public comment. So I'm responding to his advice. Okay. So sorry about that. Maybe I should have mentioned that that's why I was taking public comments.
00:13:36.19	Paul Albritton	Very brief comment. I moved to Sausalito in 1989 to a home on Edward Zapp and learned shortly after that then council member Paul Albritton lived on Edward Zapp. So I thought, great, the street will get paved soon.
00:13:53.12	Paul Albritton	A few years later, the late Glenn Miskell knocked on my door. He was running for city council, and I found out he lived on Edward Zaff. And I enthusiastically supported his campaign, wrote him a check, and thought Edward Zaff would get paid soon. So...
00:14:11.24	Paul Albritton	35 years later. I'm very pleased to see this work has been done. Thank you.
00:14:19.91	Mayor Kamele	Thank you, sir. Ms. McDougall.
00:14:26.07	Bep McDougall	Thank you.
00:14:27.59	Bep McDougall	I'm also very glad to see the work is finally getting done. And,
00:14:32.11	Bep McDougall	I just had a thought that I'd like to share for future, especially for steep inclines having lived in the Swiss Alps for a while.
00:14:39.59	Bep McDougall	I wonder why we're not using cobblestones. Usually that's the only place we get traction throughout the year on steep terrain is on cobblestones. So I'd like to encourage, considering the expense that we're already looking at, why not look at cobblestones?
00:14:54.95	Bep McDougall	with the
00:14:56.67	Bep McDougall	return an awful lot of charm to the
00:14:58.61	Bep McDougall	neighborhood. Thank you.
00:15:04.16	Mayor Kamele	Any other public comment? All right, see no further public comment. Public comment is closed. We'll move on to action.
00:15:09.04	Mr. City Manager	minutes from the previous mayor. Mayor, if I may, I wanted to close the presentation with a comment if I could quickly. So first of all, thank everybody for their patience. I wanted to make sure that people understood that one of the key funding sources of this $644,000 of it was Measure O money. And that was approved by the public after some work and concern about our infrastructure. Measure L followed it. So again, that's money that you approved working to do projects that you will promise like infrastructure and street projects. So 644,000 was allocated to this fund from that special measure.
00:15:47.82	Mayor Kamele	Thank you.
00:15:47.83	Mr. City Manager	Thank you.
00:15:48.46	Mayor Kamele	Thank you, Mr. City Manager. So the next item is action minutes of the previous meetings. That's adopting the minutes for the July 30th, September 7th, and September 9th City Council meetings.
00:15:57.97	Mayor Kamele	Thank you.
00:15:58.24	Mayor Kamele	Is there a motion to approve? Mr. Mayor, before we make a motion. Yes, Mr. Hoffman.
00:15:59.21	Councilmember Hoffman	Mr. Mayor, before we make motion.
00:16:01.03	Councilmember Hoffman	Thank you.
00:16:01.13	Councilmember Hoffman	I discussed the draft minutes with our city clerk, Mr. Slarzano, sorry, I know I said that wrong. Sorry. Before the meeting, and he told me he had gone back through and summarized some of the direction that we gave and the language, and I would like to ask your indulgence so that I can just review the tape, the same tape that he looked at, and review the action minutes. so I wasn't aware that it wasn't a verbatim um indulgence and so that i can just review the tape uh the same tape that he looked at and review the action minutes so i wasn't aware that it wasn't a verbatim um of the
00:16:33.70	Councilmember Hoffman	Anyway.
00:16:34.71	Councilmember Hoffman	of the language that we agreed upon. So I'd like to review that tape as well.
00:16:39.28	Unknown	Thank you.
00:16:39.50	Mayor Kamele	Yes, Council Member Kellman had her hand up next.
00:16:42.12	Unknown	Can I just make a suggestion for our city clerk? There's some very good AI, like Otter AI, that we can record directly off of Zoom and will give us a verbatim transcript. So perhaps we can move in that direction to avoid this in the future.
00:16:57.41	Karen Hollweg	Right.
00:16:57.48	Spare	Spare.
00:16:57.75	Karen Hollweg	Thank you.
00:16:58.25	Karen Hollweg	I'll just inform the council that the agenda setting committee is already working on that project.
00:17:05.98	Mayor Kamele	Is the action here that's being requested? I'll make it.
00:17:06.08	Spare	Thank you.
00:17:06.10	Mr. City Clerk	Oh, yeah.
00:17:06.35	Spare	Thank you.
00:17:06.40	Mr. City Clerk	Yeah.
00:17:08.06	Mr. City Clerk	I'll make it. Just put the record on the notes. There was, it's not completely verbatim because there was a back and forth with the council on how it was going to be drafted, the language. And so that's why it's not verbatim, that direction that was given from council member Hoffman because there was discussion in between. Okay.
00:17:24.49	Councilmember Hoffman	Thank you for that. I agree. And I mean, that is what...
00:17:28.34	Councilmember Hoffman	what you told me before. So I would make motion that we approve the draft minutes from September 7th and September 9th.
00:17:36.02	Mayor Kamele	Stand by, no comments from the audience, please.
00:17:39.41	Karen Hollweg	If we're going to continue this item, may I ask that we continue it to a date certain? This is the second time it's been on our agenda.
00:17:46.40	Karen Hollweg	Thank you.
00:17:46.41	Councilmember Hoffman	Yeah, let's do it at the next meeting. I'm fine with that.
00:17:50.12	Mayor Kamele	Okay, so there's a motion to...
00:17:54.16	Mayor Kamele	push the July 30th minutes to the next scheduled city council meeting, uh, and approve the September 7th and the September 9th city council minutes as written. Is there a second?
00:18:05.30	Unknown	And,
00:18:06.28	Unknown	And Mayor, before you vote, you do need to take public comment on it.
00:18:08.97	Mayor Kamele	I know. I'm still waiting for a second. Thank you, Sadiq.
00:18:12.64	Mayor Kamele	Okay. Now we will take public comment on the minutes. Ms. McDougal.
00:18:22.53	Bep McDougall	Thank you, Mr. Mayor.
00:18:24.16	Bep McDougall	So because this is an item that seems to be a thorn in the size of many,
00:18:29.07	Bep McDougall	And the basic thorn is described as follows. We have no authentic transcript of our public meetings. This is actually a crime.
00:18:36.55	Bep McDougall	you're breaking a federal law.
00:18:39.25	Bep McDougall	So, I mean, the point is, why can't we have an authentic record of our meetings? Why are we having so much difficulty? I'm told that we've got
00:18:49.24	Bep McDougall	duplicating processes here, that it's possible that if one thing fails, then another one can kick in. I don't understand why we can't have an authentic transcript of our public meetings. And before we continue and kick it down the road,
00:19:01.98	Bep McDougall	Thank you.
00:19:02.08	Bep McDougall	Just to think about it one more time, why don't we create some sort of action to bring some sort of measurable way of resolving these issues? I mean, instead of going forward constantly complaining about the lack of a public record, why don't we look toward resolutions? An AI concept is one idea.
00:19:21.10	Bep McDougall	On the other hand, there's also a court reporter.
00:19:24.54	Bep McDougall	So I'd really like to encourage you to get serious about the seriousness of having an authentic transcript of these meetings.
00:19:31.22	Bep McDougall	If the city gets sued, it has nothing but the transcript to rely on, and this creative reinvention of a meeting, because you do or don't like what's being said, is just not acceptable. Thank you.
00:19:43.27	Mr. City Clerk	I'd like to note that there's recordings of all the meetings.
00:19:48.37	Mr. City Clerk	It's right. It's on right there for the public to view.
00:19:50.83	Mr. City Clerk	Bye.
00:19:50.85	Mayor Kamele	I'm sorry, can you say that again, Mr. City Clerk?
00:19:52.64	Mr. City Clerk	All the meetings are recorded and you can hear everything that was said verbatim on there.
00:19:58.54	Mayor Kamele	Thank you.
00:19:58.56	Mr. City Clerk	Thank you.
00:19:58.58	Mayor Kamele	Right.
00:19:58.73	Unknown	It just sits.
00:20:00.35	Karen Hollweg	Thank you.
00:20:00.37	Unknown	Thank you.
00:20:00.43	Mr. City Clerk	We're here.
00:20:00.47	Karen Hollweg	I'd like the city attorney to respond to the accusation by a member of the public that we're breaking federal law by not having verbatim minutes.
00:20:00.57	Unknown	They're-
00:20:10.22	Unknown	Yeah, I'm not aware of any requirement to have verbatim minutes. Most public agencies will only have action minutes, and that is all that's legally required under the Brown Act.
00:20:20.45	Mayor Kamele	Ma'am, you had your time. Please respect the order. Please respect the order of the meeting.
00:20:28.58	Mayor Kamele	Thank you. Please respect the order of the meeting.
00:20:32.41	Mayor Kamele	We'll now move on to the consent. Oh, did we, we need to act on the motion. So all in favor, say aye.
00:20:39.57	Karen Hollweg	I.
00:20:40.21	Mayor Kamele	All opposed? Motion carries unanimously. The consent calendar is next. These are items that will be considered altogether and that anyone from the council may ask for an item to be removed from the consent calendar.
00:20:54.99	Mayor Kamele	The items are 3A, Hispanic Heritage Month Proclamation,
00:20:58.54	Mayor Kamele	3B, Director of Communication Annual Report for 23-24.
00:21:02.99	Mayor Kamele	3C, adopt a resolution declaring one police vehicle is surplus and authorizing the city manager.
00:21:07.80	Mayor Kamele	to dispose of said equipment at auction.
00:21:10.67	Mayor Kamele	3D, adopt a resolution authorizing the city manager to execute the professional services contract.
00:21:15.90	Mayor Kamele	with park engineering for construction management and inspection services for the ferry improvement project in an amount not to exceed $175,122.
00:21:25.13	Mayor Kamele	3E adopt a resolution accepting
00:21:27.37	Mayor Kamele	The Marin County local road safety plan, chapter 17, related to the city of Sausalito
00:21:32.08	Mayor Kamele	3F adopted resolution authorizing city staff to submit for RM3 safe routes to transit and Bay Trails funding to support the construction of the Bridgeway Improvement Project Napa Street to Johnson Street
00:21:42.98	Mayor Kamele	for the Bridgeway improvement project in Spring Street to Napa Street and design funds for the Bridgeway bikeway roadway pedestrian improvements from Gate 6 Road to Harbor Drive
00:21:52.62	Mayor Kamele	3G has adopted a resolution accepting the 2023 pavement improvement project, Edwards Avenue, at a cost of $1.5679 million, as complete and direct the city engineer to file a notice of completion.
00:22:04.97	Mayor Kamele	3H is adopt a resolution amending parking regulations to establish a no parking zone opposite the driveway and garage of 22 Atwood located along 301 North Street. 3I, adoption of a resolution approving the exterior, front yard modifications and landscaping in the public right of way of 9,
00:22:23.80	Mayor Kamele	Five, nine, six Sausalito Boulevard.
00:22:26.05	Mayor Kamele	adopt a resolution,
00:22:27.74	Mayor Kamele	authorizing the city manager to execute a professional services agreement with George Hills,
00:22:31.75	Mayor Kamele	to provide claims administration and risk management service for one year in an amount not to exceed $196,000.
00:22:38.16	Mayor Kamele	3K by minute order waived the business license tax penalties imposed on active ingredients incorporated in an amount of $7,146 and accepted a two-year payment plan.
00:22:49.30	Mayor Kamele	3L authorizes city manager to execute side letter license agreement with South Slater Yacht Harbor for the use of 47 parking spaces in Bay Street parking lot for public parking. Is there any public, does anyone wish to amend or remove any consent items?
00:23:03.65	Karen Hollweg	That's a great question.
00:23:05.70	Mayor Kamele	Bye, Steph.
00:23:05.82	Karen Hollweg	I just wanted to note we did publish an amended agenda that changed the title of 3F from bridgeway bikeway to bridgeway bikeway slash roadway slash pedestrian and
00:23:17.45	Karen Hollweg	improvements.
00:23:18.34	Karen Hollweg	And I also would like to
00:23:18.43	Unknown	Thank you.
00:23:18.44	Shiva Pactao	And,
00:23:18.58	Unknown	Thank you.
00:23:20.81	Karen Hollweg	um, pull item 3H. We've received over a dozen, over a dozen or two dozen, uh, public comments on that item.
00:23:29.75	Mayor Kamele	Okay, removing 3H by Councilmember Hoffman.
00:23:32.72	Councilmember Hoffman	Yes. Thank you, Mayor. I would like to remove item 3L, which is the authorized city manager execute a side letter license agreement with the Yacht Harbor.
00:23:39.99	Mayor Kamele	OK.
00:23:41.62	Mayor Kamele	Be able to be removed.
00:23:44.87	Mayor Kamele	Anyone else? Okay. So the motion is to approve all the consent items with the exception of 3H and 3L. Is there any second?
00:23:57.38	Mayor Kamele	Oh, I'm sorry, there needs to be public comment. I apologize. So public comment on those items only, not the park, not the no parking zone and not the maddening, the South City at Harbor agreement. So public comment.
00:24:07.92	Mr. City Clerk	So Peter Van Meter?
00:24:11.40	Ted Barton	Thanks for helping.
00:24:13.58	Mr. City Clerk	Okay. Anybody else? Babette?
00:24:20.16	Mr. City Clerk	Thank you.
00:24:23.67	Bep McDougall	Thank you. I'd just like to make two points of order. First of all, I personally did not employ the word verbatim. It was your colleagues on the dais. I used the word authentic. Are you going to make it verbatim?
00:24:31.62	Mayor Kamele	authentic are you going to
00:24:32.36	Mayor Kamele	a couple of weeks.
00:24:32.56	Bep McDougall	Yes, sir, I am. But I want to make sure we follow the rules of order here.
00:24:32.83	Mayor Kamele	Yes, sir, I am.
00:24:37.51	Bep McDougall	Secondly, with regard to this alphabet soup consent to calendar, it's become a runaway fad with the existing agenda setting committee, I guess. It's not usually the way we handle our business in such sweeping order in Sausalito. And I'd like to encourage you to reconsider the alphabet soup approach. Thank you.
00:24:56.93	Mayor Kamele	Thank you for your comment.
00:24:59.17	Mr. City Clerk	No further public comment. No further public comment.
00:25:00.98	Mayor Kamele	comment and I'll make the motion to approve items, all the consent calendar items with the exception of 3H and 3L.
00:25:08.00	Karen Hollweg	Second,
00:25:09.21	Mayor Kamele	All in favor, say aye.
00:25:10.39	Karen Hollweg	Aye. Opposed?
00:25:11.73	Mayor Kamele	Okay. The consent calendar carries. How many people are here to comment on the
00:25:17.84	Mayor Kamele	We have about a dozen. On the 3H, on the parking. On 3H, the parking. Can you just raise your hand?
00:25:18.55	Mr. City Clerk	We have a Boba.
00:25:26.38	Mayor Kamele	That's five, six.
00:25:28.23	Karen Hollweg	May I ask that we take that before? Take that first.
00:25:28.25	Mayor Kamele	Yeah.
00:25:29.92	Mayor Kamele	that first okay we'll take both items i guess first uh and dispatch with them so we'll hear
00:25:34.74	Mayor Kamele	3H, then 3L, and then we'll move on with 5A and 5B. So first on the parking regulations to establish no parking zone opposite the driveway and garage on 22 Atwood. Does staff have a report on this?
00:25:48.95	Mayor Kamele	Who will give it? You will give it, sir. Thank you very much. Could you introduce yourself for the record?
00:25:58.62	Adam Blair	I believe we have a slide deck as well.
00:26:14.50	Adam Blair	Perfect. Thank you. Good evening, Mayor, Vice Mayor, Council members and members of the public. It's a pleasure to present before you all this evening. I'm Adam Blair, Assistant Planner with the Community Development Department. And I, along with my esteemed colleague, Senior Engineer Andrew Davidson, are here to discuss a proposed amendment to parking regulations, proposing a no parking zone opposite the North Street driveway of 22 Atwood Avenue. And before we begin, I'd like to take a quick moment to just thank members of the public who reached out to us and provided public comment on this item leading up to the hearing.
00:26:49.27	Adam Blair	It's something we greatly appreciate. We value any input and feedback going into these hearings. So thank you. And with that, we'll move forward. Next slide.
00:27:02.93	Adam Blair	So project summary. On occasion, residents and members of the public forward their concerns related to parking and traffic safety to various departments, including public works and the police. These concerns range from restriping portions of city streets to making changes to existing no parking areas to address safety issues and improve access to driveways. An internal traffic coordination committee, often referred to as the TCC, is composed of police, public works, and sometimes the Southern Marin Fire Protection District. They meet approximately every quarter to review these requests, and if deemed appropriate and reasonable, bring items to the city council for action. The proposed parking amendment for the removal of on-street parking at 22 Atwood Avenue was originally brought forth to Sausalito City Council, along with two other addresses, 115 3rd Street and 101 Prospect Avenue.
00:27:56.11	Adam Blair	These proposed amendments were presented to Sausalito City Council on June 4th, 2024, during the regularly scheduled City Council hearing.
00:28:04.64	Adam Blair	The proposal was then referred by Sausalito City Council back to the Planning Commission for further discussion, which took place on July 24th, 2024, in the form of three study sessions, one for each address.
00:28:18.60	Adam Blair	The Planning Commission recommended approval of the removal of on-street parking at 115 3rd Street and 101 Prospect Avenue unanimously.
00:28:27.70	Adam Blair	And then for 22 Atwood Avenue, three planning commissioners recommended the removal
00:28:33.60	Adam Blair	of on street parking at opposite the driveway on north street at 22 atwood with one planning commissioner abstaining and one recusing themselves next slide please
00:28:46.01	Adam Blair	So for site location, 22 Atwood Avenue is located nearby the intersection of Atwood Avenue and North Street. It's identified by assessor parcel number 065-203-02. And it's located in the R-3 Multiple Family High Density Residential Zoning District per Sausalito Zoning Ordinance and General Plan. Next slide.
00:29:09.04	Adam Blair	Diving into the planning approvals for 22 Atwood Avenue, the property as we know it today really started coming into form in 2012. In 2012, the Community Development Department received a design review, variance tree removal permit and encroachment agreement application, project ID 12-124. This application was approved through Planning Commission Resolution number 2012-23.
00:29:34.93	Adam Blair	The design review permit portion, which was subject to heightened review findings, proposed modifications within the Atwood Avenue right of way, including construction of facade modifications, construction of a mechanical room, construction of retaining walls, stairs, paths, landscaping, and demolition of an existing parking deck.
00:29:54.76	Adam Blair	For proposed modifications within the North Street right-of-way, this included the proposed construction of a two-car garage, as well as retaining walls, stairs, and landscaping.
00:30:04.96	Adam Blair	The variance portion of the application requested the allowance of 432 square feet of building coverage for the proposed garage and mechanical room. It proposed the allowance of 817 square feet of additional impervious surface coverage.
00:30:20.76	Adam Blair	It also requested the allowance of 86 square feet of floor area for the proposed garage and mechanical room. And it proposed the allowance of a reduced three-foot side yard setback from the eastern property line for the proposed garage and a three-foot side yard setback from the western property line.
00:30:37.92	Adam Blair	Next slide.
00:30:41.75	Adam Blair	Moving to 2013, another application was filed similar to the last one. It was a design review, variance, encroachment agreement, and tree removal permit application, project ID 13-196. This project was denied through Planning Commission Resolution No. 2013-31. The design review permit portion of the application, which was also subject to heightened review findings, proposed modifications and additions totaling 347 square feet of new floor area, a new second floor covered deck, stairs, other hardscape improvements, removal of a parking deck and construction of a new walkway within the Atwood Avenue public right-of-way.
00:31:22.61	Adam Blair	The variants requested the allowance of additional building coverage, floor area, and impervious surfaces beyond that which is allowed in the R-3 zoning district.
00:31:32.46	Adam Blair	The tree removal permit requested the removal of three pitosporum trees, one coast live oak tree, two toyon trees, and one cotton Easter. Then the encroachment agreement portion of the application was to allow these improvements within the Atwood Avenue and North Street Public right of way. Next slide.
00:31:50.89	Adam Blair	And then the residence was ultimately approved in 2014 through a design review, variance, tree removal permit, and encroachment agreement application, Project ID 14-006. It basically approved the residence as is, including the curved driveway. And a couple of the heightened review findings that were worth noting was heightened review finding D, which says, quote, A new two-car garage will be provided on North Street, which has been designed to not impact existing on street parking and is set at an angle to facilitate ingress and egress, end quote. And then heightened review finding F also stated the following. The project allows for adequate guest parking along the street frontage within the Atwood Avenue right of way.
00:32:33.99	Adam Blair	End quote. In 2015, an administrative modification to an approved project was applied for
00:32:41.41	Adam Blair	To propose the relocation of the garage, it was proposed to be moved from a 5'4'' setback from the eastern property line to a 13'3'' setback from the eastern property line. So it shifted the garage over about 7'11".
00:32:57.58	Adam Blair	Notice of decision was issued on October 7th, 2015, and the main reason for the proposal was to help address a slope retention issue pertaining to the western side of the property between 22 Atwood Avenue and 18 Atwood Avenue. Moving the garage would essentially or essentially eliminated the need for a large retaining wall on that portion of the property.
00:33:20.98	Adam Blair	And the project was deemed, or I guess the relocated garage was deemed to have no impact on ingress and egress at North Street. And with that, I will pass the mic to my colleague, Andrew Davidson. Thank you.
00:33:37.39	Andrew Davidson	Thank you, Adam.
00:33:39.11	Andrew Davidson	Next slide, please.
00:33:42.33	Andrew Davidson	Thanks.
00:33:43.34	Andrew Davidson	So good evening, and I'm Andrew Davidson, Senior Engineer in the Department of Public Works, and I'm going to present some information related to the no parking request made by the property owner at 22 Atwood in order to improve ingress and egress for their driveway garage and garage, which are located on North Street.
00:34:03.49	Andrew Davidson	So as Adam touched on, on May 14th of this year, the internal...
00:34:08.25	Andrew Davidson	traffic coordination committee met as it does roughly quarterly to discuss eight items three of which were related to access to residential driveways and the request for installation of red curbs to resolve issues of ingress and egress to those driveways the traffic committee concurred with the requests and this evening you are reviewing the request made by the property owner at 22 atwood
00:34:32.42	Andrew Davidson	So the traffic committee is composed of staff from the police department, public works, sometimes community development, and sometimes the Southern Marin Fire Protection District. Going back, I was able to locate agendas dating back as far as 2005 for the traffic committee. At that time, members included the city manager, police and fire chiefs, director of public works, city engineer,
00:34:57.14	Andrew Davidson	Thank you.
00:34:57.31	Andrew Davidson	parking manager, community development director, and superintendent of Public Works.
00:35:04.09	Andrew Davidson	So taking a look at this slide, 22 Atwood, which you can see outlined in yellow, it's the garage and driveway for this address are located with ingress and egress on the south side of the house, located on North Street.
00:35:18.03	Andrew Davidson	Next slide, please.
00:35:22.55	Andrew Davidson	This view is along North Street looking towards the west as if we are driving from east to west. To the right is the driveway and garage for 22 Atwood, and on the left is the curb with approximately 33 feet of available space for parking along the 301 North Street frontage opposite the garage and driveway. The driveway flare for 301 North Street is painted red for approximately two feet and the curb at the access to 301 north street is also painted red those those existing red zones are the limits of the open 33 feet
00:36:01.48	Andrew Davidson	The width of the street is approximately 18 feet.
00:36:04.28	Andrew Davidson	The driveway and garage for 22 Atwood are on a skew, orientated to assist drivers approaching from the east. According to the property owner, they are unable to effectively ingress and egress the garage with a vehicle parked on that opposite curb.
00:36:20.96	Andrew Davidson	Next slide, please.
00:36:24.38	Andrew Davidson	So the property owner is requesting that the curb opposite their driveway be painted red to facilitate their ability to use their garage. The resident would prefer that both stall to be eliminated, but that eliminating one would be just adequate for ingress and egress into their garage. The property owner stated that because of the difficulty of ingress and egress to their garage, they are required to use two on-street parking spaces in the area.
00:36:51.97	Andrew Davidson	However, if they can use the two spaces in the garage by eliminating one space on North Street, there would be a net gain of one parking space to the neighborhood.
00:37:03.65	Andrew Davidson	This would be accomplished by adding 13 feet of red curb and leaving a single 20-foot parking space along the frontage of 301 North Street.
00:37:13.17	Andrew Davidson	So the existing 33 feet of non-red curb do not equate to two full parking spaces. However...
00:37:20.96	Andrew Davidson	This doesn't mean that two cars are unable to park here and still be out of the existing red. They just have to be short enough and parked well to do so.
00:37:32.02	Andrew Davidson	Next slide, please.
00:37:36.02	Andrew Davidson	This slide shows a turning study for ingress and egress for the driveway and garage. The study was prepared by parametrics who provide on-call traffic engineering services for the city. So on the left side of the exhibit, you see the model for ingress, and on the right side, the model for egress. The turn lines are in blue, which are a little hard to see.
00:37:59.32	Andrew Davidson	and show the right and left edges of the vehicle and the center of the vehicle as it moves. Excuse me.
00:38:07.37	Andrew Davidson	The turning study shows that a vehicle attempting to ingress and egress from the driveway has conflicts if a vehicle is parked at the eastern end of the non-red curb.
00:38:19.66	Andrew Davidson	you can see the blue lines intersecting with the parked car at the eastern end of the curb.
00:38:24.87	Andrew Davidson	Painting 13 additional feet of curb with red will allow a vehicle to enter and exit the 22 Atwood garage while facing the westbound direction and will leave a 20-foot parking space along the North Street curb.
00:38:38.88	Andrew Davidson	Thank you.
00:38:38.98	Andrew Davidson	Thank you.
00:38:39.74	Andrew Davidson	Next slide, please.
00:38:42.76	Andrew Davidson	So this slide provides some information regarding signage in the area of 22 Atwood, as well as the approximate number of parking spaces in the area.
00:38:52.12	Andrew Davidson	This information came from Parking Enforcement.
00:38:55.55	Andrew Davidson	The area is part of the area H permit that restricts parking to two hours unless a vehicle has the area H permit.
00:39:03.97	Andrew Davidson	You can see some of the sign locations in the area which are represented by the red squares.
00:39:09.99	Andrew Davidson	In the vicinity of 22 Atwood, Area H permit signs are located on North Street,
00:39:16.19	Andrew Davidson	between Josephine and Third Street.
00:39:19.36	Andrew Davidson	on 2nd Street
00:39:20.93	Andrew Davidson	between Richardson
00:39:22.58	Andrew Davidson	And it's N to the north.
00:39:25.08	Andrew Davidson	and on third and fourth streets between Richardson and North Street.
00:39:31.05	Andrew Davidson	Now anyone can park in the area for up to two hours.
00:39:34.28	Andrew Davidson	If someone has an area age permit, they may park up to 72 hours without moving.
00:39:40.25	Andrew Davidson	Beyond 72 hours, any car may receive a citation if it hasn't moved.
00:39:45.67	Andrew Davidson	In June, the council asked if businesses were using parking in the area to the detriment of the residents.
00:39:52.30	Andrew Davidson	In response, parking enforcement responded that businesses do use the area, mostly contractors, due to ongoing construction projects. However, employees of Bridgeway businesses use the area very little.
00:40:08.04	Andrew Davidson	Parking enforcement performed a spot count of parked cars in the neighborhood between Wednesday, September 4th and Saturday, September 7th.
00:40:17.14	Andrew Davidson	This information is included
00:40:19.75	Andrew Davidson	in the staff report as attachment four.
00:40:23.13	Andrew Davidson	This very informal count showed that occupancy of the parking spaces ranged between a low of about 70% to a high of 100%, with a rough approximate overall average of 90% occupancy on the days and times that the observations were made.
00:40:41.24	Andrew Davidson	Next slide.
00:40:43.13	Andrew Davidson	Last line.
00:40:44.04	Andrew Davidson	So...
00:40:45.83	Andrew Davidson	Open for questions and comments. This image is a Google map street view. It shows two cars parked along that curb adjacent to 301 North Street and opposite the 22 Atwood garage and driveway. The white van is probably in that 13-foot zone that's being requested to be painted red. I don't know if those vehicles are...
00:41:10.14	Andrew Davidson	constrained within the existing red or if they're hanging over the red. But there you go.
00:41:18.72	Mayor Kamele	The vice mayor was first with some questions. I think council member Hoffman raised her hand after anyone else.
00:41:24.25	Karen Hollweg	Thank you. Thank you. I'll ask my questions.
00:41:30.07	Unknown	Sorry to interrupt, but I think I'm, I didn't realize that I'm within a thousand feet based on some of the parking associated with this. So I'm going to recuse myself since I am a renter, so I'm not necessarily required to, but since I sometimes park on Atwood, I'm just going to
00:41:45.92	Unknown	Tell me when to.
00:41:46.96	Unknown	which is great.
00:41:50.74	Karen Hollweg	I'd like to ask my questions of the assistant planner if I might.
00:41:53.98	Kate Carlson	Adam.
00:41:54.47	Adam Blair	Thank you.
00:41:58.41	Karen Hollweg	Adam, it's nice to meet you. Welcome.
00:41:59.92	Adam Blair	Likewise. Thank you.
00:42:01.61	Karen Hollweg	um,
00:42:04.14	Karen Hollweg	You may or may not realize that I was the chair of the planning commission that considered this project on March 26, 2014.
00:42:11.18	Karen Hollweg	One of the things that we provided to the applicant at that time was an encroachment agreement. You read some of the design, heightened design review findings, but we also had a couple of key encroachment permit findings. And as you know, an encroachment permit has to be approved, not just it's recommended by the Planning Commission, it actually has to be approved by the City Council, right?
00:42:32.91	Unknown	Right.
00:42:32.98	Adam Blair	Correct.
00:42:33.13	Karen Hollweg	So that's really a privilege that's rarely granted, right?
00:42:33.18	Unknown	Thank you.
00:42:37.52	Karen Hollweg	Okay. And so as part of the encroachment agreement, did we include finding B...
00:42:46.03	Karen Hollweg	The encroachment will not, sorry, finding,
00:42:51.39	Karen Hollweg	C.
00:42:52.27	Karen Hollweg	The encroachment is necessary to the reasonable use and enjoyment of the property and the extent of the encroachment is justifiable.
00:42:58.45	Karen Hollweg	Due to the size and location of the parcel as it relates to the Atwood Avenue and North Street public rights of way, the steep topography and the existing development of the site, an encroachment will be required to access the existing single family residence and provide
00:43:13.84	Karen Hollweg	a two-car garage below the structure. And so we actually already granted an encroachment agreement in order to allow the then property owners to build the garage. Is that right?
00:43:26.68	Adam Blair	Correct. Thank you for clarifying that.
00:43:28.72	Adam Blair	Yeah.
00:43:28.79	Karen Hollweg	Yep.
00:43:29.06	Karen Hollweg	Okay.
00:43:29.78	Karen Hollweg	We also made finding D. The proposed encroachment will not adversely affect the public circulation nor create or constitute a hazard for
00:43:38.19	Karen Hollweg	to public safety. And the reasoning proposed by staff for that was the encroachments as conditioned will not affect access and circulation on Atwood Avenue and North Street because the traveled ways will remain unchanged beyond its current conditions and the angled orientation of the garage allows for improved ingress and egress. Did we make that finding?
00:44:02.22	Karen Hollweg	back in 2014.
00:44:03.58	Adam Blair	Yes.
00:44:04.46	Karen Hollweg	And so we really recommended that the City Council approve this encroachment agreement
00:44:12.44	Karen Hollweg	in order to not affect the surrounding circulation. Is that not right?
00:44:18.45	Adam Blair	That is correct. The project was approved under the determination that there would be no impact to ingress and egress with the proposed garage on North Street. However, the property owner at 22 Atwood Avenue has expressed that while this determination was made in practice, it is quite difficult for them to get in and out of their garage. And so hence why the claim was filed with the TCC.
00:44:45.01	Karen Hollweg	And of course, the current applicant is not the applicant who appeared in front of the Planning Commission in 2014. Isn't that right?
00:44:52.93	Adam Blair	Correct. I believe ownership changed since then. Yep.
00:44:55.47	Karen Hollweg	And so you have no way of knowing what
00:44:59.27	Karen Hollweg	Um,
00:45:00.67	Karen Hollweg	what promises the then applicant made when seeking the heightened design review findings, the numerous variances, and the encroachment agreement, right?
00:45:12.15	Adam Blair	Some of the reports touched on it, but the records were a little difficult to navigate through. So there was probably some dialogue missing.
00:45:19.78	Karen Hollweg	All right. Thank you so much. And thank you for your thorough report. Thank you.
00:45:22.64	Adam Blair	Thank you.
00:45:23.13	Mayor Kamele	Council Member Hoffman.
00:45:29.75	Councilmember Hoffman	No, I don't have anything further. No, thank you.
00:45:33.31	Spare	Thank you.
00:45:33.32	Mayor Kamele	I have a question about.
00:45:37.05	Mayor Kamele	You don't have any? Okay.
00:45:39.97	Mayor Kamele	Thank you.
00:45:40.57	Mayor Kamele	There was a letter from Ted Barton. Sorry, I didn't manage my chocolate intake appropriately.
00:45:46.62	Unknown	appropriately.
00:45:48.26	Mayor Kamele	It cited seven
00:45:51.30	Mayor Kamele	changes to parking in the neighborhood.
00:45:54.15	Mayor Kamele	Um,
00:45:55.84	Mayor Kamele	I don't know if you saw this letter, but it said that some of these red
00:45:59.72	Mayor Kamele	curbs.
00:46:00.82	Mayor Kamele	have shown up.
00:46:02.18	Mayor Kamele	according to Alleged, without authorization.
00:46:05.39	Mayor Kamele	Has there ever been an audit or inventory of the area to identify red curve and validate that every place that's painted red has been authorized and that there are no red curbs that are sort of like.
00:46:17.71	Andrew Davidson	So throughout the city, we will find areas with red curbs that I cannot find
00:46:18.41	Mayor Kamele	That's right.
00:46:24.17	Andrew Davidson	Um,
00:46:25.37	Andrew Davidson	ordinances or direction to have made or created those red curbs. So I both
00:46:32.27	Andrew Davidson	my,
00:46:33.33	Andrew Davidson	I can't answer that, honestly.
00:46:35.39	Andrew Davidson	because I don't know if those were created legitimately. For example, you'll find a lot of red curbs are a lot of red
00:46:43.63	Andrew Davidson	flares that driveways are painted and those we just do to help highlight the edges of driveways and make it easier for folks to stay out of the way.
00:46:52.45	Andrew Davidson	I mentioned that at 301 North Street, the access to their residence is paint. The curb is painted red, and that's per ordinance that paraphrasing says that if your access does not land on a sidewalk and it goes directly to a curb that no one's allowed to park right in front of your access. So we paint those out.
00:47:11.61	Andrew Davidson	with some red squares.
00:47:13.36	Andrew Davidson	Um,
00:47:14.49	Andrew Davidson	Fair enough.
00:47:15.15	Mayor Kamele	Thank you. My follow-up question is whether there's an effort at CDW in any way or the police department to attend to the thematic issue of a shortage of parking by making sure that there are
00:47:15.69	Andrew Davidson	It's just,
00:47:31.25	Mayor Kamele	that there's an accountability for the renegade use of red paint by random people to, uh,
00:47:37.49	Mayor Kamele	Create no parking zones without authorization.
00:47:40.83	Mayor Kamele	Is there any plan to do any of that?
00:47:41.96	Andrew Davidson	Thank you.
00:47:42.10	Andrew Davidson	We haven't discussed it.
00:47:44.07	Mayor Kamele	So in the work that you did here on this area,
00:47:46.57	Mayor Kamele	uh,
00:47:47.30	Mayor Kamele	when you were speaking to these neighbors and they were pointing out any of these items
00:47:51.65	Mayor Kamele	uh,
00:47:52.95	Mayor Kamele	Was it simply because it's not the task at hand that we set them aside? Or is there any plan to maybe follow up on this letter with Mr. Barton and maybe do an audit of the spots he's mentioned to see if they could be free to?
00:48:07.55	Andrew Davidson	direction.
00:48:08.02	Mayor Kamele	Yeah.
00:48:08.12	Andrew Davidson	Yes.
00:48:08.44	Mayor Kamele	We could do that.
00:48:10.47	Mayor Kamele	Is that something you really need city council direction for? Is that a sort of administrative? I think it's administrative.
00:48:13.82	Andrew Davidson	I think it's administrative, right?
00:48:15.49	Mayor Kamele	You know, the theme of all the letters is that there isn't the parking is tight.
00:48:20.34	Mayor Kamele	And you've gotten a lot of feedback in this meeting in the previous one with specific examples of where there might be modifications to create more parking in that area.
00:48:31.78	Mayor Kamele	I think, well, you said you have administrative guidance, so maybe that's enough to pursue that line of inquiry. Any other questions?
