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Approval of Deferred Improvement Agreement with Stoneson Development Mr. MacDonald presented his report (SR 86:68) dated February 12, 1986, regarding this matter. Mayor Brandes stated he requested this item be removed from the Consent Calendar to allow Council to discuss its policy relative to length of time extension for deferment agreements. Councilmember Butler stated he could not see where there would be a problem with the extension of deferment agreement as there is only small benefit regarding this matter. Councilmember Mercer stated he felt that all normal fees should be paid by the developer. Mr. Martin Inderbitzen, 62 W. Neal Street, representing the applicant, stated he is not opposed to the six month extension and the assessment of City fees. It was moved by Councilmember Butler, and seconded by Councilmember Mohr, that Resolution No. 86-66, approving the Deferred Improvement Agreement with Stoneson Development for a period of six months and to include $1,000.00 fees; and authorizing execution of the agreement by the appropriate city officials, be adopted. The roll call vote was as follows: AYES: Councilmembers Butler, Mercer, Mohr, and Mayor Brandes NOES: None ABSENT: Councilmember Wood SPECIAL REPORTS There were no Special Reports presented at this meeting. REPORTS OF BOARDS AND COMMISSIONS Actions Taken by the Board of Adjustment, Design Review Board, and Planning Commission at their meeting of 2-12-86 Mr. Swift presented his report (SR 86:56) dated February 13, 1986, regard- ing this matter. No action was required or taken by Council on the item. REPORTS OF THE CITY MANAGER Annexation Request - TMI Corporation, 152 Acres between Foothill Road and 1- 680 North of Bernal Avenue Mayor Brandes declared this item dismissed from the agenda at the request of staff. Mid-Year Budget Review Mr. Hammon presented his report (SR 86:70) dated February 18, 1986, regarding this matter. Councilmember Butler asked if there is an emergency fund to take care of repairs that will be incurred in this week's storms. Mr. Walker advised there are funds set aside for this purpose. Councilmember Mercer commended Mr. Hammon for his concise report. It was moved by Councilmember Mercer, and seconded by Councilmember But- ler, that the 1985/86 Fiscal Year Budget be amended to reflect the adjustments in the financial status of the General Fund, Sewer Fund, and Water Maintenance and Operation Fund as set forth in Staff Report 86:70, be adopted. The roll call vote was as follows: AYES: Councilmembers Butler, Mercer, Mohr, and Mayor Brandes 2-18-86 - 5