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HomeMy WebLinkAboutcc min 1972/11/24 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Friday - 4:00 p.m. November 24, 1972 An adjourned regular meeting of the City Council of the City of Chula Vista, California, was held on the above date, beginning at 4:00 p.m. in the Council Chambers, 276 Fourth Avenue, Chula Vista, with the following Councilmen present: Councilmen Scott, Hobel, Hamilton, Hude, Egdahl Absent: None Also present: City Manager Thomson, City Attorney Lindberg, Assistant City Ml~nager Bourcier VISITORS AND CONVENTION BUREAU Mayor Hamilton stated this special meeting was called to review the action taken by the Council on the Chula Vista Visitors and Convention Bureau at the Council meeting of November 21, 1972. City Manager Thomson outlined the status of the budget account for the Visitors and Con- vention Bureau. Mayor Hamilton asked Mr. Thomson what the status of the budget would be had the Council not granted the $7,000 loan. Mr. Thomson stated the balance in the General Operating Fund, deducting the $3,100 loan, would be $1,361.75, and in Special Projects would be $7,641.00. Discussion ensued on the bill from Mission Center paid on September 13, 1972, in the amount of $1,221.91. City Manager Thomson stated this would be under matching funds and come out of Special Projects. He added that this is the reason it is important to clarify where the $7,000 loan is coming from, as this $1,221.91 has not yet been taken out of Special Projects, which has a balance of $7,641.00 at this time. Councilman Scott commented that the $7,000 loan granted by Council will just extend the problem until July, when again the Council might be faced with the three alternatives as previously presented by the Bureau. Motion to reconsider action It was moved by Councilman Scott, seconded by Councilman Hyde and unanimously carried that the Council reconsider the action taken at the meeting of November 21, 1972. City Attorney Lindberg commented on the three ways in which moneys can be granted or loaned to organizations such as the Bureau as: (1) outright grant (dollar or matching fund basis); (2) loan with no interest or whatever interest rate agreeable to both parties; and (3) loan secured by property or some other appropriate security -- as in the action taken by Council on November 21, 1972. He added that it would not be advisable to approve a second trust deed on the Visitors and Convention Bureau property, considering the status of the ownership and outstanding indebtedness. Discussion enaued on the agreement made with the Bureau during Budget Session this year and pQsaihle modification thereof, the total budget request as compared to the year before, and the fact that $3~100 has kept the Bureau operating for ninety days. Neil Haas Mr. Haas asked if it would be possible to con- vert funds going for advertising elsewhere together with what the Bureau would need for general operating costs. He said this would help the Bureau through the rest of the fiscal year as well as give them time to take care of some of the indebtedness. In reiterating what Mr. Haas was discussing, Councilman Hobel asked if he was in effect proposing that the Special Projects account be wiped out and take that money, shifting it over to the General Operating Expense account. He pointed out that this would require a revised agreement. Council members discussed "keeping the Bureau's doors open" and alternatives for doing so. Glen James Mr. James remarked that if the doors of the Bureau are closed, about 75% of its negotiating power is lost. Harvey Bernens Mr. Bernens spoke on the value of the information booth; it is an asset to the City. The problem for the Bureau right now is simply getting out of the financial difficulty in which it finds itself. Councilman Hobel suggested that per the City's contractual agreement at the beginning of the year, that we, per quarter, under the General Operating Expense area (still within the budget perimeters) allocate $1,487.25 and that the $3,100 the City Manager has deducted from General Operating Expenses be taken from the Special Projec~ Fund of $7,641; also that we discharge our obligations on a matching basis for the $1,221 which is still unpaid, then leaving a b~lance in the Special Projec~ Fund of $3,320. The City would then continue on with the Special Projects Program as per the budget. Motion for revised agreement It was moved by Councilman Hobel and seconded by Mayor Hamilton that a revised agreement be brought back, taking the loan of $3,100 out of the Special Projects Fund, thereby reducing the balance to $4,541, and that the General Operating Expense side of the ledger continue on per the original budget agreement on both of them. Councilman Scott commented that the shifting of moneys from one account to another is not going to solve the problems of the Bureau. The motion carri d by the following vote, to-wit: AYES: Councilmen Hobel, Hamilton, Hyde, Egdahl Noes: Councilman Scott Absent: None Clinton Matthews Mr. Matthews stated he believes this motion shows the City is giving the Bureau a chance to survive. Mr. Matthews added that the property will be sold, the Bureau may continue as they -2- did during the first year of operation, hut the !aformation Center would be sold to anothe~ corporation. Discussion A brief di~cuss~ion ensued on the promissary note due now ($7,S00 total), Mayor Hamilton indicated that the note should be broken down as follows: (1) $3,I00 - a grant and nothing else; (2) $4,200 - a con- tractual obligation which has not been met. Motion to amend due date It was moved by Councilman Hobel, seconded on promissary note by Mayor Hamilton and unanimously carried that the due date on the $7,500 be amended to on or before June 30, 1973 and that staff be directed to separate the two. Members of the Council discussed the fea- sibility of any additional obligations before the $4,200 is proven discharged. City Attorney Lindberg remarked that a re- quirement such as this could be incorporated into the contract to provide that until the note is satisfied insofar as the matching funds (which were not matched) has been dis- charged that the Bureau could not receive any further matching funds. Discussion ensued on the $1,221.97 and whether or not it should be matched. Clinton Matthews Mr. Matthews offered information on the origin of the $1,221.97 as being from advertising purchased by five members of the Bureau. Motion to remove from payment It was moved by Councilman Egdahl, seconded the matching fund bill by Councilman Scott and unanimously carried that the payment of the matching fund bill of $1,221.91 be removed until the Council receives a report from the City Attorney as to the legality of that payment. ADJOURNMENT Mayor Hamilton adjourned the meeting at 5:55 p.m. Deputy ~ity Clerk -3-