00:48:39.00	Mayor Kamele	Weissmere.
00:48:39.74	Karen Hollweg	Just to follow on, one of the assertions by Mr. Barton was that 22 Atwood had redlined a section of the street in front of their house on Atwood. Were you aware of that, or is that a true statement from your perspective? I'm not aware of that.
00:48:54.36	Andrew Davidson	.
00:48:54.37	Mayor Kamele	Thank you.
00:48:54.46	Unknown	I'm not aware of that.
00:48:57.12	Mayor Kamele	Any other questions?
00:48:58.80	Mayor Kamele	All right, then we'll do public comment, please. Any public comment on this matter?
00:49:02.73	Mr. City Clerk	Yes, we'll start with Simone Waddell.
00:49:09.97	Mr. City Clerk	And then we're going to be followed by Jen Johnson or yeah.
00:49:15.99	Unknown	Good evening. And I want first to welcome our new neighbor. I lived in Sausalito since 1967. I have parked on North Street for those years. And I do my grocery. I go to mind my business. I used to teach in the city. And now I still live there with my daughter and my granddaughter. And I have been witness of the painting of the curve on North Street. And I was home and I was also a witness of the sledgehammering of the curve in order to enlarge the entrance for the house at the I think it's 301 North Street and I have a sense of community, my husband was a local architect, he really cared about the social community, and I do too. And people, I feel, don't really respect the rules, existing rules. And I think it's easy to know the rules and to respect them. And it's just what I want to say, a sense of community and understanding the neighbors. Thank you.
00:50:46.56	Mr. City Clerk	Ben Johnson.
00:50:50.12	Unknown	Hi, I live at the...
00:50:53.46	Unknown	the far end of 2nd Street,
00:50:55.74	Unknown	There's many residences on the second street stairs that have no public parking. They have no streetscape at all. They're on the stairs. And there's multiple apartments and multi-unit buildings.
00:51:09.93	Unknown	Residences on North Street. I believe someone, one of the neighbors counted up 20 to 28 cars that needs parking in the current 14 spaces that are available. I know that it may not be easy to scoot into the garage the way it's canted, but I think it's possible. I drove that tonight on the way here. My own driveway is very narrow. The city wouldn't give me enough space to do anything but. I have to enter at a right angle or I can't make the curve. And there's been multiple times that I have to call the police probably two or three times a year in order to get them to have cars move that are parked in my driveway. So parking is tight and people need all the spaces they can get and
00:52:04.86	Unknown	22 Atwood has two spaces on Atwood that
00:52:08.64	Unknown	granted or public but are accessible,
00:52:11.76	Unknown	And they have a two-car garage that can be accessed, maybe just not easily and at speed. So I really would...
00:52:20.27	Unknown	Beg you to say no to this request and to maintain all parking on North Street because all the neighbors absolutely need it.
00:52:29.48	Unknown	Thank you.
00:52:31.49	Mr. City Clerk	Next we have Niels Carlsen, followed by Ted Barton.
00:52:42.64	Unknown	Oh.
00:52:45.28	Niels Carlsen	Good evening, my name is Niels Carlsen. I live just around the corner on 3rd Street from North Street.
00:52:52.21	Niels Carlsen	And I saw the building when it was built years ago. I was very impressed of the garage was built in a little bit of a slant instead of parallel with the sidewalk. So I felt that is practical. Now you can get in and out easily with your car.
00:53:10.22	Niels Carlsen	Now I hear from the owner that one car goes in easily,
00:53:15.94	Niels Carlsen	But it is the second car that is a problem.
00:53:19.94	Niels Carlsen	So,
00:53:21.03	Niels Carlsen	by moving the parking on the cross street
00:53:28.04	Niels Carlsen	To me,
00:53:30.18	Niels Carlsen	Doesn't help.
00:53:31.87	Niels Carlsen	And the problem that the owner has
00:53:34.90	Niels Carlsen	doesn't solve by doing this.
00:53:37.70	Niels Carlsen	It just transferred his problem to the neighbor's problem.
00:53:43.31	Niels Carlsen	And to me,
00:53:44.57	Niels Carlsen	is not logic.
00:53:46.82	Niels Carlsen	And something that is not logic, I have difficulty to accept.
00:53:51.83	Niels Carlsen	Thank you.
00:53:53.99	Unknown	All right.
00:53:54.02	Ted Barton	I'm sorry.
00:53:54.43	Niels Carlsen	Thank you.
00:53:54.45	Mr. City Clerk	Ted Barton, then followed by Carolyn Revelle.
00:54:01.65	Ted Barton	Thank you.
00:54:02.83	Ted Barton	have a little visual aid here to kind of express the history of increased red parking, red line zones in our area.
00:54:16.92	Ted Barton	That when we first got our house at 317 Second Street, that wasn't red zone, that wasn't red zone, and that wasn't blue lined. And things just sort of seem to be coming on. These are all official and they were done for for various reasons, but
00:54:37.31	Ted Barton	They're gone.
00:54:38.54	Ted Barton	Forever.
00:54:39.82	Ted Barton	and
00:54:41.78	Ted Barton	The issue at 301 that you talked about earlier, three owners ago,
00:54:47.30	Ted Barton	Shirley Luffman,
00:54:49.04	Ted Barton	Jack hammered her
00:54:50.45	Ted Barton	entrance of her driveway to make it wider.
00:54:53.10	Ted Barton	and then painted it red.
00:54:55.28	Ted Barton	We said something to the city.
00:54:57.03	Ted Barton	May notice,
00:54:58.00	Ted Barton	They came back.
00:54:58.91	Ted Barton	They put the curve back.
00:55:00.70	Ted Barton	It took...
00:55:01.95	Ted Barton	took the red paint away.
00:55:03.75	Ted Barton	They did it again.
00:55:05.17	Ted Barton	And so it stands, it's set as a precedent
00:55:08.11	Ted Barton	And so the current owners, very nice people are benefiting from that. I don't blame them.
00:55:13.91	Ted Barton	I would too. There was also Ms. Luffman added a little red part right there, right in the middle of a parking spot to put the trash cans out.
00:55:21.89	Ted Barton	That's that was just done.
00:55:23.63	Ted Barton	You know, it's a zone. So all these people utilize this. I'm getting close to my time here. I would suggest that Mr. Davidson...
00:55:36.94	Ted Barton	may have made it, could have made a similar suggestion he's making to us
00:55:41.79	Ted Barton	that maybe we could park here, you get two cars in,
00:55:45.72	Ted Barton	If your cars are short enough,
00:55:48.23	Ted Barton	and parked well to do so.
00:55:51.24	Ted Barton	Why not?
00:55:52.16	Ted Barton	22 Atwood.
00:55:53.70	Ted Barton	have cars that are short enough
00:55:55.93	Ted Barton	and park will to do so.
00:55:57.90	Ted Barton	Thank you.
00:56:00.43	Mr. City Clerk	Carolyn Revelle.
00:56:02.39	Mr. City Clerk	Then we have Nora Waddell.
00:56:06.26	Carolyn Rebell	Good evening. I hesitate to speak because I'm up here so often. But I live at 515 North Street, and I went through an elaborate process, the encroachment permit, to get the ability to create my own parking place. But I'm speaking on behalf of the neighbors here tonight with great sympathy for their problem. I was struck, Council Member Cox, by your reference to the earlier decision that, as I understood what you were saying, that approving this garage, the understanding was that it had no impact. There was no impact on the ingress and egress. So I ask you to consider the plight of the neighbors rather than the owner of a two-car garage. Thank you very much.
00:56:49.98	Mr. City Clerk	Nora Waddell, then followed by Raylene Gorham.
00:56:55.97	Nora Waddell	Thank you so much for hearing us. Sorry, all of this to do for a fairly minor item. It seems to me that if we had more public transportation, if we had infrastructure, if we had BART, if we didn't have so many individual cars, we would have less of this issue or public bikes, you know, but thank you for listening to us. I want to second what my mother was saying, that it is heartwarming to think of the city as defending the public good, and that there are always going to be individual interests that fight for their, you know, their position, but that the public good is not always defended. So I thank you for doing that. At 18 Atwood, the house that's just above, the owner was granted a small portion of red because her garage is parallel to the street. And so she does need that. The red zone that was parked in for, at 301 North across from 22 for the, for the owners to put their garbage cans that reduced that parking space. We used to be able to fit three cars in there. Then now it's two and,
00:58:23.65	Nora Waddell	I mean, there's a little bit of leeway there, perhaps.
00:58:30.40	Nora Waddell	We've always parked on the street, and we have small cars, and we try to fit them in. So I know it can be challenging, but it is the charm of our city and of our neighborhood that we coexist and that we have small, highly dense areas. Thank you.
00:58:59.85	Mr. City Clerk	Really, Ngorom?
00:59:03.49	Shiva Pactao	OK. I like.
00:59:06.35	Mr. City Clerk	Oh, I'm sorry. Lori Volt.
00:59:13.20	Mr. City Clerk	on.
00:59:15.76	Lori Volt	Hello. Hi. Thank you so much. I do want to express my sympathy and support. I also have a garage that I am so thankful that the city of Sausalito did put a red box in front of the entrance of the house across the street from me so that I can get in and out of my garage. So thank you so much for that. But I also wanted to comment on what was brought up earlier about rogue red markings on curbs. I can attest that there is one indeed on Central Avenue at 74 and 76 Central Avenue. The owner of that house went and painted the red curb red so that he could have a second parking pad.
00:59:57.21	Lori Volt	He also went and then put his own
00:59:59.74	Lori Volt	white marks on the street and added an additional
01:00:02.64	Lori Volt	parking space, which has caused
01:00:04.50	Lori Volt	problems because it's not a regulated sized parking space. And now people are encroaching on the red box that I went so hard at work to get so that I could get in and out of my garage. So I would like to ask Andy Davidson to do an audit of all of the red curb markings in Socelito to make sure they are technically legal and to remark some of the white marks on Central Avenue from the original white marks.
01:00:33.83	Lori Volt	Thank you so much.
01:00:37.72	Mr. City Clerk	And we have Frederick Lewis.
01:00:46.31	Frederick Lewis	Good evening.
01:00:47.36	Frederick Lewis	I first wanted to say I have never used red paint in the front or rear of my house, and there is not any red paint on any of the curb in front of my house.
01:00:56.59	Frederick Lewis	I wanted to say
01:00:58.70	Frederick Lewis	We have a very competent street engineer and unanimous planning commission who have all agreed it is impossible to access my garage when two vehicles are parked across the street.
01:01:11.39	Frederick Lewis	If I come around north through Josephine and I pull in and out five, six, seven times, I can get a single car in. It is impossible to get the second vehicle in. So as a result, I park two cars on the street. It is easier for me to park a block away and walk to my house than it is to get in and out of the garage with a single car. Of course, it's impossible for the second car. So there'll be a net gain of a single parking spot there won't be a net loss of parking spaces I spend $80,000 a year on property taxes and I can't even use my garage now in terms of this encroachment
01:01:49.53	Frederick Lewis	it
01:01:51.33	Frederick Lewis	It's,
01:01:52.36	Frederick Lewis	It's a mistake. The encroachment, I can assure you that whoever approved and went through this encroachment process never physically tried to park in and out of the garage. So now here we are in 2024. We can say...
01:02:06.86	Frederick Lewis	This encroachment arrangement was put in place 10 years ago, and it should be
01:02:12.39	Frederick Lewis	stay in place forever, or in 2024, we can correct a previous mistake. Because I can assure you, I'm not coming here for my health. I cannot park in that garage, and it's completely impossible. And there will be a net gain of parking spaces. I could also tell you that I did park out on the street the other day. I mean, there is no advantage to me to park on the street. The other night, there was a police officer's car there that four or five cars were hit in the street. So I would much rather park in the vehicle. And I can assure you, I was in the military for six years as a police officer, and I can park, drive very well. So it's not an issue with the quality or training of parking.
01:02:59.57	Spare	or training of partner.
01:03:01.08	Frederick Lewis	Thank you.
01:03:01.09	Spare	Thank you.
01:03:01.11	Frederick Lewis	Thank you.
01:03:01.13	Mr. City Clerk	Thank you.
01:03:01.16	Spare	Thank you.
01:03:01.20	Frederick Lewis	Thank you.
01:03:02.97	Mr. City Clerk	Thank you.
01:03:03.12	Spare	Thank you, sir.
01:03:03.15	Mr. City Clerk	So,
01:03:03.49	Mr. City Clerk	of the
01:03:03.61	Spare	Thank you.
01:03:04.13	Spare	OK.
01:03:08.81	Mr. City Clerk	You can unmute.
01:03:15.98	Unknown	Yes, hi. Can you hear me?
01:03:17.31	Mayor Kamele	Yes, please go ahead.
01:03:19.52	Unknown	Well, yes, my name is Skylar.
01:03:23.28	Unknown	search just a few seconds of walking from the parking location.
01:03:29.34	Unknown	And I just wanted to state
01:03:31.05	Unknown	You know, I think my wife and I, like a lot of people in this neighborhood, we don't have our own garage.
01:03:37.21	Unknown	to park a car. So we really rely on the street parking.
01:03:41.73	Unknown	Um,
01:03:42.56	Unknown	And, you know, it just gotten tighter and tighter, I think.
01:03:46.28	Unknown	over the years.
01:03:49.69	Unknown	I think obviously if you were to red stripe this zone, that that parking situation would become
01:03:55.08	Unknown	even worse.
01:03:56.61	Unknown	And I do think, obviously, I don't live at that location, but it seems like it'd be possible to get a car in and out
01:04:03.40	Unknown	I don't know about having two cars, but, you know, I think
01:04:06.70	Unknown	these
01:04:07.60	Unknown	So,
01:04:07.99	Unknown	just, you know, part of living in Sausalito is these kind of steep, narrow streets, and you just have to kind of
01:04:13.89	Unknown	learn to deal with tight spaces and then tight driving situations
01:04:18.84	Unknown	Um,
01:04:19.48	Unknown	And so
01:04:20.56	Unknown	I would urge you to
01:04:22.57	Unknown	to vote against
01:04:24.73	Unknown	red red sky being this new spot. Um,
01:04:28.14	Unknown	And...
01:04:29.37	Unknown	The other thing I would say is...
01:04:32.61	Unknown	In my blissful ignorance, I did not know that people were
01:04:35.91	Unknown	kind of illegally regstyping
01:04:39.26	Unknown	curbs, that's pretty shocking to me. I didn't even know that people would have the guts to even try something like that. So
01:04:45.18	Unknown	that'd be great if the city could also
01:04:48.01	Unknown	look into that and adjust that as well.
01:04:53.35	Unknown	Thank you for having us, Mr. Citi.
01:04:55.10	Mr. City Clerk	that's
01:04:56.16	Mr. City Clerk	Jonathan Leon.
01:04:59.83	Mr. City Clerk	Right.
01:04:59.98	Mayor Kamele	Julie.
01:05:00.15	Jonathan Leon	on.
01:05:00.37	Mr. City Clerk	Bye.
01:05:00.40	Jonathan Leon	Thank you.
01:05:00.47	Mayor Kamele	Thank you.
01:05:00.50	Mr. City Clerk	Thank you.
01:05:00.77	Mayor Kamele	Welcome back.
01:05:02.44	Jonathan Leon	Hi, sorry to take up your time.
01:05:04.69	Jonathan Leon	Um,
01:05:06.16	Jonathan Leon	Good evening, council and some staff. And Andy, you did a great job with this.
01:05:10.83	Jonathan Leon	Um,
01:05:12.04	Jonathan Leon	This constitutes conveyance of a special privilege if this is granted. And my heart goes out to the applicant. But basically every house in Sausalito that's on a hillside has a tradeoff of some sort.
01:05:24.53	Jonathan Leon	You know, I can only get one car in my garage because the car lifts off the ground because of the steepness of the hill.
01:05:31.10	Jonathan Leon	So there is a compromise with every structure here.
01:05:35.36	Jonathan Leon	This would be a benefit to an individual
01:05:38.18	Jonathan Leon	and not at the cost of the general public and for the parking permit holders
01:05:43.72	Jonathan Leon	I would, as I put my letter to the planning staff, there's an alternative of moving a fire hydrant and opening up that red space on North Street in front of the Second Street stairs. Again, that's not an adequate parking space, but we make do with what we can in Sausalito.
01:06:01.20	Jonathan Leon	But that's an alternative. It's an expensive alternative, but it is an alternative.
01:06:05.76	Jonathan Leon	I think it's a very good question.
01:06:06.50	Jonathan Leon	And the city has these larger goals of affordable housing and multi-unit buildings. And those are not providers of multiple spaces of parking for the most part. And if you keep removing...
01:06:21.47	Jonathan Leon	these spaces from the streets to bring people private privileges, it's going to be hard to meet those goals. And it's going to discourage multi-unit housing in general.
01:06:33.57	Jonathan Leon	So,
01:06:34.09	Mayor Kamele	Thank you.
01:06:36.79	Mr. City Clerk	Sorry, I thought it was done. I muted him. Unmute yourself, please. Sorry.
01:06:39.61	Mayor Kamele	Sorry, Mr. Leon, we inadvertently muted you perhaps.
01:06:44.64	Mr. City Clerk	Thank you.
01:06:44.65	Jonathan Leon	That was a wise move on your part, I have said.
01:06:48.25	Jonathan Leon	But...
01:06:48.32	Mayor Kamele	But,
01:06:49.18	Mayor Kamele	Okay.
01:06:49.48	Jonathan Leon	I did.
01:06:49.97	Mayor Kamele	You have 30 more seconds, Mr. Loon.
01:06:52.30	Jonathan Leon	Thank you.
01:06:53.07	Jonathan Leon	to represent the community and defend the basic needs of the community. And off-street parking is a basic need of the community, especially in Old Town, where many structures, particularly in this neighborhood, have no off-street parking and rely on the on-street parking to meet the needs of their either owners or renters.
01:07:11.32	Jonathan Leon	Thanks for your time. Thank you, sir.
01:07:14.45	Mr. City Clerk	And now we have Eva.
01:07:18.76	Eva	Thanks. I just wanted to ask if the city has or if residents have noticed how much of the the squeeze on parking is exacerbated by the size of cars.
01:07:33.57	Eva	Um,
01:07:35.16	Eva	Sorry, can you hear me?
01:07:36.65	Mayor Kamele	We can hear you. Go ahead, please.
01:07:38.42	Eva	Okay. I'm just wondering if the city's looked into...
01:07:42.43	Eva	how much larger vehicles are these days and how that's playing into
01:07:48.39	Eva	you know, these issues with parking
01:07:50.75	Eva	You know, back in the 70s, when Sally Stanford was mayor and we were advocating for expansion of the bike lanes in the 1980s,
01:08:00.30	Eva	we did not
01:08:03.04	Eva	think that we would find ourselves in 2024 when you have these monster vehicles and overbuilt houses and overbuilt individual homes, you know, which where people feel like they have to have, you know, these very large SUVs. Um,
01:08:20.22	Eva	And it seems like it would be in the best interest of the city and it would be, you know, a
01:08:26.97	Eva	I guess, a more novel approach to really consider whether
01:08:32.82	Eva	whether Sausalito needs to have some regulations on the size of cars. Now, obviously, that shouldn't apply to anyone who's handicapped and requires, say, a wheelchair. They might need a van for a wheelchair.
01:08:45.38	Eva	But, you know, there's just a carrying capacity for the planet.
01:08:51.10	Eva	And, you know, it's kind of obvious that things have become bloated
01:08:57.66	Eva	And maybe it's time to try something new and look at how you could be a novel city and start laying down some sensible regulations about
01:09:08.53	Eva	You could create, you know, you could do it another way. You could create tax incentives for people who have small cars because now we're seeing electric vehicles, you know, becoming
01:09:18.50	Eva	bloated to like the the
01:09:23.72	Mr. City Clerk	There's no further public comment.
01:09:25.14	Mayor Kamele	Okay, we'll close public comment, bring it back up here for discussion.
01:09:28.75	Mayor Kamele	Ms. McDougall, please come up to the podium.
01:09:33.67	Nora Waddell	Ah, well, John.
01:09:37.76	Bep McDougall	Sorry, Wilfred, I did want A to Z tonight.
01:09:40.93	Bep McDougall	Thank you for allowing me to speak, Mr. Mayor.
01:09:43.87	Bep McDougall	All right. So actually, I was really glad to hear Jonathan Leone's comments because it led into something that I actually wanted to call attention to as well, which has to do as this particular street, this particular neighborhood being a really good beta example of high density housing and how it's going to be a very difficult needle to thread.
01:10:03.20	Bep McDougall	going forward.
01:10:04.72	Bep McDougall	It's often been said that Sausalito is already maxed out. It's already built out. How can we possibly do more?
01:10:10.36	Bep McDougall	Well, of course, we know that the Metropolitan Transportation Commission has an answer for that.
01:10:15.49	Bep McDougall	And it involves these very large boxy
01:10:19.49	Bep McDougall	apartment structures that give no consideration at all to views or view corridors and everything about the quality of life in Sausalito just goes down the tubes if these things are allowed to be built in our community. So I hope that as we go forward...
01:10:36.67	Bep McDougall	just like all the other communities up and down the state of California, we're just going to have to put our backbone into this as we go forward. And I'd like you all to remember tonight.
01:10:45.78	Bep McDougall	And these remarkable comments just on one section of our community, which in fact is emblematic of the community at large.
01:10:54.35	Bep McDougall	So let us not lose sight of that. We are built out already, and we are maxed out. And a final comment I'd like to make. Actually, it's not a new idea.
01:11:02.94	Bep McDougall	to consider the size of vehicles. If we were employing and using now our residential neighborhood code requirements, they actually do call out vehicle size.
01:11:14.70	Bep McDougall	Suburbans had to be parked down in the...
01:11:17.40	Bep McDougall	ancillary police parking lot. They were too large for the neighborhood while those codes were enforced.
01:11:23.66	Bep McDougall	Apparently, all the residential neighborhood codes have been rescinded. They've been declared illegal.
01:11:29.02	Bep McDougall	So everything that used to govern sanity for parking
01:11:33.32	Bep McDougall	no longer exists. It's kind of a up for grabs moment now. Thank you.
01:11:40.61	Mayor Kamele	All right, no further public comment.
01:11:41.98	Mayor Kamele	Thank you.
01:11:42.72	Mayor Kamele	So any discussion from the dais, vice mayor?
01:11:46.28	Karen Hollweg	Thank you, Mr. Mayor. I sent staff a one page, if you could display. So this is page six of exhibit.
01:12:01.58	Karen Hollweg	C to the planning commission report.
01:12:05.82	Karen Hollweg	from March of 2014. This is a garage plant. So we very carefully look at plans and specifications for every project that we approve, particularly where an encroachment agreement and other special privileges are sought. You can see that there was a garage plan that showed access to the garage from opposite directions with staggered parking in the garage. And I will tell you that in 2014, we were very concerned about ensuring and creating off-street parking because we were in the process of adopting a housing element that allowed accessory dwelling units, which do not require off-street parking. And so that was a priority to the Planning Commission and I assume to the council at that time.
01:13:00.66	Karen Hollweg	Um,
01:13:01.59	Karen Hollweg	I don't know whether the architect made a mistake. Perhaps signage for the cars across the street that says small car only for the parking spots across the street could be a solution.
01:13:18.30	Karen Hollweg	After having reviewed
01:13:20.07	Karen Hollweg	the
01:13:20.80	Karen Hollweg	careful record that the Planning Commission at the time met
01:13:24.41	Karen Hollweg	that the city council relied upon
01:13:26.47	Karen Hollweg	in granting the requested encroachment agreement
01:13:29.37	Karen Hollweg	I would like to make a motion this evening to deny
01:13:33.10	Karen Hollweg	the request
01:13:34.56	Karen Hollweg	to eliminate additional parking spots on...
01:13:40.44	Karen Hollweg	Um,
01:13:41.80	Karen Hollweg	Atwood. I would like to ask city staff whether it's feasible to put signage and say,
01:13:47.78	Karen Hollweg	you know, small car only or something like that to give
01:13:51.41	Karen Hollweg	the owners of 22 Atwood more clearance as they access their garage.
01:13:59.34	Mayor Kamele	I could second that motion. Maybe I'd ask you whether you want to give a little bit of direction on something.
01:14:04.18	Mayor Kamele	there have been
01:14:05.11	Karen Hollweg	I want to ask if it's feasible. I was concerned about the comment by Babette McDougall that, um,
01:14:11.98	Karen Hollweg	that perhaps we're not allowed to
01:14:16.33	Karen Hollweg	Thank you.
01:14:16.72	Karen Hollweg	Yeah. So
01:14:19.65	Karen Hollweg	um,
01:14:21.49	Karen Hollweg	It's different from the vehicle code.
01:14:21.92	Mayor Kamele	It's a good place.
01:14:24.60	Mayor Kamele	Just looking at that drawing there, I just note Mr. Barton identified this spot that someone painted red on across the street. It might be possible to ship those two. If that spot isn't illegal, it might be possible to ship those cars 15 feet to the west without removing any parking spots and give the homeowner a little bit more angle together without reducing any parking. But it all depends on whether those spots, the other red curbs are illegal or not. So it's denying this...
01:14:25.97	Karen Hollweg	Thank you.
01:14:30.47	Karen Hollweg	Yeah.
01:14:49.94	Karen Hollweg	So I
01:14:51.50	Karen Hollweg	So then I would say, OK, and I want to hear from Janelle, I will say let's give direction to the city engineer to review this plan. I'll forward it to him and ensure that the way that the street is striped is indeed in accordance with this plan that was approved initially.
01:15:10.13	Mayor Kamele	and then invite the applicant if if there is a way to not reduce any parking but just by shifting the cars uh but not reduce the number of parking spots then maybe we could reconsider um a way to give him a little room to turn the corner but
01:15:24.37	Karen Hollweg	I like that idea. I really do want to thank you for second D. And I really do want to.
01:15:24.39	Mayor Kamele	I like that idea.
01:15:29.82	Karen Hollweg	identify a feasible solution. I think when we approved this project, we thought they had presented us with a feasible solution.
01:15:36.93	Unknown	Thank you, Vice Mayor, for the history here. It's very helpful. I'm wondering, maybe for the city engineer,
01:15:37.08	Karen Hollweg	Thank you.
01:15:42.86	Unknown	How true to reality is this diagram? And when I sort of eyeball it, it looks like potentially two cars could park in the driveway pad. So I'm trying to understand what the actual use case scenario opportunity here is. Andy, maybe you can speak to this. And then I'll also just comment, and I think this is where you're going, Mayor. We should do a thorough review of the red-painted areas and maybe have a whole refresh based on the city engineer's
01:16:14.19	Unknown	commentary here.
01:16:15.70	Mayor Kamele	I can answer your question because I tried to park in the pad today with my big SUV and I couldn't do it. So it's certainly not like that drawing.
01:16:18.98	Unknown	Oh, great.
01:16:22.93	Unknown	Okay, for just one car you couldn't even? Okay. Interesting.
01:16:28.18	Kevin McGowan	Thank you. As Andy takes a look at the sketch here, we'll have to get back to you on some of your questions and comments, specifically taking a look at, you know, what the diagram says and making sure that we can answer your questions in the future. As far as changing the vehicle sizes, I would need to also check with our legal department to find out if we can or cannot do that.
01:16:51.75	Karen Hollweg	I'm getting some behind the scenes feedback that perhaps we cannot, but I appreciate that we make the effort. I do want to try to accommodate the homeowner, but I also want to be respectful of the neighbors.
01:17:02.58	Karen Hollweg	Sounds good.
01:17:03.78	Unknown	And Kevin, while you're up there, Dr. McGon, do you have any sense, and I think I've also seen people painting.
01:17:10.13	Unknown	Cribs Red, do you have any sense as to what it might take to do just a review of this whole area to determine
01:17:19.85	Unknown	whether the areas that are painted red are appropriately so, and whether there's maybe some public safety measures that the city could evaluate on its own?
01:17:28.96	Kevin McGowan	We can look into that as you have directed us to look into. I've found my time here in Sausalito that on occasion we don't have records in certain times past, let's say, the 70s. So if something was painted red and it's an old house or an old neighborhood, we may not have record of whether the city council approved it.
01:17:51.89	Kevin McGowan	So we'll look into it and see what we have compared to what's out there.
01:17:56.33	Mayor Kamele	Can I follow up on that, Councilmember? Just in this case, not to make it any more difficult than literally in this room, we've got some institutional memory. So rather than trying to let the end it perfectly the enemy of the good here, at least you have the, you know, the names, emails, and preliminary testimony on a variety of spots that could easily be evaluated.
01:18:18.57	Mr. City Manager	Yeah.
01:18:18.94	Mr. City Manager	Mayor, if I can, I'd like to weigh in on this. We can do it, but we need to analyze when we'll do it and I think get back to you because it's always a question of capacity. And so Kevin and I can speak tomorrow about the timing of this and get a response back to the council on where we'll start and when we'll start.
01:18:38.80	Mayor Kamele	Thank you.
01:18:41.06	Mr. City Manager	So if
01:18:41.98	Mayor Kamele	I think.
01:18:42.57	Mayor Kamele	Any other comments, Councilmember Hoffman, anything?
01:18:47.63	Councilmember Hoffman	I think, yes, thank you. My comment was to follow on Councilmember Cox's and the diagram that she showed and whether or not that's still an accurate depiction or not. I'm not, that I'm not clear on. And so I think if we're in agreement that that's no longer an accurate, okay, so then, so if I could summarize and you guys can,
01:18:48.00	Mayor Kamele	Bye.
01:18:48.51	Mayor Kamele	you
01:19:09.79	Councilmember Hoffman	confirm that we currently have a house on Atwood that has two parking, two car garage on North Street, and the owner's not able to access from the street the two parking spots while there's cars parked across the street. Is that an accurate description of what we're talking about?
01:19:30.26	Councilmember Hoffman	Okay.
01:19:32.60	Councilmember Hoffman	Thanks.
01:19:35.88	Mayor Kamele	So there's a motion on the floor to deny the no parking space, but with direction to investigate renegade red curbs. And if it's possible to preserve two parking spots by shifting the cars, reconfiguring, then to proceed with that. But just generally to look for other renegade red spots in the area. Councilman McKellman.
01:19:57.83	Unknown	sir marriage one inquire of councilmember hoffman um are you inclined to support the motion or do you have other concerns
01:20:04.58	Councilmember Hoffman	These are my concerns is that we have a street on North Street that doesn't allow parking on the right-hand side. So sometimes when we look at garages, it's, well, you're losing parking spaces because you're creating a garage. And you're actually giving an added benefit to the owner because now they've got a two-car garage plus another parking spot that they can block their own garage with. That's not the case in this one, in this one instance um um the owner the homeowner has a permitted two-car garage
01:20:34.85	Councilmember Hoffman	that admittedly, and
01:20:37.45	Councilmember Hoffman	The facts seem to imply or the facts seem to support that he's not able to actually access his two car garage from the street when there's parking spots that when there's parking across the street from his garage. To me, one of the issues is that then it pushes, as he stated during a statement, it pushes those cars back out onto the street. And so we're losing two street car parking spots by not allowing him to the ingress he needs to access his garage. So that I think is a factual summary of what we're talking about. And so based on the comments that we've had here today and the presentations. So
01:21:22.95	Councilmember Hoffman	I...
01:21:24.26	Councilmember Hoffman	Are we still in discussion? Yeah. OK.
01:21:26.71	Mayor Kamele	There's a motion on the floor that's been said. We're discussing that motion.
01:21:28.09	Councilmember Hoffman	Exactly.
01:21:29.53	Councilmember Hoffman	Yeah, so I think Council Member or Vice Mayor Cox is driving toward a solution, which is can we somehow shift around the red spaces along North Street so that we can allow...
01:21:40.82	Councilmember Hoffman	some access for the homeowner to access his garage and thus taking cars off the street and allow more street parking. So, you know, I think that's a good idea. And I'd like to explore that some more. So, I mean, do we have to have input from staff or do we have to have any further confirmation of that?
01:22:02.20	Karen Hollweg	I'm asking that we give direction to staff and handle this at the administrative level. The most recent amendment
01:22:08.71	Karen Hollweg	to the permit at
01:22:10.42	Karen Hollweg	22 at what was done at the administrative level following the Planning Commission decision in 2014 so I'm asking that we deny the application and
01:22:22.26	Karen Hollweg	give direction to staff to see if they can identify a solution that benefits the homeowner without
01:22:29.13	Karen Hollweg	permanently
01:22:30.97	Karen Hollweg	um, Disadvantaging the neighborhood. And we've heard, you know, numerous comments.
01:22:36.79	Karen Hollweg	Thank you.
01:22:36.81	Mayor Kamele	Or to put that direction in another way, the way I put it, which is if you can still park the same number of cars by painting a little bit of red across from the gentleman's home, but shifting the cars to the west, then we're giving them authorization to do that administratively.
01:22:41.70	Karen Hollweg	Thank you.
01:22:41.72	Unknown	Yeah.
01:22:53.14	Karen Hollweg	And then if they need something, I'm sorry.
01:22:53.80	Mayor Kamele	But if not, then do that.
01:22:55.39	Mayor Kamele	But if not, then.
01:22:56.48	Karen Hollweg	If they need a broader solution, then of course they would bring it back to the Planning Commissioner, back to us. But I'm trying.
01:23:02.34	Karen Hollweg	to give adequate direction.
01:23:04.25	Karen Hollweg	so that we can accommodate the homeowner
01:23:06.49	Karen Hollweg	accommodate the concerns of the neighborhood and move forward.
01:23:12.28	Councilmember Hoffman	yeah i support that because we have to we have to figure out where do you get uh ingress for his garage so he can get his cars off the street right and um parking spots and maintain the same number of parking spots along north street so yeah that's a puzzle good luck i hope you can
01:23:19.40	Carolyn Rebell	Right.
01:23:28.65	Mayor Kamele	I'm sorry, sir. You can't. To preserve the order and fairness, you cannot make it. Unfortunately, you can't. So motion's been duly made, seconded, modified, and seconded. All in favor, say aye.
01:23:40.75	Mayor Kamele	Bye.
01:23:40.78	Unknown	Bye.
01:23:41.86	Mayor Kamele	Opposed? Okay, motion carries unanimously, and then I'll move on.
01:23:44.78	Mayor Kamele	Item 3L, Authorize...
01:23:47.48	Mayor Kamele	The city manager to execute a side letter license agreement was also a Yacht Harbor for the use of 47 parking spaces in Bay Street,
01:23:54.82	Mayor Kamele	Parking lot for public parking.
01:23:58.50	Mayor Kamele	Do you want us to wait for you?
01:24:00.97	Mayor Kamele	Okay. While the council member Glouston gets settled, um, who's going to be
01:24:08.00	Mayor Kamele	Mr. City Manager, do you need a moment?
01:24:13.54	Mayor Kamele	Are you
01:24:14.03	Mr. City Manager	going to be presenting this item or uh i will encapsulate the item mayor for you and the council in the public if you'd let me uh yes why don't
01:24:15.86	Mayor Kamele	That's a good thing.
01:24:21.97	Mayor Kamele	you just wait half a moment for Councillor Eric Hellman, who said she would be quick.
01:24:27.71	Mr. City Manager	We're in the middle of something.
01:24:33.21	Mayor Kamele	We'll just wait for Councilmember Coleman.
01:24:33.25	Mr. City Manager	Well, just.
01:24:36.93	Mayor Kamele	after that let's say it after let's just do it after this one because
01:24:41.70	Mayor Kamele	Thank you.
01:24:44.72	Spare	I just have.
01:24:48.22	Spare	Okay, I'll go to the department door.
01:24:50.46	Unknown	for your.
01:24:51.79	Spare	She said something that's happened 10 years ago.
01:24:54.73	Spare	You made a mistake 10 years.
01:24:57.72	Mr. City Manager	you
01:24:57.83	Spare	Yeah.
01:24:58.15	Mr. City Manager	anywhere.
01:24:58.63	Spare	Thank you.
01:24:58.73	Mr. City Manager	We're going to try.
01:25:01.88	Mayor Kamele	All right, Mr. City Manager, I think we can go ahead and start. House of Rancho, of course, is apprised of all this, so this is more for the public. So go right ahead.
01:25:11.00	Mr. City Manager	Thank you, Your Honor and members of the council and the public. I will try to briefly describe this item from the agenda. So it's the consideration of adding parking to the city in partnership with the Sastano Yacht Harbor. The mechanism to accomplish this is a side letter that provides for 47 new spaces east of lot two to the city with shared revenue for these spaces at 50 percent. In consideration of these 47 lots, what you would see is the city would be obligated to enforce the parking for the entire lot that is called the Susso Yacht Harbor lot. The city would have to provide signage and relocate a pay station. And then I also want to point out that this is an agreement that lasted a little as 60 days or as long as the two parties want it to last. So it's intended to be more of a pilot than anything else to see if in fact it's going to work. It has to work for both parties, the city and the Yacht Harbor. And so this was brought forward. The council, the direct to city staff to go back and look at the language of it that was done with the city attorney. So what you have in front of us is the actual agreement that nobody has signed yet.
