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HomeMy WebLinkAboutcc min 2003/03/25 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA March 25, 2003 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:07 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla ABSENT: Councilmembers: None ALSO PRESENT: City Manager Rowlands, City Attorney Moore, and City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · OATHS OF OFFICE: Kecia Washington - Housing Advisory Commission Richard Arroyo - Growth Management Oversight Commission The new Commissioners were unable to attend the meeting. Mayor Padilla noted that City Clerk Bigelow administered the oath to Mr. Arroyo earlier in the day. · PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO CARLOS BEJAR, EMERGENCY SERVICES MANAGER, PROCLAIMING APRIL 2003 AS EMERGENCY PREPAREDNESS MONTH Mayor Padilla read the proclamation, and Deputy Mayor Rindone presented it to Mr. Bejar. · PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO CAPTAIN JIM MCDONELL, COMMANDING OFFICER OF THE U.S.S. JOHN C. STENNIS, SUPPORTING MEMBERS OF THE ARMED FORCES ENGAGED IN OPERATION IRAQI FREEDOM Mayor Padilla read the proclamation, and Deputy Mayor Rindone presented it to U.S. Navy Captain Dave Angood. CONSENT CALENDAR (Items 1 through 14) 1. APPROVAL OF MINUTES of March 18, 2003. Staff recommendation: Council approve the minutes. CONSENT CALENDAR (Continued) 2. WRITTEN COMMUNICATIONS · Letter of resignation from Christopher Lewis, member of the Economic Development Commission. Staffrecommendation: Council accept the resignation and direct the City Clerk to post immediately in accordance with Maddy Act requirements. 3. ORDINANCE NO. 2900, AN ORDiNANCE F THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROViNG AN iNCREASE OF THE SEWERAGE CAPACITY CHARGE AND THE MODIFICATION OF THE MASTER FEE SCHEDULE (SECOND READING AND ADOPTION) The City of San Diego, as part of the Metropolitan Wastewater District, provides sewage treatment services to fourteen participating agencies that do not own and operate a sewage treatment facility. The City of Chula Vista, along with the other participating agencies sends all the sewage generated to the City of San Diego's Point Loma Wastewater Treatment Plant for treatment. The City has not adjusted the Sewerage Capacity Charge since 1990, even though the Metropolitan Wastewater District's costs for the provision of sewage capacity and treatment have been increasing annually. Adoption of these ordinances will facilitate an increase of the fee, utilizing the Construction Cost Index, pending the completion of a comprehensive study to determine thenew fee amount. (Director of Engineering) Staff recommendation: Council place the ordinance on second reading for adoption. 4. RESOLUTION NO. 2003-105, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE INSTALLATION OF UNiNTERRUPTIBLE POWER SUPPLY SYSTEMS ON VARIOUS TRAFFIC SIGNALS iN THE CITY OF CHULA VISTA - PHASE II (PROJECT TF293) The City Engineer received sealed bids from three electrical contractors for this project; however, upon further financial analysis of the project, and in the best interest of the City, staff recommends that all bids be rejected and that the project be rebid, utilizing a reduced scope of work. (Director of Engineering) Staff recommendation: Council adopt the resolution. 5 A. RESOLUTION NO. 2003-106, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY ATTORNEY AND DIRECTOR OF ENGINEERING TO DEVELOP AND EXECUTE AN AGREEMENT FOR TERMINATION OF CONTRACT DUE TO INFEASIBILITY OF CONSTRUCTION FOR THE CORRUGATED METAL PIPE REHABILITATION ALONG FIFTH AVENUE, BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL iN THE CITY OF CHULA VISTA, CA (PROJECT DR-137), WHICH WAS AWARDED TO NATIONAL LINER WEST, A DIVISION OF ZZ LiNER, INC. ON NOVEMBER 5, 2002 BY CITY COUNCIL RESOLUTION NO. 2002-424 Page 2 - Council Minutes 03/25/03 CONSENT CALENDAR (Continued) B. RESOLUTION NO. 2003-107, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DEEMiNG EMERGENCY WORK TO BE OF URGENT NECESSITY, APPROVING THE EXPENDITURE OF FUNDS FOR THE EMERGENCY STORM DRAiN REPAIR ALONG FIFTH AVENUE, BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL, BY THE DIRECTOR OF ENGINEERiNG, RATIFYiNG THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF ENGINEERING FOR MAKING AND EXECUTiNG A CONTRACT FOR SAID EMERGENCY REPAIR WITH MJC CONSTRUCTION 1N THE AMOUNT OF $105,000 (4/5THS VOTE REQUIRED) The Council previously approved the rehabilitation of the corrugated metal pipe along Fifth Avenue, between Westby Street and Telegraph Canyon Channel (Project DR-137). This project provides for the rehabilitation of existing corrugated metal pipe. Upon videotaping the pipe, the contractor determined that the pipe had partially failed and was in imminent danger of further collapse. Therefore, the contractor agreed to discontinue rehabilitation of the pipe, and staff solicited three informal bids for emergency replacement of the pipe. The lowest bid received was from MJC Construction. MJC Construction