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HomeMy WebLinkAboutcc min 1971/02/22 MINUTES OF A REGULAR ADJOURNED ~{EETING OF TIIE CITY COUNCIL OF T}IE CITY OF CHULA VISTA, CALIFOrnIA Held Monday - 3 P.M. February 22, 1971 A regular adjourned meeting of the City Council was held on the above date in the Council Chamber, Civic Center, 276 Fourth Avenue, with the following Councilmen present: Councilmen Scott, Hobel, Hamilton, Hyde, rgdahl Absent: None Also present: City Manager John Thomson, City Attorney Lindberg, Director of Parks & Recreation Jasinek, Director of Finance Grant, City Engineer Gesley, Director of Building & Housing Grady PROPOSALS RELATIVE TO THE Mr. William Jasine¥, Director of Parks LEASE FOR THE CHULA VISTA and Recreation, explained that the MUNICIPAL GOLF COURSE prospectus was prepared in late Fall RESTAURANT FACILITIES regarding the lease for the Golf Course bar facility and restaurant. Twenty- eight prospectuses were sent out and four applicants submitted proposals. The committee, which consisted of Director of Bu~]ding & Housing, City Engineer, Associate Planner, Recreation Superintendent, Director of Finance, and Director of Parks & Recreation, selected Dick Agee as the prospective lessee. Mr. Jasinek discussed the terms of the lease agreement as drafted by the committee. In answer to Councilman Hobel's inquiry, Mr. Jasinek commented that the prospective lessee did contribute some input to the lease agreement. William Bauer, Attorney for ~{r. William Bauer discussed the changes Dick Agee the prospective lessee plans to make in the remodeling of the clubhouse, which will add 13,000 square feet to the existing facility at a cost of $150,000 - capital improvements in the actual building itselq. Mr. Agee also intends to spend $100,000 on the kitchen facility. At least $100,000 of this will be invested capital put into the project and part of it will be borrowed against the 20-year terminal lease amortized over a 20-year period. Parking facilities - The Council discussed the parking discussion facilitiss. ~r. Bauer declared the cost of the increased parking would be shared on a 50-50 basis with the City. City's share of receipts Mr. Jasinek explained that, under the present lease, the City receives between $5,000 and $6,000 a year. Payments to City Under the new lease they will have straight line depreciation of the capital improvements which will be charged against the lease payment; however, with the projected revenue based upon the remodeling, etc., the total volume will be betx~een $480,000 and $500,000 a year. 5% of that figure, then amortizing straight line depreciation and adding the rental payment, could amount to substantially more than $6,000 a year for the City. Councilman Scott questioned the fact that until the improvements are amortized, the amount coming to the City would be no more than $6,000 a year. City Attorney Lindberg stated this would be the minimum - $6,000 is the guarantee. Anything over that which is in excess of the amortization amount comes to the City. Expiration term of lease City Manager Thomson briefly discussed the 20-year periods of time requested in the lease agreements. He added that only the prospective lessee was willing to come up with money right away; the others were willing to put up money at a later date. Liquor license Mr. Bauer explained that time was of the essence, since it takes 30 days minimum time to apply for a liquor license, and the current license is not transferable. City Attorney Lindberg stated that the prospective lessee has indicated that the lease should provide that it be contingent upon a liquor license being procured. Councilman Scott commented that, in the 180-day termination notice of a contract, perhaps it should state that the liquor license should be sold to the successor. This should apply to all future leases. Mayor asks for comments Mayor Hamilton asked if there were anyone from the audience else in the audience wishing to make a comment at this time. Seeing no one approach the lectern, he repeated his statement, again asking for comments from the audience. No one approached the lectern. Termination of present The Council then held a discussion on the lease termination of the Dresent lease, should the prospective lessee be approved. Councilman Hyde indicated his concern about selecting another lessee now, and the type of service that would be immediately available to the City. Councilman Egdahl shared this concern, questioning the order of events. Mayor questions present Mayor Hamilton asked Mr. Jack Thomas lessee to come to the lectern, and asked the question whether he would continue the present operation until such time as either he or another lessee were selected. Mr. Thomas stated that he would continue; that it was not his intention to just walk out. Motion to approve It was moved by Councilman Scott, recommendation seconded by Councilman Egdahl and unanimously carried that the Council proceed as recommended by the Committee. This motion is strictly just naming the lessee. -2- SUBMISSION OF PROFIT AND Mr. Patrick Doogan, General Manager of LOSS STATEMENT AND DISCUSSION Aztec Bus Lines submitted a Profit and OF PROPOSAL - AZTEC BUS LINES Loss Statement to the Council, along with graphic representations k. ased on actual current ridership figures and future projections. Councilman Hobel questions Councilman Nobel declared that this was statement not a statement by a Certified Public Accountant. Mr. Doogan indicated it was not, as they were unable to obtain one since it was tax time and a busy time of the year for Certified Public Accountants. Their statement was prepared by Dortha Farrar, Aztec's accountant. Mayor Hamilton asks for Mayor Hamilton interrupted Mr. Doogan's any additional testimony testimony by announcing that it was just on golf course lease brought to his attention that some people in the audience were unhappy that they were not given a chance to speak on the last issue golf course lease. stated he made this quite clear during the testimonies on that matter, but if anyone cared to speak now, they would be heard. It was noted that no one approached the lectern. Discussion of Profit and Mr. Doogan continued his presentation Loss