01:26:26.11	Mayor Kamele	Thank you.
01:26:26.21	Mr. City Manager	Thank you, Mr. City Manager.
01:26:26.27	Mayor Kamele	I think.
01:26:27.96	Mayor Kamele	questions or stuff?
01:26:29.97	Mayor Kamele	Councilmember Hoffman.
01:26:31.25	Councilmember Hoffman	Yes, city manager. Where, I'm sorry, but where in the agreement does it say it's operable for 60 days?
01:26:38.86	Mr. City Manager	And then
01:26:40.08	Unknown	Thank you.
01:26:40.15	Mr. City Manager	Thank you.
01:26:41.51	Mr. City Manager	There's a section that says there's 60 day notice and probably the city attorney is the best person to answer that. When we contemplated this thing, it was supposed to be a pilot program for a year. It could be extended. The language analysis, it could be extended without action. But I believe there's a 60 day cutoff period that either party can implement. Can you take a look at that?
01:26:59.99	Councilmember Hoffman	I,
01:27:01.19	Councilmember Hoffman	Yeah, the way I read it, it says 60 days prior to the end of the lease period. So in other words, it's a year unless we give 60 days notice prior to the end of the lease period.
01:27:11.62	Mr. City Manager	I stand corrected.
01:27:11.64	Councilmember Hoffman	Thank you.
01:27:12.88	Councilmember Hoffman	So, okay. So the next question I have is, what is the, it's not provided in the staff report. I didn't see it. I didn't see it attached to the,
01:27:23.16	Councilmember Hoffman	Attached to the item on the agenda, what's the financial breakdown that we expect to receive from the 47 spots in parking lot, this new parking arrangement?
01:27:38.77	Mr. City Manager	Thank you for the question. I'm going to ask our finance director to walk through that for you.
01:27:49.96	Chad Hess	Good evening, Mayor Council, members of the public. So today I'll summarize some of the financial components of this agreement that parking manager Wayne Kwan and myself have put together.
01:28:02.26	Chad Hess	So based upon the the average lot revenue of lot one during the peak season, which we determined to be four thousand two hundred and fifty dollars or two hundred twenty five dollars during the peak months of May through September.
01:28:14.87	Chad Hess	We're estimating that those 47 spaces is expected to generate approximately $312,000, which would be split amongst both parties. Of this, we would split the net fees after credit card fees. The city's share of that is approximately $151,000 for the fiscal year.
01:28:37.01	Chad Hess	The estimated startup cost to implement this, we're looking at about $3,000 to move one of our existing pay stations. We would not buy a new one. We would move one of our underutilized stations, and then we would move it and reprogram it to accommodate the configuration of the new lot.
01:28:55.42	Chad Hess	We are also estimating about $2,000 in additional signage to direct wayfinding to that new additional lot.
01:29:03.36	Chad Hess	I'm
01:29:04.61	Chad Hess	There is also a $400 administrative fee paid monthly to Sausalito Yacht Harbor, which is $4,800 a year. And then the city would also forego the 25% revenue share on existing parking, which currently is about $400 per month that the city receives from the Sausalito Yacht Harbor.
01:29:27.26	Councilmember Hoffman	So Mr. Hess, you just said you expect to receive $312,000?
01:29:34.21	Chad Hess	In total for the whole lot, but that would be split amongst both parties.
01:29:39.61	Councilmember Hoffman	I'm not clear on how you're getting that. So you're doing, we're getting 47 spots and you're estimating the parking lot one estimate, which is 4,025 per spot, right?
01:29:50.51	Chad Hess	Yes.
01:29:51.54	Councilmember Hoffman	So my math is 47 times 4,025, right?
01:29:57.55	Chad Hess	Okay.
01:29:57.89	Councilmember Hoffman	Thank you.
01:29:57.94	Councilmember Hoffman	It looks like to me it's $189,000.
01:29:59.95	Chad Hess	Then we're then our math is wrong on this. This is something that Wayne helped me provide. I did not review this prior to the meeting because this was produced back in July.
01:30:09.53	Chad Hess	Um,
01:30:11.25	Chad Hess	So let me revisit that.
01:30:12.52	Councilmember Hoffman	OK, that looks me. And that's.
01:30:15.12	Unknown	again for everybody?
01:30:15.94	Councilmember Hoffman	Yeah, so my math is 47 spots at 4,025 per spot is 189, 175.
01:30:24.95	Councilmember Hoffman	We're all looking at our calculators, if we could all confirm that.
01:30:28.92	Councilmember Hoffman	Okay. And so the city's revenue from that, then if you split that in half, right? So the city's revenue...
01:30:29.56	Unknown	Yeah.
01:30:37.90	Councilmember Hoffman	is divided by 2 equals, yes, $94,000. So the city's expected revenue from that is $94,000.
01:30:47.97	Chad Hess	Okay. Yes.
01:30:49.85	Councilmember Hoffman	And then were of the remaining
01:30:52.66	Councilmember Hoffman	I think there's a remaining right now, a remaining 87 spots
01:30:57.32	Councilmember Hoffman	that are not part of this deal that we are going to manage
01:31:00.71	Councilmember Hoffman	but we're giving up all revenue from those spots.
01:31:03.41	Councilmember Hoffman	negotiating away all revenue from those spots if i got that right
01:31:07.06	Chad Hess	So we would forego the 25% revenue share, which is generated about $4,800 to the city per year.
01:31:15.36	Councilmember Hoffman	spot.
01:31:16.04	Chad Hess	No, total.
01:31:17.49	Councilmember Hoffman	Oh, total. And you're basing that on what?
01:31:20.15	Chad Hess	and the remittances that they have provided.
01:31:22.57	Councilmember Hoffman	And so admittedly, once we start managing this lot, you would agree that the revenue per spot should start going up.
01:31:29.67	Chad Hess	or which spots, the one that we lease or for his spots?
01:31:30.87	Councilmember Hoffman	that we have.
01:31:32.93	Councilmember Hoffman	I would guess for all the spots.
01:31:34.80	Chad Hess	Well, we would only control the 47 spots. The other spots would be available for his tenants who lease yacht berths.
01:31:42.61	Councilmember Hoffman	And he would also be able to make revenue off those spots if they're empty and people pay for those spots. Sure.
01:31:49.65	Chad Hess	Sure, they would have to lease them directly from Madden.
01:31:53.19	Councilmember Hoffman	Well, they wouldn't leave. Yeah, for the day or however he wants to do it.
01:31:55.88	Chad Hess	Correct.
01:31:56.40	Councilmember Hoffman	Okay. And we're also creating new signage to direct people to this new lot, correct?
01:32:02.22	Chad Hess	We would be.
01:32:02.81	Councilmember Hoffman	Thank you.
01:32:03.07	Councilmember Hoffman	intentionally.
01:32:04.28	Councilmember Hoffman	Have we ever done a, as I recall,
01:32:07.98	Councilmember Hoffman	the analysis that we were presented with earlier this year, which was interesting, was that most of the time
01:32:16.80	Councilmember Hoffman	In fact, almost all the time, the lots are not completely full. And that includes parking lot one.
01:32:21.85	Chad Hess	Yes, based upon our previous analysis, there are vacancies available in most of our lots throughout the year.
01:32:27.62	Councilmember Hoffman	And you would agree that since there are spots available then in parking lot two, three, and four, that directing people to lots two, three, and four would keep 100% of the revenue in our pocket?
01:32:40.24	Chad Hess	the city would keep 100% of the revenue from those lots, correct?
01:32:46.16	Councilmember Hoffman	So I'm not, and this $400 administrative fee, so the Maddens are currently not managing, apparently, because we're supposed to share and they're supposed to give us a breakdown.
01:32:58.92	Councilmember Hoffman	by their failure to effectively manage their own parking lot,
01:33:01.98	Councilmember Hoffman	they're going to receive an additional about $94,000, right? That's their half of the 47 spots. They're going to receive approximately an additional $100,000 from the city of Sausalio's management of their lot, correct?
01:33:15.66	Chad Hess	Sure. Yes.
01:33:16.91	Councilmember Hoffman	And then for some reason, we're also assessing ourselves a $400 per month fee
01:33:22.06	Councilmember Hoffman	to the Maddens for some sort of administrative fee.
01:33:24.98	Chad Hess	Yes, I wasn't part of that negotiation, but that is correct.
01:33:35.03	Mayor Kamele	Do you have any more questions?
01:33:36.22	Councilmember Hoffman	Yeah, I do. And so, sorry. And so at this, the way that the current deal is,
01:33:44.15	Councilmember Hoffman	we're supposed to receive 25% of all parking in all the spots in Madden, whatever it is, correct?
01:33:50.78	Chad Hess	Correct, 25% of parking.
01:33:53.16	Councilmember Hoffman	Okay.
01:33:55.82	Councilmember Hoffman	So our
01:33:58.09	Councilmember Hoffman	Well,
01:33:59.74	Councilmember Hoffman	It's interesting because our
01:34:02.59	Councilmember Hoffman	our effectiveness in increasing the revenue in that lot, we're still losing, you know, we're still...
01:34:11.98	Councilmember Hoffman	losing 25%
01:34:15.08	Councilmember Hoffman	of the increase, right? I'm saying this backwards, but we're supposed to receive 25% anyway, and we're only adding another 25% because we only get 50% per spot now.
01:34:23.59	Chad Hess	So we currently get 25%, but it is very, very underutilized. Mm-hmm.
01:34:25.63	Councilmember Hoffman	Yeah.
01:34:28.97	Chad Hess	So we would then...
01:34:30.93	Chad Hess	accept those 47 spots, we would get 50% of the revenue of those additional spots.
01:34:41.99	Councilmember Hoffman	And are we assuming that the 4,000 per spot is also applicable to parking lots two, three, and four?
01:34:49.77	Chad Hess	Those lots, when we did the analysis, have a lower per revenue stall. They are less utilized than parking lot one. I don't have those off the top of my head.
01:34:59.36	Councilmember Hoffman	So it's interesting that you would then assess the parking lot one revenue estimate to the Madden lot, which is an unproven lot. So I'm wondering on the on the finance estimate on that.
01:35:07.83	Chad Hess	marina
01:35:10.68	Chad Hess	That was a discussion that the parking manager and I had, and that was the value that we assigned.
01:35:15.36	Councilmember Hoffman	Okay.
01:35:16.61	Councilmember Hoffman	Okay, thank you, I don't have any further questions.
01:35:18.21	Mayor Kamele	Okay, does anyone ask Councilmember Blaustein?
01:35:21.72	Councilmember Hoffman	Thank you.
01:35:21.74	Unknown	Use your mic.
01:35:22.19	Unknown	Thank you.
01:35:22.80	Unknown	So just to go over a couple of things, how much revenue do we receive annually from our parking citations as a city?
01:35:31.15	Chad Hess	I don't have that number off the top of my head. I believe it's around $350,000, somewhere in there, for all parking citations.
01:35:39.19	Unknown	And to be clear, so can you suggest or look up how much the citations are from lot one, for example?
01:35:45.07	Chad Hess	We have that data. I don't have it available today.
01:35:48.72	Unknown	Okay, but you would anticipate a significant amount of revenue from ticketing fees from the usage of this lot?
01:35:55.20	Chad Hess	Yes, potentially.
01:35:56.52	Unknown	And how much revenue do we get right now from ticketing fees and revenue in this lot?
01:36:00.38	Chad Hess	In the Mattenlot? Yes. No revenue.
01:36:01.63	Unknown	Yes.
01:36:02.81	Unknown	Okay, and how much revenue do we get in total from the Madden lot right now?
01:36:06.07	Chad Hess	for the parking about $4,800 per year.
01:36:09.15	Unknown	And do we know how much the Maddens charge for each spot or what's required?
01:36:13.86	Chad Hess	I do not know.
01:36:14.52	Unknown	that.
01:36:14.74	Chad Hess	Thank you.
01:36:15.21	Unknown	OK.
01:36:16.23	Unknown	And how much revenue are we anticipated to get, assuming we move forward with this agreement?
01:36:20.98	Chad Hess	It depends on what number we use. If we use the 40-30.
01:36:24.90	Unknown	It's a great day.
01:36:25.02	Unknown	Thank you.
01:36:25.07	Unknown	I'm sorry.
01:36:25.14	Unknown	of numbers.
01:36:25.40	Chad Hess	The 4,200, about 94,000.
01:36:25.46	Unknown	the
01:36:28.98	Unknown	Okay, so that's, I'm not great at math, but it's close to 100,000. We're making close to 5000. So it's quite the number of times more than what we're making. It is an increase in potential revenue.
01:36:37.57	Chad Hess	It is an increase in potential revenue.
01:36:39.50	Unknown	Okay. And then when we say something goes wrong and we aren't making revenue, what are the terms of the lease in terms of...
01:36:46.67	Unknown	getting out of it.
01:36:47.68	Chad Hess	So from my understanding, it's a one-year lease. It auto-renews at the end of that one term unless either party gives written notice within 60 days of the end of that term.
01:36:57.38	Unknown	So within 60 days, if we're not receiving enough revenue to make up for the 4,800, for example,
01:37:02.66	Chad Hess	Well, we would be committed for a year. So we would have a one-year agreement with them and we could terminate at the end of that year.
01:37:09.47	Unknown	Okay, and we can facilitate a full audit at the end of that year to demonstrate that there is, in fact, revenues from increase from the flood?
01:37:15.98	Chad Hess	Yes, yes, it is. It is part of the agreement that either party can audit.
01:37:19.68	Unknown	And your expectation in making this assessment of whether or not we should move forward with this agreement, you think there's a significant revenue positive gain from entering in this agreement?
01:37:28.82	Chad Hess	Yes, potentially. With the upcoming construction in parking lot one and removing some of those spots, yes, there is potential upside for this agreement.
01:37:35.49	Unknown	Yes.
01:37:38.03	Unknown	Thank you.
01:37:38.05	Karen Hollweg	Okay, thank you.
01:37:39.77	Unknown	Can I?
01:37:40.11	Unknown	Thank you.
01:37:43.45	Karen Hollweg	Thank you.
01:37:46.17	Karen Hollweg	Other than the revenue remitted by the Maddens,
01:37:50.64	Karen Hollweg	on a monthly basis, the city's not reaping any revenue from their parking lot at the moment. Is that right?
01:37:57.17	Chad Hess	We received 25% of their parking lot revenue, about $4,800 per year.
01:38:01.85	Karen Hollweg	Okay.
01:38:02.59	Karen Hollweg	this side letter licensing agreement lets the city set the rates for the 47 parking spots, correct?
01:38:13.84	Chad Hess	That is correct.
01:38:14.92	Karen Hollweg	And it makes provision for the same dynamic rates that are established in lots one through four, meaning that we are able to charge higher parking rates when demand is higher.
01:38:26.10	Chad Hess	That is correct.
01:38:27.48	Karen Hollweg	Right now, the city does get revenue for Jazz by the Bay. The park and rec charges parking on Fridays during the summer, right? That's right.
01:38:36.54	Chad Hess	That is my understanding, yes.
01:38:38.75	Karen Hollweg	And that's separate from the Madden lease.
01:38:41.20	Chad Hess	Yeah, the city receives that and it is receded 100% by the city.
01:38:41.22	Karen Hollweg	Thank you.
01:38:46.55	Karen Hollweg	um,
01:38:47.68	Karen Hollweg	And so
01:38:49.13	Karen Hollweg	The city now gets to manage 47 parking spots not currently available to the city to manage, pursuant to this agreement.
01:38:56.10	Chad Hess	That would be correct, yes.
01:38:58.90	Karen Hollweg	Okay, thank you.
01:39:00.91	Unknown	Great, thank you. Hi, Director Hess. Thank you very much. Great questions from my colleagues.
01:39:06.80	Unknown	I think it's worth saying for the general public, how many spots total are in the Madden lot?
01:39:12.13	Chad Hess	100 and I don't know the top of my head.
01:39:15.96	Chad Hess	Chris knows.
01:39:17.97	Chad Hess	200.
01:39:18.73	Unknown	Okay.
01:39:18.91	Chad Hess	So Wayne, are you on the line still? Wayne, right now?
01:39:22.56	Unknown	the
01:39:22.61	Mr. City Manager	200 check.
01:39:23.18	Unknown	Thank you.
01:39:23.50	Chad Hess	200.
01:39:23.89	Unknown	Okay, so 200. Of the 200, how many of those do we take
01:39:30.74	Unknown	in concept, a 25% share on.
01:39:33.81	Chad Hess	In concept, it would be all of those spots that we should be receiving a 25% share of those revenues.
01:39:40.09	Unknown	Okay.
01:39:40.51	Chad Hess	We also get 25% of the yacht berths. And my understanding is if somebody rents a berth, they get a parking tag included with that.
01:39:49.42	Unknown	And so the deal is to move from...
01:39:52.90	Unknown	25%
01:39:54.71	Unknown	off of 200 spots.
01:39:57.05	Chad Hess	Okay.
01:39:57.37	Unknown	to 50% off of 47%.
01:40:00.46	Chad Hess	So he is not, my understanding is they are not actively marketing those spots to
01:40:05.84	Unknown	But in numbers.
01:40:06.59	Chad Hess	As it stands. In numbers. Yes.
01:40:07.02	Karen Hollweg	on.
01:40:07.18	Unknown	In numbers.
01:40:07.97	Karen Hollweg	That's the deal, right? And can I just say it's not off of 200 because...
01:40:08.29	Unknown	Yes.
01:40:13.20	Karen Hollweg	He uses those for births.
01:40:14.67	Unknown	Oh, that's why I was asking, Chad, I just want, however the director articulates, and that's what I'm just trying to...
01:40:19.31	Chad Hess	Yeah. So, so he's not actively selling each of those spots. He is giving away the parking as part of a yacht birth rental.
01:40:26.94	Unknown	Do we get 25% of the ones where he gives away as part of the yachts?
01:40:29.23	Chad Hess	Thank you.
01:40:29.70	Chad Hess	We get 25% of the yacht berth rental. So if somebody parks their boat there or rents a spot, we get 25% of that revenue, which inherently is receiving money for that included parking tag.
01:40:40.25	Unknown	included.
01:40:41.30	Unknown	So this is, and my colleagues know, this was one of my concerns, is that we don't really have a handle on the number of spots by which we are supposed to be implementing a 25% revenue that's not associated with a birth.
01:40:52.42	Unknown	That's okay. That's we'll get to that in competition. So, um,
01:40:56.64	Unknown	And,
01:40:57.94	Unknown	Under this 25% deal right now, is the city allowed to enforce
01:41:04.28	Unknown	So you said the remittances have been minor
01:41:07.35	Unknown	But...
01:41:08.18	Unknown	Is part of that that the city hasn't been enforcing?
01:41:11.02	Chad Hess	So when you say enforcing, are you saying like forcing...
01:41:14.81	Unknown	There's no parking attendant.
01:41:16.41	Chad Hess	There's no parking attendant there. That is not our responsibility.
01:41:18.15	Unknown	is not.
01:41:19.86	Unknown	And under the lease, that would be our responsibility.
01:41:22.02	Chad Hess	Under this side letter, yes, we would enforce that lot and the city would retain 100% of those citations for the entire lot.
01:41:31.23	Unknown	Okay, and we would determine how many of the 47 spots are filled because we're installing a machine.
01:41:36.97	Chad Hess	We would install a parking machine, yeah.
01:41:38.69	Unknown	Okay. And so then we had this number that Kaspar Haven put together, not put together, but gave us the math around 94,587.
01:41:46.70	Unknown	And.
01:41:47.84	Unknown	From that, we pay for the machine,
01:41:51.80	Chad Hess	Yes.
01:41:52.68	Unknown	which is about how much.
01:41:53.59	Chad Hess	So we already own the machine. So we own the machine. The annual maintenance on a machine is...
01:42:00.71	Chad Hess	1790 per year, which covers the maintenance and any support that the city needs for that machine.
01:42:09.55	Unknown	So $1,000 a year, another $4,800 for the management. So now we're at like $6,000. And then you said there's some signage that's going to go in the show.
01:42:16.12	Chad Hess	So the first year the signage is estimated to be $2,000 to install new wayfinding signage. And then $3,000 to move an existing machine and reprogram it for those additional spots.
01:42:27.69	Unknown	Okay, so the real net revenue number is somewhere in the high $80,000, right?
01:42:31.32	Chad Hess	The first year will be a little lower because of those initial startup costs.
01:42:33.80	Unknown	Okay.
01:42:34.49	Unknown	And, um,
01:42:36.67	Unknown	As part of that cost, are you also looking at the time of the individual who is going to be assessing that? This is added work. We're not currently looking at that lot.
01:42:45.43	Chad Hess	So enforcing the parking. Yep. Yep. So the current plan is they would not add additional parking attendance. They would just have that be included as part of their lot or their patrol. So they wouldn't be an additional individual on city payroll to enforce that it would be utilizing existing resources.
01:42:47.12	Unknown	Yep.
01:43:02.31	Unknown	Okay, and we have these existing resources to
01:43:04.09	Chad Hess	That is my understanding based upon my discussions with chief of police and our parking manager.
01:43:09.90	Unknown	Okay. And I think two of my colleagues said this in different ways. I just want to say it in a way that makes sense to me, which is that it's a one-year lease. We can terminate it 60 days before the end of the one year.
01:43:19.52	Chad Hess	That is correct.
01:43:20.35	Unknown	Inferminated in 60 days.
01:43:22.49	Unknown	It's a winner these six days.
01:43:22.64	Chad Hess	We are committed to a one-year agreement and we can terminate by giving notice within 60 days of the end of the lease.
01:43:29.95	Unknown	Great. Thank you. I appreciate that.
01:43:31.31	Chad Hess	You're very welcome.
01:43:33.96	Mayor Kamele	Does anyone else want to turn on questions? If not, then we'll end with you, Councilmember Hoffman. You done? Go on. I'm recognizing you.
01:43:40.75	Councilmember Hoffman	Go ahead.
01:43:42.05	Councilmember Hoffman	Oh, thanks. So I'm looking at, I'm perplexed by this, that we're only getting $400 currently monthly from Sausley Yacht Harbor.
01:43:50.99	Chad Hess	No, for parking. We do receive more than that in total.
01:43:52.36	Councilmember Hoffman	get tweeted.
01:43:54.85	Councilmember Hoffman	In total because we're also getting 25% of each birth? Yes, that is correct. That is correct. Okay, thanks. So we only get additional $400 a month in parking? In parking.
01:43:58.11	Chad Hess	Yes, that is correct.
01:44:04.91	Councilmember Hoffman	OK.
01:44:05.94	Councilmember Hoffman	And we don't have...
01:44:10.84	Councilmember Hoffman	Okay, sorry. Thank you for clarifying that.
01:44:16.62	Councilmember Hoffman	How much do we get?
01:44:18.28	Councilmember Hoffman	from the slips.
01:44:19.73	Councilmember Hoffman	Do you have any idea what our
01:44:21.67	Chad Hess	You won't have it off the top of my head. I can look it up on my computer.
01:44:25.06	Councilmember Hoffman	It looks to me like there's 700 slips in the Yacht Harbor, and the minimum is $245 a month. I don't know.
01:44:30.46	Chad Hess	I don't know off the top of my head, but they provide monthly reporting.
01:44:34.54	Chad Hess	And I can certainly look it up.
01:44:36.43	Councilmember Hoffman	Okay, I'd be interested to know if we're getting something close to at least $60,000 a month from South City Yard Harbor as part of that 25%.
01:44:42.43	Chad Hess	So,
01:44:43.81	Chad Hess	There is an agreement where they advance some dollars to repair the bulkhead back in 2011, I believe, way before my time. And that is a reduction of their annual rents. So they track that. We track that every time they remit rents. So that is reducing some of their revenue, the current year revenue, because of that agreement that took place, I believe it was in 2011.
01:45:09.97	Councilmember Hoffman	Okay, so do we, we don't have a number for annual rent that we get from, or not annual, sorry, monthly rent that we get from South City Harbor.
01:45:16.95	Chad Hess	Yeah, I have it. I don't know. I don't memorize it off the top of my head, but I can certainly look that up for you.
01:45:22.16	Councilmember Hoffman	I'd be interested in knowing that, yes.
01:45:33.27	Councilmember Hoffman	Would you, I mean, based on the previous report that there's capacity in other parking lots, including parking lot two, three, and four,
01:45:42.31	Councilmember Hoffman	um at any given time regardless if it's high season or not high season
01:45:46.67	Councilmember Hoffman	um would you agree that there's at least 47 spots in either parking lot two three and four
01:45:52.02	Chad Hess	I haven't looked that closely at the data. I can certainly go back and ask that question of the data, but I don't have a number of how many are available. I can attest that there are available spots.
01:46:02.38	Councilmember Hoffman	Okay. And even available spots apparently in parking lot one.
01:46:05.64	Chad Hess	There are. Yeah. Yes. Based upon the data, I have access to all transactions for the last two fiscal years, and we can look at the data per stall and see how many transactions are in each of those stalls on a per day basis. And there are stalls that do not get rented during any given day.
01:46:19.30	Councilmember Hoffman	And they're all...
01:46:22.97	Councilmember Hoffman	And as the total loss from the ferry landing plan from parking lot one and Tracy Way is how many spots?
01:46:31.13	Chad Hess	I don't know. Um, not off the top of my head, 30, 31, 37, somewhere in there. It has changed on me.
01:46:36.84	Councilmember Hoffman	Okay.
01:46:38.64	Mayor Kamele	All right, shall we...
01:46:39.98	Mayor Kamele	Thank you.
01:46:40.03	Mr. City Clerk	Thank you.
01:46:40.04	Councilmember Hoffman	Okay.
01:46:40.30	Councilmember Hoffman	Thank you.
01:46:40.38	Mayor Kamele	Thank you. Thank you very much. We'll close questions now. We'll move on to public comment.
01:46:40.50	Councilmember Hoffman	Thank you.
01:46:44.72	Mayor Kamele	Is there a public comment on this matter?
01:46:47.57	Mr. City Clerk	Yes, there is. We'll start with Peter Van Meter.
01:46:57.85	Peter Van Meter	Good evening. I'm thrilled that this agreement is going to be moving ahead tonight because it adds additional parking capacity to downtown
01:47:06.77	Peter Van Meter	and made our whole gray landing project
01:47:10.57	Peter Van Meter	be an actual enhancement to parking, as well as all the amenities that come from having that plaza being completed
01:47:17.24	Peter Van Meter	It's also important to note here that the Madden lot
01:47:20.63	Peter Van Meter	has never had daily paid parking.
01:47:23.53	Peter Van Meter	So you can't compare revenues from a few little leases they may have given for a few parking spaces in a year. That's why you're only talking $400 a month because they've never had daily paid parking before. And this is now adding that capacity. So those 47 spaces are enhancing the amount of parking we have downtown and you'll be getting money that you do not get today.
01:47:44.91	Peter Van Meter	So it's a plus deal for everybody concerned.
01:47:48.02	Peter Van Meter	So please,
01:47:49.57	Peter Van Meter	Complete.
01:47:50.24	Peter Van Meter	this little final ingredient
01:47:52.17	Peter Van Meter	In the entire downtown
01:47:54.56	Peter Van Meter	Rejuvenation Project.
01:47:56.99	Peter Van Meter	by adding this parking to this agreement. Thank you so much.
01:48:01.97	Mr. City Clerk	We have Hank Baker, then followed by Adrian Brinton.
01:48:10.60	Hank Baker	Hank Baker, downtown resident, downtown business owner. I park in this lot every night, every day.
01:48:17.63	Hank Baker	Um,
01:48:18.54	Hank Baker	In a given Sunday, there are people driving around going from lot one to lot two to lot three. They can't find a parking place. And yet there's anywhere from 70 to 100 vacant spaces right now in the Madden lot.
01:48:30.54	Hank Baker	The Maddens are doing the city a favor and we're making money from it.
01:48:36.67	Hank Baker	and they are making money from it,
01:48:38.61	Hank Baker	on unused real estate.
01:48:42.17	Hank Baker	Even if we make a dollar more,
01:48:44.73	Hank Baker	than what we're making right now. The city is ahead of the game.
01:48:47.94	Hank Baker	And one thing that the city we haven't discussed tonight is,
01:48:51.13	Hank Baker	is the benefit to the downtown merchants.
01:48:54.64	Hank Baker	The downtown merchants are screaming for parking. I'm in the middle of all this with the downtown parking committee, and we're working on a whole bunch of other different things. This is additive parking that we don't have right now.
01:49:08.04	Hank Baker	And just one other thing to keep in mind as we talk about this parking. This is a.
01:49:12.85	Hank Baker	way of idea.
01:49:15.24	Hank Baker	the McKinsey
01:49:16.20	Hank Baker	group, large international consulting company.
01:49:19.46	Hank Baker	suggests that by 2035 and 10 years,
01:49:23.17	Hank Baker	30 to 40% of the cars on the road are autonomous vehicles that don't need a parking place.
01:49:29.01	Hank Baker	Today, tomorrow.
01:49:30.52	Hank Baker	a couple years from now, we need parking.
01:49:33.11	Hank Baker	But as we look at long-term plans...
01:49:35.31	Hank Baker	You're not going to need the parking that you have.
01:49:38.06	Hank Baker	So let's address the parking need today.
01:49:40.57	Hank Baker	and we'll figure out what to do with those extra parking lots
01:49:44.35	Hank Baker	five, 10 years from now.
01:49:45.90	Hank Baker	Thank you.
01:49:50.97	Adrian Brinton	Adrian Brinton, resident, thank you for taking my comment. I do feel like we're losing a little bit of the big picture here. It's very important to look at the revenue of parking. It's obviously very important to the city, as everyone here knows. But as Hank mentioned, we're adding parking to downtown, which is extremely difficult to do. We're taking a badly underutilized parking lot, and we're utilizing it. We're getting the revenue from the tickets and we're getting more parking for the merchants, which they supported the ferry landing partly because we're making a huge effort to optimize our parking. And if we talk about optimizing our parking revenue, looking at, you know, $400 here and a thousand dollars there is not going to move the needle. We can do things with parking technology. We can do automated license plate reader enforcement. We can get better technology for people paying, and we can greatly increase our parking revenue. The other thing that really increases parking revenue is off-peak parking demand. And we need things that drive off-peak demand if we're serious about having more parking revenue. Things like the SCA bringing people downtown, that drives parking revenue. So I'd love to see us look at that. If we have this parking and we do a great event in Gabrielson Park, you know what? We can fill that lot. But if we fill it on a Sunday, we're not going to really make much extra revenue because all the lots are full. So I think if we keep an eye on
01:51:18.30	Adrian Brinton	the bigger picture. Let's get the empty plane filled when it's not full. That'll get us more money. Let's increase the parking for the merchants. Thank you very much.
01:51:31.61	Mr. City Clerk	Bye-bye.
01:51:39.64	Bep McDougall	That man's tall. Thank you very much, Mr. City Clerk. So I'd like to actually pick up on Adrian's point about the big picture, because we're supposed to be looking at this policy of how we attack the negotiation of all city properties, the portfolio of city-owned properties, which is the backstop we have to remember is always the residents who are on the hook when anything ever goes south and more money is needed. We are the hook. When anything ever goes south and more money is needed, we are the ones who are taxed to make up the difference.
01:52:13.04	Bep McDougall	I'm just wondering why wouldn't this agreement, even though the Maddens have been in Sausalito for a very long time, and I realize it's a multi-generational relationship, and so it has its own purpose.
01:52:26.35	Bep McDougall	unique qualities that in some ways need to be honored and then in other ways
01:52:31.48	Bep McDougall	It clearly needs to be revisited. And I just, is there any thought at all?
01:52:36.49	Bep McDougall	to any of this being negotiated with the context of this new policy that's in the making?
01:52:42.48	Bep McDougall	I just wonder if there's any connecting of the dots here. Is there any comment on that or anything that anyone could share on that? It would sure help to clarify the situation a little better.
01:52:53.25	Bep McDougall	Thank you.
01:52:58.55	Mr. City Clerk	On Zoom we have Jonathan Leon.
01:53:03.66	Jonathan Leon	This is why I don't go to city council meetings. If you recall things from many years ago, and I should have hung up after the last item.
01:53:13.84	Jonathan Leon	Um,
01:53:15.00	Jonathan Leon	I would just encourage you to negotiate this very carefully.
01:53:19.22	Jonathan Leon	and the legalese behind it, there's a lot of dispute of who owns the underlying land here.
01:53:27.35	Jonathan Leon	in lots 234 and the Spinnaker, as well as the Madden parking facility.
01:53:32.70	Jonathan Leon	The city does not have clear title to this land and neither do the madness.
01:53:36.64	Jonathan Leon	It's unclear.
01:53:38.00	Jonathan Leon	And that agreement you're signing in 2014
01:53:41.97	Jonathan Leon	wasn't a perfect agreement. It didn't contain any resolution to that effect of who actually owns what.
01:53:47.17	Jonathan Leon	So just make sure whatever you negotiate here, that's documented in a way that doesn't convey any sense of who owns what.
01:53:53.98	Jonathan Leon	Also,
01:53:56.70	Jonathan Leon	if you break down these numbers and Jill, thanks for doing some quick math there.
01:54:01.39	Jonathan Leon	You got to take into account how much time you're going to spend.
01:54:04.26	Jonathan Leon	administering this.
01:54:05.93	Jonathan Leon	with the city parking patrol and cover that cost
01:54:10.30	Jonathan Leon	and not just allocate straight out that we eat that and the Maddens don't. The Maddens are good people. I don't mean to
01:54:18.25	Jonathan Leon	to catch any inspiration. Also, the marina is required to have a lot of spaces. It's a ton of boats. Make sure you don't lose what's required
01:54:25.69	Jonathan Leon	for this marina to be on a weekend
01:54:28.68	Jonathan Leon	That's when people use their boats. It's a parking lot the rest of the week.
01:54:32.78	Jonathan Leon	with all Mariners,
01:54:34.21	Jonathan Leon	They go out on the weekends. So make sure the required spaces of these four to seven don't encroach into that required spaces for the spinnaker and for.
01:54:43.41	Jonathan Leon	I'm sure this was done. I'm just adding belt and suspenders here.
01:54:47.97	Jonathan Leon	um,
01:54:48.59	Jonathan Leon	And you want to make sure
01:54:51.58	Jonathan Leon	Usually multi-use of spaces, if you require, remember your planning commission days, that's a special situation and you have to meet your other requirements in order to do that.
01:55:03.44	Jonathan Leon	So but anyway, good luck.
01:55:07.34	Mr. City Clerk	Thank you so much. Next person, next speaker is Sandra Bushmaker.
01:55:12.98	Sandra Bushmaker	Good evening.
01:55:19.39	Mayor Kamele	We can't hear you Ms. Bushmackie. Do you want to unmute yourself?
01:55:22.93	Sandra Bushmaker	Good evening, everybody.
01:55:24.38	Mayor Kamele	You know, go ahead.
01:55:25.18	Sandra Bushmaker	I thought I heard staff say that we get 25, the city gets 25% of the slip rent.
01:55:25.19	Mayor Kamele	Thank you.
01:55:33.40	Sandra Bushmaker	Now, I don't know of any rents less than $500, and there are 700 slips in that place. So that should be 25% of slip rent coming to the city under the lease.
01:55:45.22	Sandra Bushmaker	That's my question.
01:55:47.06	Sandra Bushmaker	Or is it 25% of that parking lot's revenue?
01:55:52.55	Sandra Bushmaker	There's a big, huge difference in those numbers.
01:55:56.14	Sandra Bushmaker	And if it's 25% of slip rent,
01:55:59.45	Sandra Bushmaker	We are giving away a huge amount of money.
01:56:02.91	Sandra Bushmaker	if that is in abeyance,
01:56:05.36	Sandra Bushmaker	with this new agreement.
01:56:07.48	Sandra Bushmaker	So I'm very confused on that. And I would like to have some clarification.
01:56:13.25	Sandra Bushmaker	on what the harbor is paying to us currently? Is it slip rent, 25% of slip rent?
01:56:20.22	Sandra Bushmaker	or 25%
01:56:22.31	Sandra Bushmaker	of parking lot fees.
01:56:24.68	Sandra Bushmaker	And I did notice that there was...
01:56:27.33	Sandra Bushmaker	The Maddens have posted
01:56:29.54	Sandra Bushmaker	an electronic ability with a QR code
01:56:32.74	Sandra Bushmaker	to pay rent.
01:56:34.79	Sandra Bushmaker	They obviously have something going on there. I happen to be a tenant in the lot in the harbor.
01:56:40.78	Sandra Bushmaker	And I don't know of anybody's rent.
01:56:43.04	Sandra Bushmaker	slip rent that is quite as low as what was mentioned during the questioning.
