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Councilmember Sullivan questioned and confirmed with Mr. Dolan that the Tier 1 does not allow self- certification by the developer for the entire process. Mr. Dolan confirmed that the Council's preference is to consider a version of recommendation number 2, which is to adopt the state mandate and review it in six months, with the hopes that the State will provide guidance for both commercial and residential building, and to not allow self- certification. Stopwaste.org would support this, as it would keep LEED and Build It Green and requirements for multi- family in place. Vice Mayor Thorne thanked staff for their work in melding the two systems together, supported review in six months for the sake of compromise, but was not interested in having multiple systems. Regarding predictability, if there is a project that meets Tier 1 and the Planning Commission and staff adds onto it so it may equal Tier 2, this is the way the process works, and the City always reserves the right to add things it thinks is applicable to projects. Councilmember Cook - Kallio noted the Council could make the 3 stories of residential more stringent, and she suggested the Council also define mixed use multi - family structures over 3 stories. Councilmember Sullivan proposed keeping existing LEED and Build It Green guidelines for residential, commercial, and multi - family, to adopt CalGreen basic, review evaluation criteria as it is received, and to determine the best way to implement this at the end of six months. Mr. Fialho restated the motion, which is to continue the Build It Green rating system for residential, commercial and multi - family projects and for staff to return to the Council in six months for further review. Councilmember McGovern seconded the motion. Motion: It was M/S by Sullivan /McGovern to continue the Build It Green rating system for residential, commercial and multi - family projects, and for staff to return to the Council in six months for further review. Motion carried by the following vote: Ayes: Councilmembers Cook - Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None 12. Review and accept the Fiscal Year 2010/11 First Quarter Financial Report Director of Finance Emily Wagner reviewed the financial results for the City's Operating Budget, General Fund, Water Enterprise Fund, the Sewer Enterprise Fund, and the Golf Course Operations Fund for the first quarter of FY 2010/11 which ended September 30, 2010. Revenues: The City has received 5.6% of budgeted revenues as compared to 25 %. The difference is due to timing of receipt of funds, which she briefly explained. To note is in 2009/10 fiscal year, the actual property tax was $49.7 million. Budgeted for 2010/11 is $47.7 million. However, the first installment was received in December which is the same as last year. Therefore, the City could increase the 2010/11 budget which could be done at mid -year in February. Sales Tax: In FY 2009/10, $115.4 million was received. For FY 2010/11, budgeted is $16.2 million, or an 8.8% increase. First quarter receipts received were 17.4% higher than December City Council Minutes Page 13 of 15 January 4, 2011