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clerk, and an annual increase based on inflation for the TRP. Councilmember Pentin accepted the friendly amendments. Mayor Thorne reopened the public hearing. Crysta Vlasak called for the immediate defunding of the Police Department; to invest in the community and defend, protect, and preserve black lives. Mayor Thorne closed the public hearing. Councilmember Pentin added a friendly amendment to remove prosecutorial discretion for settlement of violations from the ordinance. Vice Mayor Narum accepted the friendly amendment. Councilmember Brown expressed concern regarding supporting permanent grandfathering and asked Councilmember Pentin to explain his position. Councilmember Pentin commented other products, such as alcohol, are equally dangerous to the community and are legally sold in the area and he feels the compliance checks will be enough to deter sales to youth and that legitimate businesses also need protection. Councilmember Brown expressed concern tobacco products are being resold to youth in youth-oriented areas and will not support the motion. Councilmember Testa commented she will not support a motion that includes permanent grandfathering but supports increased compliance checks and removal of the youth penalty clause in the ordinance. Mayor Thorne expressed his support for the item. MOTION: It was m/s by Pentin/Narum to introduce and waive first reading of Ordinance No. 2209 to amend Pleasanton Municipal Code Chapter 9.32 to add a Tobacco Retailer Permit requirement, remove referrals to counseling for persons under age 21 in possession of tobacco products, continue to grandfather sites that are within 1,000 feet of public schools, parks and recreation facilities, add fee adjustments based on the Consumer Price Index annually, and establish a minimum compliance visits per year. Motion passed by the following vote: Ayes: Councilmembers Narum, Pentin, Mayor Thorne Noes: Councilmembers Brown, Testa Absent: None 34. Consider adoption of a resolution accepting the FY 2020/21 Mid-Term Operating Budget City Manager Fialho provided opening remarks and noted Council adopted a two-year budget on July 1, 2019, with staff making adjustments for revenues and expenditures every six-months. He noted a downward adjustment of$6.5 million was made due to the impacts of COVID-19. Finance Director Tina Olson provided an overview of the FY 2020/21 mid-term Operating Budget. She reported staff proposes reducing General Fund expenditures by $3 million and increasing Enterprise Funds, Internal Services Funds, and Special Revenue Funds for a total net increase of $900,000. Finance Director Olson presented the General Fund overview and noted a net reduction in revenues of$642...000 and an increase of Transfers Out by $2.5 million bringing the City to a balanced budget. She reported staff proposes increasing Property Taxes to $1.145 million, decreasing Sales Tax by $1.688 million. decreasing Other Tax by $1.862 million, increasing Development Services fees by City Council Minutes Page 9 of 14 June 16, 2020