01:56:48.08	Sandra Bushmaker	I suspect they're all quite a bit higher.
01:56:50.58	Sandra Bushmaker	Thank you.
01:56:54.34	Mr. City Clerk	Thank you.
01:56:54.36	Unknown	I'm not sure.
01:56:54.44	Mr. City Clerk	Thank you.
01:56:54.48	Mayor Kamele	No further public speakers. We'll close public comment. Any discussion here in the dais? Yeah, Mary.
01:56:58.87	Unknown	Yeah, Mary, I'd like to lead off.
01:57:03.12	Unknown	Director Hess, can you maybe just clarify that? Because I know you answered my question about the slip fees and the parking fees, but I think it's worth just putting it back on the record.
01:57:28.23	Chad Hess	All right. So under the existing agreement with Sausalito Yacht Harbor, the city is entitled to 5% of parking revenues that they generate.
01:57:37.75	Chad Hess	They also are entitled to 25% of their yacht berths that are sold to the general public, and then they get 5% of all other revenues. That is reported to the city on a monthly basis, but there also is the reduction based upon the 2011 agreement where they...
01:57:55.55	Chad Hess	They basically prepaid rents in order for the city to reconstruct the bulkhead that protects that harbor. Based upon the last three months, the city has received $7,000 per month from Sausalito Yacht Harbor in terms of their rent. Again, that is being reduced by that prepayment of rent that took place in 2011.
01:58:19.21	Unknown	and we're not giving up the 25%
01:58:20.98	Chad Hess	We're not giving up 25% of the births. It's just the parking. And again, they are not really actively selling parking.
01:58:23.95	Unknown	Right.
01:58:28.09	Unknown	Great. Thank you. That's helpful. You're very welcome.
01:58:29.33	Chad Hess	You're very welcome.
01:58:30.89	Unknown	Uh,
01:58:32.35	Unknown	This is a really longstanding lease with some concerns that this council inherited. So by way of background, this has several amendments to it. And much of this is on state lands and governed by the State Lands Commission, including the bulkhead. And so if you went through and reviewed the history and found yourself confused, you would not be alone. And so it's been a long stor, history. But the Maddens have been partners and neighbors in South Florida for a long time. And so I appreciate members of this council who wanted to evaluate this opportunity.
01:59:03.25	Unknown	I present the background because in no way do I think that they're doing the city a favor. I think the city is finally getting a grasp on managing property that it owns. Now, notwithstanding former Mayor Leon's comments about who owns what, and I don't know exactly the underlying area, this is one of the properties listed on City of Sausalito's owned properties, right? And so we lease it out. This is us finally doing something to create efficiencies and more management and doing it in a way that very much benefits an underlying leaseholder who already has a very interesting leasehold, if you will. So where I actually find some concern in the conversation, and I thought this way, and I expressed it during the ferry conversations, is we talk about the big picture of
01:59:50.33	Unknown	but we never talk about the proximity to the water. This area is very likely to flood. It is very likely to come underwater. And we just keep talking about parking and plazas, and we don't talk about resilience and sustainability and sea level rise and what we're going to do about that. And so I'm just going to take the opportunity, since people use the phrase big picture, that's my big picture for this area, and I think it's going to require a lot of heavy lifting in the long run. Now, in the short term, I am primarily concerned with risk management. And that's because, as you know, we did have some insurance issues. It's been a big burden to our budget. And so we are undertaking a significant risk reduction path as a council. We're looking to hire a risk manager. And so one of the things that I brought up and we went through was what are the termination provisions for this? Is there a liability provision? And there is not. Both agree to hold each other harmless. You heard us articulated it's a year lease that can be ended within 60 days of that one year lease. But what we don't have and what I've asked my colleagues hopefully to include is an actual understanding of of what is there. How many birth spots? How many spots where we were taking 25%, whether or not it was enforced? How many total spots in the area? And so one of the things that I am going to request, and I've requested, is that there be an audit of that location. So as part of our risk management and part of our bedroom management of our actual property, we understand what it is we're leasing. We understand what we're not leasing. I also think that this is a project that's going to require significant re-understanding in six months when we look at our budget again, because we really don't know the value of the spots in this lot. We can't say it's the same as lot two or lot one.
02:01:34.60	Unknown	Reasonable minds can differ how we come to the spot value, but nonetheless, we just don't know. And it's been underreported and underenforced. So my lens for this is, is the city better managing its properties and us mitigating our risk to a large extent? So those are the things that I'll push for if my colleagues want to move this forward.
02:01:54.80	Mayor Kamele	Who wants to go next?
02:01:58.16	Mayor Kamele	That's whatever happened.
02:02:00.31	Councilmember Hoffman	Thank you, Mayor. I think it's, you know, I'm skeptical of this plan. I'm skeptical of, you know, the added $400 a month to be paid to the Madden since we're accepting all of the
02:02:13.79	Councilmember Hoffman	administrative costs were accepting all of the, um,
02:02:17.60	Councilmember Hoffman	management costs for the lot we may or may not get something from you know policing the yacht and writing citations who knows but i don't see that the benefit to us equals what we would receive if we had these or drove use of our currently existing lots so if you figure that we're going to get 100 of any parking in our current lot without the added overhead of the administrative costs of expanding into a new
02:02:44.69	Councilmember Hoffman	lot. We're driving use and we're driving people to use a new lot for which we receive 50% revenue as opposed to
02:02:54.79	Councilmember Hoffman	a lot next to it, which we receive 100% of the revenue. To me, that makes no sense.
02:02:59.59	Councilmember Hoffman	unless you can show that there actually is
02:03:01.97	Councilmember Hoffman	no capacity, which admittedly there is capacity. All of our revenue and all of our metrics indicate that there is capacity at the other lots. So I'm perplexed as to why we would drive new customers to a new lot when Chad Hess and our parking enforcement officer has confirmed that we have excess parking in our current lots two, three, and four. So this discussion discussion started i think when we were talking about the loss of revenue um for these spots um from the reconfiguration of parking lot uh one to accommodate some of the design aspects of the new ferry landing plaza which was at about if you'd say four thousand per spot um you know it's um about two hundred thousand dollars so the loss in revenue to the city at a time when we are in a fiscal deficit is approximately a hundred thousand dollars straight off the top and then you're also increasing administrative costs you're increasing uh
02:04:02.89	Councilmember Hoffman	Basically, you're building a revenue
02:04:04.84	Councilmember Hoffman	model for the Maddens that they could
02:04:08.13	Councilmember Hoffman	cancel next year and manage it themselves.
02:04:10.87	Councilmember Hoffman	And no one has talked about that today. So I'm generally, um,
02:04:15.76	Councilmember Hoffman	you know, not in favor of this plan unless we can show that there really isn't any capacity.
02:04:20.57	Councilmember Hoffman	and lots two, three, and four that we will receive maximum capacity.
02:04:23.73	Councilmember Hoffman	One of the other issues that we talked about was
02:04:26.29	Councilmember Hoffman	moving the bus parking off Humboldt and changing those parking lot those parking spaces into perpendicular
02:04:33.09	Councilmember Hoffman	city-owned spots for which we would receive 100% revenue. I haven't seen anything on that. And so I'm perplexed as to why we would go forward with this lot when we could get about 20 more spots off of Humboldt, all, again, 100% revenue to the city.
02:04:49.63	Mayor Kamele	Nice man.
02:04:50.66	Councilmember Hoffman	Thank you.
02:04:50.68	Karen Hollweg	Thank you.
02:04:53.02	Karen Hollweg	I think my answer to the concerns raised by Council Member Hoffman has to do with our downtown merchants. And so we heard from Gene Hiller that he lacks that lot one lacks at lot one and street parking lack.
02:05:12.70	Karen Hollweg	adequate parking for the downtown merchants.
02:05:16.34	Karen Hollweg	The Madden Lot.
02:05:18.77	Karen Hollweg	Having recently had to use a cane for a year while I was waiting for hip and knee surgery, I can tell you,
02:05:25.07	Karen Hollweg	that I used the Madden lot, used lot one,
02:05:28.88	Karen Hollweg	used handicap parking when I had business downtown and that lot four and lot three were really infeasible when I was physically challenged. And so I think that lot having additional, having 47 spots available in the Madden lot will really accommodate some of the complaints that we've heard from our downtown merchants all along that Bridgeway border. And so I believe that we are spreading the web of revenue for the, for the city by increasing the availability of convenient parking spots by entering into this lease. So, and as mentioned, no one is right now managing any of the lots, any of the spots in the Madden lot. None of those are right now available for public parking unless
02:06:25.18	Karen Hollweg	Arrangements are made directly with the Maddens. Now we're opening up 47 spots for public parking. And so we're going to go from projected revenues of $4,800 per year from parking to $1,800.
02:06:42.57	Karen Hollweg	94,000, 90,000 net perhaps of revenue, and that doesn't include
02:06:49.93	Karen Hollweg	citations, I think that's just parking spots revenue and citations is on top of that. So I'm prepared to make a motion that we authorize the city manager to execute
02:07:02.22	Karen Hollweg	a side letter slash license agreement with Sausalito Yacht Harbor for use of 47 parking spaces in Bay Street parking lot for public parking.
02:07:10.40	Mayor Kamele	Second.
02:07:13.15	Unknown	Yeah.
02:07:13.62	Unknown	Wait.
02:07:14.60	Unknown	Thank you.
02:07:14.89	Unknown	Peace.
02:07:15.34	Unknown	The shared mic thing tonight is throwing me off a little bit. I apologize. One of our mics is broken up here if you haven't caught on to that.
02:07:21.62	Unknown	Uh,
02:07:22.80	Unknown	I find it interesting that there's objection to the idea of increasing parking when we've heard so much concern about there being enough parking downtown. I think this is a great opportunity not only to solve the problem that we've heard from a number of merchants, as Vice Mayor Cox pointed out, regarding access to available parking, but also to create new revenue opportunities for our downtown. So the fact that we're going to not only have more parking lots, but also be making revenue, parking spots, be making additional revenue from those parking spots, really is encouraging in terms of addressing our needs for the downtown, especially now that we have the Center for the Arts downtown, the Business Improvement District, and hopefully much more economic activity. So we'll continue to need more and more of these spots. So while I agree, we should be auditing it to make sure that the deal makes sense in the long term and that we're receiving as much revenue as expected and as we should be for the costs that are made to us. Because of course, if it's not net positive, then it's not a good deal. Based on the projections from our finance department and the long and hard work that's been done by the folks who are working with the madness to negotiate this agreement i think it makes sense for us to move forward at this stage and i look forward to hopefully seeing 94 000 of additional revenue in the city's coffers
02:08:41.37	Councilmember Hoffman	Mayor, I have another question based on the comments.
02:08:45.12	Mayor Kamele	The vice mayor had her hand up, then I saw...
02:08:46.93	Councilmember Hoffman	Okay.
02:08:47.03	Karen Hollweg	Oh, go ahead. Sorry.
02:08:47.50	Mayor Kamele	come and then I saw you. So we got three in a row in that order, if you don't mind.
02:08:47.58	Karen Hollweg	Thank you.
02:08:48.07	Councilmember Hoffman	Thank you.
02:08:48.09	Karen Hollweg	And then I saw
02:08:51.43	Karen Hollweg	Mayor, I forgot to include as part of my motion direction to staff that they return to us six months, perhaps as part of the mid-year budgeting process, with an audit that addresses some of the questions raised by Councilmember Kelman about how many spots are they devoting towards marinas, how many spots do remain available for other revenue generating potential? And what revenues are we realizing on the 47 spots under this agreement?
02:09:26.24	Unknown	Thank you, Vice Mayor, for being a mind reader. I also do want to amplify, in addition, Councilmember Hoffman's really
02:09:33.69	Unknown	Really excellent point, which is for not a max capacity, which is the argument that was made for losing the spots during the ferry conversation,
02:09:42.76	Unknown	Um,
02:09:43.66	Unknown	Are we pushing?
02:09:45.50	Unknown	people to park in an area where we get less than 100%. That's a really interesting point. And in the end of one year, the Maddens could decide they like it so much, they want to take 100% of it, and we don't do it at all, and maybe that takes away from our other parking spots. So, Vice Mayor, if you're open to sort of expanding the breadth of that audit, I think it should try to do a comparison to see for any different place if there is additional parking in the Yacht Harbor area. And does that impact a lot too? Because now I'm hearing both things, right? I'm hearing we have so much, we can lose them. And I'm hearing, no, we don't have enough, so let's replace them. And yes, when
02:10:30.82	Unknown	area that I requested a long time ago. So I would love to include that, because I think it's a really interesting point, and we haven't really run that to ground.
02:10:38.13	Karen Hollweg	So it's not part of my motion, which I have the motion that was in the packet. It's direction to staff that I'm hoping we will align upon. Okay, great.
02:10:47.48	Mayor Kamele	I think the direction of staff, of course, would have to be after there's enough data,
02:10:51.72	Mayor Kamele	to say anything about. So it seems like it should be, your six months should be at least after...
02:10:55.77	Karen Hollweg	Six months and or part of the mid-year budget, which is...
02:10:58.47	Mayor Kamele	I mean, if there's no parking data, like they haven't been after, it should be after the thing has been operational, right?
02:11:00.41	Karen Hollweg	Yeah.
02:11:03.85	Karen Hollweg	Agree.
02:11:03.92	Mayor Kamele	Thank you.
02:11:04.61	Mayor Kamele	Thank you.
02:11:04.81	Mayor Kamele	So six months after parking operations begin or something like that.
02:11:09.32	Karen Hollweg	fine with that.
02:11:12.29	Unknown	and mayor council.
02:11:13.74	Mayor Kamele	Yes. City attorney.
02:11:13.75	Unknown	Yes.
02:11:15.80	Unknown	There is a motion on the floor, if I may suggest the current agreement, because it's been brought back a second time. The draft in the packet says that it'll have an effective day in July. I would suggest that the motion approve an agreement with an effective date for the end of September or some later date the council selects.
02:11:33.31	Mayor Kamele	with that modification,
02:11:34.73	Karen Hollweg	I'm sorry.
02:11:34.78	Mayor Kamele	I'm sorry.
02:11:34.83	Karen Hollweg	I accept that modification as the seconder? Do you accept it?
02:11:37.92	Mayor Kamele	Yes, I do.
02:11:38.98	Mayor Kamele	Now, Council Member Hoffman, that's your public.
02:11:39.86	Karen Hollweg	Thank you.
02:11:39.88	Councilmember Hoffman	Thank you so much. Based on comments that were made by Vice Mayor Cox and Councilmember Blasting,
02:11:45.26	Mayor Kamele	Bye.
02:11:47.54	Councilmember Hoffman	You know, it's not, you know, if you're talking about parking and convenient parking spots, parking lot two is actually closer to Jean Hiller.
02:11:56.41	Councilmember Hoffman	parking lot three.
02:11:57.83	Councilmember Hoffman	is actually closer to certain other things that you would want to do in
02:12:02.19	Councilmember Hoffman	along Bridgeway. So, I don't agree that the Madden lot is more convenient. It's more convenient probably to
02:12:07.79	Councilmember Hoffman	Dumpy Park, or sorry to Gabrielson Park, but that's about it. And so, and I also take issue with you know,
02:12:15.70	Councilmember Hoffman	councilmember blau or blousey's comments that i'm against creating new parking uh what i'm against is losing revenue from parking because we are in a deficit budget
02:12:25.68	Councilmember Hoffman	And I look very closely at every, you know, every...
02:12:30.27	Councilmember Hoffman	every suggestion that we not take losses in revenue seriously up here at the council. So we just voted for a fair landing. We're going to lose approximately, however you want to slice it, $200,000 to $300,000 on parking.
02:12:45.55	Councilmember Hoffman	And now we're coming up with a plan to drive revenue
02:12:50.13	Councilmember Hoffman	towards
02:12:50.95	Councilmember Hoffman	a 50% loss when we have metrics that show that we don't have actual need
02:12:56.34	Councilmember Hoffman	and that we actually have excess
02:12:58.55	Councilmember Hoffman	in our lots. And I can't figure out why we would do that.
02:13:02.26	Councilmember Hoffman	including
02:13:03.48	Councilmember Hoffman	accepting additional administrative costs, all of the administrative costs for that,
02:13:08.77	Councilmember Hoffman	and also paying the Maddens an additional $400 a month. I mean, the deal points in this just really don't make sense.
02:13:17.41	Councilmember Hoffman	And finally, we haven't had any
02:13:20.72	Councilmember Hoffman	any information from staff or anybody about how many permits
02:13:25.61	Councilmember Hoffman	for parking are required for those 700 slips
02:13:29.46	Councilmember Hoffman	and Saso Yacht Harbor. I think that's probably a fundamental question that we need to have. If they only have 200 spots in their lot, that would seem to me to indicate that taking away another 47 spots and leaving them only 98 spots, they would be below their threshold of what's required
02:13:48.13	Councilmember Hoffman	for their permit holders. The other question is are the permit holders going to be able to park in our 47 spots and will they be required to pay a monthly fee? So I don't I there are questions in this You know in the way that this was presented with no financial analysis at all in the staff report And that we had to pull it off consent and have the financial You know conversation here after it's you know after we've already had a
02:14:16.70	Councilmember Hoffman	conversations about whether or not we're going to move forward on this, the fundamental question is,
02:14:21.05	Councilmember Hoffman	to me is
02:14:22.30	Councilmember Hoffman	What is the financial hit to the city on this?
02:14:24.85	Councilmember Hoffman	And does it make sense for us to go forward? If we can't
02:14:28.24	Councilmember Hoffman	make that hurdle the first hurdle we get over, then we're doing something wrong up here on the council. So I'm going to vote no on this, regrettably.
02:14:38.40	Mayor Kamele	Any other comments?
02:14:40.68	Mayor Kamele	If not, then we shall take a vote. All in favor say aye.
02:14:46.19	Karen Hollweg	I
02:14:47.75	Mayor Kamele	opposed?
02:14:48.42	Karen Hollweg	No.
02:14:48.73	Mayor Kamele	All right. Motion carries four to one. We will now move on to the next item. This is item 5A, discussion and direction and possible adoption of draft policy related to city leasing practices.
02:15:05.09	Mr. City Manager	Thank you, Mayor, members of the council, members of the public.
02:15:07.91	Mr. City Manager	Can you pull up my slideshow please? Yeah, thank you.
02:15:12.89	Mr. City Manager	Thank you.
02:15:19.39	Mr. City Manager	Just to kind of begin with a comment, Sausalito has
02:15:27.65	Mr. City Manager	significant property holdings that are
02:15:33.01	Mr. City Manager	very important to the city in terms of how they generate revenue. And in these property holdings, go to the second slide, Chad. There, please, there are 37 leases that are active right now. And in those 37 active leases, it's like a Rubik's Cube. You have leases that are nonprofits. You have leases that are for-profit, you have government leases, and then you have different dates for those leases, when they started, how they started, what councils approved them, how long they last. And so they're all available to the public now. We created a database of all the leases that the city has. So if the public's interested in a particular lease or all of them, they're welcome to peruse them. And again, they are a mixture of different things that different city councils have executed agreements on, much like the prior discussion. And so all of a sudden, you know, you have what I call a Rubik's Cube of uses. There are some uses that are good for the community in terms of history. There are leases that are good for the community in terms of education. There are leases that the community has that are part and parcel to cultural. There are leases that are educational and artistic. So all those leases are in the city's portfolio. And in those leases, there's a generation of about $2.364 million is what we project this year.
02:17:07.88	Mr. City Manager	And that's important because we use that money for city services. We use it to pay debt. We use it to provide improvements to city facilities.
02:17:17.93	Mr. City Manager	So in talking about the matrix of leases, there's an attachment in the packet that shows, you know, the different breakdown of the leases. And most of the leases are for nonprofits and for profits. We have two leases that are to government entities. Next slide, please.
02:17:39.09	Mr. City Manager	So bringing that forward to the city council this past February on the 20th, the council suggested that we need a policy on how leases are accepted, reviewed, adopted, and what they would consider. And so the council's direction of staff was to prepare a draft policy for city council consideration, which is what you have in your packet tonight.
02:18:03.83	Mr. City Manager	At that meeting, there was also a discussion about how we manage our properties. And, you know, we are in the midst of trying to give the council some options. We got permission to go out and look at property management. We did that. We got one proposal, which isn't enough for us to bring back to the council. So we'll bring that back, which was also part of the February 20th meeting meeting so at six months uh we are here this is it so we want to talk about some of the things that we heard and see if the clay that we've built and as the council decides to layer it based on their thoughts and the public's thought becomes a policy and this is not intended to be a finished policy, given the complexity of this Rubik Cube of leases. But I did hear some things at the last meeting on the 20th, and I want to kind of go through them. One of the things I heard was one size for every lease doesn't fit all. You can't have all leases and collect market on all of them, or you can't have a community-based lease with impact that's not monetary and just not a mix that we have that you have had and that you probably will have in the future. So being said that that imbalance between creating revenue or creating community benefit sometimes doesn't meet in the middle, let's talk about these individually. One of the things we heard is that we should maximize city revenue from for-profit leaseholders, that we should look to make the dollars that the property merits based on a for-profit use. When there are community benefits and certain nonprofits that provide or end leases with the city, there needs to be consideration to that. It's not all about the dollars. It can be a balancing act between what you want to charge and what you believe the impact outside of dollars is to the community. So that's why one size doesn't fit all. So balancing those
02:20:09.33	Mr. City Manager	or seemingly contradictory goals of maximizing revenue and, you know, creating community benefit. Sometimes it doesn't work that way. So this lease is intended to give you a starting point to see if that's the approach you want to take. If it isn't true fact that you want to have a scenario where your policy is that we're not going to make every lease, make maximum revenue. When we have a community benefit, we want to factor in some impact to the community that these other types of leases bring forward. The other thing that's really important and foremost is that the policy talks about risk management and how we make sure that the city isn't burdened with all the risk when these leases are signed.
02:20:53.09	Mr. City Manager	There was consideration and thought given to not stagnant revenue streams. The city has entered into some agreements where the revenue is fixed. I don't think that's an approach that you want to take. So each of these leases should have some type of consideration of an escalator. There shouldn't be flat rates for years. So that's a consideration that I heard at that meeting. And then also, you know, the database was a start, but more transparency to the public was raised as a really important thing to have considered in a potential policy. And also that the people that are involved in agreeing to the leases start to have some kind of plan, that there be some type of approach to, you know, how the future is going to look in terms of the lease construction. you know, if there's a business plan. That there be some type of approach to how the future is going to look in terms of the lease construction, if there's a business plan, if there's a facilities plan, there's a service plan. All those things are part and parcel to what this policy speaks to.
02:21:52.94	Mr. City Manager	in the draft policy there's also it's attached there's also you know some things that we believe that the leaseholder should be required to do these include
02:22:06.95	Mr. City Manager	that they need to not discriminate with their services and facilities. That they need to adhere to federal state laws that are part and parcel of things like the American with Disabilities Act.
02:22:21.80	Mr. City Manager	If there are non-profit, then proof of that should be required. They obviously have to maintain an active business license. We expect them to pay promptly and accurately their rent. In some cases, they assume responsibility for utility expenses and repair and maintenance of the property.
02:22:41.21	Mr. City Manager	They obviously have to comply and conform with all city land use, planning and zoning laws.
02:22:48.70	Mr. City Manager	They should not undertake activities that negatively impact the quality of life of neighbors in the community. We have them in writing to submit to maintenance inspections by the city. And if there are conditions that are not right, that they should report them in a timely matter to the city or its person that manages the property. They can't sublease without prior approval by the city council or in the agreement. A lot of leases have older and you know, the idea that we would.
02:23:22.20	Mr. City Manager	enter into a loose agreement and require the group to say you're accepting this as is, unless otherwise you know negotiated.
02:23:30.97	Mr. City Manager	that there be responsibility for all taxes and fees, that there be any alteration and improvement of the facility, that type of work needs to be submitted and approved by the city, and that they maintain adequate insurance and they provide a security deposit. Those are some of the things that we believe should be part of the landlord responsibility. And the city on its end will, you know, honor the lease terms. We'll provide the terms, format, and document. We will ensure, you know, that we give everybody a full and accurate description of their property in the lease. And then what we'd like to do is make sure that there is, you know, a review process for tenants in good standing. If they decide they want to make a request to the city council to adjust the lease, you know, we have a process in place for that as well. So that's the nuts and bolts of this Rubik's Cube of draft policy. Again, you know, my thought is you would not approve a policy tonight. We would take more input from you and see if we're on the right track. If we are, then we can bring something back fairly quickly. If we're not, you know, it's a work in progress.
02:24:51.11	Mayor Kamele	Thank you, city manager.
02:24:51.99	Mr. City Manager	Are there any questions to Beissmer?
02:24:54.74	Karen Hollweg	Thank you.
02:25:01.17	Karen Hollweg	City Manager, I thank you for the tables that you attached to this draft policy as well. Very informational. Several of the tables reflect that we have 14 nonprofit leases currently.
02:25:14.79	Karen Hollweg	I'm
02:25:16.27	Karen Hollweg	One distinction that was not called out either in the draft policy or in the tables is the type of lease and under the lease who is responsible for capital improvements.
02:25:28.66	Karen Hollweg	And so I know that we have very few leases
02:25:34.51	Karen Hollweg	in which they are triple net, in which the tenant is responsible for capital improvements.
02:25:40.86	Karen Hollweg	of the various municipalities I represent. They have policies such as you proposed that...
02:25:52.89	Karen Hollweg	that they have to get permission for
02:25:58.22	Karen Hollweg	for making any changes.
02:26:00.84	Karen Hollweg	to the property from the city but i would be interested to know
02:26:05.01	Karen Hollweg	of our nonprofit leases, how many are triple net where
02:26:09.12	Karen Hollweg	The tenant is responsible for any
02:26:12.62	Karen Hollweg	repairs required by the building. For example, I think you told us earlier this year that the city had performed major repairs to the Jean Hiller building, is that right?
02:26:24.02	Mr. City Manager	That's correct.
02:26:24.35	Karen Hollweg	Thank you.
02:26:24.67	Karen Hollweg	And so that lease obviously is not a triple net. Under that lease, the city is responsible for capital repairs or improvements. Yep.
02:26:32.80	Mr. City Manager	Yep, and that's why it's a Rubik's Cube. Some are, or most of them are that way. I can think of one off the top of my head that's a triple net lease, and that's the lease you're going to discuss as the next item with SCA.
02:26:42.92	Karen Hollweg	Okay. And so I would like, and so would you be open to adding,
02:26:49.64	Karen Hollweg	Um,
02:26:50.81	Karen Hollweg	to this policy
02:26:53.22	Karen Hollweg	something about who's responsible for capital improvements typically.
02:26:57.73	Karen Hollweg	Another question I had is enforcement. So I'm aware of some of our tenants who are behind on their rent and so
02:27:07.28	Karen Hollweg	Did you have something in mind for enforcement of, you know, when, how late do we let them get before we default them?
02:27:15.73	Mr. City Manager	Yeah, and that's my, that bullet about a tenant in good standing. If a tenant's in good standing and they fall behind, you know, what is good standing? We need to define that. If they are not in good standing by habitually being late for payments or underpaying or other things, then we'd want to note that, and then that could be a factor in a renewal or an extension. Yeah.
02:27:37.52	Karen Hollweg	And that brings me to my next question, which has to do with financial wherewithal. And so do you envision a process for evaluating
02:27:45.78	Karen Hollweg	an agency's financial wherewithal either
02:27:49.41	Karen Hollweg	as part of the initial negotiation process and or part of the renewal process.
02:27:56.21	Mr. City Manager	Yeah.
02:27:57.09	Mr. City Manager	Should be both. Should be both.
02:27:59.77	Karen Hollweg	And then part and parcel with that is audit rights. And so do you envision us asking or reserving to ourselves the ability to ask for...
02:28:12.14	Karen Hollweg	documentation of
02:28:13.97	Karen Hollweg	Rents collected, subleases, and other information necessary to the city's evaluation of each tenant's financial wherewithal.
02:28:26.05	Mr. City Manager	And that would be advisable.
02:28:27.94	Karen Hollweg	And then I really appreciated what you said about not one size fits all. You have over 30 years of experience as a city manager. What do you envision in terms of an appropriate policy
02:28:43.13	Karen Hollweg	to distinguish between for-profit, non-profit,
02:28:47.43	Karen Hollweg	and or
02:28:48.91	Karen Hollweg	community benefit, non-community benefit.
02:28:55.06	Mr. City Manager	Let's see. Let me see if I can understand that. Let me put you on the spot. I don't think 30 years of experience does me any good in Sausalito.
02:28:56.95	Karen Hollweg	Let me put you on the spot.
02:29:08.49	Mr. City Manager	And that's, that's city manager experience, not government experience. So, uh, I really believe that, um, that's why it's a Rubik's cube because if one size doesn't fit all, if you're not going to be governed by, we're getting top dollar on all of our properties, then what is the approach that you believe makes sense to this community at this time? And what you've done as a matter of past practices, you've valued education, education,
02:29:35.15	Mr. City Manager	You valued history.
02:29:37.11	Mr. City Manager	you valued literacy, you valued art.
02:29:41.12	Mr. City Manager	culture. And some of your leases reflect that. If you want to continue to do that, I think you need to make that as a statement in a lease policy. And then that can be brought forward as a factor in what it is that's ultimately negotiated. Because some people that I was told that are not for profit make a profit. So you have to factor in their financial wherewithal as well. At the same time, I, I, you know, I've heard that, you know, there is really a, um, a opportunity with the city to really impact the community in ways that aren't all dollars, you know, what I call return on involvement, whether it's a property on the water properties that you have at city hall, uh, properties that you use to educate. Um know, all those things are, you know, why I couldn't give you a good lease and say, you know, you guys should just make this about money. Everything should be market rate, no matter who it is, a not-for-profit or for-profit, it just should be market. You obviously have never done that. And I know a lot of cities that haven't done that. And some of the leases, and one of the leases this was pulled from was the city of San Diego as a model. You know, there's some conversation about community impact and community benefit. And that should be defined as a desire of the council so that when we do look at future leases to bring them forward, if that's not there, then it's pretty simple to say it's money. If there is a community impact, then that's a challenge to measure, but you want to consider it. So I give you a long answer to tell you I don't have an answer to your question.
02:31:16.81	Karen Hollweg	I will note on, and again, thank you for this lease revenue chart. It shows that the highest monthly revenue we receive
02:31:25.89	Karen Hollweg	is from a nonprofit, Lycée Francais, which also happens to be educational.
02:31:30.71	Unknown	of.
02:31:30.73	Karen Hollweg	Thank you.
02:31:30.83	Karen Hollweg	Thank you.
02:31:30.88	Karen Hollweg	Um, and that's $64,000 a month. The profit, the for profit total monthly revenue is $74,000 a month on our leases. And so I, I really, um,
02:31:47.91	Karen Hollweg	I am really wondering
02:31:50.27	Karen Hollweg	how to reconcile our
02:31:54.77	Karen Hollweg	competing
02:31:58.13	Karen Hollweg	interests in encouraging
02:32:00.93	Karen Hollweg	Um,
02:32:02.03	Karen Hollweg	City serving
02:32:04.21	Karen Hollweg	businesses,
02:32:07.43	Karen Hollweg	while maintaining financial feasibility. So thank you for these tools.
02:32:15.35	Karen Hollweg	the
02:32:15.50	Unknown	Thank you.
02:32:18.37	Karen Hollweg	Please.
02:32:18.70	Jonathan Leon	Thank you.
02:32:21.34	Unknown	Just on that point, one of the things that I recall we had wanted to give direction on, and I appreciate the tables as well, and I think it's quite telling that we actually receive more revenue from not-for-profit organizations than for-profit organizations, so we might want to look deeper. But I was pretty shocked to see that we have 37 active leases and we make $2.364 million from those 37 leases, I would love to find 37 things I could rent in Sausalito in that total that would be, I mean, I just, given the cost of my unit that I rent to live in, it's kind of shocking to me. So I know one of the things that we gave direction on
02:32:59.63	Unknown	initially was
02:33:02.26	Unknown	finding out where we want to offer market rate or how we define market rate and what that looks like. So have we talked with Cushman Wakefield about what a type of determination or property assessment would be? It doesn't mean we're necessarily going to charge that much, but I'd just like to understand because some of these leases are very old and much before our time. But can we work that in, a market assessment for all of the properties that we own? Because I still have yet to see that.
02:33:32.04	Mr. City Manager	Yeah, that could be a component of a process on a go-forward basis, that every lease that we bring forward be looked at for market value by some esteemed group, whether it's Cushman-Wakefield or someone else. But you haven't done that. You haven't done that, and that's why you have a Rubik's Cube. So you did it with Lice Fran Francais, you did it with the New Village School, and we did that with the help of Cushman Wakefield. And so I think that's a good practice to implement across the board.
02:34:04.31	Unknown	And I'm wondering also when we consider nonprofits, if we might break them into categories like directly community serving, because some of the nonprofits are very much for Sausalito residents that you see on the list,
02:34:17.42	Unknown	And some of them are like, for instance, an educational institution, which while beneficial to us, given the amount of rent we receive and also lovely to have an educational institution in our community, does that, does that warrant the same rent? And how do we make those decisions? Because again, as you mentioned, it's a, it's a Rubik's cube. And I was wondering in your experience as a city manager, if you had seen any other communities that might've had some sort of system for that type of programming for community serving nonprofits that would have a different rent type, that kind of thing.
02:34:46.83	Mr. City Manager	No, every city usually has properties that they lease and the leases of the moment. When that moment hits and the information comes to that particular city council and administration, they make a decision based on that time and place. And so what you inherit in every city that I've been in, I've been in eight of them, is a mishmash of leases where some make all the sense in the world. Others make no sense. I'll give you an example. In San Leandro, been in eight of them, is a mishmash of leases where some make all the sense in the world, others make no sense. I'll give you an example. In San Leandro, they leased a parking lot for half a million dollars a year.
02:35:22.52	Mr. City Manager	They paid for a parking lot for half a million dollars a year. And when I asked the city manager why they did that, he said, because we out that parking lot, we couldn't have a movie theater and we needed a movie theater in our community. It was a priority for our city. So we bit the bullet and we made a deal that maybe wasn't advisable, but that's why it happened. That's a common occurrence in cities where people make deals. One was referenced earlier in the other item about the Yacht Harbor Agreement. You know, why did the city, you know, set up this rebate program with the Salas Yacht Harbor for bulkhead repairs? I wasn't here when that happened, but the city did that for a reason. I don't know if there was a financial pinch or if there was some other factors that I'm aware of, but you inherit all of that stuff. So trying to start on a go forward basis, that's why I thought it was important to put the start dates of the lease because you may have, you know, two or three opportunities every year or every three years or every five years to redo leases. It won't happen every year, all 37 of them because they're all on different schedules.
02:36:23.93	Unknown	I didn't see a specific recommendation in the policy to have an elevator on all of the leases annually. Is that something that you would recommend? Absolutely. Escalator, sorry. Something that goes...
02:36:31.63	Mr. City Manager	Absolutely.
02:36:33.36	Mr. City Manager	Yeah.
02:36:35.29	Unknown	Thank you.
02:36:35.32	Mr. City Manager	Thank you.
02:36:35.34	Unknown	Thank you.
02:36:35.36	Unknown	the
02:36:35.44	Unknown	you
02:36:35.47	Mr. City Manager	Thank you.
02:36:35.73	Unknown	Yeah, absolutely.
02:36:35.84	Mr. City Manager	Yeah, absolutely.
02:36:36.50	Unknown	Thank you.
02:36:36.55	Unknown	the
02:36:36.91	Unknown	Okay.
02:36:37.19	Unknown	Thank you.
02:36:40.76	Unknown	comment before we already want to do more.
02:36:43.86	Unknown	Oh, okay.
02:36:44.98	Mayor Kamele	Yes. So with any more questions, did you want to finish questions before public? I have a bunch of comments, but I was waiting. Comments, but not questions. Any other questions for city manager?
02:36:55.07	Mayor Kamele	before we then we'll move to public comment when we come back and then we'll take discussion.
02:36:59.32	Councilmember Hoffman	I have one.
02:36:59.81	Mayor Kamele	Question.
02:37:00.21	Councilmember Hoffman	Yeah, I had one follow-up question, or actually a question based on what was presented in the staff report and the attachments. And thank you for the attachment three, which is a full property listing with a breakdown. And I can see us going through this and looking at what appears to be a
02:37:19.69	Councilmember Hoffman	nonprofit leases. And first of all, let me just say that I know several people that go to school at both the Lyce and the New Village School. So I believe that those schools are actually residents serving in a benefit to our community.
02:37:31.33	Councilmember Hoffman	town.
02:37:32.41	Councilmember Hoffman	also delighted to see that their rents are
02:37:35.33	Councilmember Hoffman	close to market.
02:37:37.29	Councilmember Hoffman	Good on us on that one.
