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3) Request by Redwood City Downtown Association Board Members Eva Marie Crook and John Hollister for $500 to cover the cost of mediation of issues concerning the Business Improvement Area No.2. Eva Marie Crook, 2650 Broadway, Redwood Pastry Shop, member of the Board of the Downtown Association, asked the Council to provide $500 to fund the mediation efforts undertaken by the members of the Downtown Association. In response to Council questions, Ms. Crook advised current funds are committed to projects and other obligations. Pat Hoffman, 2225 Broadway, Conine's, Treasurer of the Downtown Association, described the expected expenditures associated with the Sunflower Festival and the Association's hopes to recover some of those costs. Janet Smiley, attorney, 620 Jefferson, Secretary of the Downtown Association, described the Association's outstanding commitments, including storage and insurance. City Manager Everett advised that he and the City Attorney agree there should be an audit done by the City Finance Department now and after the Sunflower Festival. Mr. Everett suggested the Council agree to provide the $500 now and be reimbursed by the Association from the proceeds of the Sunflower Festival. John Hollister, Great Western Bank, member of the Downtown Association advised that the Board voted not to provide funds for a mediator, and he had approached the City to request the funding. Mr. Hollister explained there had been a misunderstanding and he had thought the City agreed to fund the mediation, when in fact, the decision had always rested with the Council. Mr. Hollister asked that the Council vote tonight to fund the mediation that had taken place with the members of the Downtown Association. M/S: BURY/STANGEL TO APPROVE THE REQUESTS OF $500 FOR MEDIATION WITH THE PROVISO THAT AN AUDIT BE CONDUCTED, AND IF RESOURCES ARE AVAILABLE THE MONEY WOULD BE REIMBURSED TO THE CITY In response to questions from Council Mr. Hollister acknowledged the Board had voted not to expend funds for the mediation, but advised that he intended to ask the Board to reconsider at its meeting tomorrow, July 7, 1992. Mr. Hollister stated if the Council and the Downtown Association Board declines to provide funding, he will have to pay for it himself. Bob Bryant, 2227 Broadway, Court House Cafe, commended Mr. Hollister for his efforts to provide mediation efforts to the Association, acknowledged the Board voted not to fund the mediation, and told the Council that if the Council voted to fund the mediation, and if the audit showed no available resources remaining, he would reimburse the City himself. MINUTE BOOK NO. 51 Regular Meeting Minutes July 6, 1992 Page No. 132 Page 8