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~nNUTES City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-June 7,2004 Page 17 make those funds available. Councilmelnber Stephens commented that some of the Council mentioned that the City could not afford to do this. He suggested that businesses might feel the same way about the BID. Councilmember Santos commented on the proposed cuts to paratransit service and proposed revenue shifts to the State and away from special districts such as AC Transit. He asked Mr. J ermanis to comment on the option of waiving the assessment for businesses with five or fewer enlployees. Mr. J ermanis indicated that savings could be achieved in the TMO budget to offset the $20,000 loss of assessment from exempting businesses with five or fewer employees. Mayor Young stated that she would favor exempting businesses with five or fewer elnployees and making up the revenue loss through reductions in the administrative budget. She responded to the comments regarding the variety of people who use the Shuttle, noting that it is a requirelnent of the grants that other than business people be allowed to use the service. Mayor Young mentioned her efforts to secure grant funding for the LINKS Shuttle from the Bay Area Air Quality Management District. Mayor Young expressed concerns regarding some of the line itenls in the TMO budget. She supported the ideas of integrating the LINKS and Flex Shuttle management and sponsorship and bus advertising. Mayor Young suggested that in the conling year the TMO staff could attempt to contact all businesses within the BID to inform thenl about the program and ask if their employees use it. Councilmember Santos concurred with Mayor Young's comments. Councilmember Santos made a MOTION to approve the staff recommendation with the addition of the following: 1) Exempt businesses with five or fewer employees from the BID assessment; 2) Analyze the shuttle operations budget to identify reductions in administrative costs; and 3) Look into soliciting business sponsorships and bus advertising as a way of offsetting shuttle operating costs. Councilmelnber Stephens asked about the possibility of exempting businesses with 25 or fewer elnployees and polling those businesses to see if they would participate voluntarily. Mayor Young noted that doing so would involve larger budget reductions than could be achieved, and the program would have to end. Mr. J ermanis indicated that exempting businesses with 25 or fewer employees would significantly reduce the I1l.unber of businesses contributing to the assessment. . Ordinance No. 2004-013, an Ordinance Amending Title 2 of the San Leandro Municipal Code to Add a New Chapter 15 Establishing the West San Leandro Shuttle Business Improvement District in the City of San Leandro. (1413/2993) Passed to Print with revision to exempt businesses with five (5) or fewer employees from the assessment