02:37:38.84	Councilmember Hoffman	Um,
02:37:40.07	Councilmember Hoffman	So, my question though is, is there a breakdown
02:37:45.73	Councilmember Hoffman	in the idiosyncrasies of which each of these leases that we have and i mean if we're talking about some sort of policy difference between non-profit
02:37:54.45	Councilmember Hoffman	and profit
02:37:55.41	Councilmember Hoffman	understanding that even non-profits hope to one day make enough profit so they can pay their staff and pay you know pay their directors in actual
02:38:04.79	Councilmember Hoffman	salary.
02:38:05.70	Councilmember Hoffman	but which is certainly true with new village and the lycee um
02:38:10.61	Councilmember Hoffman	I'm wondering, do we have any sort of breakdown of, you know, what these people are renting? Right. So, I mean, there's a couple on here that are, you see the name of the entity, but you don't really understand what they're renting. So the rents look quite low, but they're really only, you know...
02:38:27.52	Councilmember Hoffman	renting a postage stamp over which they go to get to their business or their
02:38:32.03	Councilmember Hoffman	you know they have they own their own building but they don't have you know it's supposed yeah it's a very small lot and it's not really rentable to anybody else is there any sort of a breakdown of that it
02:38:42.19	Mr. City Manager	Yeah, not official. I thought the last go around, we provided maps of all the city-owned properties so you could see the square footages of the properties involved. But we can resuscitate that and show you exactly as another table on this listing of properties along with the rent and the end date and the type of lease. So, yeah, that's doable.
02:39:02.17	Councilmember Hoffman	That might be a good thing when we talk about, if we do a market rate analysis for our leases. Okay, thank you. I think that's all I had.
02:39:14.01	Mayor Kamele	So,
02:39:15.09	Mayor Kamele	Two minute break, three minute bio break. Five, so come back at 10 o'clock. We're using 10 o'clock sharp.
02:39:17.73	Councilmember Hoffman	No.
02:39:24.53	Mayor Kamele	Thank you. Please have it quiet here. Thank you. Can we please stop the chatter in the room?
02:39:31.57	Mayor Kamele	Thank you.
02:39:34.05	Mayor Kamele	Okay, now we're gonna move to public comment on this item.
02:39:38.13	Mayor Kamele	Any public comment?
02:39:38.18	Mr. City Clerk	Okay.
02:39:38.60	Mr. City Clerk	probably.
02:39:38.67	Tom Anderson	Thank you.
02:39:39.16	Mr. City Clerk	Yes, we'll start off with Peter Van Meter and then Babette McGoogle.
02:39:50.62	Peter Van Meter	Thank you. I'll preface my remarks by reminding you that I am a commercial real estate professional for over 20 years. I think these was a good start on giving you the information about the city property. And the city manager did finally mention at the end that you, in fact, do have the square footage of occupancy of buildings. And perhaps I suppose you have the acreage of land that is under a ground lease and so you can actually include that information so you have an effect what be a complete rent roll as a whether it's a gross or net lease like Councilmember Cox brought up you'd have the space square footage the land area
02:40:33.83	Peter Van Meter	Bakerage and so on. And then you compare that in the future with fair market rents.
02:40:38.00	Peter Van Meter	for those particular facilities, and those particular terms and conditions. I did notice in the list of leases that 18 leases have expired.
02:40:46.81	Peter Van Meter	And that's like half of the leases that you have. So,
02:40:49.73	Peter Van Meter	Obviously the whole question about managing these properties becomes essential. You need something. There appears to be something kind of, uh, wrong there.
02:40:58.45	Peter Van Meter	But the one part of the policy that I was a little bit disappointed in, and of course has been touched on in the presentation, how difficult it is, but kind of the methodology you would use for comparing
02:41:09.27	Peter Van Meter	fair market rent for a profit versus rent rates and community benefit for a nonprofit. In other words, what thought process will you go through in order to kind of make that evaluation? How will you judge?
02:41:23.02	Peter Van Meter	the community benefit of the nonprofit,
02:41:26.50	Peter Van Meter	to
02:41:27.93	Peter Van Meter	a profit for profit entity.
02:41:29.94	Peter Van Meter	And I think that kind of guidelines is what I was really looking for in this policy. The other terms that are outlined in the policy that were given in your presentation, I think from a real estate professional point of view, those make sense. But I would actually try to have come to you in one form, what I would call a commercial rent roll.
02:41:47.51	Peter Van Meter	It shows the tenant name.
02:41:49.52	Peter Van Meter	shows their space, what their rent is in a per square foot basis.
02:41:56.17	Mr. City Clerk	Thanks, Babette Muntugo.
02:42:09.19	Bep McDougall	It's hard to believe everybody's taller than me. Gosh. So thank you very much for acknowledging me. First of all, I'd like to just say that I'm pleased to see this initial draft. It's far more empirical and far more driven by a thought of ethics than I expected it, based on our early conversations. So I was pleased to see this
02:42:32.55	Bep McDougall	very
02:42:33.98	Bep McDougall	by the book data.
02:42:35.65	Bep McDougall	I want to just say one thing. I thought it was a very fascinating insight. I thought the city manager's presentation was fascinating.
02:42:42.25	Bep McDougall	particularly interesting.
02:42:43.87	Bep McDougall	I'll call it generally the Rubik's Cube discussion because it does point to some qualitative choices that have to be made. And that's where I think it can get really sticky for any negotiation, the qualitative choices, especially if people don't agree on what equals quality.
02:43:02.96	Bep McDougall	So in one of the
02:43:04.58	Bep McDougall	minutes items on this punch list of considerations on the policy.
02:43:09.69	Bep McDougall	has to do with that there is a, and I didn't bring it with me, but I remember writing
02:43:15.21	Bep McDougall	So that it doesn't deflect from the quality of life for the residents.
02:43:21.10	Bep McDougall	I thought that was a good thing to consider.
02:43:24.59	Bep McDougall	What I was surprised that we didn't see was that whomever
02:43:29.22	Bep McDougall	We're going to rent a city owned
02:43:32.08	Bep McDougall	or city run.
02:43:33.55	Bep McDougall	in the case of, say, the men's,
02:43:35.53	Bep McDougall	downtown.
02:43:38.06	Bep McDougall	I think there has to be also a very good reflection on the city itself and the values of the city and what we stand for.
02:43:44.66	Bep McDougall	And so if we're renting to an entity that ends up embarrassing us, either because they're consistently in the red and they become the laughing stock and make us the laughing stock,
02:43:54.33	Bep McDougall	and we don't take seriously our own fiduciary responsibility toward this city.
02:44:00.16	Bep McDougall	then I think we've got a problem. So whatever we think of, we need to make sure that it reflects as well on the city as it does the residents who live in the city. Thank you.
02:44:10.48	Mr. City Clerk	Thank you. Next speaker, Stephen Woodside.
02:44:20.21	Stephen Woodside	Mayor Sobieski, and may it please the council, I really appreciated in February your desire to open this up so that we could take a comprehensive look. That is we, the public, you, and the city manager, and I compliment everybody.
02:44:34.20	Stephen Woodside	the city manager for covering a lot of the bases that I think you're interested in and we are interested in. I think in the interest of transparency, you ought to very much look at the process by which you enter into these lease negotiations, particularly with nonprofits and not for profits. And the reason I say that,
02:44:55.83	Stephen Woodside	is that your standard procedure, which is correct under the Brown Act, is that you would list a location of property, you would go into negotiations, and you'd thrash it out there in closed session. That's the way you're going to negotiate. But leading up to it, if the prospective tenant was to present to the city manager a proposal that indicated the interest, particularly for a nonprofit or not for profit, what their mission is, what their tax status is, their tax exempt, what are their audited financials look like, how much can they afford, all of that. And then for them to tell you what they think the benefit is to the community in quantifiable terms, if possible. I think if they they were given that opportunity then when you went into closed session with the advice of the city manager you could start evaluating that for yourself based on what you see from their presentation I think that would help a lot in both
02:45:56.40	Stephen Woodside	transparency and otherwise making the whole process more equitable going forward. In the scintillating hour that you talked about the Madden property,
02:46:10.02	Stephen Woodside	I redrafted a proposal, if I can call it up right now,
02:46:16.94	Spare	You only have four.
02:46:17.58	Mayor Kamele	I'm going to press send as soon as I can call it up. And hopefully you'll take into consideration. Thank you.
02:46:17.58	Stephen Woodside	I'm going to press send as soon as I can call it up. And hopefully you'll take into consideration. Thank you.
02:46:17.93	Spare	Thank you.
02:46:17.95	Mr. City Clerk	Thank you.
02:46:23.09	Mr. City Clerk	Thank you.
02:46:24.23	Mr. City Clerk	Thank you, Susan Kendall, followed by Hank Baker.
02:46:37.32	Unknown	Thank you.
02:46:37.34	Susan Kendall	I'm not.
02:46:37.47	Unknown	Mm-hmm.
02:46:37.59	Susan Kendall	Thank you.
02:46:37.88	Susan Kendall	I'm Susan Kendall. I live in Hurricane Gulch. I've been in Sausalito about 12 years, but raised my whole life across the water in Sausalito and happily moved to Sausalito, in Strawberry, happily moved to Sausalito.
02:46:48.76	Susan Kendall	I just want to speak up for one of the nonprofits. We're the Sausalito Cruising Club. Most of you know us. We may not have been the best tenants in the past, but there's been substantial change. We've gone from about 500 members to over 1,200 members now.
02:47:05.28	Susan Kendall	I did a quick analysis today.
02:47:07.58	Susan Kendall	40 to 50% of them are actually Sausalito residents, which is way up from the 33% we used to be.
02:47:14.72	Susan Kendall	That probably makes us maybe the largest organization, one of the largest membership organizations in Sausalito. And what's really important as you begin to define
02:47:25.40	Susan Kendall	What kind of nonprofits do you want? Is the,
02:47:28.40	Susan Kendall	Cruising Club is really a community of people who have chosen to get together
02:47:32.62	Susan Kendall	become friends, and in fact,
02:47:35.05	Susan Kendall	We sponsor pretty much every one of the Sausalito public events and have won the 4th of July parade three years in a row for best float.
02:47:44.23	Susan Kendall	So thinking about
02:47:46.29	Susan Kendall	you know, what our community is and it's the arts and it is the tourists and everything, but
02:47:52.55	Susan Kendall	our clubs and our membership organizations where people come together and spend their time together
02:47:57.97	Susan Kendall	are equally important in,
02:47:59.72	Susan Kendall	We've been here 70 years, and I guess you've been our...
02:48:04.04	Susan Kendall	landlords for almost 70 years and would like to, uh,
02:48:07.77	Susan Kendall	keep it going, and are doing substantial renovations to the barge, because I don't think
02:48:13.07	Susan Kendall	You have anything to do with maintaining our giant old barge. We do it all ourselves and fundraise for that. So just wanted to speak up for it. Thanks.
02:48:24.83	Unknown	Thank you.
02:48:24.85	Mr. City Clerk	Thank you.
02:48:24.90	Unknown	Thank you.
02:48:24.97	Mr. City Clerk	Thank you.
02:48:26.45	Hank Baker	Four quick things. One, the things that the city manager brought up are standard elements in almost any commercial lease. There are many, many private industries, private companies that are leasing commercial buildings all the time. And there are things that are done in those leases all the time. You don't need to develop a new lease.
02:48:48.19	Hank Baker	We've been thrashing around about this question now for a while. Just like you don't take the cheapest attorney, here you get the most qualified. You don't hire the least expensive controller, you get the one that's the most qualified.
02:49:05.13	Hank Baker	There are wonderful brokers here in town that know this city really, really well.
02:49:09.64	Hank Baker	Yeah, they're going to charge a little bit more money. They're probably going to get you more money, but they're going to come to you with a completely digested proposal that you can take a look at rather than you guys have a lot of other things to do other than become commercial brokers.
02:49:28.05	Hank Baker	Hire the commercial brokers, pay them what they're worth, and you're going to get the value.
02:49:32.85	Hank Baker	And a number of the companies I work for, this is regarding nonprofits, basically the basic lease is the market rate for the nonprofit. And the discussion at the city council level is what type of donation is the city going to give them that will reduce that lease down to something less. And so all of a sudden the thing that you're looking at is not casting about subjectively with what are you going to charge all these different folks, but you're going to say, okay, the city is going to donate $5,000 to this group because we think it's a great idea. We're going to give $2,000 to this group. And it's very, very clear about what you're doing.
02:50:13.67	Hank Baker	the final thing is that you have a bunch of excess properties that we're not talking about lease that are just sitting around doing nothing
02:50:19.87	Hank Baker	put together a proposal for those
02:50:22.48	Hank Baker	Approve them for what you want and go out to the marketplace and sell them. Get rid of get rid of them.
02:50:29.50	Mr. City Clerk	Lorna Newlin
02:50:38.18	Lorna Newlin	Hello, my name is Lorna Newland. Hello, City Council, City Manager. I saw you all last week during the Sister City delegation.
02:50:45.75	Lorna Newlin	I am a 30-year resident, homeowner in Sausalito, 22 years of a small business owner, and it might sound like a nonprofit. It's not easy to have an art business in town, but I have survived for 22 years, even through the COVID years. The last 19 years, I have rented at the old MLK school, the bus barn. And I will say in my first 15 years there, I probably had 12 different property managers. Since COVID, and some of them were
02:51:19.32	Lorna Newlin	interim from HR or park and rec or a contractor who had an accident. And we really haven't had a property manager for four years.
02:51:29.50	Lorna Newlin	Um, I,
02:51:31.33	Lorna Newlin	came tonight because I was going to speak about the SCA, which I still can, but I wanted to talk about, this is about our rents and they're all in there. And I will say there's some inaccuracies in there. I'm seeing people or entities that are listed as nonprofits, and I don't believe they are,
02:51:48.23	Lorna Newlin	I know City Council had questions about
02:51:52.82	Lorna Newlin	Why are the nonprofits, you know, you're not looking right now at square footage. Some of us who are artists have like a postage stamp versus the Lise, which is a very huge entity. And one of the things I'm very worried about as a renter, and I would love I could go on with more, and I'd love to talk to city staff about inaccuracies in there. But I learned on next door, not from the city, that there's perhaps 181 unit building that's going to be right on top of the Basque Barn.
02:52:22.89	Lorna Newlin	And I...
02:52:24.46	Lorna Newlin	The working waterfront is putting a kibosh on the Marin ship, but we have a working
02:52:30.18	Lorna Newlin	I've been there 19 years. There are tenants there who've been there over 30. And I've taught adults. I've taught children. And I have donated to every nonprofit in town. Thank you.
02:52:40.71	Mayor Kamele	Thank you.
02:52:40.83	Mayor Kamele	Thank you.
02:52:42.95	Mayor Kamele	Anyone else? No further public speakers. All right, we'll close the public comment. Any discussion here from the Diocese? Councilmember Cohen.
02:52:49.15	Unknown	Great, thank you. I was a big fan of this coming, so thank you for putting on the agenda. Some suggestions, city manager for the grid. I and Lorna just mentioned this. I think the grid needs to be updated to show total square footage of city-owned land overall, and then the revenue per square footage so we understand
02:53:10.78	Unknown	the postage stamp may be paying way more than another larger property. And so, yes, the lease A brings in a lot of money, but it is a very, very large lease. So let's make sure we understand it. I also think that this policy needs an element of risk management review.
02:53:26.74	Unknown	And that's everything from our own policy for maintenance and reviewing the lease terms and reviewing
02:53:33.68	Unknown	whether or not we're actually collecting the rent. So I think this needs to undergo that aspect as well. And so then on the topic of city responsibility, I think the city needs to have regular audits. This was mentioned, a leasing agent for best practices and consistent lease termination terms. So we can't see a lease that's a 50-year lease and then one that's a one-year lease, unless there's some reasonable assessment as to why it is along those lines. So that someone knows, yeah, I can rent from the city of Sausalito and this is normally what I'm going to get. It's going to be a five-year term. It's going to be, on average, this square footage.
02:54:11.51	Unknown	What is wholly missing, though, from this exercise and what I think this group needs to have a strategic session on is the methodology. What are the objective standards for review and decision making? So a for-profit, that seems a little bit easier. Does it align with our value? Sure. That was a comment made. But also a regular review cadence for rent income. Are our for-profit lessees paying their rent? Are they paying it on time? And if they're not paying it on time, what is the outcome? On the non-profit, I think there needs to be some work to figure out how it aligns with a previously stated goal or purpose made by resolution by the council. So it's very easy for us to walk in here and say, we in art, we believe in history, we believe in education. MLK actually has in the ordinance 1128 that it could only be used for certain uses. That was a resolution that was made, put in writing, it was codified. We don't have that on other properties. And so therefore we engage engage in some off the cuff dais assessment of what the community needs. And I think we need some rigor around that. And if we do figure out what that is, and whether it's art history and education or other things, I think it has to have a very open RFP to say,
02:55:07.72	Unknown	THE FAMILY.
02:55:29.31	Unknown	We believe that property should be
02:55:32.04	Unknown	an art or that should be history. And now we're going to do a recall, an RFP for historical entities to take that on or for education to take that on. We have to have some guidance around that. I think it is important that the nonprofit have an ability to perform. I did a quick search. There's over 300 nonprofits registered in Sausalito. What if every nonprofit said, come and give me a subsidy, we don't have a policy for figuring out how to handle that. And then I think a regular review of the benefit to the community. We have some leases with nonprofits where there's some revenue share, but if the activity that leads to the revenue is not yet being executed despite multiple years in the lease, then the city isn't getting the rev share. And so that lease, I think, needs to be evaluated accordingly. So it's a much, I think, longer conversation. But I would say that's what's missing here is a methodology and some objective standards for review.
02:56:32.47	Mayor Kamele	Please.
02:56:34.38	Karen Hollweg	Thank you. Again, City Manager, thank you for this great start.
02:56:38.29	Karen Hollweg	I as I intimated from some of my questions have some additional
02:56:43.71	Karen Hollweg	feedback that I'd like to see come back to us.
02:56:46.56	Karen Hollweg	Um,
02:56:47.56	Karen Hollweg	In terms of the charts, I agree with Peter Van Meter.
02:56:52.74	Karen Hollweg	per square foot basis. I think we also need to understand geographic location.
02:56:58.49	Karen Hollweg	because rents for the downtown are, you know, market rate rents are obviously higher for the downtown than for the Marin ship, by way of example.
02:57:09.19	Karen Hollweg	I think another parameter we need to understand is cost to city. So we received a lot of public comment about the fact that, you know, one of our
02:57:19.35	Karen Hollweg	facilities being leased to a non-profit
02:57:22.96	Karen Hollweg	the city is still paying a mortgage on that property.
02:57:26.27	Karen Hollweg	We know that the Gene Hiller building
02:57:30.10	Karen Hollweg	required significant repairs in recent years.
02:57:35.82	Karen Hollweg	there have been other
02:57:37.37	Karen Hollweg	you know, the Madden facility required repairs to the bulkhead. And so I'd like to understand the cost to the city. We've undertaken a survey of existing facilities to understand their long-term deferred maintenance requirements.
02:57:55.97	Karen Hollweg	That's a cost of doing business. So we recently negotiated a lease with New Village School, we are required to undertake certain repairs in order to maintain the longevity of that lease. And so there's a certain cost to the city of doing business with respect to certain leases that I think should factor into
02:58:14.73	Karen Hollweg	the equation.
02:58:16.81	Karen Hollweg	Um,
02:58:17.72	Karen Hollweg	And then I agree with some of the other comments. We need to understand the mission of potential lessees, the tax status, audited financials,
02:58:31.61	Karen Hollweg	We really do need to make a decision about who's responsible for capital improvements. I don't think it's fair to require that some...
02:58:38.44	Karen Hollweg	agencies are responsible to maintain the city's buildings and others are not i would lean in favor of the city
02:58:46.24	Karen Hollweg	being responsible for capital improvements. If there are tenant improvements to customize the use of the building, then perhaps that's a tenant responsibility.
02:58:57.49	Karen Hollweg	I think our policy needs to include stronger provisions regarding enforcement and audit rights.
02:59:06.49	Karen Hollweg	Karen Hollweg, And then i've asked the city clerk to add to this agenda item the late mail that we just received from stu Stephen would side, which is some nonprofit lease guidelines so i'd like.
02:59:24.86	Karen Hollweg	you to consider some of these provisions as you put together an updated policy. These are community benefit lease guidelines, and it really does consider the
02:59:39.41	Karen Hollweg	community benefit that certain organizations provide that otherwise may not exist and for which the city would in turn offer below market support and so i think that's a really
02:59:55.51	Karen Hollweg	useful way to kind of make more objective as council member Kelman referenced this evaluation of
03:00:04.89	Karen Hollweg	potential lessees who provide a community benefit. So those are my initial thoughts on this. Thank you.
03:00:11.89	Mayor Kamele	Any other comments?
03:00:13.31	Mayor Kamele	Vice Councilmember Blofsteen.
03:00:16.69	Unknown	Thank you, Mayor. Great comments from my colleagues, and I would agree with all of the points that were made by Councilmember Kelman and Councilmember Cox in terms of how we look at this. And thank you, City Manager, for starting a discussion of what our policy is going to be with regards to our leases. I think it's challenging when we have 37 different leases within our portfolio in different locations all over town. so the direction requested by council members cox and Kelman about what should go in the table with regards to location and current leases is very important. The only thing I would request that we add that I did in here is that we do do a market assessment of all of our properties in particular whenever we're negotiating a new lease. So if we're if we a new location becomes available we need to make sure that we do have an understanding of what fair market rate is and then a process that we go through to evaluate what rent are we going to offer dependent upon who the lessee is and what does that look like. And actually, I think we're probably overdue for doing a general. We've all asked for this from the dais before, and I don't know if this will be part of this conversation, this specific policy or not, but we have all asked for an appraisal of our existing real estate portfolio as well, because I don't think that we know the fair market costs for all of the total real estate. So I would like to see that considered too. And I think this is a good beginnings of figuring out what the best practices for our city leased. And I'd also like to suggest perhaps we used to have an OMIC committee to discuss in particular the city leases and rents that was disbanded a few years ago, but perhaps that might be something we need to take up again just to make sure that someone is from the council is actively monitoring the statuses of these leases.
03:02:01.67	Councilmember Hoffman	Well, I think I'm trying to look at, I don't, were you saying that, were you suggesting, I'm sorry, Vice Mayor Cox, were you suggesting that we incorporate Mr. Woodside's email and his guidelines because his, you know, his own email says it's a very rough draft.
03:02:19.03	Karen Hollweg	So I'm not just that the city manager take them into consideration as he provides us with an updated draft as a possible approach for considering how to evaluate community benefit and the appropriate BMR below market rent.
03:02:19.66	Councilmember Hoffman	I'm just.
03:02:36.33	Karen Hollweg	consideration that the city might undertake.
03:02:39.84	Karen Hollweg	Okay.
03:02:40.38	Councilmember Hoffman	Thank you for clarifying that. Yeah, so I'm just a little bit
03:02:43.90	Councilmember Hoffman	just because I've had a chance to look at this and no one else has either before this meeting. So
03:02:48.51	Councilmember Hoffman	with regarding Mr. Woodside's email.
03:02:50.43	Councilmember Hoffman	I have no objection to taking any public comment that's made at a city council meeting into consideration. But I don't want it perceived that we're directing the city manager to follow some directive by a member of the public who emails us an email during the meeting. So just with that caveat, that's the way I heard it. So thank you for that clarification. OK, so my other question was with regard to
03:03:21.72	Councilmember Hoffman	you know, policy considerations going forward for, um, city owned properties with regard to profit versus nonprofit. And I think, um, I think we've had a really good discussion and I think maybe a first discussion that we've actually had where this is articulated and discussed amongst the council about whether or not we want to treat nonprofits differently than for profits and how do we define a nonprofit? So there,
03:03:48.18	Councilmember Hoffman	Part of that consideration discussion is there's different kinds of nonprofits. Some are
03:03:53.12	Councilmember Hoffman	very well run businesses and they pay their directors very well and they're not really in the
03:03:59.98	Councilmember Hoffman	in the not what we're kind of I think leaning toward the nonprofit category. So I, you know, I want us to pay attention to that too, as part of our discussion with regard to how we evaluate our leases. And of course we look at what our current, in any given time, what our current financial situation is as a whole across the city before we start reducing expected rents from fair market to something below fair market for something other than
03:04:32.85	Councilmember Hoffman	you know, for something other than a financial analysis, depending upon where we are as a city. So I,
03:04:40.59	Councilmember Hoffman	I don't know. I'm not saying it probably very well right now, but when we're talking about policy discussions and we're talking about rent negotiations, I think that has to be part of our
03:04:50.91	Councilmember Hoffman	part of our discussion as well. I think with regard to the OMIC committee, I think the thought was that we disbanded that because it just created another administrative layer, and we were trying to offload some of those
03:05:06.94	Councilmember Hoffman	aspects that the OMIC committee was taking on when really it should be addressed by a professional like a commercial real estate and that's why we are trying to move more toward as mr. Baker pointed out you know people are more skilled in these things and have more basic knowledge as opposed to council members trying to get up to speed and understand you know the complexities of commercial leases which principally most of these things are most all these things are so
03:05:34.93	Councilmember Hoffman	I,
03:05:36.15	Councilmember Hoffman	I think the way that we do it now, which is the whole council's apprised. We have a professional look at it. The whole council's apprised. We go to closed session. We talk about negotiations in closed session and take our advice from our commercial experts as consideration during those closed session discussions and negotiations, which I think is the appropriate way to approach the lease negotiations for city-owned properties.
03:06:10.66	Mayor Kamele	Yeah.
03:06:11.80	Mayor Kamele	No other comments? I'll close this item and we'll move on to item 5B, consideration of staff recommendation to amend the South Slito Center for the Arts existing lease. From $11,095 per month to $8,058 per month with an annual CPI escalator effective December 1st, 2024. Mr. City Manager.
03:06:29.08	Mr. City Manager	Yeah.
03:06:29.74	Mr. City Manager	I'll be quick. It's late. I don't want to hurry through this, but just a little background. You know, this building was purchased by the city in 2020.
03:06:37.89	Mr. City Manager	The city obviously sought input from the community on what it should be used and sought proposals for the property itself. In those proposals, the selection of the Saucyos Center for the Arts was agreed upon by the city council, and an agreement was executed with the Saucyos Center for the Arts on August 19, 2022. That agreement was negotiated by a contract professional with city council guidance. And so that particular agreement really had some eyes on it that involved, you know, not city staff and not the only committee. It was actually done by Mike Wagner concert with the city council and city management and finance department.
03:07:22.02	Mr. City Manager	In that agreement, there were various milestones and responsibilities that SCA had. One of the things that it called for was at the end of 18 months that there would be rent up to beginning at $4,029, beginning the first day and year of the lease or month of the lease. And then at 18 months, it would ramp up to $11,096 in change. In January the City Council under request for future agenda items was asked to put this on the agenda. It was put on the agenda the following February and the City Council heard a request from SEA to freeze the amount, not increase the amount of the lease to $11,096.25. At that time, as they did this time, they provided a host or slew of information on community and economic impact as a result of programs and activities and events. And this year's information is linked to the staff report, which is included in the packet.
03:08:29.86	Mr. City Manager	At that meeting, the City Council granted a six-month extension and direct staff to bring this back for review at the end of that six-month period. That six-month period is upon us. So as part of that process, there were discussions held between myself and the SCA leadership, talking about what it is that made sense to staff. And again, that's part and parcel to this process is staff reviews, makes recommendations, and then city council acts on them or doesn't. So the one thing that the city council did by deferring the lease for six months was save SCA $42,403.50. That was the savings to the nonprofit. At the same time, by deferring that revenue, it cost the city $42,403.50 because we anticipated the lease going up to $11,000 after 18 months.
03:09:29.73	Mr. City Manager	So one of the things that drives the thinking and my thought process on this is the idea that we borrowed money to acquire the building. We have a debt service we make on the building. That's about an average of one hundred and fifty seven thousand dollars a month for the next year. One hundred fifty seven thousand dollars a year, not a month for the next 10 years. And so, you know, that is something that drives the thought process in my mind. In addition, when the city negotiated the purchase, they obtained a $24,000 a year payment from Bank of America for keeping the automated teller machine there. So that's part of this whole revenue analysis in my mind. And so one of the things that I believe is
03:10:17.25	Mr. City Manager	as I said in February of 2020, is the rent should not stay at $4,000, but it should not go up to $11,000. I think there are some offsetting factors that, to me, let me arrive at a number. But before I get to that recommendation, which the mayor read in his presentation, I'm going to ask Chad to come up. I've received requests from the council to take a look at staff to analyze what is a counterproposal from the SEA board, which was received yesterday and addressed to the full council. And the public may not be aware of it, but it proposes a flat rate of $6,000 for the next 10 years, in addition to keeping most of the other lease language intact. So Chad, can you do some history on the finances of that as well as your analysis of that particular offer by the SA Board?
03:11:23.65	Chad Hess	Alfred, I'm going to, well, I'm going to join, or if you want to advance the slides, that would be fine too.
03:11:29.86	Chad Hess	The PDF is in the folder.
03:11:33.66	Chad Hess	So what we are bringing forward tonight, and I believe we're attached to the agenda as a late attachment, was the analysis that we did back in February 20th of 2024. At that time, we looked at the comparison of the debt service payments to the – that's not –
03:11:53.03	Chad Hess	That's not the slide.
03:11:54.11	Mayor Kamele	Want to join Chad so you can control your slides?
03:11:54.45	Chad Hess	Thank you.
03:11:56.63	Chad Hess	Yeah, let me try to do that.
03:11:59.97	Chad Hess	It's a PDF that's in that peak folder.
03:12:04.14	Mayor Kamele	Why don't you just join Jed, or at least try to while Mr. City Clerk is sorting it, and whoever's first wins.
03:12:11.95	Councilmember Hoffman	Sorry, can I ask just a clarification? Is that currently, whatever it is you're looking at, is that attached to the agenda?
03:12:20.08	Kate Carlson	It should be.
03:12:21.16	Councilmember Hoffman	Okay.
03:12:21.53	Councilmember Hoffman	Anybody know what attachment it is?
03:12:25.05	Councilmember Hoffman	I have draft policies one. Oh, wait, wait, sorry.
03:12:30.58	Councilmember Hoffman	So I have SCA letter with web links. I have the Sussle Center for the Arts lease. I have the presentation number three, but I think that's the city managers.
03:12:40.01	Chad Hess	Walford, did that get attached to it?
03:12:42.06	Chad Hess	the item that I sent you this evening?
03:12:46.14	Chad Hess	I am in the Zoom, if you can promote me to a panelist.
03:12:48.96	Mayor Kamele	Can you just make Mr. Hess a panelist, Mr. City Clerk?
03:12:56.50	Mayor Kamele	and we'll take it from there.
03:13:06.88	Mr. City Manager	Well, that's getting set up. You know, one of the things that I didn't reference, but I want to reference is the idea that
03:13:12.82	Mr. City Manager	SCA conducted a survey, over 500 people, so that they could get some data to provide to the city council as part of the link that is attached to the staff report from them. It indicates where they believe there's some economic impact on parking, some economic impact on sales tax. And so the economic impact was part of this proposal in terms of considering a new lease amount. So the one thing that was not part because it was late was this proposal for a flat $6,000 a month. So we're trying to figure out some analysis on that so there could be some real-time discussion on it. Chad, I asked Chad to put that together so that we could present it tonight as well.
03:14:03.55	Chad Hess	All right. So this is the presentation that we brought forward February 20th of 2024, where we talked about the definitions, debt service, carrying costs, opportunity costs, et cetera. Let me mute my computer here.
03:14:18.44	Chad Hess	Okay. If I go forward to this slide here, this was the slide that was presented February 20th. The green bars represent the principal.
03:14:28.54	Chad Hess	The blue represents the interest combined. That would be the total debt service on the building.
03:14:33.43	Hank Baker	.
03:14:34.24	Chad Hess	The orange line represents the cumulative rents between SEA at their $4,000 per month, plus the $2,000 that we are receiving from Bank of America for their ATM lease. On this slide, you can see that the rents cover the interest component of that loan, plus some of the principal. It does not cover all of the debt service payments.
03:14:59.08	Chad Hess	This is the slide that I added and unfortunately let me make that table a little bigger so people can see it. My apologies. My apologies.
03:15:10.84	Chad Hess	On this chart here, it's basically the same table as before, but I've added some additional scenarios.
03:15:17.64	Chad Hess	The purple line would represent rents at the full rate, the $11,095. And you can see here that that would cover the entire debt service payment, principal and interest if that was to go into effect. Again, you can see the yellow line, which represents the $4,000 rents, $4,029 as a fixed amount for the remainder of that debt service.
03:15:44.71	Chad Hess	And then also I did evaluate on that blue line, the rents proposed by city manager of $8,058.50. That does include a CPI increase based upon the stated CPI. I used a 3% as a representation, and you can see that there the rents are increasing over the life of that term.
03:16:06.02	Chad Hess	I did not bring in the $6,000 line, but I think we can all visualize that that would be between the orange line and the purple line.
03:16:15.15	Chad Hess	If it's 6,000 flat, it would be a flat line similar to the orange line, but slightly above.
03:16:22.10	Chad Hess	So again, under the $6,000 scenario, it does not cover the entire debt service payment. It does cover all of the interest expense on that parcel or that property, as well as city manager's recommendation. It would, again, cover all of the interest and a good portion of the principal expense
03:16:39.54	Chad Hess	of that note.
03:16:41.00	Chad Hess	So the rest of the slide is it should be being attached to the agenda is is identical to what we had in the past. It presented February 20th.
03:16:51.92	Chad Hess	So.
03:16:53.29	Chad Hess	I'll open that up for questions.
03:16:54.93	Unknown	Chad, the city manager made a comment about lost revenue. So I think the way the city manager framed it was SCA saved $42,000.
03:17:06.77	Unknown	we lost 42,000
03:17:09.69	Chad Hess	Yep. We forego, we forego or baited that revenue, if you will.
03:17:14.43	Unknown	And what time frame was that?
03:17:16.19	Chad Hess	So that was the six months that we did not increase their rent to the full $11,000. So it would have been in effect from, I believe, March's rent was when the escalation was scheduled to go.
03:17:27.38	Chad Hess	through current.
03:17:28.95	Unknown	and how they're asking for a flat six
03:17:32.34	Unknown	Okay, for how long?
03:17:33.50	Chad Hess	for the remainder of their lease, is my understanding.
03:17:35.76	Unknown	Well,
03:17:36.41	Chad Hess	I think it was a five year lease that we originally signed with them.
03:17:40.19	Mr. City Manager	15.
03:17:41.30	Mr. City Manager	Say that again. It's a 15-year lease.
03:17:43.81	Chad Hess	15-year lease.
03:17:44.69	Unknown	And did you happen to do any modeling on what
03:17:49.26	Chad Hess	Say that.
03:17:49.38	Unknown	What $84,000 lost or foregone per year over 10 years, not invested at an average, let's say, treasury bond rate of 5%, what loss that would result in or what foregone profit that would result in for the city?
03:18:05.75	Chad Hess	I have not done that. I don't have that available at this point.
03:18:08.84	Unknown	OK.
03:18:11.32	Unknown	Did you, were you going to go through the,
03:18:15.40	Unknown	the counter offer in any sort of detail. I'll just, because we talked about parking a little bit,
03:18:22.58	Unknown	Um, you want to say anything about the parking revenue?
03:18:25.58	Chad Hess	So the parking revenue that they, in their letter that they sent in, they are claiming that they are increasing parking revenue, sales tax revenue, TOTs, etc. I did have some of the opportunity to look at their parking and their sales tax assumptions. Those are the two larger items that they are bringing forward. Looking at our parking revenues for fiscal year 23 to 24, there was an increase of about a half a million dollars in total parking revenue over that period of time from 23 to 24. I don't believe that SEA is responsible for all of that increase, but I would attribute some of their increase to it. I believe in their analysis, they were claiming about 49,000 of revenue was generated through their guests' parking in the city's parking lots.
03:19:15.99	Chad Hess	I feel that is a reasonable assumption based upon the number of participants or users that they are bringing to our community.
03:19:23.16	Unknown	So this property was purchased in July 2020, but in 2019, the parking revenue was exactly the same, plus or minus 20K. Sure. From what...
03:19:31.90	Chad Hess	Yes.
03:19:35.14	Unknown	we saw this past year, how would you account for that number in 2019?
03:19:37.47	Chad Hess	Yeah.
03:19:39.24	Chad Hess	So, you know, 2019 was right before COVID. We did take a dip in parking revenues, a substantial dip in 2021, and it has been recovering ever since. So there is some COVID bounce back. I agree.
03:19:52.86	Unknown	Arguably, this appears to be the same as what we had before COVID.
03:19:55.94	Chad Hess	Well, I think it would be hard-pressed to argue that SCA is not driving an increase in parking revenue. They are bringing people to town, and I would imagine that they are parking in our parking lots.
03:20:05.18	Unknown	Okay.