was authorized by the Director of Engineering to proceed with the emergency replacement. Adoption of the resolutions allows the City to terminate the existing contract with National Liner West, deems the work for the emergency pipe replacement to be of urgent necessity, and ratifies emergency actions taken by the City Manager and Director of Engineering to replace the pipe. (Director of Engineering) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2003-108, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS iNTENTION TO CONSIDER CHANGES AND MODIFICATIONS TO THE SPECIAL TAX RATES WITHiN COMMUNITY FACILITIES DISTRICT NO. 08-M, IMPROVEMENT AREA 1 McMillin Otay Ranch has requested that the City conduct proceedings to consider changes and modifications to Improvement Area No. 1 of Community Facilities District No. 08-M (Village 6) (CFD 08-M). CFD 08-M was formed in 2002 to fund the perpetual operation and maintenance of slopes, medians, parkways and storm water treatment facilities associated with Village 6. The City has retained the services of MuniFinancial as special tax consultant, and Best, Best and Krieger LLP as legal counsel, to provide assistance during the proceedings. Adoption of the resolution initiates the formal proceedings to consider modification to CFD No. 08-M, Improvement Area No. 1. (Director of Engineering) Staff recommendation: Council adopt the resolution. 7 A. RESOLUTION NO. 2003-109, OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OF iNTENTION OF CONSIDERATION TO CHANGES AND MODIFICATIONS TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES AUTHORIZED TO BE LEVIED WITHIN IMPROVEMENT AREA B OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE - WOODS, VISTAS, AND LAND SWAP) Page 3 - Council Minutes 03/25/03 CONSENT CALENDAR (Continued) - B. RESOLUTION NO. 2003-110, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT WITH MCGILL MARTIN SELF, INC., FOR PROVIDING ADDITIONAL PROJECT MANAGEMENT AND SPECIAL TAX CONSULTANT SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE- WOODS, VISTAS, AND LAND SWAP), AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION NO. 2003-111, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FIFTH AMENDMENT TO THE AGREEMENT WITH BEST BEST & ICRIEGER LLP, FOR PROVIDING ADDITIONAL LEGAL COUNSEL SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE- WOODS, VISTAS, AND LAND SWAP), AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT EastLake Company, LLC has submitted a letter requesting that the City initiate proceedings for Community Facilities District No. 06-I to consider changes and modifications in the rate and method of Apportionment of special taxes for Improvement Area B of such district resulting from the proposed prepayment of the special tax obligation for certain commercial property within Improvement Area B. Adoption of the resolutions declares the intention to consider approval of changes and modification to the rate and method of apportionment for Improvement Area B; sets the public heating for this consideration for May 6, 2003; approves the fourth amendment to the agreement with McGill Martin Self, Inc. for providing additional project management and special tax consultant services; approves the fifth amendment to the agreement with Brown Diven Hessell & Brewer, LLP, for providing additional legal counsel services. (Director of Engineering) Staff recommendation: Council adopt the resolutions. SA. RESOLUTION NO. 2003-112, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND LAND SWAP), ADOPTiNG AN ANNEXATION MAP SHOWiNG PROPERTY TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO B. RESOLUTION NO. 2003-113, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTiNG 1N ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND LAND SWAP), DECLARING ITS iNTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO SUCH COMMUNITY FACILITIES DISTRICT - AND IMPROVEMENT AREA B THERETO Page 4 - Council Minutes 03/25/03 CONSENT CALENDAR (Continued) The EastLake Company, LLC has submitted a letter requesting that the City conduct annexation proceedings for a certain assessor's parcel into Community Facilities District No. 06-1 (CFD No. 06-I). Adoption of the resolutions initiates proceedings to annex property into CFD No. 06-I. (Director of Engineering) Staff recommendation: Council adopt the resolutions. 9A. RESOLUTION NO. 2003-114, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP FOR SAN MIGUEL RANCH PLANNING AREA "E-2", CHULA VISTA TRACT NO. 99-04; ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, THE VARIOUS STREETS AND EASEMENTS, ALL AS GRANTED ON SAID MAP, WITHIN SAID SUBDIVISION; AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION NO. 2003-115, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PLANNING AREA "E-2", CHULA VISTA TRACT NO. 99-04, REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION NO. 2000-068, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION NO. 2003-116, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT BETWEEN NNP TRIMARK SAN MIGUEL RANCH, LLC AND THE CITY, REGARDING MAINTENANCE OF PRIVATE OPEN SPACE AND FACILITIES, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT On February 29, 2000, the City Council approved a tentative subdivision map for Chula Vista Tract 99-04, San Miguel Ranch. On August 7, 2001, the Council approved San Miguel Ranch Phases 1, 2 & 4 "A" Map No. 1. Adoption of the resolutions approves the Planning Area "E-2" final map within phase two of San Miguel Ranch by the developer, Altamira Development Company, L.L.C. (Director of Engineering) Staff recommendation: Council adopt the resolutions. 