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1\IINUTES City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-June 7, 2004 Page 15 Lou FiIipovich, 15376 Laverne Drive, addressed the City Council, stating that he believes the BID process is flawed. Kathy Banks, 964 Hutchings Drive, addressed the City Council, elnphasizing the need for the Shuttle by the community. Mike Rawlis, 964 Hutchings Drive, addressed the City Council in support of the Shuttle and stating transportation service to the area would be inadequate without the Shuttle. Yvette Rice, 13160 Neptune Drive, addressed the City Council in opposition to the Shuttle. She stated the monetary contribution for the service by businesses should be voluntary. Greg Sanborn, Orr Moulding Distribution, addressed the City Council, requesting the Council exempt businesses with 50 or fewer employees from the BID and stating the cost of the Shuttle service is excessive compared to others its size. He asked the Council not to approve the BID. Mr. Jermanis gave a synopsis of the May 17, 2004 public hearing on the matter. Business Development Manager Luke Sinls gave a PowerPoint presentation providing responses to the questions raised by the Council at the May 17, 2004 City Council Meeting. Mr. Jemlanis presented the staff reconlmendation to approve the BID effective July 1 for a limited duration. Under this recOlnmendation, the City will send out BID protest cards again in September 2005. By that time, businesses will be well aware of the program. The results of the protest will be presented to the Council. If a majority protest is received, the BID will end on June 30, 2006. If less than a nlajority protest is received, the Council can determine whether or not to continue the BID. Staff has examined ways to reduce the program administrative costs and will work with Transportation Management Organization (TMO) Executive Director Gordon Galvan to make these reductions. Mr. J eml ani s stated that if the Council is interested in continuing the Shuttle service, this recomlnendation would allow the operation to continue for a limited duration and give the Council an opportunity to assess the continuation of both business and grant support for the program. The Redevelopment Agency will continue to provide backup funding support for the grant and BID funding. Councilmember Nardine requested clarification regarding the level of grant funding that would trigger the sunset of the BID. Mr. Jermanis clarified that there are two elements necessary for the continuation of the Shuttle: 1) the contribution by the businesses that have employees using the Shuttle, and 2) the continuation of approximately $100,000 in grant funding. Mr. J ermanis indicated that if the grant funding does not continue, the program will no longer be affordable to provide.