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HomeMy WebLinkAboutcc min 2006/02/07 RDA/PFA MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA February 7, 2006 4:00 P.M. Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special Meeting of the Public Financing Authority of the City of Chula Vista were called to order at 6:00 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Agency/Authority/Councilmembers Castaneda, Chavez, McCann, Rindone, and Chair/Mayor Padilla ABSENT: Agency/ Authority/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/ City Attorney Moore, City Clerk Bigelow At 6:01 p.m., Chair/Mayor Padilla recessed the meeting. He reconvened the meeting at 6:22 p.m., with Agency/Authority/Councilmembers Castaneda and Rindone absent from the dais. PUBLIC COMMENTS were taken out of order and heard following Items 1 and 2. PUBLIC HEARING OF THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY 1. CONSIDERATION BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF THE EXECUTION, SALE AND DELIVERY OF CERTIFICATES OF PARTICIPATION IN ORDER TO FINANCE CERTAIN PUBLIC CAPITAL IMPROVEMENTS Pursuant to City Charter Section 1017, an annual audit is performed of the City's financial records. Presented for acceptance were the Audited Financial Statements for the fiscal year ended June 30, 2005, as prepared by the independent audit firm of Caporicci & Larson. Both the City's and the Agency's Annual Financial Reports received unqualified (clean) opinions from the independent audit firm. (Finance Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chair/Mayor Padilla opened the public hearing. There were no members of the audience wishing to speak. PUBLIC HEARING (Continued) Agency/Authority Attorney Moore requested that the item be continued to February 14, 2006, due to further research required as to whether or not Councill Authorityl Agency Member Castaneda has a potential conflict of interest with regard to property he is purchasing that is presently in escrow. ACTION: Chair/Mayor Padilla moved to continue the hearing to February 14,2006, at the request of the City Attorney. Agency/Authority/Councilmember McCann seconded the motion, and it carried 3-0-2, with Agency/Authority/Councilmember Rindone abstaining because he owns property within 500 feet of the Civic Center project; and Agency/Authority/Councilmember Castaneda abstaining due to a potential conflict of interest because he recently entered into escrow on a property that may be within 500 feet. At 6:25 p.m., Agencyl Authority/Councilmembers Rindone and Castaneda returned to the dais. ACTION ITEM 2. CONSIDERATION BY THE CITY COUNCIL/REDEVELOPMENT AGENCY OF WITHHOLDING ALL FUTURE STIPENDS FOR MEMBERS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) FOR A PERIOD EQUAL TO THE PERIOD THE STIPEND WAS PAID TO CURRENT MEMBERS PRIOR TO THE FIRST CVRC MEETING BEING HELD At the Council meeting of January 24, 2006, Councilmember Rindone requested that a resolution be prepared authorizing all future stipends to current members serving on the Chula Vista Redevelopment Corporation (CVRe) board to be withheld, effective February I, 2006, for a period equal to the number of months that stipends were paid to current members prior to the first CVRC meeting. (Assistant City ManagerlDirector of Community Development, Director of Finance) ACTION: Agency/Authoirty/Councilmember Rindone offered Council Resolution No. 2006-034 and Redevelopment Agency Resolution No. 2006-1934, headings read, texts waived: JOINT COUNCIL RESOLUTION NO. 2006-034 AND REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1934, OF THE CITY OF CHULA VISTA TO WITHHOLD ALL FUTURE STIPENDS FOR MEMBERS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRC) FOR A PERIOD EQUAL TO THE PERIOD THE STIPEND WAS PAID TO CURRENT MEMBERS PRIOR TO THE FIRST CVRC MEETING BEING HELD The motion carried 5-0. Page 2 - CouncillRedevelopment AgencylPublic Financing Authority Minutes htto ://www.chulavlstaca.2:Qv February 7, 2006 J PUBLIC COMMENTS Don Rickard spoke about ongoing traffic and speeding problems on Oaklawn A venue, between K and L Streets. He also spoke of a homecare facility next door to his home that he believes is a drug rehabilitation facility. He expressed concern about who controls treatment for the occupants of the facility, stating that there have been fights resulting in calls for ambulance and police services. He was also concerned about the presence of a daycare center located directly behind the rehabilitation facility. Mayor Padilla referred