10. RESOLUTION NO. 2003-117, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $42,162 FROM THE UNAPPROPRIATED AVAILABLE BALANCE OF THE RESIDENTIAL CONSTRUCTION TAX (RCT) TO REIMBURSE DEVELOPER FOR COSTS INVOLVED WITH STORM DRAIN REPLACEMENT AT 3733 MAIN STREET (4/5THS VOTE REQUIRED) Page 5 - Council Minutes 03/25/03 CONSENT CALENDAR (Continued) - Mr. Ali Amani, owner of the property at the southeast comer of Main Street and Mace Street, has recently completed the construction of a Mobil gas station with a food mart and a car wash at this site. As part of this development, he was required to widen both streets to meet current standards mandated in the City's Circulation Element of the General Plan. Part of the widening requirements included replacing an old corrugated metal storm drainpipe along Main Street with new reinforced concrete pipe. Staff is requesting that Council authorize the reimbursement to Mr. Amani for the cost of this storm drain replacement from the available balance in the Residential Constmction Tax fund. (Director o f Engineering) Staff recommendation: Council adopt the resolution. 11. RESOLUTION NO. 2003-118, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, LINSCOTT, LAW & GREENSPAN, ENGINEERS, (CONSULTANT), AND THE EASTLAKE COMPANY, LLC, (APPLICANT), FOR THE EASTLAKE VILLAGE CENTER EAST PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The EastLake Company LLC has submitted an application for a General Plan Amendment and General Development Plan/Sectional Planning Area Plan Amendment for the Village Center East project. The project site was previously addressed in the approved EastLake Village Center North Mitigated Negative Declaration (IS-01-042) and associated traffic impact analysis prepared by Linscott, Law & Greenspan Engineers and dated May 2002. The proposed project requires a new traffic analysis that addresses the proposed land use change. (Director of Planning and Building) Staff recommendation: Council adopt the resolution. 12. RESOLUTION NO. 2003-119, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 HOUSEHOLD HAZARDOUS WASTE FUND BUDGET AND TRANSFERRING $30,500 FROM THE SUPPLIES AND SERVICES CATEGORY TO THE CAPITAL OUTLAY CATEGORY FOR THE PURPOSE OF PURCHASING A SCALE AND FORKLIFT (4/5THS VOTE REQUIRED) With Resolution No. 2001-285, the City accepted a multi-year, $300,000 grant from the Califomia Integrated Waste Management Board to fund household hazardous waste and electronic waste education, collection and disposal programs. The grant was designed to serve Chula Vista, Imperial Beach, National City and Coronado. A portion of the grant funds were intended to offset the costs of operating the regional household hazardous waste drop-off facility located at the City Public Works Yard on Maxwell Road. In Febmary 2003, the State approved a change in the grant that allows the City to use the grant's remaining funds to purchase a forklift and scale that will assist with additional household hazardous waste collection efforts by controlling future costs. (Special Operations Manager) Staff recommendation: Council adopt the resolution. Page 6 - Council Minutes 03/25/03 CONSENT CALENDAR (Continued) 13. RESOLUTION NO. 2003-120, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING PHASE III CLASSIFICATION AND COMPENSATION SCHEDULE AND AMENDING THE FISCAL YEAR 2003 BUDGET THEREFOR (4/STHS VOTE REQUIRED) Adoption of the resolution amends the budget by approving classifications and compensation adjustments that are being recommended as the result of a formal classification study. (Director of Human Resources) Staff recommendation: Council adopt the resolution. 14. RESOLUTION NO. 2003-121, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CITY'S APPLICATION FOR GRANT FUNDS UNDER THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000 FOR CONSTRUCTION OF A NEW LIBRARY AT THE NORTHWEST CORNER OF EAST H STREET AND PASEO RANCHERO (RANCHO DEL REY LIBRARY); MAKING ALL NECESSARY CERTIFICATIONS, INCLUDING CERTIFYING THE LIBRARY PROJECT BUDGET AND COMMITTING LOCAL MATCHING FUNDS AND SUPPLEMENTAL FUNDS; APPROVING THE JOINT COOPERATiVE AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT FOR THE JOiNT VENTURE PROJECT; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL DOCUMENTS NECESSARY TO COMPLETE THE GRANT APPLICATION On August 20, 2001 the City Council directed staff to prepare an application for grant funds under the "California Reading and Literacy improvement and Public Library