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HomeMy WebLinkAboutcc min 1972/08/09 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Wednesday ~ 3:00 p.m. August 9, 1972 An adjourned regular meeting of the City Council of Chula Vista, California, was held on the above date beginning at 3:00 p.m. in the Council Conference Room, Civic Center, 276 Fourth Avenue, with the following Councilmen present: Councilmen Scott, Hobel, Hamilton, Egdahl Absent: Councilman Hyde Also present: City Manager Thomson, Assistant City Manager Bourcier, City Attorney Lindberg, Administrative Assistant Ratelle MEETING WITH REPRESENTATIVES OF Mr. Tom O. Prior, General Manager, SAN DIEGO TRANSIT CORPORATION San Diego Transit Corporation, intro- TO DISCUSS NEAR-TERM TRANSIT duced Mr. Herb Davis and Mr. Richard T. PROBLEMS AND PLANS Silberman, Chairman, San Diego Transit Corporation. Mr. Richard T. Silberman Mr. Silberman discussed the new programs currently being initiated by the Corpo- ration: the $10 monthly pass, the 25¢ fare entitling anyone to ride to any destination on the route, and the initia- tion of nine new express routes. Mr. Silberman cormmented that although the bus company is owned by the City of San Diego, it is the philosophy of the Board that they serve the region. In the next 5 to 10 years, the main transportation will be the bus, and every city must look upon this as a public service. He added that with the advent of their new rate structure, and the nine new express routes which will go by and through Chula Vista, they are in a unique opportunity to pro- vide extremely good bus service to the r~ sidents of this City. Mr. Silberman sug- gested that his staff meet with members of the City staff to find out where they can provide additional cooperation in the bus system which would lead to one regional- wide transportation program. Mayor Thomas D. Hamilton, Jr. Mayor Hamilton stated he does not recognize the Transit Corporation as the regional transportation system, because the City of Chula Vista does not have representation on it, and its citizens receive very limited service. Mr. Silberman Mr. Silberman explained that he didn't mean their Corporation was the regional agency-- they are merely regional operators. In answer to the Mayor's query, Mr. Silber- man remarked that they do not want to get involved in the CPO dispute - the law is specific as adopted by the State Business and Transportation Agency. It states that in this area, CPO is the entity which will be responsible for allocating SB 325 funds. Mr. Silberman added that the Trans- it Corporation is qualified for funds, and will go to CPO before the end of this month with a proposal. Councilman Frank Scott Councilman Scott asked if Mr. Silberman anticipated the City of San Diego re- linquishing some of its control over San Diego Transit System and allowing Chula Vista and the other outlying cities to participate in some manner in the system and have representation? Council- man Scott cormnented that he was quite surprised at the increase being sought by the Transit system -- $116,000 this year as compared to under $4000 last year, with no increase in service. Mr o Silberman Mr. Silberman felt the City of San Diego would have no objection and would back a regional board. He agreed that if you pay for something, you should have the right to say what the money is being spent for. He emphasized the fact that his Board of Directors would listen as much to the problems of Chula Vista as they would to their own City Council° Councilman James Hobel Councilman Hobel asked how much of the Transit's money comes from federal funds and what formula was used by them to ar- rive at the $116,000 figure for Chula Vista. Mr. Prior Mr. Prior stated that 2/3s of their funds come from the federal government, a little over one million dollars. This was used for equipment - new buses and a garage. Last year, the Transit Company based their revenue on a CPO study which indicated that so many passengers would ride in a given area. At the end of the year, how- ever, there were no where near the number of riders that was anticipated through the CPO study. For this fiscal year, San Diego Transit came into Chula Vista and made an actual passenger survey, which they projected over a 12-month period. Mr. Silberman indicated that the reduced number of riders was the biggest factor - they expected to get between $90,000 and $100,000 in revenues. Mr. Prior explained the formula -- take the operating cost on a per mile basis, mult~ ply that by the number of miles operated in the City of Chula Vista, then subtract from that the anticipated revenue. Council discussion A discussion was held concerning the level of service and increase in rate for the City of Coronado, and other outlying cities, and whether or not the service as proposed by the Transit Corporation would be good for the City of Chula Vista. SB 325 funds Mr. Silberman remarked that the City of Chula Vista and the Transit Corporation could develop programs between themselves which would qualify for SB 325 money. If the Transit Corporation were to provide additional service, perhaps in the areas now served by the City's independent com- pany, those funds could come from SB 325. This is the rapid transit part of the SB 325. Federal funds Councilman Scott referred to the federal funding received by the Transit Corpora- tion last year. He said he believed that one criteria set un by the government for allocation of federal funds is that the Transit Corporation be regional in scope. City Attorney Lindberg Mr. Lindberg referred