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Minutes - San Leandro City Council Meeting - June 15, 1992 Page - 21 - PUBLIC HEARINGS (continued) fee. He said they process concrete as "special handling" but the City bases its fees on historical weights. He said the City is not losing money on these fees. Mr. Jermanis discussed the Development Fee for Street Improvements (DFSI) . He said the fee is reviewed annually and adjusted in accordance with the Construction Cost Index. He said the Municipal Code also requires an annual review. Roy Parker, Transportation Administrator, reviewed the fees received and the amount appropriated. He said projects are not funded until funds are available. He said a report will be presented to the City Council in the first quarter of next year on the status of the projects and funding. He noted the Washington/Beatrice improvements will be paid for by Caltrans and construction was expected to begin one week from today. He said there would be night construction consisting of two 10-hour paving jobs. He said Fairway/Merced would be improved with additional left turn widening and phasing, prior to completion of the overpass. Mike Oliver discussed the current State budget problems. He said the actions of the State could result in a $4 million revenue loss to San Leandro. He said the City has reduced its costs by 10%, or $4 million, over the last two years. He said the next 10% cut will be evident in the community because it will require service level reductions. He said the potentials impact on the City of Measure L are unknown at this time. He said the City was not successful in negotiating the furlough program with the employee groups and, although the budget was cut by an additional $260,000, the employee groups would not open negotiations. Therefore, he was laying off employees, including two full -time fire fighters and part-time Police and Library Department employees. He said the State budget has an $11 billion deficit. He recommended that the City Council adopt the proposed budget tonight, wait and see what the State does, and then discuss options. He recommended approval of the proposed budget. The hearing was then opened to the public. Lee Ness, 2321 Belvedere Drive, asked if the City had looked into the use of wheeled garbage cans as a cost savings measure. He also suggested the City look into separating garbage. He said he was disturbed with the budget because it was robbing Peter to pay Paul . Bob Leigh, 1380 Drake Avenue, said he was the chairman of San Leandrans for Responsible Government. He said the group wants to review the budget and stay informed. He said John Jermanis, Mike Oliver and Rick Evans provided a lot of information. He said he is not taking a position on the budget. He asked the City Council to reconsider the Mayor's proposal for a Blue Ribbon Advisory Committee. He said it would be helpful to the City Council and staff to have people who are willing to study the budget and to allow the community to communicate