Construction and Renovation Bond Act of 2000" for the construction of the Rancho del Rey Library. Adoption of the resolution approves the application, makes all necessary certifications, approves an agreement with Chula Vista Elementary School District for the joint venture, and authorizes the mayor to execute all documents necessary to complete the grant application. (Deputy City Manager Palmer) Staff recommendation: Council adopt the resolution. ACTION: Mayor Padilla moved to approve staff's recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0. With regard to Item #4, Deputy Mayor Rindone asked staff to report, when the item comes back before Council, on which intersections will be included in the system and on how access to major arterials, freeways, hospitals and the Police Department will be assured in the event of an emergency. ORAL COMMUNICATIONS There were none. Page 7 - Council Minutes 03/25/03 PUBLIC HEARINGS - 15. CONSIDERATION OF ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAiNTENANCE DISTRICT) AND DESIGNATION OF SUCH TERRITORY AS IMPROVEMENT AREA C THEREOF On February 18, 2003, the City Council initiated the Community Facilities District No. 97-2 (Preserve Maintenance) (CFD No. 97-2) annexation proceedings by adoption of Resolution Nos. 2003-059 and 2003-060. Adoption of the proposed resolution is the next step in the formal proceedings to annex the territory within Village 11 into CFD No. 97-2 and to designate such territory as Improvement Area C thereto. (Director of Engineering) Notice of the heating was given in accordance with legal requirements, and the heating was held on the date and at the time specified in the notice. Mayor Padilla opened the public heating and asked if anyone from the audience wished to speak; there was no response. He then closed the heating. ACTION: Councilmember Davis offered Resolution No. 2003-122, heading read, text waived: RESOLUTION NO. 2003-122, RESOLUTION OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAiNTENANCE DISTRICT), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF CERTAIN TERRITORY PROPOSED TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT (PRESERVE MAiNTENANCE) The motion carried 5-0. 16. CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT 09-M (VILLAGE 11 - BROOKFIELD SHEA OTAY) On February 18, 2003, the City Council initiated the Community Facilities District 09-M (CFD 09-M) proceedings by adoption of Resolution Nos. 2002-056 through 2002-058. Adoption of the proposed resolution is the next step in the formal proceedings to establish CFD 09-M. Special taxes levied in this district will fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Village 11- Brookfield Shea Otay. (Director of Engineering) Notice of the hearing was given in accordance with legal requirements, and the heating was held on the date and at the time specified in the notice. Mayor Padilla opened the public heating and asked if anyone from the audience wished to speak; there was no response. He then closed the heating. Page 8 - Cotmcil Minutes 03/25/03 PUBLIC HEAR1NGS (Continued) ACTION: Councilmember McCann offered Resolution No. 2003-123, heading read, text waived: RESOLUTION NO. 2003-123, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT (CFD) NO. 09-M (VILLAGE 11 - BROOKFIELD SHEA OTAY) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHiN THE CFD TO THE QUALIFIED ELECTORS THEREOF The motion carried 5-0. 17. CONSIDERATION OF APPROVAL OF PRECISE PLAN PCM-02-05, TO ALLOW FOR THE REDEVELOPMENT OF AN EXISTING SHOPPING CENTER LOCATED AT THE INTERSECTION OF FOURTH AVENUE AND C STREET IN A CENTRAL COMMERCIAL, DESIGN (C-C-D) ZONING DISTRICT (APPLICANT: CHARLES MILLER, M.D., LLC) The project site has an irregular shape and is situated in the central commemial zoning district. It currently contains various commercial and retail buildings and uses. The proposed project will eliminate some the existing buildings and uses, and introduce new buildings and uses, while improving the site's appearance. The Precise Plan will allow flexibility of the development standards that would enable the applicant to develop the lot. The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has prepared a Mitigated Negative Declaration for the Precise Plan project. The Resoume Conservation Commission recommended adoption of the Mitigated Negative Declaration on December 2, 2002. (Director of Planning and Building) Notice of the heating was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Mayor Padilla opened the public heating and asked if anyone from the audience wished to speak. Associate Planner Walker presented the proposed Precise Plan for the property. John Moot, representing the applicant, discussed some of the features of the proposed shopping center project. John Ziebarth, of Ziebarth Associates Architecture & Planning, Inc., presented the many benefits of the proposed project, including site layout, design of the proposed buildings and landscaping, street and access improvements, and the proposed pylon sign. There being no further public