to his opinion sub- mitted to the Council a year ago -- "the willingness to provide service to the area does not mean that they provide it without cost to the communities being served." Regional agency In answer to Councilman Scott's inquiry, Mr. Silberman indicated he was for having San Diego Transit being the regional authority. He will discuss this at the level of his Board, and try to also per- suade the City of San Diego. City Manager Thomson City Manager Thomson discussed the unit cost of the other system last year which he stated it was approximately 30¢ to 40¢. The percentage of income to revenue, as far as the City is concerned, is quite marginal. He asked if it was feasible for the Transit Corporation to use their more expensive per unit cost basis on Chula Vista's system. Mr. Prior declared that there was no way, in terms of dollars, they could provide the same service in Chula Vista as is being provided at a lower cost. They would have to find some combination -- service versus cost. Mr. Thomson indicated that the search, therefore, of the study should be for other values. At the direction of the Council, he stated his staff will meet with representatives of the San Diego Transit Corporation to discuss the proposal in more detail. A report will then be submitted to the City Council. UTILIZATION OF URBAN RENEWAL Mr. Jack Ratelle, Administrative Assistant, PROGRAMS BY THE CITY OF CHULA referred to the report he submitted to the VISTA Council. He stated that HUD has announced they will close all their programs as of September 1; this is in anticipation of the revenue sharing. The discussion, therefore, will have to be limited to the State Redevelopment Act. The Redevelopment Act involves redevelop- ing a specific area, freeze the assessment base, and hopefully the redevelopment will increase the assessment base to a point where tax increments could be set whereby it would be a "pay as you go," or a bond issue could be floated. Mr. Ratelle com- mented that he believes the bond issue should be the one to be considered. It could be ~n interest-funding bond so that the City would protect itself. It it takes three years to complete the redevelopment, the City would only have to ~ay the interest until the tax increment is secured. - 3 - Mr. Ratelle discussed his visit to Carson City and their redevelopment plan. He commented that the areas in Chula Vista which could be considered under the re- development program could be (1) a redeve- lopment of the project area east of 1-805 -- shopping center; (2) bayfront; (3) Third Avenue and Broadway. Council discussion Discussion followed concerning the areas which should be considered for the pro- gram. Mayor Hamilton questioned whether funds could be obtained for public im~rovements, such as a library, if it was included in an improvement district for Third Avenue. Mr. Ratelle said they would hope to gene- rate a sufficient tax increment that could reduce a bond issue that would exceed the immediate improvements that would have to be made. In this way, certain types of public improvements could be made. Mr. Ratelle further explained that these would be tax allocation bonds that would not need voter approval. It would be author~ zed here under the State Redevelopment Act, and the maximum interest payment would be 7%. City Manager Thomson Mr. Thomson asked for conceptual approval of the program to consider this further. The staff will then come back with specific proposals tied to the item whereby the Council would designate the Redevelopment Agency. Motion for staff to proceed It was moved by Councilman Egdahl, seconded with program by Councilman Hobel and unanimously carried that the staff be authorized to proceed with the program, and the Council basically goes on record as being inclined to move in this direction. Motion for regional transporation It was moved by Councilman Scott and seconded authority by Mayor Hamilton that a resolution be prepared to be sent to the City of San Diego asking them to consider initiating steps to make San Diego Transit a regional authority with representation from various cities in the community. Discussion of motion Councilman Egdahl commented that he felt the regional group should decide this and make the appropriate move to the ooerational end of it. Chula Vista should encourage CPO to implement the necessary steps and they should make the overtures to the City of San Diego. Motion changed Councilman Scott changed his motion to state that CPO be asked to look into having San Diego Transit Corporation become the regional authority with repre- sentation from all urban cities. A copy of the resolution is to be sent to San Diego and all other cities affected. Mayor Hamilton agreed to the second, and the motion carried unanimously. - 4 - Staff to contact San Diego It was moved by Councilman Scott, seconded Transit by Councilman Egdahl and unanimously carried that the staff be directed to contact San Diego Transit Corporation regarding the feasibility of serving the City of Chula Vista. COUNCIL CONFERENCES Councilman Scott commented that scheduling conferences on Wednesdays proves to be a hardship, especially if the Tuesday even- ing Council meetings are lengthy. Discussion followed as to a next suitable day. No action was taken. APPOINTMENTS TO BOARDS AND Mayor Hamilton announced that at the next Council meeting they will try to make a~pointments to the Boards and Cormnissions. ADJOURNMENT Mayor Hamilton adjourned the meeting at 4:57 p.m. to the meeting to the meeting scheduled for Tuesday, August 15, 1972, at 7 p.m. City Ci~ - 5 -