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M/S Howard /Pierce to approve the City Manager's initial recommendation to direct City Departments to identify savings equal to at least 1/3 ($1.2 million) of the projected 2002/2003 deficit of $3.5 million and draw down our reserves by the remaining 2/3 ($2.3 million). Approve the suggested calendar for future meetings and decisions to work on the short-term and long -term solutions to our deficit problem. The motion passed by a unanimous voice vote. MINUTE ORDER 03 -27 9. MATTERS OF COUNCIL INTEREST - 9.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. 3 -2003. 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). 9.A.1 — Council Member Howard — requested staff examine the "Utility Users Tax Task Force Update ", page 3 of Priority Focus #3, dated January 24, 2003. Director of Finance and Financial Planning Ponty stated that the City is following and involved in this subject. 9.B. Proposed City Council Policy on Recycled Water: (205) Council Member Jordan stated she did not want to discuss whether recycled water is V safe because many studies are being done, there are reasonable differences and opinions as to the uses, and there will be ongoing debates in the future. She further stated that her proposal is to request Council implement a policy to not force one segment of the Redwood City population to carry the burden of a potential drought by forcing them to use recycled water near their homes, near their children or pets. Council Member Jordan continued to explain her five reasons for the policy. She stated that even if we were told that it is absolutely safe by the State or by the Federal Government, there is still a chance that they could be wrong. Stating that the primary goal of the contingency plan is to share hardship equitability among all user classes, Ms. Jordan stated that the concept of forcing Homeowner associations to use recycled water is making that particular population disproportionately carry the burden of the potential drought. Devaluation of property could be an issue disclosed upon sale of property that could be viewed as inferior. Her final point was to allow buyers in new developments the choice of whether to buy or rent in an area where recycled water is being used. Council Members asked questions and made various comments. REGULAR CITY COUNCIL MEETING FEBRUARY 3, E PAGGE 5 5 MINUTES MINUTES Book No. 59 Page No. 376