comments, Mayor Padilla closed the public heating. ACTION: Councilmember McCann offered Resolution No. 2003-124, heading read, text waived: Page 9 - Council Minutes 03/25/03 PUBLIC HEARINGS (Continued) - RESOLUTION NO. 2003-124, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A MITIGATED NEGATIVE DECLARATION (IS-02-05) AND APPROVING PRECISE PLAN PCM-02-05 TO ALLOW FOR THE REDEVELOPMENT OF AN EXISTiNG SHOPPING CENTER LOCATED AT THE INTERSECTION OF FOURTH AVENUE AND C STREET IN A CENTRAL COMMERCIAL DESIGN (C-C-D) ZONING DISTRICT The motion carried 5-0. ACTION ITEMS 18. REPORT ON REQUEST FOR AN ALL-WAY STOP AT THE iNTERSECTION OF NACION AVENUE AND EAST MILLAN STREET/EAST MILLAN COURT City staffreceived a letter from a Chula Vista resident requesting that an all-way stop and a painted crosswalk be installed at the intersection of Nacion Avenue and East Millan Street/East Millan Court to control the speed of motorists traveling through the subject intersection on Nacion Avenue, and to improve intersection safety for pedestrians crossing Nacion Avenue. Staff evaluated the intersection under the latest Council Policy and recommended denial of all-way stop control. The Safety Commission did not concur with the recommendation and under Council Policy No. 110-09, if staff and the Safety Commission do not concur, the matter shall go to City Council for final decision. -' Civil Engineer A1-Ghafry presented the results of the all-way stop study and reported that, as a result, staff determined that the requested all-way stop does not meet the City's adopted point system. Staff took the request to the Safety Commission with a recommendation that it be denied. The Safety Commission, however, recommended installation of the all-way stop based on a change in traffic patterns, a high volume of school-age pedestrians, and excessive vehicle speed in the Nacion area. Cynthia Relph strongly supported the all-way stop, suggesting that the traffic study be redone at 3:15 p.m. when elementary school children are released from school. She also pointed out that children in the neighborhood cross the streets in points other than Nacion in order to visit friends. Colin Relph reported that he sees about 20 children a day crossing the street. He also reported on speeding and racing vehicles on the hill. Frank Araiza stated that the problem is not one of pedestrian traffic; it is one of an excessive amount of high-speed auto traffic. He pointed out the blind curve, which makes it difficult for residents to pull in and out of their own driveways; he said that he personally had had two vehicles hit while parked in front of his home. He also mentioned that the traffic study was performed before school had adjourned for the day. Steve Warren stated that there had been no accidents at the intersection, and he believed that speed was an issue. He suggested installing a speed indicator in an attempt to slow traffic but believed that stop signs would impede the flow of traffic, with cars backed up the hill as a result. He urged the Council not to install the four-way stop as requested. Page 10 - Council Minutes 03/25/03 ACTION ITEMS (Continued) Alicia Himanez adamantly supported the four-way stop, citing the safety hazard caused by speeding vehicles on Nacion. Jeff Clark stated that he regularly uses Nacion, and it would be inconvenient to have the four- way stop. He suggested that speed bumps be installed instead. Mr. Austin also supported the idea of a speed bump to slow traffic. Sylvia Roscone stated that a four-way stop would not solve the main problem of speeding vehicles. She suggested that either the speed be lowered or a speed bump be installed. Bob McAllister, Chair of the Safety Commission, stated that the Commission considered the close proximity of the school, vehicular speed and residential input in recommending approval of the four-way stop. ACTION: Following Council discussion, Mayor Padilla moved to accept the report and deny the installation of the all-way stop control at this intersection. Councilmember Davis seconded the motion, and it carried 5-0. It was the consensus of the Council that staff would continue to work with area residents to look for ways to control vehicle speed and also that speed enforcement needs to be increased in the area. At 7:50 p.m., Mayor Padilla declared a brief recess. The meeting reconvened at 8:05 p.m. with all members present. 