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RESOLUTION NO. 14944 OF THE CITY OF REDWOOD APPROVING AND AUTHORIZING THE CONTINUANCE OF THE AUTOMATIC AID AGREEMENT FOR FIRE RESPONSES 6.3 Section — Claims and Warrants A. Approve warrants dated through June 15, 2009 and usual and necessary payments through June 22, 2009. Minute Order 09-114 ................................................................................. 7. BUDGET STUDY SESSION A. FY 2009-2010 Budget Study Sessions Minute Order 09-115 Mayor Foust made some opening remarks regarding core services and core purpose and how these need to remain the foci of these discussions in order to reach financial sustainability. She also commented that the strategic initiatives were placed in existence to align resources with the City mission. Mayor Fo�st extended words of gratitude to the labor groups for their concessions in the area of salary freezes. Regarding a recently released Grand Jury report, she added that the city is not reacting to it because the city had already begun the process of addressing some of the findings in such report. City Manager Ingram provided a presentation to Council (on file). He covered the agenda and the plan for both Budget Study Sessions. He thanked Mr. Ponty, Finance staff and Deanna La Croix, Executive Assistant to the City Manager for their hard work. He explained the current situation is a shared crisis and all are aware of its reality from the Executive Team to the Boards, Commissions and Committees to the greater community. Mr. Ponty, Director of Finance, provided an overview of the General Fund Revenues (on file). One Council Member provided details on Proposition 1A and its implications. Mayor Foust acknowledged sending a letter opposing the Local Gas Tax Diversion that is now being proposed in Sacramento. It was suggested that Senator Joe Simitian receive a copy of the letter. Council consensus was to send a copy of the letter to Senator Simitian. City Attorney Yamamoto said that there was a request by the League to have City Attorneys unite and consider litigation against the state. Council consensus was to give City Attorney Yamamoto authority to join in these efforts. M/S Howard/Ira to have City Attorney Yamamoto join the League of California Cities attorneys' group and act on behalf of the city. Motion carried unanimously by voice vote. Minute Order 09-116 Council discussed having Redwood City unite with other cities in San Mateo, joining forces and possibly taking some action against state legislators and communicate with congressional representatives. There was also a suggestion to have the County/City Managers Association look at issues such as sales transactions over the internet and impacts on revenues. City Manager Ingram summarized the recommended budget cuts. He explained that these cuts build on accumulated cuts of $11 million that took place between 2002 and 2006. Consequently, he said the current base is smaller and that represents 40 to 50 less SPECIAL CITY COUNCIL MEETING JUNE 15, 2009 MINUTES PAGE4