03:20:06.93	Unknown	I'm just looking at it.
03:20:07.83	Chad Hess	Thank you.
03:20:07.98	Chad Hess	Yes. So you are correct. 2029 revenues, 2019 revenues were comparable to 2024 revenues.
03:20:09.83	Unknown	in 2019.
03:20:13.06	Unknown	WORKING.
03:20:15.69	Unknown	And 2018 was only $100,000 less.
03:20:15.71	Chad Hess	Thank you.
03:20:18.79	Chad Hess	I'm just looking at what you said. Yeah, I believe that's what I said to you.
03:20:19.25	Unknown	I'm just looking at what you said.
03:20:21.38	Unknown	So I'm just looking at data. I don't see any hint of correlation. Okay. Thank you for that.
03:20:22.81	Chad Hess	Yep, fair.
03:20:26.64	Mayor Kamele	Welcome.
03:20:28.97	Mayor Kamele	Okay. Go right ahead.
03:20:31.72	Mayor Kamele	That's
03:20:32.01	Karen Hollweg	I had a question for the city manager. So for those of...
03:20:32.04	Mayor Kamele	I don't know.
03:20:38.15	Karen Hollweg	you who are in the audience and are looking at the city council agenda with numerous public comments, the letter that came in from the SCA isn't under SCA. It's actually under Kit Hayes. So just for reference, anybody who wants to see the proposal that the council received yesterday from...
03:21:01.86	Karen Hollweg	the SCA is under public comment under Kit Hayes.
03:21:07.23	Karen Hollweg	And it's my understanding from
03:21:11.14	Karen Hollweg	correspondence and conversation with the SCA that
03:21:15.09	Karen Hollweg	the 8000 proposed by the city manager is infeasible and financially for the SCA and so and we obviously received numerous comments asking us to ensure that the SCA continues and so my question is for the city manager city manager
03:21:34.65	Karen Hollweg	Assuming you raise the rent to 8000 as you recommend and the SCA is unable to make that payment and goes out of business. What is the cost to the city? How long would it take for the city to
03:21:48.60	Karen Hollweg	find a new tenant,
03:21:50.00	Karen Hollweg	what,
03:21:51.12	Karen Hollweg	is the market like out there for new tenants? What's the financial cost to the city of bearing this $157,000 per year carrying cost?
03:22:02.96	Karen Hollweg	Yeah.
03:22:03.88	Mr. City Manager	Good question, Vice Mayor. Thank you. The real question would be who could fill the space if the SCA was not there? My recollection is we received proposals from different groups, and the proposals were varied in their approach, but there was definitely interest. My first thing would be to go back to that group and see if there's still an appetite to come to Sausalito or use that building in terms of you know what the market is my next step would be to go out and hire somebody to go out and push the property to see who is out there so how long that would take I'm not sure one month two months three months
03:22:48.26	Karen Hollweg	It seems to me as though the RFP, and I was not on the council in 2020, that's why I'm asking you these questions. Seems to me that the RFP process was longer than two or three months in 2020. And I also seem to recall that the second most favored proposer had a lengthy ramp up period for their proposal. Do you recall any of the specifics of that? Uh,
03:23:09.81	Mr. City Manager	Thank you.
03:23:10.01	Mr. City Manager	Vaguely, but I think you're correct that the selection was made is because SCA could come in and fill the building and pay rent immediately, and the other group needed some time to build up to what they thought they could do. I don't know. Maybe it was Council Member Hoffman, and I don't know who else was on that committee that evaluated those with the council.
03:23:28.86	Councilmember Hoffman	It was Mayor Sobieski.
03:23:30.46	Mr. City Manager	And who else, Mayor, who was with you on that committee?
03:23:33.70	Karen Hollweg	And then in reviewing some of the correspondence I saw,
03:23:38.56	Karen Hollweg	an overview that the initial
03:23:42.59	Karen Hollweg	Um,
03:23:43.79	Karen Hollweg	lease draft with the SCA proposed a rent of $4,000 a month. And then
03:23:50.31	Karen Hollweg	Somehow during the negotiations, that changed, and the rent went from $4,000 to $11,000 after 18 months. Do you recall...
03:24:00.77	Karen Hollweg	the process and why such an extraordinary change in the rent from the initial draft lease between the city and the SCA? Yeah.
03:24:11.28	Mr. City Manager	So that's accurate. There was conversation just documented that was, you know, a $4,000 a month rent increase. The council at the last minute said that's not going to pass. That's not going to meet muster. So we're willing to lease you the facility with this 18-month ramp up, keeping it at $4,000. And, you know, the SCA board signed the lease. So that $11,000 amount was slated for 18 months to give them the time to get up to that amount. There were different projects contemplated that were thought that potentially generating revenue that could help service that amount. Unfortunately, you know, one of them was a rooftop facility, didn't pan out. And so here we are with a signed agreement that says $11,000 a month is what's due. We've deferred that for six months. And now the question is, you know, on a go forward basis, are you going to continue to defer that or are you going to continue to or adhere to the terms of the lease that was signed? My approach was $11,000 was the number that the council agreed to, $8,000 of money from SCA, $2,000 from the teller lease was $10,000, and then the parking revenue and sales tax revenue, I could account for $1,000. They're easy. So that's how I came up with the $8,000 numbers backing out from the the 11,000 numbers that the council adopted in 2020, 2021, when that lease was signed.
03:25:42.59	Karen Hollweg	So is it fair to say that when the SCA agreed to an $11,000 a month lease rate, they were expecting to share that with a co-tenant, to share that obligation with a co-tenant?
03:25:53.04	Mr. City Manager	That was part of the discussion.
03:25:56.26	Karen Hollweg	And in evaluating a rooftop facility, did you encounter some engineering and architectural challenges?
03:26:06.62	Mr. City Manager	That wasn't my work. That was the work of the SCA folks. I heard bits and pieces that that was going to be a challenge, but the specifics of it, you'd have to ask them.
03:26:20.48	Karen Hollweg	Do you recall having a conversation with Larry Mendel about having to invest $10 million in order to create that rooftop facility?
03:26:30.79	Mr. City Manager	I had a conversation with him regarding a project in San Jose that soured his appetite on moving forward with the project in Sausalito. That's the conversation I had with Mr. Medell and his son.
03:26:44.14	Karen Hollweg	And so is it fair to say that circumstances have significantly changed since the lease was initially negotiated with SCA?
03:26:52.88	Karen Hollweg	I'm not sure.
03:26:52.99	Mr. City Manager	the lease has not changed.
03:26:56.10	Karen Hollweg	I'm clear on that, but the underlying circumstances.
03:26:57.65	Mr. City Manager	Underlying circumstances. And so, yeah, there are obviously the use of the rooftop fell through, and so you have a challenge, and that's what's been voiced very loudly and clearly by the folks at SCA as well as people in the community as to why you should not do that. On the other hand, you have people saying a lease is a lease is a lease was signed, but ultimately the decision has to be made by you all. And my approach was to try to create some type of splitting of the issues, revenue at 8,000, relief of 3,000 over the life of the lease, I thought would have been something that was workable. But again, it's your call.
03:27:40.68	Mr. City Manager	Yeah.
03:27:41.63	Karen Hollweg	Thank you, city manager.
03:27:43.48	Mr. City Manager	I do.
03:27:43.64	Mayor Kamele	Bye.
03:27:43.75	Mayor Kamele	Thank you.
03:27:43.77	Mr. City Manager	Yeah.
03:27:43.79	Mayor Kamele	Thank you.
03:27:43.84	Mr. City Manager	which,
03:27:43.97	Mayor Kamele	you
03:27:44.70	Karen Hollweg	Thank you.
03:27:44.80	Karen Hollweg	Yeah.
03:27:44.97	Jonathan Leon	Thank you.
03:27:45.19	Mayor Kamele	Pastor Member Hoffman?
03:27:46.25	Chad Hess	Yeah. Can I just clarify real quick? The initial term of the lease is 60 months, five years, and there is a one option for an additional 60 months under the initial lease. So a 10-year total. 10-year total. That's my right.
03:27:56.24	Kevin McGowan	you're not.
03:27:56.29	Councilmember Hoffman	I can't remember.
03:27:56.60	Kevin McGowan	Thank you.
03:27:56.61	Mayor Kamele	Rob.
03:27:56.78	Chad Hess	Thank you.
03:27:56.83	Mayor Kamele	Thank you.
03:27:56.85	Chad Hess	Thank you.
03:27:59.58	Councilmember Hoffman	Um, so, um, city manager, I have fundamental question. I'm not really clear why we're negotiating this lease and open station, open session as opposed to closed session, which is our normal practice. And.
03:28:12.71	Councilmember Hoffman	is our normal practice on all of our other leases. So
03:28:15.31	Councilmember Hoffman	Why is it that we're here today
03:28:17.57	Councilmember Hoffman	talking about this in open session and and
03:28:19.93	Councilmember Hoffman	evaluating counter offers that we got yesterday.
03:28:23.80	Mr. City Manager	Yeah, I'm happy to address that. And, you know, I'll go back to this. When this was brought before the council and asked to be brought before the council, there was no closed session discussion about it in February. It was brought into the council as an agenda item on the open session. So to come into a council meeting and have this in closed session, to me, would be bad optics. You know, what are you doing in a closed door on something this important to the community? So So you know, given what you did in February, I just replicated that for this month or this time. You know, you can do that right now. You can say, we don't want to have a discussion any longer.
03:28:59.98	Mr. City Manager	call the discussion and ask us to go into closed session next meeting. That's your option. You can do that. So if I misread the lay of the land by looking at what you did for the first part of this, Lisa, the first discussion and trying to make sure that there wasn't a scuttle about the city, trying to make a deal behind closed doors in a closed session and coming out and telling the community what it is they were going to do. That's what I try to avoid. And that's why you have it in open session right now.
03:29:25.59	Councilmember Hoffman	But thank you.
03:29:25.90	Mr. City Manager	Thank you.
03:29:26.35	Councilmember Hoffman	Yeah, thank you for that. I think we probably need to discuss that during our discussion. I certainly don't want to go down this road with any other large leases that we have that serve populations in Sausalito, such as the school leases that we just did, or such as the cruising club that we just talked about, or some of the other clubs and things that we lease to. So I'm curious about how this got on open session for negotiation and consideration. We don't have the benefit of our commercial real estate agent to advise us on this. My next question leads straight into then, what is the fair market value for the Center for the Arts?
03:30:07.78	Councilmember Hoffman	Just on the open market, do we have a fair market value assessment for it?
03:30:11.51	Mr. City Manager	So we have a number that was provided by Cushman Wakefield of $3.21 a square foot. That's my recollection.
03:30:19.34	Councilmember Hoffman	And what is it, what are they paying now under the lease amount of $11,000? How does that break down per square foot?
03:30:31.59	Mr. City Manager	They got a calculator.
03:30:33.01	Mr. City Manager	Thank you.
03:30:33.04	Mr. City Manager	We don't.
03:30:33.25	Councilmember Hoffman	the Wells Fargo building. Yeah, I mean, these are reasonable questions, I think, that we need to know and the public needs to know.
03:30:33.35	Mr. City Manager	that Will's Sparkle building.
03:30:38.33	Chad Hess	So it's 5,725 square feet.
03:30:48.03	Unknown	That director has 5,000.
03:30:51.03	Unknown	Thank you.
03:30:58.44	Unknown	Director Hess, do you happen to know how much the Wells Fargo building sold for?
03:31:05.31	Mayor Kamele	I do not know.
03:31:07.11	Mayor Kamele	I appreciate the question. I'm just trying to let Council Member Hoffman have the floor for questions until she's done just to try to keep some order. So I don't know.
03:31:13.73	Councilmember Hoffman	So I don't know if anybody finished the math on that.
03:31:16.30	Mayor Kamele	18,000.
03:31:18.37	Councilmember Hoffman	Okay, so that's 18,377. Okay, close up. I'll give you the 25 cents. So, okay, so we have a calculated fair market value up here today on the dais. Who knows if that's correct or not, but I'll go with it. It's 18,000.
03:31:34.18	Councilmember Hoffman	377
03:31:36.46	Councilmember Hoffman	per month. So that's a fair market rent.
03:31:38.82	Councilmember Hoffman	So the eleven thousand square, the eleven thousand dollar a month
03:31:43.99	Councilmember Hoffman	rent that we negotiated with the lease.
03:31:46.50	Councilmember Hoffman	was to cover the debt service
03:31:48.83	Councilmember Hoffman	on the um on the loan on the loan and the principal the whole debt service
03:31:55.80	Councilmember Hoffman	On the loan.
03:31:56.69	Councilmember Hoffman	And that was a hotly negotiated number amongst this council, whoever was sitting on it at the time.
03:32:04.25	Councilmember Hoffman	to provide a break to the Center for the Arts. And that was the floor.
03:32:09.50	Councilmember Hoffman	not to go below. And so I'm concerned now that we're talking about going below.
03:32:13.92	Mayor Kamele	I'm sorry to interrupt you. Just to go to the hour, can we try to focus on a tight question and then we'll have discussion afterwards? I think those are very fair points. I just want to try to move along with focused questions so we can move on.
03:32:21.38	Councilmember Hoffman	So let me just, okay.
03:32:23.96	Unknown	Bye.
03:32:23.98	Councilmember Hoffman	Sure.
03:32:25.77	Councilmember Hoffman	So,
03:32:26.34	Councilmember Hoffman	Thank you.
03:32:26.76	Councilmember Hoffman	So are you aware that we arrived at the $11,000, either one of you, city manager or Chad, the $11,095.25. We arrived at that because that was to cover the debt service on the loan, Inc.
03:32:44.72	Councilmember Hoffman	In addition to that, we plussed up to the ATM lease.
03:32:49.70	Chad Hess	Correct.
03:32:49.97	Councilmember Hoffman	And so those two things together help us hit the minimum debt service on the loan.
03:32:54.46	Chad Hess	Thank you.
03:32:54.47	Andrew Davidson	Thank you.
03:32:54.49	Chad Hess	That is correct.
03:32:54.78	Councilmember Hoffman	So every month that we don't make the minimum debt service on the loan, which is the $11,000,
03:32:54.96	Andrew Davidson	So,
03:33:00.53	Councilmember Hoffman	$95.25.
03:33:03.60	Councilmember Hoffman	that money's coming out of our general fund.
03:33:06.45	Chad Hess	The general fund is loaning the Bank of America fund these dollars until that loan is paid back and then the revenues subsequent that loan would pay back the general fund. We're keeping track of the loan, the interfund loan.
03:33:18.39	Councilmember Hoffman	And the original lease was always 11,000 a month, but they received a rent reduction for the first 18 months.
03:33:28.51	Chad Hess	That's my understanding. Yes.
03:33:36.29	Councilmember Hoffman	So,
03:33:38.36	Councilmember Hoffman	Currently,
03:33:40.59	Councilmember Hoffman	for the last six, I did it for actually annually. So the difference between
03:33:46.13	Councilmember Hoffman	$11,029.
03:33:48.15	Councilmember Hoffman	$11,029.23 $11,029.23
03:33:51.19	Councilmember Hoffman	and 4,029
03:33:53.35	Councilmember Hoffman	23.
03:33:54.58	Councilmember Hoffman	is a loss of about 7,000 a month that we're paying.
03:33:59.36	Chad Hess	That we're forgoing, yes.
03:34:00.57	Councilmember Hoffman	Yeah. And then, um,
03:34:03.09	Councilmember Hoffman	So I just did an annual calculation
03:34:06.51	Councilmember Hoffman	For a year, that's $84,792 per year. And for two years, which now it's been two years, it's $169,584.
03:34:21.36	Councilmember Hoffman	Okay. Next question.
03:34:23.18	Councilmember Hoffman	He's saying yes. He's confirming my math, which we all like to confirm. And so if we go down to $6,000 a month per rent, it's $5,029 per month.
03:34:36.58	Chad Hess	Let me confirm. Okay. I'm just.
03:34:37.29	Councilmember Hoffman	okay I'm just looking for the I'm just looking for the analysis so that if we're going to talk about reducing the rent we understand and know monthly and annually what that's going to cost the
03:34:49.07	Councilmember Hoffman	regardless of other numbers that we've talked about today.
03:34:54.29	Chad Hess	Yeah, we're at $60,000 from an annual perspective.
03:34:57.58	Councilmember Hoffman	And if we go down, if we go to 8,000, it's 36,348. 3,092 a month and 36,348.
03:35:11.35	Chad Hess	Yes, 37,140.
03:35:14.38	Councilmember Hoffman	So this is a question for, I think, for the city manager. So let's say we thought about something along the lines of, oh, let me ask you this, sorry.
03:35:25.01	Councilmember Hoffman	Let me just say this first.
03:35:26.89	Councilmember Hoffman	I understand that when it became clear that the Center for the Arts was not going to be able to cover their negotiated lease, that you sat down and talked with them and offered them other spaces in Sausalito, is that correct?
03:35:36.69	Mr. City Manager	Say that again.
03:35:37.84	Councilmember Hoffman	that when it became clear that the Center for the Arts was not going to be able to meet their 11,000 and whatever it is a month rent, that you sat down with them and offered them other spaces in Sausalito, is that correct?
03:35:49.84	Mr. City Manager	You have that twisted.
03:35:51.61	Councilmember Hoffman	Oh, well, untwist it for you. Happy for you to untwist it.
03:35:51.63	Mr. City Manager	Well, untwist it for you. Let me untwist it for you. Happy for you to untwist. Let me untwist it for you. I had that conversation with the Chamber of Commerce, not the Substitial Center for the Arts.
03:35:59.69	Councilmember Hoffman	Oh, pardon me. So you talked to the Chamber of Commerce about other spaces in town that they could occupy?
03:36:06.17	Councilmember Hoffman	not the Center for the Arts.
03:36:07.56	Mr. City Manager	Yes.
03:36:08.62	Councilmember Hoffman	Did you talk to anybody at the Center for the Arts about other spaces that might be available to them? Did not. Okay, pardon me for that. I misunderstood.
03:36:12.62	Mr. City Manager	did not.
03:36:17.12	Councilmember Hoffman	Are there other spaces in Sausalito that might be available to the Center for the Arts that wouldn't have the same rent implications that the current location does?
03:36:28.58	Mr. City Manager	I'm not going to make a comment on the fly, but I can research and review and see if there is.
03:36:33.34	Councilmember Hoffman	Well, that's kind of the...
03:36:34.96	Councilmember Hoffman	Thank you.
03:36:35.37	Councilmember Hoffman	That's kind of the problem with us doing this in a public forum outside of closed sessions.
03:36:38.91	Mr. City Manager	Thank you.
03:36:38.93	Mayor Kamele	outside of
03:36:42.08	Councilmember Hoffman	Isn't it?
03:36:43.47	Mayor Kamele	I mean, come on. Exploratory questions to get back so we can move along to discussion. Just a little, Josh, one of the 12.
03:36:44.02	Unknown	Thank you.
03:36:44.04	Councilmember Hoffman	Yeah.
03:36:44.09	Mr. City Manager	Thank you.
03:36:44.11	Councilmember Hoffman	Thank you.
03:36:47.77	Councilmember Hoffman	It's just an objection. We're not for trial. It feels a little like a trial. Okay, let me rephrase that.
03:36:50.00	Mayor Kamele	It feels a little like a tragedy.
03:36:54.98	Councilmember Hoffman	There are other spaces in Sausalito that Center for the Arts could occupy at a lower rent, correct? City-owned properties.
03:37:03.09	Mr. City Manager	City owned property, not off top of my head.
03:37:07.67	Councilmember Hoffman	Okay, well, if you had a chance to research it, do you think you'd come up with something?
03:37:11.31	Mr. City Manager	Yes.
03:37:19.41	Mayor Kamele	Okay, thanks. That's all I have right now. Thank you. Council Member Blavstein.
03:37:22.57	Unknown	I have a question. Just want to clarify something. We didn't acquire the Bank of America building for a fair market rate, did we?
03:37:29.00	Chad Hess	Uh, I can't opine on that. I know we bought it for just, just shy of 2 million.
03:37:34.87	Unknown	Okay, and what did the Wells Fargo building sell for?
03:37:36.94	Unknown	Thank you.
03:37:36.98	Chad Hess	I don't know. I know, but...
03:37:39.05	Mayor Kamele	Thank you.
03:37:39.09	Chad Hess	Thank you.
03:37:39.17	Mayor Kamele	Thank you.
03:37:39.26	Chad Hess	The truth.
03:37:39.44	Unknown	No, no, I'd love to, if you know. I mean, if he doesn't know. Well...
03:37:39.46	Mayor Kamele	No.
03:37:42.01	Mayor Kamele	It's actually the
03:37:44.77	Mayor Kamele	Well, in this one indulgence, sorry to interrupt, but I'm on the spot. The Bank of America building in downtown Middle Valley sold for $3.5 million.
03:37:54.26	Mayor Kamele	Same size building.
03:37:57.51	Mayor Kamele	$3.5 million in
03:38:00.87	Councilmember Hoffman	Yeah, it's Mill Valley. And when was it last year? Westbrook. Okay.
03:38:04.70	Unknown	Okay, because, and I wasn't on the council at the time when the acquisition was made. My understanding was due to the ATM lease, we got a rather good deal on that building.
03:38:14.14	Unknown	I would like to have an idea of what the understanding of the other buildings are downtown for sale or would be a million dollars for that amount of real estate seems like quite a good deal. So I was just trying to clarify if we knew that that was below market because I had thought that that was why they agreed to sell it only to the city, correct?
03:38:32.55	Chad Hess	That was before my time. Yeah, I don't know the specifics on that.
03:38:36.83	Unknown	Okay. And then I wanted to, you sent them, and I think this was supposed to be attached to the staff report somewhere, but this afternoon at 417, you sent us all an email just looking at some of the revenue sources with regards to SCA and how much revenue they're generating for the city. And we talked about the parking revenue already, but I just wanted to go over the sales tax revenue piece, which is in the letter as well. Yes. The FDA says 79% of survey respondents stated, yes, I have eaten at any South Carolina restaurant prior to or after an FDA visit. They told me one third of the unique visits
03:38:42.98	Unknown	noon.
03:38:59.75	Kevin McGowan	Yes.
03:39:11.44	Unknown	If only one third of the unique visits to SCA resulted in meals at local restaurants that would not otherwise have occurred with the modest advantage tab, that would create $12,000 a year in sales tax revenue. And then they go on, 68% of the respondents stated they had visited a store art gallery in Sausalito before or after an SCA visit. If only a quarter of the unique visits resulted in non-restaurant purchases around $60, it would generate an extra $5,400 a year in tax revenue. So then your assessment is, sales tax revenues are down citywide in fiscal year 2025. Would they be lower if SCA was not bringing people to town?
03:39:44.01	Unknown	it's possible
03:39:45.40	Unknown	I do think they are reasonable given their conservative assumptions. So you're saying that these assumptions are all conservative.
03:39:50.97	Chad Hess	I believe that they are conservative. And also on the sales tax, they included a 1% factor for the Bradley Burns, but did not include the Measure L.
03:40:00.25	Chad Hess	1% as well. So I think they are being excessively conservative in that assumption.
03:40:06.52	Unknown	Okay. And without having the numbers in front of you, then what would you say your assumption is for the sales tax revenue that could potentially be generated?
03:40:13.92	Chad Hess	I mean, using using their factors, I don't have I don't have a crystal ball on that. But I know that they are being conservative because they're only counting the Bradley Burns and not the measure L.
03:40:23.11	Unknown	Okay.
03:40:24.09	Unknown	Thanks. I just wanted to, and also if we could add City Cork, the note, this one-way communication from Chad to the agenda and to the staff report so that we have that information because I think it's relevant for the discussion.
03:40:38.60	Karen Hollweg	Yes, I wanted to follow up on a prior discussion I was having with the city manager about the negotiations with SCA. So when following the RFP selection of the SCA,
03:40:52.19	Karen Hollweg	Didn't the SCA first enter into a license agreement with the city prior to entering into the lease?
03:41:00.59	Mr. City Manager	I'm not sure. Maybe our city attorney knows, but I don't have any recollection of that.
03:41:06.78	Karen Hollweg	My understanding of the history is that,
03:41:09.33	Karen Hollweg	The SCA had already been occupying the building for three months under this license agreement before the lease negotiations moved the rent from $4,000 a month for 10 years to $11,000 a month.
03:41:31.39	Karen Hollweg	So essentially the SCA had already been occupying the facility
03:41:36.28	Karen Hollweg	for three months pursuant to a license agreement pending final negotiations of the lease.
03:41:43.47	Unknown	That's correct, Councilman McCartney. Okay.
03:41:45.29	Karen Hollweg	Okay, and so Councilmember Kelman remembers. And so
03:41:51.98	Karen Hollweg	For the first seven months of negotiations, SCA's rent was set at $4,000 a month for 10 years. And it was only after they had been occupying the facility for three months that the city first proposed
03:42:06.30	Karen Hollweg	that the SCA should or the entirety of the 11,000 a month.
03:42:09.98	Unknown	I don't think that's quite correct. I mean, this was an ongoing conversation. There was never just a
03:42:14.49	Unknown	today is Monday and you're in the license and today on Tuesday and now you're having this conversation. This is a very, I think, long, thoughtful conversation with members of this council to
03:42:23.97	Unknown	see what was available see what's possible look at an rfi there's a lot of um dialogue that that we did i appreciate that thank you we can unpack it
03:42:31.83	Mayor Kamele	that in discussion that sounds like a discussion. Any other questions?
03:42:35.50	Unknown	I do, actually. Thank you, Mayor. If you're the city manager or I see Director Phipps, I thought I saw some information that the SCA was asking about a zoning change. You want to comment on that?
03:42:48.79	Mr. City Manager	I can ask Brandon to come up, but the thought there is if there's going to be some revenue generation through a sublease, then the current land use designation of public institution is pretty restrictive. So the thought would be to create some flexibility for different types of tenants to come in based on what the council wants to do. Brandon, can you speak to that process and what that is and what it looks like and why it's included in our staff report?
03:43:25.01	Brandon Phipps	Happy to, city manager.
03:43:26.58	Brandon Phipps	And good evening, council, mayor, vice mayor, staff, members of the community. Happy to be here.
03:43:31.84	Brandon Phipps	So city manager is correct. He came to me with, I think, a charge to do some research in connection with what uses are currently allowed at the Bank of America building based on existing zoning.
03:43:50.37	Brandon Phipps	The building is located within a public institutional zoning district, which I will note is a fairly restrictive zoning district relative to some of the other districts we have, especially as related to revenue-generating uses, like restaurants, for example. The PI district, public institutional district, does not allow for restaurants to locate within one of those zones.
03:44:17.69	Brandon Phipps	This is further detailed on Table 10.20-1 in our code, land uses allowed in open space and public districts. So considering the limited range of uses currently allowed within that zoning district,
03:44:32.81	Brandon Phipps	In addition to the desire from the SCA to potentially partner and expand the range of uses within that building and potentially via, you know, an accessory use, we looked into some strategies that we can employ that would realize that. So we've identified, based on, you know, this charge, four primary strategies that we could employ to expand those uses and to create greater partnership opportunities for the SCA.
03:45:00.82	Brandon Phipps	uh... one is and i'm gonna go from
03:45:03.91	Brandon Phipps	highest level of robustness and activity to probably the most simple
03:45:08.99	Brandon Phipps	One is a full-blown general plan and zoning code amendment.
03:45:12.62	Brandon Phipps	to change the zoning of the B of A site from the public institutional district to an alternative zoning district like commercial waterfront or central commercial, the district that it's adjacent to.
03:45:25.07	Brandon Phipps	This would, of course, take a little bit of time and would require multiple hearings in addition to a potential environmental analysis. The second strategy that we noted and highlighted...
03:45:39.72	Brandon Phipps	was a amendment to not change the district itself,
03:45:44.11	Brandon Phipps	but to change the allowed uses within the public institutional zoning district. So to expand those allowed uses, quite literally an edit to table 10.20-1 in our municipal code and any follow-on edits. This may require environmental analysis. This may also have unintended consequences, such as opening up any other public institutionally zoned parcel to those expanded range of land uses. Excuse me. So I want to call that out as a potential
03:46:19.12	Brandon Phipps	unintended impact. Path number three that we identified was...
03:46:24.78	Brandon Phipps	treating
03:46:25.89	Brandon Phipps	any
03:46:26.97	Brandon Phipps	ancillary accessory tenant in the bfa building as a temporary use which can be approved
03:46:34.38	Brandon Phipps	via an MUP
03:46:36.27	Brandon Phipps	within our zoning just uh with the within our municipal code by the zoning administrator
03:46:42.09	Brandon Phipps	The code reads temporary uses may be approved in any zoning district for up to one year, subject to an approved MUP, and those temporary uses can be extended for up to one additional year. That, I think, is much more simple than the first two paths that I outlined, but would require a constant renewal if the term continued to exceed one year, continued to exceed two years. so a little bit improved two paths that I outlined, but would require a constant renewal if the term continued to exceed one year, continued to exceed two years. So a little bit impermanent.
03:47:13.11	Brandon Phipps	The final path is a zoning ordinance amendment to amend the accessory uses and structures section of our code, which would, for example, allow an accessory use to locate in a public space. That specific section of code...
03:47:32.93	Brandon Phipps	is 10.44.020 and one way that we could do this is through there's some language in that section that reads accessory uses are permitted when located on the same parcel as the principal use recreation refreshment and service buildings in public parks i know we might approach this via an amendment to that language to change parks to public facilities so those are four four strategies that we've noted thank you
03:48:00.32	Mayor Kamele	Thank you.
03:48:03.99	Mayor Kamele	Anything else?
03:48:05.45	Mayor Kamele	Okay, I'll ask the last two questions before we go to public comment. Just one is, Director Hess, if the, if the, if the, if the, if the, if the, if the, if the, if the,
03:48:16.52	Mayor Kamele	If the rent is increased to cover the principal payment and the interest from the tenant, then just in the plain English language, the tenant is buying the building over the life of the lease, and when they exit the lease, they're turning it over to the city. So that basically means that the city of Sausage did not buy the Bank of America building, rather,
03:48:33.36	Mayor Kamele	the tenant did and then surrendered it to the city at the end of its lease
03:48:37.40	Chad Hess	Yes, essentially.
03:48:39.03	Mayor Kamele	Thank you. And then the fair market rent that the fair market value that was quoted, that I presume was for some sort of commercial use, not for the restrictive public institutional use unmodified as the, okay, I'm seeing a nodded head. Yes. Okay.
03:48:56.58	Mayor Kamele	thank you very much let's open public comment for our very patient audience uh sorry for the late hour uh please if you have public comment come to the podium when the city manager or city uh clerk calls your name
03:49:07.86	Mr. City Clerk	We'll start with Peter Van Meter, Babette McDougal, and then Tom Anderson.
03:49:18.15	Peter Van Meter	Thank you. This is a complex issue that can actually be reduced to something really simple.
03:49:26.07	Peter Van Meter	When this lease was negotiated, there were circumstances regarding the affordability that had to do with a business plan for a combined operation of the SCA and a commercial restaurant.
03:49:40.24	Peter Van Meter	those circumstances have changed. The economic viability has then become less secure than had been with that prior plan. So your decision here is simply, do you want to have a public benefit and decide? I think that Hank Baker kind of
03:49:59.23	Peter Van Meter	summarize this earlier.
03:50:00.58	Peter Van Meter	earlier by saying,
03:50:01.92	Peter Van Meter	Look at what fair market rent is.
03:50:03.98	Peter Van Meter	as a PI zoning.
03:50:05.60	Peter Van Meter	And they say, what is going to be the contribution
03:50:08.08	Peter Van Meter	to the public benefit.
03:50:09.69	Peter Van Meter	of the citizens of Sausalito
03:50:12.18	Peter Van Meter	By in effect, reducing that fair market rent.
03:50:15.27	Peter Van Meter	So that's, as I commented earlier, you don't really have a procedure for making that kind of determination.
03:50:22.63	Peter Van Meter	So you're gonna have to make that determination on the fly here.
03:50:26.36	Peter Van Meter	Maybe soon.
03:50:27.41	Peter Van Meter	But.
03:50:28.30	Peter Van Meter	You're going to have to make that determination. What do you see as a public benefit of this?
03:50:32.91	Peter Van Meter	because circumstances have changed.
03:50:35.42	Peter Van Meter	And now you have to make that decision.
03:50:37.77	Peter Van Meter	Thank you.
03:50:40.97	Peter Van Meter	Bye-bye.
03:50:41.38	Mr. City Clerk	Thank you.
03:50:44.64	Bep McDougall	Thank you, Mr. City Clerk.
03:50:46.75	Bep McDougall	Thank you.
03:50:49.19	Bep McDougall	You know, I go to the Center for the Arts frequently. I invite people to come over and we rendezvous there. Then we hit someplace for lunch usually. So I don't want you to think that I don't enjoy the idea that we have some viable thing happening in that facility.
03:51:05.36	Bep McDougall	I don't even know if they have a tax ID. Are they a viable non? Do we have a 501c3 designation? Why is it on your website under donate?
03:51:14.30	Bep McDougall	I didn't find it. I just went on the website again, and I don't see it under donate. So I don't know if these are questions that I'm not the only one asking these questions.
03:51:22.96	Bep McDougall	How viable is this? This is an untested brand new startup foundation. No experience. Somebody on the EDAC community had a great idea. There was no RFP process.
03:51:34.70	Bep McDougall	There was a request for ideas, and they all got tossed aside for this one idea because she was on the economic development
03:51:42.84	Bep McDougall	I don't know.
03:51:43.88	Bep McDougall	EDAC. I mean, really, I don't even know how long she's been there. I just want to know, why is it that we're trying so hard to force a round peg into a square hole or vice versa? If we have an organization that's
03:51:57.84	Bep McDougall	creates a whole structure of a lease arrangement based on wishful thinking instead of a contract arrangement. That is suspect right there. When we talk about an untested nonprofit, this is what we're talking about. Wishful thinking. Oh my god, it turns out that he didn't want to do it after all, so now we're stuck for the money. And how feasible is it? Like when are we going to bottom out on red ink, and when are we going to see black? Every nonprofit has to stay alive.
03:52:25.46	Bep McDougall	You start a nonprofit as you would start any business.
03:52:29.06	Bep McDougall	And it runs like any business. Its funding models differ.
03:52:33.48	Bep McDougall	That's the only difference. And it seeks to do programs. And in its own way, there are corporations, private corporations that do their own programs too.
03:52:42.79	Bep McDougall	I just think we have to be realistic about this. When does the city say enough?
03:52:51.49	Dennis Conway	I'm Anderson.
03:52:52.80	Tom Anderson	Thank you.
03:52:54.10	Tom Anderson	Wow. So I'm here as a supporter of the Center for the Arts. I've lived and owned property in South Florida for 35 years. And now the SCA is, I think, a great use for that building. It's brought much interest and activity to the downtown area. Please keep in mind that the SCA is still a startup.
03:53:13.90	Tom Anderson	Its operation needs the support from the city and the council.
03:53:18.03	Tom Anderson	to keep the level of programming up. I urge you to read
03:53:23.18	Tom Anderson	I urge you to read a piece which is featured today in the Independent Journal that says bolstering large startups will improve economic future.
03:53:23.19	Unknown	I heard you.
03:53:33.20	Tom Anderson	Art sales and contributing benefactors do not bring in enough remedy to sustain operation.
03:53:39.27	Tom Anderson	as it is today.
03:53:40.83	Tom Anderson	We are a startup.
03:53:42.58	Tom Anderson	SCA is paying all the interest on the loan and the city has no staffing or maintenance expenses with the current arrangement.
03:53:49.45	Tom Anderson	The activities the SCA has programmed for the past two years includes diversity and quality. The exhibits and the events, along with their media promotion, has certainly benefited the downtown businesses and added revenue well beyond the rent that SCA has been paying.
03:54:00.44	Unknown	business
03:54:06.63	Tom Anderson	The building is old and needs work.
03:54:09.48	Tom Anderson	I urge you to consider a fair lease that
03:54:11.71	Tom Anderson	helps the SEA thrive
03:54:14.07	Tom Anderson	I feel a 10% increase per year for the $4,000 rent is fair.
03:54:19.91	Tom Anderson	the
03:54:20.65	Tom Anderson	Elevator, as you say.
03:54:23.23	Tom Anderson	Please consider the benefits to have an art center downtown versus an empty bank building and some retail business that would not add to the image of Sausalito.
03:54:32.33	Tom Anderson	Do not be afraid to stand up to the naysayers.
03:54:35.25	Tom Anderson	support the art and cultural center and bring
03:54:38.47	Tom Anderson	that brings people together. Today, we need that more than ever. Thank you.
03:54:45.44	Mr. City Clerk	We have Shiva Pactao, then Steven Woodside.
03:54:54.13	Shiva Pactao	Mayor, City Council members, thank you for
03:54:57.84	Shiva Pactao	hearing, having this hearing and the audience.