19. RESOLUTION NO. 2003-125, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMEND1NG THE FISCAL YEAR 2003 POLICE DEPARTMENT BUDGET BY ADDING SIX COMMUNICATION OPERATOR II POSITIONS AND ONE LEAD COMMUNICATION OPERATOR; RECLASSIFYING THREE COMMUNICATION OPERATOR I POSITIONS TO COMMUNICATION OPERATOR II; CREATING A NEW COMMUNICATION OPERATOR TRAINEE POSITION; AND AUTHORIZING ADVANCE HIRING FOR UP TO FIVE COMMUNICATION OPERATOR II POSITIONS (4/5THS VOTE REQUIRED), was adopted (5-0). Staff recently completed an analysis of the staffing needs for the Police Department's Communication Center. At present, staffing for the center is 23 operators, the same level as in Fiscal Year 1990/1991, when the City's population was 137,885 and the department had 151 sworn staff. Today, the City has grown to nearly 200,000 with 228 sworn staff. (Chief of Police, Assistant City Manager Fruchter) Special Projects Manager Chase presented the police communications center staffing study and resulting recommendations. ACTION: Councilmember Salas offered Resolution No. 2003-125, heading read, text waived. The motion carried 5-0. Page 11 - Council Minutes 03/25/03 ACTION ITEMS (Continued) - 20. CONSIDERATION OF SELECTION OF AN ENERGY CONSULTING TEAM TO ANALYZE THE FINANCIAL, LEGAL AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE MUNICIPAL ENERGY UTILITY BUSINESSES AND ALTERNATIVES THERETO In May 2001, the City adopted an Energy Strategy in response to an unstable energy market. In an effort to identify energy opportunities, staff issued a request for proposals for consultant services. The adoption of the energy policy and the timing of the expiration of the electricity and natural gas franchise agreements with San Diego Gas and Electric provide the City with a unique opportunity to evaluate and make determinations on the most cost-effective means of providing reliable energy to our ratepayers and controlling at least some of the revenues generated by the delivery of energy to local residents and businesses. (Assistant City Manager) Assistant City Manager Morris noted that while the fiscal impact section of the agenda report mentioned an appropriation of funds, staff was not requesting an appropriation at this time. He then outlined staff's recommendations to engage the services of Navigant Consulting, whom staffbelieved to be the most qualified consultant, offering the best value in meeting the proposed scope of work, to assist with analyzing municipal energy utility (MEU) options to meet the City's stated energy objectives. Those objectives include reliability, stable rates, environmental benefits to the City, a high level of customer service, a cost-benefit formula that justifies the City's time and investment, and the opportunity to utilize a municipal energy utility as an economic development tool. Mr. Morris stated that, as with water, energy power supply, cost and reliability are significant components to attracting and retaining businesses in the City. The major components of the scope of work would include an estimate of the costs, risks and potential environmental impacts of an MEU formation and implementation, and how those impacts could be managed and mitigated; a description of the current legal, regulatory, political and economic framework in which an MEU would operate; an estimate of the financial, capital and staffing resources required for every stage of a municipal utility; and the identification of alternatives to an MEU, including potential partnerships with SDGE and, if justified, a recommended initial MEU business model. Mr. Morris commented that staff's recommendation is based on the City's Energy Strategy and Action Plan, approved by the Council in May 2001. The Plan identified three categories of potential energy actions: highly recommended options that included options of ongoing energy conservation projects and the implementation of energy efficient facilities; promising options that included more significant benefits but with greater risks and a medium term payoff; and higher risk options that included options that potentially require large capital outlays and/or carry business risks that have a longer term payoffhorizon. This action included forming a municipal utility to own and operate all or a portion of the local distribution system Page 12 - Council Minutes 03/25/03 ACTION ITEMS (Continued) Mr. Morris further commented that the action requested at this meeting does not qualify as a high-risk option but simply as a study to determine if and in what form the City should pursue an MEU. When approving the high-risk options for inclusion in the Energy Plan, Council did so at the recommendation of staffto keep the City's options open to react to the dynamic nature of the energy market. Staffbelieves that the market has changed substantially since the adoption of the Energy Plan, necessitating the proposed study. Some of the changes that influenced staff's recommendations are: the City has a growing base of residential, commercial and industrial development that serves as a low-level investment opportunity for an MEU; in addition, the City has been contacted on three separate occasions with credible offers to implement such a program, and staff believes that these proposals justify additional study; and staff's education regarding Rule 20A undergrounding funds and public purpose funds has improved substantially, and these programs together represent a significant pool of revenues that under SDG&E's formula are beneficial but under an MEU might be better tailored to meet the specific needs of the City without having to compete with SDG&E's service temtory-wide priorities. The Council also directed staff to pursue development options