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Mr. Darrel Maxson, 785 Rose Avenue, spoke regarding the use of the Veterans' Building. He stated he felt it should be used as a public meeting building without the Veterans having first choice of its use as is now the case. He recommended approval of expenditures for improvement of the building. This concluded the review of the Capital Improvement Program. Mayor Mercer recessed the meeting at 9:30 P.M. Mayor Mercer reconvened!the meeting at 9:40 P.M. N~ RESIDENTIAL CONSTRUCTION TAX Mr. Broken stated that during the consideration and adoption of the Residential Allocation Program, Council determined to reduce the "payment per point" to raise funds for capital improvements by one-half and to look into the possibility of increasing the residential construction tax on new construction to raise the "a ant income lost by reducing the p ym per unit" in the Residential Allocation Program. Mr. Swift presented his report dated June 14, 1978, regarding this matter. Councilmember Brandes asked if the residential construction tax could be increased higher t~han proposed at the time of consideration under the Residential Allocation Program. Mr. Levine advised that it could. Councilmember Brandes stated he felt the amount per unit should be increased in light of the passage of Proposition 13 to allow as many capital improvement projects as possible. He also stated he would like to see these funds restricted to capital improvements and not transferred to the General Fund. l{ayor Mercer stated he felt the residential construction tax should not be higher than the proposed $116.00 per unit, which would equal the Residential Allocation Program allocation. After considerable discussion, it was moved by Councilmember Brandes, and seconded by Councilmember %~od, that Resolution No. 78-161, approving Method 2, Tax Schedule as shown on page 8 of the staff report dated June 14, 1978, and increasing the ,~_xisting Residential Construction to $200.00 per unit, be tenta- tively adopted with final adoption on June 27, 1978. The roll tall vote was as fellows: AYES: Councilmen Brandes, Wood, and Mayor Mercer NOES: None ABSEI~f: Councilmen Butler and Kephart Mayor Mercer indicated that he was voting for the $200.00 at this time, but at tt~e next meeting on June 27th, when the amount would be finally adopted he wo,~ld vot~a to reduce the amount to that provided for during the Residential Allocation Program approval discussions. It was moved by Mayor Mercer, and seconded by Councilmember Brandes, that Ordinance No. 856, to be read by title only and waiving further reading thereof, to separate the park dedication fee collection function from the Residential Construction Tax collection as per the staff report, including deleting Section 1-6.65(c) from Article 6, Chapter 3, Title I of the Ordinance Code of the City of Pleasanton and amending Section 2-4.31 of Article 10, Chapter 1, Title II of the Ordinance Code of the City of Pleasanton, be introduced. 3. 6/20/78