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Financial Services Director Ponty explained the background on the report and that the topic was first before the Council on February 9 at which time Council direction was to negotiate options or a more favorable fee arrangement to the original proposal. MMC staff provided several alternatives with the most advantageous being a reduction in their proposed fee from 45% to 40% of the new revenues the City receives as a result of their efforts. The recommendation is that Council approve this recommendation based on the results MMC has obtained for the cities of San Mateo and Belmont. Recommendation: M/S Hartnett/Bain to authorize the City Manager to execute an agreement with MBIA MuniServices Company to provide the City of Redwood City with a Business License Tax Compliance Program which consists of Business License Discovery and Audit Services. The motion passed by a unanimous voice vote by those present with Council Member Foust absent. MINUTE ORDER 04-41 7. MATTERS OF COUNCIL INTEREST A. Legislation (information only) - This sub - section involves possible discussion of City Position on Proposed Legislation described in the League of California Cities Priority Focus Bulletin No. 7 -2004 and No. 8 -2004. Council may direct staff to act on positions taken by Council. (Copies of League of California Cities Priority Focus available in City Clerk's Department.) B. Council Member Howard — stated that in addition to Council Member Ruskin's victory in the November 4 Statewide Election, Measure2 had also passed. The measure is the $1.00 toll increase on state owned bridges with some of the projects to be funded are the Dumbarton Rail electrification, a Trans hub terminal in San Francisco, Water Transit for South San Francisco, an increased number of shuttles and buses along with many other projects. C. Vice Mayor Pierce — announced that the deadline for the Partnership Academy for Community Teamwork (PACT) applications is Friday, March 12 at 5:00 p.m. Applications can be received from the City website and returned to the City Manager or City Clerk Office. She stated that it is a nine week and participants have become excited about what they learn about their city and how they might become involved. D. Mayor Ira — stated that he receives anonymous letters or requests and one he recently received asked why the U.S. and California flags were left up at night. He stated that the City does respond to all correspondence but that it is impossible without a name and address. He explained that a complaint about the City's flag being displayed at night is disrespectful. Mayor Ira stated that as long as the flag is lit at night that it is appropriate to be flow at night. REGULAR CITY COUNCIL MEETING MARCH 8, 2004 MINUTES PAGE 4 MINUTES Book No. 60 Page No. 162