with the Port of San Diego regarding the re- siting of the Southbay Power Plant and the opportunities provided with that option. The U.S. Department of Energy has reported that a municipal utility customer pays 16% less for residential service than do customers of an investor owned utility, and commercial customers pay 9% less. A similar benefit offered to Chula Vista customers requires the City's consideration. Finally, the present franchise with SDG&E expires in June 2003, which gives the City the opportunity to conduct a cost benefit analysis comparison of a proposed franchise agreement with perhaps some form of an MEU. Frank Urtasun, representing SDG&E, stated that the company has been an active participant in the community, serving Chula Vista residents and businesses for over 100 years. SDG&E has contributed hundreds of thousands of dollars to charitable organizations, has been a member of the Chamber of Commerce longer than any other business in Chula Vista, and has actively participated in Kiwanis, the South County Economic Development Commission and the Christmas in October event, just to name a few. SDG&E has 314 employees, 110 retirees, and numerous shareholders who reside in Chula Vista. Mr. Urtasun asked whether or not it would be in the best interests of residents and SDG&E customers to spend tax dollars on more studies, especially when the industry is in such a state of flux with significant federal and state legislation being proposed. He reported that there are investigations into the structure of the industry by both the federal Energy Commission and the California Public Utilities Commission, and these new laws and regulations would significantly impact the City as a municipal utility. Until the regulatory framework has been finalized, consultants can only guess at the results and guess at what could be implemented. He also stated that the complexity and risks of operating an energy utility cannot be minimized, and utilities with years of expertise in the current regulatory environment have incurred losses in the millions and even billions of dollars. Energy companies throughout the country are going into bankruptcy or struggling to survive through the reorganization. He asked how much risk the City is willing to put upon its residents, and at what cost. He also pointed out that distribution was never deregulated; the energy crisis occurred in the generation of electricity, and SDG&E's distribution rates have remained stable throughout the crisis and have actually decreased. He suggested that, if the Council believes it is prudent to pursue a Cityqowned and operated electric distribution company, it may make sense first to create a Council or a citizens subcommittee to fully study whether the concept holds financial promise and to evaluate the risk. Page 13 - Council Minutes 03/25/03 ACTION ITEMS (Continued) - Mr. Urtasun further suggested that before embarking on a new study, the City review its study commissioned in 2001. The staff report for energy management options at that time clearly stated that municipalization was a high risk, and it concluded that the solution to the energy crisis lay in the hands of state and federal authorities, not in the hands of the City, and nothing has changed since that time. SDG&E has maintained an excellent level of service to its customers, and reliable and safe utility service is also critical to the economic success of the City. While SDG&E and the City continue to negotiate a franchise agreement that is equitable to SDG&E customers and at the same time accomplishes the City's goals, he suggested that the Council consider creating a subcommittee to further scrutinize the legal, regulatory, rates, restructuring and numerous other changes that are occurring and their potential impacts on Chula Vista residents and businesses. Councilmember Rindone stated that staff suggested that this is an appropriate time for the study because the franchise agreement with SDG&E expires in 2003. Mr. Urtasun responded that the City could always consider municipalization, whether or not it has a franchise with SDG&E. Mayor Padilla asked if it was Mr. Urtasun's position, or the position of SDG&E, that the City should not investigate the potential business structures of an MEU at all. Mr. Urtasun responded negatively, stating that his point was that the industry is in a state of flux, and the most one could expect to obtain from a study at this time would be a snapshot in time. No one can predict what regulations would be changing, or what regulations would be different a year from now, and perhaps it would make sense to form an energy subcommittee to look at what is appropriate in today's arena and to try to evaluate what the potential risk is with potential changes coming down the road. He stated that his question is whether or not the study was an appropriate expenditure of funds. Mayor Padilla clarified that Mr. Urtasun's position was not, then, that the City should not pursue information about an MEU but, rather, that he had a difference of opinion