Statement explaining the Profit and Loss Statement figures. No separate books were kept on this contract with the City. Councilman Itobel questioned this fact, stating that as part of the contract, they were required to keep a separate set of books on this operation, and that the statement submitted to them was not an audited financial statement, tie added that he feels the Council cannot fully evaluate the service until such time as they get an audited, independent statement. Alternate suggestion Councilman Scott commented that it was difficult to get a Certified Public Accountant at this time of the year, and perhaps an alternate suggestion, until they get an audited statement, would be to negotiate to continue this contract for another month, ~n order to get more time. Availability of City Manager John Thomson asked the City's auditor Director of Finance if it would be possible to get the City's Certified Public Accountant within a week or so to start an audit. Mr. Grant stated he talked to the City's auditor, Mr. Wayne Carroll, about three or four days ago regarding an audit of the Chula Vista Sanitary Service, and Mr. Carroll indicated he could come down on or around March 1, 1971. He didn't know whether ~{r. Carroll could make this particular audit shortly thereafter, however. -3- / Director of Finance Mr. Grant commented that Aztec Bus Lines Grant should select their own auditor; it is their obligation to do so Month to month contract Mr. Doogan indicated that a contract for a month to month basis would not be conducive to the business health of the bus line. City Manager Thomson City Manager John Thomson discussed his previous recommendations to the Council and further elaborated on the mini-bus and other available services. He commented that there is still staff effort going on behind the scenes relative to an extension of this contract. Funds for extension of Councilman Hobel commented that if they contract are talking about extending the contract on a month to month basis, they are talking about general funds, since this is not budgeted. Motion to extend contract Councilman Scott moved, seconded by for one month Councilman Hyde, and unanimously carrie~ that the contract be extended one month until such time as a certified public accountant can do an audit of Aztec Bus Lines, and present it to the Council. If one month is not long enough, the Council can be not~fied. Also, that the staff is to negotiate a new contract and bring back this supplement to the Council. Modification of present City Manager Thomson indicated there may contract be some features that may develop as a product of this short term extension - some points that may be incorporated in this interim arrangement that would be more operable. Councilman Hyde stated that unless it is completely agreeable to both parties, modifications of the present agreement should not be put in, since it would complicate the issue. CREATION OF FUNDS TO Mr. Ed Carson, Chairman of the Community ERECT FOUR COMMUNITY Promotional Committee, Chamber of IDENTIFICATION SIGNS ON Commerce, submitted a rendering of a INTERSTATE 5 AND 805 - proposed sign they would request be COMMUNITY PROMOTION erected on 805 and Interstate 5 a total COMMITTEE of four signs. He stated that last year this committee made a recommendation that 5% of the hotel-motel tax be set aside for five years to create a fund to purchase more attractive community signs to be located on the northerly and southerly boundaries of Chula Vista, on Interstate 805 and 5. The Council requested that the proposal be brought back prior to this year's budget. Councilman Hobel moved that the concept of the sign as presented, be accepte~. The Council concurred that they had no objections to the concept of the sign, as proposed. Councilman Hobel withdrew his motion. -4- Proposal of Committee Hr. Carson discussed the lease of the land for the signs. He added that on the northerly boundary of the City on 805 and 5, they deal with the State Division of Highways for acquisition of land. To achieve this, they make the following three suggestions: 1. The City assign a staff member to the Committee for official correspondence; 2. That the Council undertake the site selection through the administrative staff with the assistance of the Committee members; 3. The Committee be made a Mayor's Committee with the powers granted thereby. Cost of signs Mr. Carson stated that the proposal he received from a sign company, for sign construction only, would run $39,500 for four signs. If they were purchased outright, and the City maintains them, that would be the cost. This is based on the land, and the only trouble they can find is on the northerly boundary of Interstate 5, about eight feet down water is encountered, which means the construction of a cement pad, which would increase the cost of the sign. On a 5-year lease basis, the sign company would require $1,000 down per sign, and $290 per month per sign. Landscaping of sign areas Mayor Hamilton asked if the Cham~er of Commerce would assume the responsibility of landscaping around these four parcels. Mr. Nick Slijk, Executive Director of the Chamber of Commerce, stated that this should be a function of the Parks & Recreation Department. Mayor Hamilton commented that perhaps the Garden Club or Beautification Committee may want to contribute to this. Construction of sign Mr. Fran Burger stated he submitted this sign proposal and explained in detail the construction and lighting. Motion to approve It was moved by Councilman Scott, seconded by Councilman Hobel, and unanimously carried, that the idea be approved, and at budget time the staff come back with a recommendation as to the possibility of including it in this budget or subsequent budget. In the meantime, have a site selection committee work with the Chamber of ComMerce. This would be a ~ayor's Committee. Councilman Hyde suggested the staff pick out the site selections, rather than a Mayor's Committee. Mayor Hamilton agreed, asking that the staff find out the sites available and then bring them back to the Council for approval. -5- Adjournment The Mayor adjourned the meeting at 4:40 p.m. to the meeting scheduled for 7:00 p.m. Tuesday, February 23, 1971. -6-