03:55:01.22	Shiva Pactao	um
03:55:02.33	Shiva Pactao	I
03:55:03.87	Shiva Pactao	You know, with the help of our board and 350 volunteers that work day in and day out at SCA,
03:55:12.68	Shiva Pactao	we've created a dynamic and unique center that is being recognized way beyond Marin County
03:55:21.59	Shiva Pactao	from all nine counties of the Bay Area. And with the 44 events to date this year,
03:55:29.72	Shiva Pactao	an average of a thousand people per week that come through SCA. So many of them are locals, Marin locals and Sausalito locals. We've, you know, we've had to have eight full-on exhibitions and a lot of affection from people who come in the space and they see the exhibitions and the art. So we're becoming a really well-known center in the Bay Area. So in the past three months, SCA was in 12 full-on articles, newspaper articles, radio, television, all kinds of media about SCA. So now we have the momentum. We really feel that we have the momentum and we have a plan to grow. We've started a membership program just recently, which is going to bring, you know, approximately $15,000 a year to
03:56:30.52	Shiva Pactao	We are really focusing on grant and donations. We think this year we're going to get to $100,000 a year. We've been selling tickets to different events. This last week, we had three events, night events. Although we were open in the morning, we were also doing night events. Our sales target is going to be up by another $4,000 a month.
03:56:58.57	Mayor Kamele	Thank you.
03:56:58.79	Mr. City Clerk	Thank you for coming.
03:57:00.37	Mr. City Clerk	Stephen Wetzel, followed by Dan Christ and Louis Brionis.
03:57:06.13	Stephen Woodside	And speaking of events, just this month was the plein air art. 20 artists, 19 or 20 artists from mostly outside of Sausalito came and stayed here for a week, parked here for a week, painted these amazing paintings. There's, I think, 93 that were painted just in that week, and they're on display now, and that continues until the end of the month. This is not just about the economics. It's about the art.
03:57:38.34	Stephen Woodside	And Christ.
03:57:42.26	Brandon Phipps	Bye.
03:57:42.53	Dan Christ	It's a great day.
03:57:42.56	Brandon Phipps	It's,
03:57:43.05	Dan Christ	actually, Chris, but I will claim to be a distant relative nonetheless.
03:57:48.89	Dan Christ	I'm the, for those who might know, I am the treasurer of the Sausalito Center for the Arts, also treasurer of the nearly defunct
03:57:56.96	Dan Christ	Sausalito Art Festival.
03:57:58.81	Dan Christ	Foundation.
03:58:00.15	Dan Christ	And in that role,
03:58:02.14	Dan Christ	I know more about the financial affairs of this organization than anybody in the room.
03:58:06.62	Dan Christ	And so I'd hope the council would listen to me.
03:58:08.82	Dan Christ	I'm going to talk about four facts and if I have an opportunity, a prophecy.
03:58:12.80	Dan Christ	The first fact is at $11,000 a month,
03:58:15.97	Dan Christ	if our rent increases.
03:58:17.83	Dan Christ	effective of August,
03:58:20.21	Dan Christ	We will not make a profit this year.
03:58:23.75	Dan Christ	It will wipe out what I anticipate.
03:58:26.18	Dan Christ	will be the second year profits of an organization.
03:58:29.69	Dan Christ	like many sophomore students,
03:58:32.00	Dan Christ	Startups.
03:58:33.76	Dan Christ	usually come back to reality in terms of its gross receipts, 75% of which relate to benefactor contributions, foundations,
03:58:43.36	Dan Christ	corporations, and individuals.
03:58:46.21	Dan Christ	The second fact is
03:58:47.72	Dan Christ	At $133,000 a year, essentially $11,000 a month.
03:58:51.92	Dan Christ	In 2025, it'll represent about
03:58:54.92	Dan Christ	62% of our overhead.
03:58:57.37	Dan Christ	There isn't an organization I've ever been familiar with as a CFO for over 40 years.
03:59:02.70	Dan Christ	that can afford base rent, let alone utilities and repairs on top of it of about $30,000.
03:59:08.52	Dan Christ	It simply is.
03:59:10.11	Dan Christ	uh,
03:59:10.70	Dan Christ	an overbearance.
03:59:12.25	Dan Christ	of expanse to be committed to.
03:59:14.28	Dan Christ	The third fact is
03:59:15.80	Dan Christ	If we don't have profit going forward,
03:59:18.38	Dan Christ	The next couple of years, there is no way that we can reinvest in the organization.
03:59:23.25	Dan Christ	And the last fact is
03:59:25.50	Dan Christ	That lease was negotiated in a
03:59:28.15	Dan Christ	Data vacuum.
03:59:29.85	Dan Christ	All of the information was in the hands of the city council
03:59:32.81	Dan Christ	and nothing in the hands of the negotiators for the SEC.
03:59:36.05	Dennis Conway	We didn't have...
03:59:36.30	Dan Christ	We didn't have a business plan. We had no factual history.
03:59:39.93	Dan Christ	Keep that in mind as you evaluate this going forward. Thank you, sir.
03:59:45.02	Mr. City Clerk	Luis Briones.
03:59:53.02	Luis Briones	Good evening, I'm Luis Briones, and as you know, I'm a member of the board of the Sausalito Center for the Arts. I'd like to talk about a community benefit that I haven't heard mentioned, maybe a little bit by Shiva.
04:00:06.10	Luis Briones	So through its diverse range of events, SEA consistently generates positive press, both for the center and for the city of Sausalito. While most of this publicity comes from local news outlets, SEA has also garnered national attention already. It was featured in The Guardian as one of the best U.S. exhibitions and art events for Pride Month and highlighted in the New York Times as one of your favorite places to see art in California.
04:00:40.39	Luis Briones	As you know, the city recently cut its advertising contract with Creative Digital Agency, CDA. I believe that contract was about $82,000 a year. So this marketing organization was hired to promote the city of Sausalito.
04:00:57.42	Luis Briones	As a key part of its marketing strategy, SCA promoted Sausalito events and a large percentage of the events it promoted were produced by SCA at no cost to the city.
04:01:10.01	Luis Briones	thus helping the city meet its marketing objectives
04:01:14.44	Luis Briones	With the contract between the city and CDA now discontinued due to budgetary constraints, SCA remains a key source
04:01:23.56	Luis Briones	publicity for the city and no cost to the city because SCA produces its own marketing. As a matter of fact, CDA said that it would charge
04:01:37.38	Luis Briones	Sausalito Center for the Arts, $96,000 a year to replicate the marketing that the Sausalito Center for the Arts is doing now.
04:01:49.00	Luis Briones	marketing that clearly benefits the city of Sausalito.
04:01:55.75	Luis Briones	Community benefit, yes.
04:01:59.16	Mr. City Clerk	Thank you.
04:01:59.69	Mr. City Clerk	Ron Albert.
04:02:04.76	Mr. City Clerk	Okay, John. Oh, he's on Zoom now. Okay, so...
04:02:07.33	Mayor Kamele	Well, let's finish with everyone in the room. Is there anyone else in the room?
04:02:10.67	Mr. City Clerk	Peace.
04:02:11.33	Mr. City Clerk	Yeah, we do. We have several people. We have Kate Carlson.
04:02:12.04	Mayor Kamele	certain people.
04:02:14.40	Mayor Kamele	Maybe we just have people line up in a row and introduce yourselves. We've been along. Thank you, Mr. City clerk. So,
04:02:23.26	Kate Carlson	Good evening. Thank you for having us. And I am an artist, number one. Number two, the founder of Marin Open Studios in the 90s.
04:02:33.92	Kate Carlson	and the current executive director of Marin Open Studios, as well as being on the board of SCA.
04:02:40.51	Kate Carlson	And,
04:02:41.18	Kate Carlson	I know a lot about the county and the activity of artists in this county.
04:02:46.97	Kate Carlson	And I've had a studio here in Sausalito for 30 years. So why am I on the SCA? Why am I fighting and giving all of my time to it? It's because I really believe that Sausalito deserves an art center.
04:03:04.33	Kate Carlson	And I really see the value of it to the rest of the county, to the artists in the rest of the county.
04:03:11.49	Kate Carlson	I have a history of being in the Sausalito Art Festival and I just got a commission.
04:03:16.32	Kate Carlson	A few days ago from someone
04:03:18.22	Kate Carlson	What a piece of
04:03:19.61	Kate Carlson	a painting for me
04:03:20.64	Kate Carlson	In 2016,
04:03:23.13	Kate Carlson	at the Sausalito Mart Festival, a big commission.
04:03:28.58	Kate Carlson	This activity helps artists to survive in this county.
04:03:33.95	Kate Carlson	And I could not be surviving without Sausalito and its reputation for drawing people here.
04:03:41.80	Kate Carlson	It's so important.
04:03:44.08	Kate Carlson	The other thing is that we don't really have the use of a lot of the center because it is in bad condition. It smells right now.
04:03:52.21	Kate Carlson	There are broken bathrooms upstairs. The triple net lease is not a feasible thing for us to be doing, to take care of that building and to make sure that we present Sausalito in its best way. I've been at the SCA constantly. I produced the Paint Sausalito show. I was the co-chair of it.
04:04:19.73	Kate Carlson	right now.
04:04:20.73	Kate Carlson	And
04:04:22.36	Kate Carlson	We bring value. We bring economic impact. Thank you so much.
04:04:28.66	Mr. City Clerk	Just if anybody wants to be identified for the record on the minutes, please say your name before you start.
04:04:35.58	Hank Baker	Hi, Hank Baker. This discussion is really the reason why, another reason why you need a professional broker. We're casting about in a whole bunch of maybe...
04:04:44.89	Hank Baker	incorrect information.
04:04:46.76	Hank Baker	The basis for this lease was a post-COVID economy.
04:04:51.96	Hank Baker	the $3 and 61 cents or whatever it was per foot.
04:04:55.52	Hank Baker	That's changed dramatically.
04:04:57.41	Hank Baker	And it took two years to lease this property on top of it.
04:05:02.95	Hank Baker	The setting the lease rate based on debt service is also completely illogical and not done in the private industry.
04:05:10.56	Hank Baker	All you did was choose to leverage into this building.
04:05:14.09	Hank Baker	the logic of having the lease represent the debt service, the counter to that would be, well, why don't the city just pay all cash
04:05:22.84	Hank Baker	and then you have no debt service, so the rent's free.
04:05:26.98	Hank Baker	That doesn't make any sense either.
04:05:29.53	Hank Baker	that your debt service is largely principal pay down.
04:05:33.81	Hank Baker	That's a savings account.
04:05:36.33	Hank Baker	It's not an expense. Take a look at your real cost. It's just your interest, not the principal pay down.
04:05:43.42	Hank Baker	And...
04:05:44.97	Hank Baker	Thank you.
04:05:45.54	Hank Baker	The building condition has been suggested. The building is in bad shape. It needs a lot of work.
04:05:51.26	Hank Baker	The comparables for the Wells Fargo building here, or the Bank of America building in
04:05:57.35	Hank Baker	in in mill valley are not correct they're beautiful historic buildings this is a very very nice modern box that needs a lot of help it's it's it's not it's apples and oranges and finally shiva and her group her volunteers are doing a tremendous job
04:06:13.79	Hank Baker	I know all of you have been to some of their events. They get better and better every month. And I think that you need to give them a chance to continue that process over the next several years. It'll be a wonderful, wonderful gem, community gathering place in downtown Sausalito.
04:06:32.74	Unknown	Good evening, council members. My name is Kit Hayes and, um,
04:06:38.04	Unknown	You know, there's been so much discussion this evening about how to navigate all of the leases that the city has. And I would agree, actually, with Councilmember Hoffman that it does feel unfortunate that we're discussing what to do about the SCA when there isn't a uniform policy in place regarding the.
04:06:42.09	Unknown	and we can't.
04:06:53.26	Unknown	how you're going to
04:06:55.10	Unknown	lease out all of your nonprofits and what community benefit means.
04:06:59.07	Unknown	That aside, we have suggested that we would pay a flat rent of $6,000 per month,
04:07:03.94	Unknown	until the lease expires. At that rent, the SA will be paying all the interest, as Chad pointed out.
04:07:09.63	Unknown	On the city's loan to purchase the property, plus over $30,000 a year towards the purchase of the building, which is appreciating all the time. It's a great piece of real estate right there.
04:07:18.50	Unknown	Realizing we signed a lease for $11,000, I do ask the city to reconsider the lease and partner with the SCA given the immense economic, social, and cultural value the SCA has created in its very, very short life.
04:07:30.50	Unknown	I'd personally love to work with the city to make the SCA and the Bank of America building as valuable as it can possibly be.
04:07:36.92	Unknown	I see substantive potential to work together to scale the success of the SCA and drive even more business to our local restaurants, bars, and hotels.
04:07:45.42	Unknown	Let's continue to make the SCA a hotspot in the region and pull in as much money in press as we possibly can. I cannot believe we got the New York Times, who honestly doesn't like to cover California positively ever.
04:07:56.90	Unknown	to cover us in its first year. That is astounding as a former New Yorker, I will say. I'm still shocked by that.
04:08:02.78	Unknown	With support and partnership from the city, the SCA will be in a strong position to pursue our membership program, which I'd love to invite everyone who's listening to the meeting to join. You can sign up on our website.
04:08:13.38	Unknown	and other revenue streams like a potential endowment, ongoing site rentals, art sales, and ticket sales.
04:08:20.39	Unknown	Also, I do want to make it clear that we're talking about a 50% increase in our rent, and that still is only a 7 percentage points of your overall deficit. So this is like a huge burden to us to help pay for the projected SCA deficit, and I'd really love to see other ways to...
04:08:37.80	Unknown	Thank you. Raise money.
04:08:37.82	Unknown	Thank you.
04:08:38.04	Anthony Hay	Thank you.
04:08:38.24	Anthony Hay	Thank you.
04:08:38.86	Unknown	Thank you.
04:08:38.88	Anthony Hay	Thank you.
04:08:44.64	Anthony Hay	I am Anthony Hay, a resident of Sausalito. I frequently go to SCA, and I think it's a big...
04:08:53.06	Anthony Hay	Plus, for the city of Sausalito to have an art center, instead of having these junky t-shirt shops, I think Sausalito needs to look long term about the image of the city. This is a positive thing for the image of the city. And you should not look at it as a real estate deal based on rents. For example, Kushner-Wakefield says $3.60 a foot.
04:09:19.42	Anthony Hay	They don't say how much TI's you have to spend to get a tenant, how long you have to get free rent.
04:09:26.45	Anthony Hay	And I agree with you, gentlemen, before, the market has completely changed. In San Francisco, the mayor of San Francisco gives stores free rent just to create people to go to a certain part of the city. And in the Bank of America building, they got this museum, completely free rent, just to create traffic. So I think you should not think of economics. You should think, as the city manager said, it's a rupee cube. You have to look at the other benefits it has for the city. Thank you.
04:10:06.80	Bep McDougall	Hello.
04:10:07.24	Diane Johnson	Thank you.
04:10:07.63	Diane Johnson	My name is Diane Johnson, and I'm a longtime Sausalito resident. I feel that the SCA is an asset to the city, and it is beyond talking about dollars and cents, and it brings so much goodwill to the city. We have international tourists come. I've seen so many people. I've met people there. I've enjoyed the art and the music and the cultural programs. I think it's really important to our city. And Sausalito was originally defined by art and the Sausalito Art Festival, which is no more. The studios at the ICB are very expensive and artists are really struggling to make it in this expensive economy. And I think if you talk about kicking them out or charging them more money, then we're going to have another empty storefront. The Wells Fargo is empty. The Chase Bank is empty. There's so many empty buildings, and that doesn't look good when people come here to see our city, and it doesn't make them want to come back. And I think the SCA did a lot of repairs to the building. They have increased the appreciation of the building. They came in during COVID time and survived, and that was not easy. And I just think that they're good tenants and good tenants are really hard to find. And I have a little unit in my house and the people who rent that unit, they're paying a lot less than market value, but they're good tenants and they take care of the place. And it's a, it's a good thing. And if we end up losing the SCA, I'm,
04:11:52.84	Diane Johnson	we'll have another empty building, and we'll have months with no income from that building. So I think that the benefits of art and culture are really important to Sausalito, and we need to preserve that. Thank you.
04:12:09.40	Raylene Gorham	Good evening. Thank you, council members, again, for hearing from the community about the immediate impact that SCA has brought forth in its first year of operations. And consequently, for your consideration of the future financial sustainability of this local institution. Raylene Gorham here, resident SCA board member, but tonight I'm speaking to you as someone deeply engaged with the power that art wields in the context of community. I just wanted to offer a slightly different angle from which to view the issue. If you're at all inclined to support the arts and artists in our community and all of the cultural and business affirming activity that that brings, I'd like you to consider this.
04:12:58.13	Raylene Gorham	A rent model which aims to squeeze a few thousand extra dollars out of this property will impact the caliber and range of art and cultural activities that the SCA
04:13:09.17	Raylene Gorham	and Sausalito will be able to bring
04:13:12.53	Raylene Gorham	to our community.
04:13:13.98	Raylene Gorham	Sausalito does not need another pay-to-play or vanity gallery model in our downtown.
04:13:20.78	Raylene Gorham	It is hard to see how the diverse range of programming currently offered will not be affected by this dramatic increased rent.
04:13:29.57	Raylene Gorham	Art and events will be driven by the bottom line instead of what they bring to our collective experience and reputation. You have before you a moment to truly support the arts, the capital A arts, and the benefits they bring to all.
04:13:44.64	Raylene Gorham	and not have the center vault victim to a tired trope of cultural institutions succumbing to the pressures of economic swings. Thank you.
04:13:57.21	Carolyn Rebell	Hello again, Carolyn Rebell. I see the Sausalito Center for the Arts as a unique use of a building in the center of the town, which the city was, in its wisdom, purchased. And the art that we see in this wonderful building
04:14:14.96	Carolyn Rebell	There's a synergy between the location of
04:14:18.32	Carolyn Rebell	the Art Center and the other wonderful things that are going on in town,
04:14:22.49	Carolyn Rebell	very landing and
04:14:24.02	Carolyn Rebell	the Business Improvement District, and I think that the time is now to support this building. I loved Brandon's exploration of alternative uses in this public institutional zone, which might bring in a little extra revenue, perhaps a little cafe could be used if the zoning allowed that to bring in some revenue. But the basic point is this is the right location for this, the right use for this location. And I do hope you'll support a rent approach that will make it possible for them to survive. Thank you so much.
04:15:00.05	Adrian Brinton	Hi again, Adrian Brinton. So I do just want to make a couple of quick comments about the financial side of this, because there's been a lot of great discussion about our
04:15:08.46	Adrian Brinton	kind of deficits and about the deficit issue that we're facing and how we address that.
04:15:15.48	Adrian Brinton	You know, we're not a broke community. We have a lot of assets. We own a lot of property and we have a lot of great assets in terms of our location and other things, natural beauty, etc. What we are is operationally, we're struggling a bit. And we need to increase our revenues in order to pay for the operational costs of running the city. How are we going to do that? You know, it really sounds like there's two fundamental things.
04:15:41.47	Adrian Brinton	fundamentally kind of different approaches on the dais and on our city council. One is to really look at how we look at every penny, which is super important, and I don't disagree with it all, but also to pull back on any penny that we can and kind of really keep a strong focus on that side of it, which is important. The other side is to look at how do we invest the resources we have in order to grow our economy and actually have more activity so that we can increase the revenues that we're bringing in that way. And I think when I look at the SCA and I look at the other changes we're making downtown this year,
04:16:18.66	Adrian Brinton	That's all in the interest of growing our economy and making it so that we're actually taking this money, we're investing it into our city.
04:16:24.28	Adrian Brinton	And we're making our city better and we're earning more money that way. And I feel like we've missed that a bit in the discussion. We've talked a lot about the artistic history.
04:16:32.43	Adrian Brinton	the artistic value that the SCA brings, which I totally agree with.
04:16:36.04	Adrian Brinton	But I think also,
04:16:37.46	Adrian Brinton	It's a key component of our vibrant downtown. And if we support this startup now and we allow it to grow and growing a startup is really, really hard. I've seen how much work these guys put into it. It's an unbelievable amount of work. It's going to pay us dividends and that will help us address our deficits in the long term.
04:16:55.56	Adrian Brinton	Thank you.
04:17:01.17	Dennis Conway	Dennis Conway, the idea of having the city manager go out and see if he could find space that the SEA could use just doesn't make any sense to me. And I say that simply because I could just see when people come off of the ferry saying, oh, so where's the SEA? And I said, well, so what you do is you go on Bridgeway, you walked out about three miles, and then you turn right and then
04:17:34.63	Dennis Conway	Not too far, but if you see someone there, that's probably where it's at.
04:17:40.74	Dennis Conway	I mean, it's just not going to work.
04:17:43.88	Ted Barton	Thank you.
04:17:48.48	Mayor Kamele	I believe you already made public comment, no?
04:17:51.32	Bep McDougall	Well, does your unofficial but somehow official policy preclude citizens from speaking more than once?
04:17:55.06	Mayor Kamele	That includes citizens from speaking.
04:17:56.48	Mayor Kamele	Thank you.
04:17:57.19	Mayor Kamele	I'm afraid you already made public comment.
04:17:58.07	Bep McDougall	Yes.
04:18:00.53	Mayor Kamele	Thank you very much, Ms. McDuffie.
04:18:01.76	Bep McDougall	Does the policy do it or doesn't? I mean, in our former years, it was not a problem.
04:18:08.23	Mayor Kamele	You're not allowed to make that full public.
04:18:10.45	Bep McDougall	You're not allowed to address more than two minutes. Any given agenda item is what your policy says. When are we going to read this policy?
04:18:19.11	Bep McDougall	Well, let me see a copy of it.
04:18:20.39	Mr. City Clerk	of
04:18:20.92	Mr. City Clerk	Can we have the next speaker, please? Thank you.
04:18:24.22	Lorna Newlin	on her agenda.
04:18:28.71	Lorna Newlin	Hello, Lorna Newland. I spoke earlier on the other thing about rents. Now, in February, I spoke on behalf of the SCA and all the good that they had done. And at that time, the council decided that
04:18:45.23	Lorna Newlin	to put it back to staff
04:18:47.16	Lorna Newlin	for six months
04:18:48.84	Lorna Newlin	and come up with some answers.
04:18:51.27	Lorna Newlin	And then
04:18:52.66	Lorna Newlin	The same day I found out that the chamber...
04:18:55.66	Lorna Newlin	was going to lose its
04:18:58.21	Lorna Newlin	space because their rents are exorbitant,
04:19:00.96	Lorna Newlin	I went into the SCA and found out
04:19:04.52	Lorna Newlin	Before any negotiations, they had already received an increased rent letter to $11,000.
04:19:11.49	Lorna Newlin	So I wanted to come again. It's just a matter of,
04:19:15.95	Lorna Newlin	This probably should have not been in public, but they, as everybody says, they have done so much for this town.
04:19:23.62	Lorna Newlin	And it's hard to be an artist, believe me. I do it because I love it.
04:19:28.13	Lorna Newlin	And, and I,
04:19:30.12	Lorna Newlin	teach and I contribute, but this is something that I've been juried into a few shows there and the boutique and
04:19:37.88	Lorna Newlin	As part of the lease,
04:19:40.23	Lorna Newlin	the city is allowed to use that space. And I believe that's what the holiday market has been, which has been great for me.
04:19:46.69	Lorna Newlin	and great for the community that people can come and see so many local artists selling there at holiday time. Mr. Zapata has come every time that I've been there and I really appreciate, and a lot of the council people, I appreciate seeing your smiling faces there, but this is a jewel and
04:20:07.72	Lorna Newlin	It is about rents market rate. There are so many things
04:20:12.83	Lorna Newlin	Empty storefronts down there. It doesn't look good in our town. And...
04:20:18.03	Lorna Newlin	I think when you're talking about the whole square footage about that, it sounds like the upper floor is not even viable. But anyway, I just hope you will do what they had that recommended. Thank you.
04:20:33.20	Mr. City Clerk	All right. We have Ron Albert online.
04:20:41.79	Unknown	You know?
04:20:44.47	Unknown	Okay.
04:20:45.53	Paul Albritton	Yes. Hello. I'm sorry I couldn't be present. I'm still recovering from a cold.
04:20:52.35	Paul Albritton	Um,
04:20:52.94	Paul Albritton	Quickly, I
04:20:56.76	Paul Albritton	I was retained by the board of SCA. I was not a member at the time in early 2022.
04:21:04.91	Paul Albritton	I represented it through the entire lease negotiations. I'm very familiar with it.
04:21:10.61	Paul Albritton	Uh-huh.
04:21:11.44	Paul Albritton	the what Joan Cox, council member Cox, or excuse me, vice mayor Cox recited was the correct history. Um,
04:21:22.98	Paul Albritton	The discussion was always that SCA would pay $4,000 a month from
04:21:29.06	Paul Albritton	January, February,
04:21:31.00	Paul Albritton	Up until July 12th.
04:21:34.14	Paul Albritton	And there were separate parallel lease negotiations going on with Ogeo,
04:21:39.92	Paul Albritton	And that's where the city hope to make significantly more money.
04:21:44.11	Paul Albritton	SVA entered the building under a temporary license agreement to activate the building.
04:21:51.16	Paul Albritton	for the benefit of the city.
04:21:53.44	Paul Albritton	And then on July 12th, the council met and said, we're ready to sign the lease, but we want the rent to go from 4,000
04:22:02.94	Paul Albritton	to 11,000.
04:22:04.98	Paul Albritton	SCA was faced with a choice at that time.
04:22:08.49	Paul Albritton	whether to exit the building, cancel all the programming that is scheduled through the end of the year,
04:22:15.31	Paul Albritton	or make a good faith effort.
04:22:17.35	Paul Albritton	to pay that rent increase.
04:22:20.19	Paul Albritton	The board has made that good faith effort and continues to make an effort
04:22:25.70	Paul Albritton	to raise more money.
04:22:27.51	Paul Albritton	But
04:22:28.35	Paul Albritton	That was not their original plan. That was not the original negotiation.
04:22:34.19	Paul Albritton	And the board has always acted in good faith, to my knowledge. I joined the board at the conclusion of those lease negotiations and donated my legal time to the board.
04:22:48.39	Mayor Kamele	Thank you.
04:22:50.88	Mayor Kamele	No further speakers.
04:22:51.84	Mayor Kamele	All right, we'll close public comment then.
04:22:54.24	Mayor Kamele	Bring it back up to the dais.
04:22:56.65	Mayor Kamele	I guess I'll kick things off. I'll just say, you know, uh,
04:23:00.99	Mayor Kamele	The primary business of South Slater is to take care of the safety and welfare of the town. And we spend the vast majority of our money on our police and our infrastructure.
04:23:09.67	Mayor Kamele	and our core services, but we also do have discretionary spending. Uh,
04:23:14.19	Mayor Kamele	The chefs at the chili cook-off are gonna get $150 each to buy beans and spices.
04:23:22.00	Mayor Kamele	It's not making anyone any money.
04:23:24.36	Mayor Kamele	we literally blew $25,000 of cash up at the Fourth of July fireworks. They cost $35,000, but we only got $12,000 in donations. Previous year, same thing. So $25,000
04:23:38.22	Mayor Kamele	burning the money up. I had a great time at fireworks. I think fireworks are popular. I think we all support fireworks. It's what we choose to do because it's to celebrate the country and to celebrate ourselves in our community. It also happened probably to make some money in the same derivative way we're talking about SCA helping make some money by bringing people to downtown and paying to park.
04:23:59.97	Mayor Kamele	But you can't prove it.
04:24:01.62	Mayor Kamele	Uh,
04:24:02.91	Mayor Kamele	what you
04:24:04.76	Mayor Kamele	When we look at other leases in town, we've seen plenty of examples where we've made choices to ask for less than the absolute maximum because it serves a secondary purpose. The Yacht Club, which I'm a member of and love, their lease is $150,000.
04:24:21.43	Mayor Kamele	for that to get the buoys, the big building, and by the way, a parking lot with 18 spaces, which I understand are worth roughly $4,000 each a year. So that means their net payment for the building, for the parking lot, beyond the parking lot, would be about $78,000. So just roughly a little less than twice what the SCA is paying.
04:24:45.21	Mayor Kamele	Why is that? Because the yacht club, even though it's a private club, it's open to anyone to join. It does a youth sailing program. It's where we all go to drink after the jazz by the bay. It's intrinsic to our community. It's part of our social fabric.
04:24:58.44	Mayor Kamele	it's perhaps not exactly the same people as the 350 people who volunteer at SCA, but there is probably some overlap, but it's probably similar in terms of its social knitting. And at year two, that could just be the beginning of the SCA. Compare that at least to, let's say, Spinnaker Restaurant, which is $450,000, for also a waterfront location, no buoys, but that's purely commercial. Or the Ice House next to the SCA building, $1.00.
04:25:26.74	Mayor Kamele	One dollar. That building surely we could rent to a crepe creperie or an ice cream shop and make more money. But we don't because, and I'm a member of the Historical Society too, we want to celebrate our history. We want to show ourselves off. The volunteers in the community are there doing something that represents the city. Now, all these services,
04:25:48.31	Mayor Kamele	celebrating our history,
04:25:49.86	Mayor Kamele	providing a youth sailing program.
04:25:52.44	Mayor Kamele	providing arts could be a service of the government, much like our parks and rec is a service of the government. We pay for it.
04:26:00.24	Mayor Kamele	We do take revenue in from parks and rec but it still costs us something it doesn't generate revenue cost of something to do parks and rec and and
04:26:09.84	Mayor Kamele	all these other things if the historical society or the
04:26:13.69	Mayor Kamele	arts or the youth sailing program were done by the city, it would cost us something would be in our budget. Instead, we get all these things for free because volunteers do them with some partnership with the city.
04:26:25.67	Mayor Kamele	And that's what the SCA is proposing to do. And it's in that vein that I think charging them a rent that is discounted in sort of the same way we do in these other examples, the dollar for the ice house or the discounted rent for the Yacht Club makes sense. It's fair, it's consistent, and it's part of our mission and we can afford it.
04:26:45.07	Mayor Kamele	If we charge the SCA $11,000, even eight, we'll be pretty much guaranteed that we'll either put them out of business or make them so anemic that they will fail on their own and not provide the kind of quality program we're talking about. But you know what we won't do?
04:26:58.41	Mayor Kamele	We won't fill one pothole. We won't pay one inch of street because we have $5 million in our CIP account right now waiting to be spent. We have more than 2 million a year allocated with Measure L to go into that bucket. And the dollars just aren't big enough there
04:27:14.28	Mayor Kamele	I agree philosophically, if we changed our whole philosophy across town and charged everybody market rent, now that would make a difference. But I don't see why the first people we should pick on are the artists.
04:27:25.46	Mayor Kamele	I think that art is intrinsic to the brand of Sausalito. It's part of our quality. It's who we are. It's what brings us together. It's worth fighting for.
04:27:34.72	Mayor Kamele	making at least as much a priority as some of the other things that I made mention of. So it is a qualitative choice. At the end of the day, I fully respect
04:27:43.23	Mayor Kamele	both my neighbors who feel differently and my colleagues who feel differently.
04:27:47.36	Mayor Kamele	They have a different point of view.
04:27:49.99	Mayor Kamele	And that's why you have a democracy, and that's why, you know, three people want to go to the beach and two go to the mountains. Well, you have a vote and you end up going to the beach. So it's not about moral right or wrong, but it is about ultimately choices. And my choice and my advocacy is the most extreme, I guess, keep the rent the same. Let all the money.
04:28:07.48	Mayor Kamele	that would be instead
04:28:09.26	Mayor Kamele	the little crumbs that would be on top of the big pile of cash that we have on our balance sheet go back into the SEA so that it can do more programming, so that it can take care of the building, maybe paint the building.
04:28:22.48	Mayor Kamele	all I would advocate
04:28:24.28	Mayor Kamele	You know, that's what I would see, is that it would be a virtuous cycle to help our organization and our town. It's on brand. It's the kind of thing that 20 years from now, people couldn't imagine we didn't do. So I would keep the rent the same. I would just make two suggestions, one, or make that two conditions of that keeping the same. It's that we require that the SCA paint the building within eight months. And with the rent certainty, they would be able to budget for that. I think they should have a mural competition and do something amazing that really stands out.
04:28:59.77	Mayor Kamele	And the second is I think they should increase the representation from the city of Sausalito on their board of directors. Currently it's one. I think it should be three. And those would be my two suggestions and keeping the rent the same. Thank you very much for the indulgence of my colleagues. Those are my comments.
04:29:20.04	Unknown	Yeah, sure, I'll dive in. Yeah, happy to. Thank you, Mayor. Thank you, everybody, for being here.
04:29:26.60	Unknown	Kind of think we're having the wrong conversation entirely. So let me offer you a middle way.
04:29:31.38	Unknown	UM,
04:29:32.36	Unknown	Let's all stipulate SCA is great.
04:29:34.57	Unknown	Shavu, you're amazing. You've done fantastic things. We've all been there.
04:29:35.80	Unknown	Yeah.
04:29:35.97	Susan Kendall	you.
04:29:38.82	Unknown	I don't think that's the issue. I heard the CFO say we had no business plan.
04:29:45.16	Unknown	And so for those who are trying to recall how we got here, we had an open process. We were presented by the committee with three ideas. We were told they were fully-baked business plans. We were told how they were going to pencil out. We had other options. We picked this because we were given a business plan. And then we were told, well, it's a startup, so we gave it some time. And sometimes startups have to pivot. And that's not unusual either. And so I think why I think we're having the wrong conversation is because we have a fiduciary duty. We are stewards of the land. We are stewards of this city. And I think it's actually a disservice to both SCA and the taxpayers to have this conversation around debt payment and renewal. And is that what we're trying to cover? First of all, everybody in the room knows we don't have a policy about how we are going to rent to nonprofits. You all know it because you've been very generously
04:30:40.31	Unknown	with us for seven hours. And so because we don't have that, we've been making assumptions about what the city wants or needs. I've also heard the building is in disrepair.
04:30:49.69	Unknown	I've heard there's no business plan. I've heard you can't afford the rent. I don't think anybody up here doesn't want the SCA. So it's our duty to actually change this conversation and make it better by offering up different opportunities. We didn't send it back to staff for the staff to come up with ideas.
04:31:09.74	Unknown	and delayed it for six months so the SCA could come up with ideas, right? And SCA, I think, did come up with ideas. You increase your programming, you reach out to staff and say, what happens if you change the zoning? What are the opportunities there, right? And so I think we need a more robust conversation about how we work harder to make it work better for SCA. And that's not a rent cut because obviously that business model is not working. It is actually taking a hard look at that area and figuring out what does SCA need to survive and what do we as owners of that building need to make sure that that building doesn't go into massive disrepair. I heard the bathrooms don't work. I heard it smells. I heard you can't go upstairs. I mean, we literally can't just tell SCA go at $4,000. Those things don't get fixed. So I actually think we have a much bigger task at hand on the council. And if we really want to have a partnership around it, we got to do a lot more work
04:32:01.92	Unknown	than simply keep a lower rent. I think we need to sit down and figure out how we make this work for that building, for the taxpayers, and for SCA. And so that's what I would offer up. I think that's the direction this needs to go in. I think that's a long-term sustainable and new, potentially, business plan. I've heard talk of a sort of a convention center vibe. People are looking for a place to gather, other uses. There's over 300 nonprofits in Sausalito. I'm sure many of them would like to be a part of this amazing community you've all created down there. So I hope we can have that conversation in that direction because if that building is in that disrepair that I'm hearing, this is not going to move in the right direction for us, no matter what the rent is. We actually have to help SCA in a bigger way. So those are my thoughts.
04:32:52.90	Mayor Kamele	The next.
04:32:54.06	Mayor Kamele	I can. Thanks, Mike.
04:32:58.11	Karen Hollweg	I was on the council that voted to buy the Bank of America building.
04:33:01.98	Karen Hollweg	And we knew at the time we purchased it that we were buying this property for less than market value.
04:33:09.49	Karen Hollweg	And we considered it to be an investment that would appreciate, and I believe it has.
04:33:15.53	Karen Hollweg	Um,
04:33:16.51	Karen Hollweg	I was not on the council that selected the SCA as the tenant, but I have heard Councilmember Hoffman speak quite eloquently and persuasively
04:33:24.30	Karen Hollweg	regarding the competitive superiority of that proposal over others.
04:33:29.75	Karen Hollweg	I still remember the first event in the plaza.
04:33:33.15	Karen Hollweg	It was one of the first gatherings in Sausalito following COVID. And the entire outdoor plaza was full of people. Council members, I saw the city manager there, Ann Arnott. I saw people I had not literally seen in years because of COVID. And so I was so inspired and encouraged by this community center fulfilling the purpose that I believe was envisioned.
04:34:02.83	Karen Hollweg	I think it is important that there has been a major change since the lease was initially negotiated that I believe merits an amendment to the lease.