about the method the City would use to pursue the information. Mr. Urtasun responded that one of the reasons the City is looking at the issue at this time is that the City and SDG&E are in franchise negotiations. The negotiations have continued; a proposal was submitted to the City last Thursday, and he believed the City should first evaluate the merits of the proposal before proceeding with a study of municipalization. He also questioned what further there was to talk about once the City begins looking at municipalization. Mayor Padilla stated that if Mr. Urtasun's position was that the City should study the issue, only use a different methodology to do it, and given Mr. Urtasun's comments on the state of flux and complexity in the market, it would reasonably follow that the appropriate mechanism to explore the issue would be through a group of experts in the industry rather than a subcommittee of the Council or community volunteers. Following discussion, Councilmembers concurred that the City needs to be fully informed and fully explore the options in order to make a fair assessment, and the only way to get the necessary information would be to hire a consultant with expertise in the area. Page 14 - Council Minutes 03/25/03 ACTION ITEMS (Continued) ACTION: Deputy Mayor Rindone offered Resolution No. 2003-126, heading read, text waived: RESOLUTION NO. 2003-126, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SELECTION OF THE ENERGY CONSULTANT TEAM OF DUNCAN, WEINBERG, GENZER & PEMBROKE, MCCARTHY & BERL1N AND NAVIGANT CONSULTING INC. TO ANALYZE THE FINANCIAL, LEGAL AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE MLrNICIPAL ENERGY UTILITY BUSINESSES AND ALTERNATIVES THERETO; AUTHORIZING AND DIRECTING STAFF TO NEGOTIATE A CONSULTANT SERVICES CONTRACT WITH DUNCAN/NAVIGANT CONSISTENT WITH THE TERMS AND CONDITIONS OUTLINED HEREIN; AND DIRECTING STAFF TO RETURN WITH A FINAL PROPOSED AGREEMENT AND APPROPRIATION OF FUNDS FOR COUNCIL CONSIDERATION The motion carded 5-0. 21. CONSIDERATION OF ADOPTION OF A RESOLUTION REQUESTING THE SAN DiEGO ASSOCIATION OF GOVERNMENTS TO MODIFY THE 2030 REGIONAL TRANSPORTATION PLAN (CONTINUED FROM THE MEETING OF MARCH 18, 2003) For the past year, the San Diego Association of Governments (SANDAG) has been working on the 2030 Regional Transportation Plan. At the meeting of March 18, 2003, Council discussed the proposed resolution and requested that modifications be made to the resolution for consideration. (Director of Planning and Building, Director of Engineering) Mayor Padilla noted the revised resolution placed on the dais for Council consideration. ACTION: Deputy Mayor Rindone moved to adopt Resolution No. 2003-127, as amended, heading read, text waived: RESOLUTION NO. 2003-127, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUESTiNG THE SAN DIEGO ASSOCIATION OF GOVERNMENTS TO MODIFY THE 2030 REGIONAL TRANSPORTATION PLAN Councilmember Davis seconded the motion, and it carried 5-0. OTHER BUSINESS 22. CITY MANAGER'S REPORTS There were none. Page 15 - Council Minutes 03/25/03 OTHER BUSINESS (Continued) - 23. MAYOR'S REPORTS A. Accepting the verbal resignation of Port Commissioner William Hall and requesting the City Clerk to post a notice of vacancy pursuant to the Maddy Act. Mayor Padilla noted that a written resignation had also been received after the agenda had been published. ACTION: Deputy Mayor Rindone moved to accept, with regret, Mr. Hall's resignation. Councilmember McCann seconded the motion, and it carried 5-0. It was the consensus of the Council to discuss the Port Commissioner appointment process at the meeting of April 1, 2003, and then to set a date for a special meeting to review applications and make an appointment. B. Discussion regarding University of Califomia Task Force ACTION: It was the consensus of the Council to support Mayor Padilla's proposal to dissolve the existing ad hoc task force and create a new, smaller body with a reconfigured focus. C. Discussion regarding Chula Vista's Economic Development Commission ACTION: It was the consensus of the Council to direct staff to schedule a workshop to discuss the re-focus of duties of the Economic Development Commission. 24. COUNCIL COMMENTS There were none. CLOSED SESSION Closed session was cancelled, and the following items were not discussed: 25. CONFERENCE WITH LEGAL COUNSEL REGARDiNG EXISTiNG LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 A. City of Chula Vista vs. Bamhart Contracting; San Diego Superior Court Case No. GIS 003859 B. Crim, Michael vs. City of Chula Vista; U. S. District Court Case No. 00CV 0465- lEG (LAB) 26. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) · One case Page 16 - CouncilMinutes 03/25/03 ADJOURNMENT At 9:17 p.m., Mayor Padilla adjourned the meeting to an Adjourned Regular Meeting on March 28, 2003 at 4:00 p.m., thence to an Adjourned Regular Meeting on March 29, 2003 at 8:30 a.m., and thence to the Regular Meeting of April 1, 2003, at 4:00 p.m. in the Council Chambers. Susan Bigelow, CMCV, City Clerk Page 17 - Council Minutes 03/25/03