TO: The Honorable Mayor and City Council Members

FROM: Robert S. LaSala, City Manager

SUBJECT: Rental Rates and In-Lieu Fees/Inter-Fund Transfer Report

DATE: March 20, 2003

COPIES: ELT Members

I am enclosing a copy of the report describing changes to rental rates and in-lieu fees/inter-fund transfers. As you know, this report has been developed in response to the City's financial and budget crisis.

This report will be presented as part of the City Council's regular meeting on Tuesday, March 25, 2003 in Council Chambers. City staff will present report highlights, and will be available to answer questions or respond to comments. The report will be listed on the agenda as a public hearing item, which will allow the public will be able to provide comments, ideas, and opinions. As you will see, there is no recommendation included in the report. I will provide recommendations regarding modifications to services and/or levels of services that are associated with rental rates and in-lieu fees/inter-fund transfers as part of the overall service reduction presentation scheduled in April.

Please let me know if you have any questions or need additional information prior to the March 25^th meeting.