04:34:14.47	Karen Hollweg	If you just read the lease, you see numerous provisions in there about the potential for a rooftop tenant and all of the provisions being made for accommodating that rooftop tenant, including a provision that would abate the SCA's rent during construction to accommodate the rooftop tenant. And so it's very persuasive to me that the first seven months of negotiations contemplated a $4,000 a month payment by SCA. And then the city put SCA in the untenable position after it already had licensed the facility, had been in the facility for three months, that now they said, oh, we're going to make you responsible for the entire $11,000.
04:35:01.37	Karen Hollweg	If we get another tenant, we'll offset your rent by the rent that we, that that other tenant pays. And so, you know, the SCA accommodated the city's needs. But I think what the mayor asked earlier was,
04:35:16.71	Karen Hollweg	is really important.
04:35:19.86	Karen Hollweg	when you
04:35:20.81	Karen Hollweg	when you buy a property
04:35:23.17	Karen Hollweg	you
04:35:25.62	Karen Hollweg	You know, you often don't have your tenant subsidize the entire cost of that property. You're investing in property because the property itself appreciates.
04:35:36.22	Karen Hollweg	You know, if we needed to, we could sell that building. And guess what? We would do a lot better selling that building with a tenant occupying it than if it was empty.
04:35:46.59	Karen Hollweg	And so
04:35:49.53	Karen Hollweg	I also was interested to hear Hank Baker point out that a benchmark for a lease rate should be the interest cost, not necessarily the principal pay down. So I really do think it's somewhat...
04:36:05.54	Karen Hollweg	unfair of the city to expect a nonprofit to defray the city's entire investment cost in this property.
04:36:18.72	Karen Hollweg	Um, I also believe the projections by the SCA are too modest. Um, I love that they get a thousand dollars, a thousand people a week as visitors. Um, I love that they are recognized nationwide by the New York Times and others. And so I believe they are consistently generating positive outcomes for the city of Sausalito that have value. So, um,
04:36:50.13	Karen Hollweg	A couple other things. I do want to acknowledge Shiva, who is the SCA's only paid employee and who's working at least 60 hours per week every day and works every day of the week to keep this facility on an upward trajectory. We heard from the community development director about zoning changes.
04:37:11.36	Karen Hollweg	I would like to be sure that if the SCA does sublease, and we have the right to approve any sublease, that it not sublease to a competing
04:37:21.28	Karen Hollweg	business like a coffee shop for example we have plenty of coffee shops i don't envision a coffee shop at the scaa i would have loved to see them
04:37:31.01	Karen Hollweg	enter into a partnership with the Chamber of Commerce,
04:37:33.72	Karen Hollweg	I believe those negotiations are ongoing.
04:37:36.42	Karen Hollweg	with the chamber being the front
04:37:38.66	Karen Hollweg	agency for other agencies like Golden Gate Bridge District, the tourist company, a taxi company, and other institutional types of uses that would be complementary to
04:37:49.00	Karen Hollweg	to SCA. So I know that there are still
04:37:52.83	Karen Hollweg	Um,
04:37:54.03	Karen Hollweg	irons in the fire that have not yet come to
04:37:56.85	Karen Hollweg	So what I'd like to see us do is increase the rent to the level. I'd like to see us execute a lease amendment. I'd like to see us increase the rent to the $6,000 that the SCA proposes. I'd like to have the city take over responsibility for capital improvements. I think that's an unfair burden. I think this triple net lease is unfairly burdensome for a nonprofit such as the SCA.
04:38:25.22	Karen Hollweg	um,
04:38:26.42	Karen Hollweg	And as the land owner, I'd rather see us undertake those capital improvements than the SCA. I think our lease should include profit sharing so that any year that the SCA actually makes a profit, they share some portion of that with us so that their success is ours. Those are my thoughts. Thanks.
04:38:51.59	Karen Hollweg	That's welcome.
04:38:52.81	Unknown	I believe that the chamber is no longer interested in that facility.
04:38:56.60	Karen Hollweg	No, they are still interested. They just don't have any money to spend for this upcoming year, but they are interested in being in a partnership with others.
04:39:11.32	Councilmember Hoffman	sure um well yeah I was on I was not on I was not here when we purchased the billion I was deployed that was the year I was gone and deploy with the Navy but I did um watch it from afar and I talked to um Tom Riley he was sitting to my seat at the time and I supported um told him that I supported it based on what he was telling me because we did get a good deal on it to me by definition that was market right I mean that was we bought it that's the market
04:39:36.80	Councilmember Hoffman	whatever.
04:39:37.66	Councilmember Hoffman	um but that doesn't justify any in my mind any decreased rent that just means the city for once
04:39:44.24	Councilmember Hoffman	had some good luck and I thought we made a good investment.
04:39:47.35	Councilmember Hoffman	But,
04:39:48.21	Councilmember Hoffman	the deal and the conversations we had all along
04:39:52.29	Councilmember Hoffman	was that this was an investment for profit. We did not invest in this building to lose money on it, period. That was never part of the conversation.
04:40:00.75	Councilmember Hoffman	And always the conversation was,
04:40:03.45	Councilmember Hoffman	we are going to negotiate the lease so that at least it covers our debt service.
04:40:09.13	Councilmember Hoffman	It was, I mean, we had many conversations right down to the last conversation that we had about what the lease rate was going to be and the...
04:40:19.90	Councilmember Hoffman	runway that we were going to provide for the SCA to allow them time
04:40:24.98	Councilmember Hoffman	to prove their business model. Because as one of the guys said,
04:40:28.40	Councilmember Hoffman	we were in a data vacuum. Like we didn't nobody, we took a huge risk on this model. We didn't know if it was going to work out.
04:40:35.49	Councilmember Hoffman	And so that's why we baked in or tried to bake in a lot of
04:40:39.31	Councilmember Hoffman	um,
04:40:40.25	Councilmember Hoffman	a lot of terms in the lease so that we could be ensured that this was a viable business model that this city and the people of Sausalito as investors were investing in.
04:40:50.95	Councilmember Hoffman	And so that's why we had metrics in the lease that SCA was supposed to make.
04:40:56.99	Councilmember Hoffman	or hit as part of the lease agreement i didn't see any calculation of those metrics tonight in the staff report my understanding from last february was that not all of the metrics had been met we were also supposed to revenue share with um with uh that was also part of the reduced rent for 18 months was that we were going to revenue share with sca with um event with events that they threw. In other words, they would throw an event, they get an event fee, and we were supposed to share 50-50. And the revenues from that, at some point there was a floor of 15,000 inserted in the lease so that we didn't revenue share until...
04:41:34.89	Councilmember Hoffman	the revenues were over 15,000. I don't recall ever seeing
04:41:38.94	Councilmember Hoffman	that part of the lease before it was signed. So...
04:41:42.10	Councilmember Hoffman	I mean, that was the concept. And that's why we went out on a limb as a council, really not to take the other
04:41:49.61	Councilmember Hoffman	proposals that we had received and vetted
04:41:52.09	Councilmember Hoffman	through the working committee.
04:41:53.94	Councilmember Hoffman	and give a chance to this model to see if it would work. I think it's pretty clear that this business model isn't going to work based on two years' worth of metrics that we now have. We've had some anecdotal kind of evidence presented, but I haven't seen any sales tax revenue from the SCA itself. What's the sales tax revenue that would justify the increase? right i saw a lot of other you from the SCA itself. What's the sales tax revenue that would justify the increase, right? I saw a lot of other anecdotal sort of evidence that, well, people are going out and buying other things, they're going out, they're coming here, they're going out to
04:42:30.17	Councilmember Hoffman	dinner, they're maybe staying in hotels, but
04:42:34.36	Councilmember Hoffman	I didn't see any evidence of the inverse of that was true in that people are coming here specifically for an event at the Arts Center and that they're specifically staying in the hotels and they're specifically going out to, other than the survey that the Center for the Arts did. And so, I remember back in February that Council Member or Vice Mayor Cox specifically asked,
04:42:59.37	Councilmember Hoffman	are you going to be able to make your rent?
04:43:02.12	Councilmember Hoffman	If we give you a six month continuance or six month, you know, extend this for six months, are you then are you going to be able to comply with the lease at the end of that time?
04:43:12.19	Councilmember Hoffman	And the representations by
04:43:14.52	Councilmember Hoffman	the SCA at that time where, yes, we need to
04:43:18.17	Councilmember Hoffman	expand on things that we're working on. We have the summer season coming up, but we expect it in this time to be able to make
04:43:24.09	Councilmember Hoffman	are read.
04:43:25.10	Councilmember Hoffman	And so I agree that we have metrics now, that we have things that we can rely on.
04:43:31.97	Councilmember Hoffman	and the confidence level of
04:43:34.71	Councilmember Hoffman	whether or not this model is going to work in this location.
04:43:37.93	Councilmember Hoffman	I think, and under the current lease,
04:43:41.19	Councilmember Hoffman	clearly it's not going to work. And so I think I agree with actually Councilmember Kelman
04:43:48.41	Councilmember Hoffman	We need to define that.
04:43:50.10	Councilmember Hoffman	What is it that's working for the Center for the Arts that we can expand on, that we can support? What's not working for the Center for the Arts?
04:43:57.49	Councilmember Hoffman	and how can we as a city bring this to a viable business model? Right now, we do not have a viable business model, nor do we have the luxury with our current
04:44:07.10	Councilmember Hoffman	budget
04:44:08.00	Councilmember Hoffman	to accept non-producing,
04:44:10.08	Councilmember Hoffman	business models that the people of Sausalito
04:44:12.59	Councilmember Hoffman	our funding.
04:44:13.79	Councilmember Hoffman	And so everybody who every, you know, we've gone through this for, I think the past four months where we have, you know, a certain reality that is our budget, but then we have certain, you know, um,
04:44:26.38	Councilmember Hoffman	and
04:44:27.59	Councilmember Hoffman	priorities or pet, I don't want to say pet projects, but everybody has their passion or their way of evaluating
04:44:34.12	Councilmember Hoffman	But,
04:44:35.15	Councilmember Hoffman	you know, does that actually merit driving us further into debt?
04:44:39.52	Councilmember Hoffman	I don't think that it does. We have to we have to apply discipline up here on the council with ourselves.
04:44:45.28	Councilmember Hoffman	just like we have to apply discipline across the rest of the city and the rest of the departments.
04:44:50.37	Councilmember Hoffman	We have to
04:44:51.81	Councilmember Hoffman	way
04:44:53.12	Councilmember Hoffman	this model that we've been presenting, that we gave a shot. And I supported it.
04:44:59.32	Councilmember Hoffman	two years ago.
04:45:00.48	Councilmember Hoffman	but there were controls and the controls haven't been met and so i think it's time that we really have to we owe it to the people of sausalito as stewards of their finances to figure out how to make this work or how an art center
04:45:15.45	Councilmember Hoffman	can survive in Sausalito because I don't think it's at that location and I don't think it's a current model I think it's clear
04:45:27.40	Unknown	First day, I want to commend the Center for the Arts and especially Shiva. Thanks for being here for all of the amazing work that you've done so far to really change the face of the downtown. I really feel that the Center for the Arts was a pioneer in starting to reinvigorate the conversations about what the future of the downtown would look like.
04:45:46.70	Unknown	And now we have our business improvement district. That's going to bring even more people into the center for the arts. And we have a new,
04:45:53.28	Unknown	Ferry Landing coming forward and I,
04:45:56.42	Unknown	I
04:45:57.38	Unknown	don't believe that this is going to be a money loser for the city. I really believe in its capability to be a strong revenue generator for the city of Sausalito, which is why I'm consistently supportive of it. And I actually was skeptical initially when the proposal came before the council because we had proposals from developers that would have paid the full rent. But the footprint of the downtown would have looked so different. And I hear so much so frequently from our community about how the character of our town is so special and it's what makes us who we are. And our character is really rooted in the arts, whether that's the ICB building or the
04:46:25.04	Unknown	about how
04:46:35.79	Unknown	artists formerly known as the Sausalito Arts Festival, which we no longer have, the arts have always been a driving force of our character and who we are as a community. And to have the arts serve in the role of the heartbeat of our downtown seems really appropriate for the type of community that we want to continue to build on as we make investments in our economy going forward. And in reinvigorating and ensuring that we have a revenue stream that's going to be impactful for years to come. So I want to be supportive while thinking about what we can do to ensure that the Center for the Arts has the means to continue to produce events that will bring more and more people into our community. I appreciate Councilmember Cox, Vice Mayor Cox's suggestion of the accepting the proposal of the Center for the arts at the 6000 um level and also potentially changing the terms of the triple net lease but i would welcome a discussion because i can tell and i appreciate councilmember kelman's comments about
04:47:31.26	Unknown	that we, you know,
04:47:32.54	Unknown	deserve a big kind of a step back conversation about how we want the center for the arts to function but i really feel that the arts are the heartbeat of our community in many ways and so it's our our duty just like it's our duty to balance the budget it's also our duty to to support the the arts so that's where i stand on that
04:47:50.95	Mayor Kamele	All right, so I mean, I agree with you, Vice Mayor, with the comments that you had made, but go ahead to Council.
04:47:53.42	Unknown	Thank you.
04:47:54.68	Unknown	I was going to make a counter motion.
04:47:59.66	Unknown	Yeah, thank you. And so this is great because I think we all do very much believe in arts being the fabric of our community.
04:48:07.05	Unknown	With that said, um,
04:48:08.72	Unknown	I think we should follow the, make a motion, or counter motion, that we follow the city manager's recommendation to increase the rent to $8,000, but that we also pursue a path towards modifying the zoning in that area and work directly with those in charge of the business model for SCA to identify a manner in which we can move forward that sustains them and sustains our investment, i.e. the physical infrastructure of that building. And so I...
04:48:40.53	Unknown	I think there are probably details to be worked out in terms of how we work directly with SCA and whether we pursue a temporary use permit or changes to the public institutional. But I think we need to.
04:48:52.24	Unknown	I don't think we're serving SCA by simply putting them in a building that needs work and needs care, and we're not serving our taxpayers either. So I think we really have to work quite closely with SCA to make it viable. And what we were presented was that it was viable, and we have some proof points now. So that's my suggestion, and that's my counter, is that we accept the city manager's suggestion and that we look at a zoning change and work with SCA to bring in somebody to offset some of that rent.
04:49:21.45	Mayor Kamele	So I feel like a theme is about trusting our volunteers to make things happen, like they made the Saucyote Yacht Club so successful, like the Ice House is so successful. And I believe in our people, some of whom are in this room, that they can make the SCA successful, but they need our resources. So that's why I think we should leave the rent at $4,000. The vice mayor suggested six, you are suggesting eight. Uh, I'm, you know, still advocating for giving them as much resource to succeed as possible. I think that money is better spent with them. Uh, obviously I'll go with the vice mayor's, uh, number. If there's no one else to meet me at four, I think her other suggestions about profit sharing and cap improvements are also something I can support. I would encourage that we, to your point about how to cooperate with these volunteers and make sure there's a two-way street in communication, I would support having, as I mentioned before, three board members from the government. It could be, you know, we could decide who it is, but for example, it could be the head of Parks and Rec Commission.
04:50:29.39	Mayor Kamele	Whoever that is could also be on automatically on the board of.
04:50:33.09	Mayor Kamele	the SCA.
04:50:33.97	Mayor Kamele	So, uh,
04:50:35.87	Mayor Kamele	That's where I'm coming from. And, uh,
04:50:38.35	Unknown	Mayor, I'd just like to add one more thing. And just for the record, I feel very strongly that the presentation that we received from SCA, along with the other applicants during the RFI, was, of course, given in good faith. It was very impressive. And it painted a particular picture that we chose to really invest in and to go forward with. And I don't have the feeling that any characterization, that there was an 11th hour change, that we didn't know, whether there's this change of circumstance. I think all along the way, we pressed and asked some hard questions about the rooftop bar concept. And I think a lot of people were very reasonable and said, yeah, it's probably unlikely, but we're going to make it work. So I hope we just continue that collaborative dialogue and that collaborative characterization of us working together.
04:51:26.72	Councilmember Hoffman	Excuse me. I'd like to second the motion by Councilmember Kelman. I don't think I have that. And I think
04:51:33.20	Councilmember Hoffman	I agree.
04:51:34.72	Councilmember Hoffman	that
04:51:37.38	Councilmember Hoffman	you know, in concert with that, we have to help them. We have to do what we can to help the Center for the Arts figure out how to cover their expenses and make them a viable business model. I think that's number one. I think I agree no one up here is against the arts. And I take issue when,
04:51:57.04	Councilmember Hoffman	I disagree with a financial analysis of something and then I'm accused of not liking whatever that thing was earlier tonight. I was accused of not liking parking. I mean, the biggest advocate for parking on this council. So because I'm applying financial rigor to this city owned piece of property.
04:52:16.41	Councilmember Hoffman	and to
04:52:18.54	Councilmember Hoffman	you know, and to a lease that was knowingly entered into
04:52:22.08	Councilmember Hoffman	At that time, we could have pivoted right then and said, you know, I don't think this is going to work, and we need to pivot to one of the other candidates that we had for this building. But I'm willing to give some more runway. I think we have to look at the financial realities that we're in right now. I agree.
04:52:39.63	Councilmember Hoffman	you know,
04:52:41.25	Councilmember Hoffman	I can live with 8,000.
04:52:43.75	Councilmember Hoffman	Um,
04:52:44.58	Councilmember Hoffman	combined with
04:52:46.94	Councilmember Hoffman	some, you know, real efforts by the Center for the Arts and with
04:52:53.59	Councilmember Hoffman	the council, and frankly, people that have more experience in art centers. And I know you guys have done a ton of work when you first started with
04:53:02.14	Councilmember Hoffman	other models and how those can be applied here but
04:53:04.81	Councilmember Hoffman	I think we need to understand and know
04:53:07.58	Councilmember Hoffman	with the amount of foot traffic that we get at that location, that's a prime commercial location. There's hundreds of people passing that location every day. So the fact that it's not performing that the
04:53:20.98	Councilmember Hoffman	sales tax isn't where we would want it to be, that the revenues aren't where we wanted it to be
04:53:25.65	Councilmember Hoffman	based on that location.
04:53:28.15	Councilmember Hoffman	Okay.
04:53:28.96	Councilmember Hoffman	you know,
04:53:29.90	Councilmember Hoffman	brings a question to me about what is the viable business model for that location if it's not the Center for the Arts but conversely I want to still work to see if we can make it work there and I'm committed to that
04:53:44.31	Councilmember Hoffman	And that's why I would support a reduction from 11,000 per month to 8,000, knowing the people of Sausalito will have to absorb that 3,000 delta per month. So that's where I'm at right now.
04:54:03.06	Mayor Kamele	Any other discussion about this motion?
04:54:08.08	Unknown	Oh, I...
04:54:09.19	Karen Hollweg	Karen Hollweg, outlined what I would propose, but there's been no formal motion someone could make an alternative motion that would get voted on first.
04:54:17.81	Mayor Kamele	Yeah, the councilman does your motion include taking on the capital improvements as, uh, as the vice mayor suggested as.
04:54:25.91	Mayor Kamele	taking on responsibility for capital improvements.
04:54:28.93	Mayor Kamele	Right now it's an absolute triple nightly so absolutely everything.
04:54:31.41	Unknown	Yeah, I think this is the difficulty of trying to negotiate in real time in open session. So I am not prepared to answer that, partly because I think it goes hand in hand with a new policy that we have not yet developed. And so I wouldn't want to oblige one party to do it and another party not to. So I don't know how to answer that in real time at this hour.
04:54:52.54	Mayor Kamele	So do you wanna make a motion or?
04:55:00.71	Niels Carlsen	I could
04:55:01.52	Karen Hollweg	I mean, my concern with the pending motion is that I believe that's infeasible financially for the SCA. And so I really liked the mayor's
04:55:13.77	Karen Hollweg	suggestion that we increase the city representation on the SCA board in order to foster this creative problem solving. I'm worried that, you know, different board members currently have different perspectives about opening a coffee shop versus sharing with P P bid or sharing with Chamber of Commerce. And I I'm.
04:55:41.24	Karen Hollweg	So I really like the increased participation by the city in governance, particularly if the city is going to be defraying some of the investment expense of this property.
04:55:59.60	Spare	Thank you.
04:55:59.62	Mayor Kamele	Well, I...
04:56:00.97	Mayor Kamele	Thank you.
04:56:01.17	Mayor Kamele	I mean, I guess I'll make the motion because I want to second the alternate motion.
04:56:05.49	Mayor Kamele	uh, to match the vice mayor suggestion of $6,000 a month, taking on major the, uh, and have it be a normal triple net lease. So not including extraordinary capital expenses, just the interior improvements. Uh, plus that we have three board members appointed from the city council, uh, and profit sharing of, uh, of, uh, is there a percentage you had in mind?
04:56:22.48	Unknown	Thank you.
04:56:22.52	Anthony Hay	sharing.
04:56:30.15	Karen Hollweg	50-50 once they're over a certain threshold.
04:56:31.06	Mayor Kamele	there over a certain threshold. 50-50 percentage of profit sharing over $100.
04:56:38.89	Mayor Kamele	Well...
04:56:39.65	Karen Hollweg	Profit. Profit. This is a nonprofit organization. So right now, you're required to share anything over $15,000 in...
04:56:50.38	Karen Hollweg	um, event, um,
04:56:54.01	Dan Christ	Rental income, not a bank.
04:56:58.22	Dan Christ	It's
04:56:59.71	Dan Christ	that
04:57:00.37	Dan Christ	Bad to try.
04:57:03.31	Mayor Kamele	We can't, we can't, we hang on. We'll, we'll sort it out of here. Thank you. If you have a question for anyone, uh, the vice mayor will ask it, but let's just, um, take it one step at a time because this is a aspect of the term.
04:57:20.50	Karen Hollweg	Here. Landlord's share of third party event rent shall be 50% of the total license fees collected by tenant for all third party events in excess of 15,000 per month.
04:57:34.22	Mayor Kamele	So that's what you're talking about is 50% of event sharing? Okay, so the event brand, yes.
04:57:35.35	Karen Hollweg	Yep.
04:57:37.10	Karen Hollweg	Yep.
04:57:41.05	Karen Hollweg	I'm retaining paragraph 5.3.2 unchanged.
04:57:46.89	Mayor Kamele	Yes, so retaining that paragraph unchanged, making the rent $6,000 and taking on the capital improvements and increasing the city governance to three board members is the motion.
04:57:55.58	Unknown	and increasing.
04:57:56.75	Karen Hollweg	Thank you.
04:58:00.41	Unknown	It's not an amendment, it would be direction to staff to
04:58:05.07	Unknown	Consider a zoning change?
04:58:08.34	Unknown	I mean, there's some statements made about our volunteers and such, so I don't have to, but I think that should be a dialogue. They've been fired. I think they should be able to look at it.
04:58:09.35	Mayor Kamele	MADE ABOUT.
04:58:10.03	Spare	Sure.
04:58:10.28	Mayor Kamele	Absolutely.
04:58:13.03	Mayor Kamele	So,
04:58:14.15	Mayor Kamele	because
04:58:17.25	Mayor Kamele	I got it.
04:58:17.62	Unknown	Thank you.
04:58:17.66	Mayor Kamele	Thank you.
04:58:18.74	Mayor Kamele	Second to that motion.
04:58:21.59	Unknown	So just for clarity, this is for staff to
04:58:25.33	Unknown	negotiate and prepare a lease for for approval by the council
04:58:30.45	Unknown	A list of amendments.
04:58:31.54	Unknown	a lease amendment with the proposed terms, and additionally to undertake the process of developing a zoning amendment.
04:58:39.97	Mayor Kamele	Well, no, I think that's direction to staff to consider zoning. That's an ongoing direction. That's going to be a separate issue to bring back to us about issues of zoning changes.
04:58:50.28	Unknown	May I clarify? I think just simply to open it up and signal to the SCA folks that the council is open to that. If you'd like to work with staff to pursue some type of change to the zoning, whether it's the uses or a temporary permit, we encourage that. I think that's all.
04:59:09.88	Karen Hollweg	up.
04:59:10.39	Karen Hollweg	Councilmember Kamele, may I make the clarification that it not be
04:59:14.42	Karen Hollweg	a competing use with existing downtown uses. So there was concern over an art gallery that competed with Hanson's, a coffee shop that competes with Poggio's. So I would just want to be respectful of not turning this community center into a competitor with other downtown businesses.
04:59:40.04	Unknown	Yeah, I think my feedback there would be that that would be a recommendation, but the concern about it was that we didn't want to charge below-market rent for another gallery when people were paying full-market rent for galleries. And so I would like to just leave a comment
04:59:55.26	Unknown	I support yours in concept and I leave it to
04:59:58.74	Unknown	you know to SCA to evaluate those opportunities and if you come back with something that is
05:00:04.10	Unknown	seemingly along those lines, you should bring it back anyway and let us talk about it.
05:00:08.27	Mayor Kamele	Okay.
05:00:08.79	Mayor Kamele	So there's a motion on the floor. It's been seconded. We'll have a vote now. All in favor say aye. Aye.
05:00:16.29	Karen Hollweg	This is the mayor's motion. Aye, with the direction proposed by Councilmember Tillman.
05:00:21.20	Mayor Kamele	with the-
05:00:22.60	Mayor Kamele	Yes. Those opposed?
05:00:24.10	Unknown	No, I know.
05:00:25.25	Unknown	Okay.
05:00:25.40	Karen Hollweg	you know,
05:00:25.97	Unknown	was
05:00:26.63	Unknown	Right.
05:00:26.97	Mayor Kamele	so uh motion carries uh three two um congratulations thanks for sticking with us late into the evening we have one more business item to knock out i think we should
05:00:38.06	Unknown	I think we should.
05:00:40.81	Mayor Kamele	Mm-hmm.
05:00:45.60	Mayor Kamele	Um,
05:00:50.56	Unknown	Mayor, may I respectfully ask that we look to an adjournment? That you can move to adjournment.
05:00:54.15	Shiva Pactao	Thank you.
05:00:54.17	Unknown	that you can use.
05:00:55.86	Unknown	That's the top of the comments, please.
05:00:58.22	Mayor Kamele	I'm sorry, we are going to move to the next item. There's going to be a motion to, I think, continue the item. So we're going to listen to public comment on the ordinance of which I'll read now. The next item is introduction and waiver of first reading of ordinance 52024, an ordinance of the city council of the city of Sausalito repealing and replacing chapter 3.30, purchase of supplies, equipment, and services, and procedures for public works projects.
05:01:28.83	Mayor Kamele	so we're gonna hear that and then after that we'll hear we'll hear after that we'll hear public comment for items not legitimate
05:01:38.08	Karen Hollweg	I don't think there's going to be much public comment on these items, and we're going to continue it.
05:01:44.02	Unknown	brush like you all because you found that yes
05:01:50.03	Ted Barton	Well,
05:01:50.35	Unknown	Yes.
05:01:50.82	Ted Barton	Thank you. Yeah, take a bow. Thank you. I'm speaking out of turnovers.
05:01:54.74	Mayor Kamele	Yeah, thank you, ma'am. Thank you, ma'am. We need to proceed with our next item. So I take it that the sense of the council, is the sense of the majority of the council that we don't want to hear materially on this item and we'll just have public comment.
05:01:55.39	Ted Barton	Thank you.
05:02:07.38	Unknown	I can't believe it.
05:02:09.25	Mayor Kamele	Okay, there's a motion to continue item 5C to a future meeting.
05:02:13.04	Unknown	Thank you.
05:02:13.06	Dennis Conway	Thank you.
05:02:13.23	Dennis Conway	Thank you.
05:02:13.31	Unknown	Thank you.
05:02:14.97	Dennis Conway	It's all right. I'm going to say it's all right.
05:02:19.96	Dennis Conway	Thank you.
05:02:20.37	Dennis Conway	Thanks.
05:02:20.74	Mayor Kamele	You made the motion.
05:02:20.76	Dennis Conway	You made the motion.
05:02:21.80	Dennis Conway	Okay.
05:02:23.26	Dennis Conway	Thank you.
05:02:23.93	Mayor Kamele	Good. We could potentially. Well, let me just discuss that. I'm with you, vice mayor, that we could hear this matter expeditiously, I believe. It seems pretty close pro forma.
05:02:33.11	Dennis Conway	Thank you.
05:02:34.10	Dennis Conway	Yes.
05:02:40.08	Mayor Kamele	You can say things on the record. There's a motion on the floor that's been
05:02:43.00	Councilmember Hoffman	There's a motion on the floor. Let's discuss it. No, I see no reason to hear any further item. It's 1230 at night. We need to see if there's public comment on this item. Yeah, I agree. We have to see if there's public comment. Agree.
05:02:50.64	Karen Hollweg	Yeah, I agree.
05:02:53.48	Mayor Kamele	there any public comment on item 5c the waiver and first reading of ordinance 524.
05:02:59.77	Mr. City Clerk	Yeah, we do ever get online.
05:03:04.65	Mr. City Clerk	That's out.
05:03:09.58	Eva	Thank you. I'm actually waiting for a non-agenda public comment. Any other public comment?
05:03:14.44	Mayor Kamele	Thank you.
05:03:14.96	Mayor Kamele	All right. There's a motion to continue it. It's been seconded. Just want to make sure. So we do want to hear it. Okay. Bye. So we'll unanimously.
05:03:21.91	Karen Hollweg	I hear.
05:03:25.76	Karen Hollweg	I didn't hear you say all in favor. All in favor.
05:03:26.11	Mayor Kamele	All in favor? Aye. Sorry, I thought I did. Opposed? Okay. It is passed unanimously. Item six is communication for items not on the agenda. If anyone wishes to comment on items not on the agenda, this is your moment to do so.
05:03:28.06	Karen Hollweg	Aye.
05:03:45.72	Niels Carlsen	Thanks.
05:03:47.98	Mayor Kamele	He's Ms. McDougal and Eva Cresante. We'll actually go ahead.
05:03:53.49	Mayor Kamele	Ailu, go ahead.
05:04:00.13	Eva	Thank you. Can you hear me okay?
05:04:02.31	Unknown	Yes.
05:04:03.90	Eva	You can?
05:04:05.04	Unknown	Yes.
05:04:05.87	Eva	Okay, thanks so much. Yeah, I just wanted to bring to your attention that last Thursday, three physicians who had recently returned from Gaza gave a Senate briefing, and I'm happy to provide the recording of that to you.
05:04:26.31	Eva	it was, it was, uh, it was pretty disturbing stuff. And I, I think everybody heard about the, uh,
05:04:32.82	Eva	essentially the terrorist attack that Israel launched today in Lebanon.
05:04:38.53	Eva	with I think close to 10 kills.
05:04:43.91	Eva	And this was done using pagers. It was yet another attack, apparently, on hospital workers who use pagers. And so I do have some questions.
05:04:56.53	Unknown	So I do have some questions. This is not within our jurisdiction. And so we know, no,
05:04:59.99	Eva	No, no, no. But I do have some questions. I'm leaning up to that, Ms. Kelman. I do have some questions because through a series of CPRAs, I found that Melissa Blaustein...
05:05:14.20	Eva	had taken a trip to Israel paid for by the JCRC does not appear like many of the other trips to have been disclosed. Now, there is a problem with how it was reported on her form 700.
05:05:28.74	Eva	And it appears that gifts over $590 in her trip was approximately 10 times that amount.
05:05:38.41	Eva	They should not there. There's a strict series of regulations with the FPPC, and that may be out of compliance. I've reached out to Ms. Blaustein several times and she has not responded to me. And thus, I am obliged to bring the matter forward to council in an attempt to get an answer about it. But on a larger level, there's an enormous amount of tax money that's going.
05:06:08.64	Mayor Kamele	Ms. McDougal.
05:06:16.13	Mr. City Clerk	Oh, let me put it to one.
05:06:19.39	Bep McDougall	Well, that was an interesting one to follow. Thank you.
05:06:24.08	Bep McDougall	You know, this has been a very frustrating council meeting, and
05:06:28.42	Bep McDougall	Here we are coming up on an election, and you would think that after your first four-year terms, and I'm addressing myself to the two neophytes on the council,
05:06:38.03	Bep McDougall	that maybe by now you'd get some traction instead of it becoming more chaotic.
05:06:43.58	Bep McDougall	as it is in fact becoming. So what we are faced with, I thought it was fascinating that you would say that you are a fiduciary agent and you're trying to be
05:06:52.41	Bep McDougall	absolutely on top of fiscal oversight, and yet here we are in a deficit. And here is yet another situation
05:06:59.72	Bep McDougall	barely into the fiscal cycle that was never planned on your budget, like previous issues, like the PBID. It should have been on your budget for the year, but it wasn't. So here we are looking at expenditures above and beyond a budget that is already in a deficit.
05:07:16.79	Bep McDougall	Now, how long are we going to pretend that we have more money than in fact we have to spend?
05:07:22.79	Bep McDougall	Nobody likes being a Grinch.
05:07:25.22	Bep McDougall	That's for sure. I don't enjoy standing up here and having to stand.
05:07:29.10	Bep McDougall	in contradiction to my neighbors. I love that Center for the Arts too. But we have to be realistic about our finances. Mr. Mayor, a point.
05:07:36.46	Karen Hollweg	Mr. Mayor, a point of order. This is a comment on the SCA, which is an item on the agenda. This is the opportunity to comment on item.
05:07:41.90	Bep McDougall	Excuse me, it's a public comment, and I'm using it as one example of fiscal irresponsibility. And I think the only way we're going to get through this problem...
05:07:52.01	Bep McDougall	is to realize that this three-member voting bloc that never moves except in lockstep
05:07:57.90	Bep McDougall	never thinks independently of you each. You come in with your deals already made.
05:08:03.34	Bep McDougall	This is not the way it's supposed to be in this council chambers. There may be another place for you, but this is not it.
05:08:11.06	Bep McDougall	And I think if we can get people on the council with more direct experience, then the city itself will stand to benefit from it.
05:08:17.87	Bep McDougall	And I'm just disappointed because I had great hope that it would be better than you.
05:08:21.80	Mr. City Clerk	Thank you very much. Thank you very much. Next person. We've got to send you. Thank you.
05:08:23.69	Mayor Kamele	Yeah.
05:08:25.07	Mayor Kamele	Thank you for your comment, Ms. McDougall. Sunshine? Yes, now is the time. Welcome.
05:08:34.32	Unknown	Actually, I was hoping that they all would be in here to hear this too, because I,
05:08:39.45	Unknown	Contrary to what was just said, I was so impressed that you were able to find the yes within a difficult situation that had a lot of no in it.
05:08:51.41	Unknown	and my daughter lives in Croatia.
05:08:53.91	Unknown	And she taught me a new saying.
05:08:56.92	Unknown	and it's called Odom Podum.
05:09:01.47	Unknown	And that means everything happens in its time.
05:09:08.26	Unknown	Though there are no mistakes, you all did great at
05:09:12.61	Unknown	going deep within yourselves and coming up to a solution.
05:09:16.81	Unknown	And these people
05:09:18.08	Unknown	were wonderful
05:09:19.90	Unknown	in the way they brought their comments, because they were not, they were really supportive of you and of their experience.
05:09:27.66	Unknown	And,
05:09:28.67	Unknown	things. So,
05:09:29.92	Unknown	I'm just, you know,
05:09:31.86	Unknown	When everything happens in its right time, I just looked at the clock and
05:09:36.00	Unknown	Is it really supposed to be 1230 that I give my public comment? So...
05:09:41.40	Unknown	Okay.
05:09:42.88	Unknown	Thank you all. I appreciate that you...
05:09:46.10	Unknown	pulled it all out.
05:09:47.59	Unknown	And you really made a very positive impact on me. Thank you.
05:09:52.38	Unknown	Thank you.
05:09:52.40	Mayor Kamele	Thank you, man.
05:09:53.88	Mr. City Clerk	over the public on
05:09:54.86	Mayor Kamele	So we are now going to city manager report any report for us not tonight mayor All right, any reports for our committees? We have to take no any future agenda items and
05:10:10.34	Mayor Kamele	Any public comments on any of the-
05:10:12.35	Karen Hollweg	I would like us to consider the whole audit of the red zones and white zones in Sausalito. It may be a distant priority given our budget constraints, but I'd like to include that for consideration.
05:10:26.05	Mayor Kamele	So future agenda item audit of renegade red zones.
05:10:31.87	Mayor Kamele	There's now an opportunity for public comment on the
05:10:35.70	Mayor Kamele	everything you just heard. Is there any public comment on those things?
05:10:39.95	Mayor Kamele	mr city manager anything i said clerk nothing no all right well then thanks for everyone's forbearance i will adjourn this meeting enjoy the rest of the weekend and the chili cook-off
05:10:51.11	Mayor Kamele	See you there.

City Council Sept 17, 2024

City Council Meeting Summary

City Council Meeting Transcript

City Council Oct 1, 2024

City Council Sept 9, 2024

Positive People for Sausalito