the matter to Constituent Services Manager Zaneta Encarnacion. CITY COUNCILIREDEVELOPMENT AGENCY WORKSHOP 3. WESTERN CHULA VISTA REVITALIZATION: POPULATION, MARKET AND HOUSING TRENDS The focus of the City Council/Redevelopment Agency workshop was on the competing priorities between the need for economic revitalization in western Chula Vista and the potential effects urban revitalization may have on population and housing. The potential loss of rental housing was addressed, and staff provided policy alternatives for the Council/Agency to consider in addressing the balance of revitalization efforts with the needs of the City's lower income residents. At 6:41 p.m., Chair/Mayor Padilla announced that he would be leaving the meeting, and handed the gavel to Agency/Authority/Councilmember McCann. He then left the meeting and did not return. Assistant City Manager Smith, Housing Manager Mills, and Real Property Manager Ryals gave a presentation on western Chula Vista revitalization and its effects on population, housing, and market trends. Jim Doud asked the procedure for businesses required to relocate as part of a redevelopment project. Real Property Manager Ryals responded that there are guidelines similar to those followed for residential tenants, and that he would supply the information to Mr. Doud. Norma Runyan expressed concern with the condition of industrial establishments from Palomar to L Street and speeding vehicles in that area; and also mentioned the need for additional curbs on Naples and L Street. In addition, she asked about rumors that some mobilehome park would be closed. Housing Manager Mills replied that no applications are currently on file with the City to close a mobilehome park. She added that the City has heard, via the public, of two trailer parks along Broadway that may be changing ownership and possibly closing, but the City has received no confirmation ofthis. Jackie Lancaster requested that redevelopment decisions be citizen driven, rather than market driven; and expressed concern about families that would be displaced as a result of redevelopment. She also expressed opposition to high-rise development on the bayrront. Page 3 - CouncillRedevelopment Agency/Public Financing Authority Minutes http://www .chula vistaca. [fov February 7, 2006 CITY COUNCILIREDEVELOPMENT AGENCY WORKSHOP (Continued) Laura Hunter, representing the Environmental Health Coalition (EHC,) urged the Council to direct staff to look at all the recommendations regarding the Housing Policy issues and, in particular, to amend the outdated condominium conversion policy. She stated that EHC would not support the expansion of the redevelopment project area without further discussing how it would work. Ms. Hunter recommended that the City focus and prioritize as much of its affordable housing efforts on low- and very low-income rental units in the next five year cycle, and raise additional funding for this by increasing the percent of tax increment for affordable housing to 30 percent. She stated that it was important to have a case manager who can relate to people in order to assist them through the process. Patricia Aguilar, representing Crossroads II, stated that the City has a moral obligation to ensure that low income, elderly, and disabled community members are provided for. She endorsed staffs recommendations, with the following additional comments: (I) consideration should be given to including more residential areas in the redevelopment project area boundaries in light of the applicability of eminent domain; (2) a cap should be set on fees that can be paid in lieu of building units; (3) condominium conversion projects should provide 10 percent in affordable units; (4) a short term rental assistance program should be developed and funded; (5) condominium conversions on the east side should be limited in order to retain housing stock; (6) community impact reports should be required on a project-by-project basis; and (7) private developers should be required to provide relocation assistance to the most vulnerable populations. Ms. Aguilar asked the Council to enact the staffs recommendations along with the Urban Core Specific Plan or the Housing Element. Nick Aguilar expressed the need for a revenue source to fund staff s proposals and to attract more revenue-generating facilities and activities to provide funding for subsidized housing. He encouraged greater emphasis on competing and attracting subsidized housing funds at both the state and federal levels. He also suggested a social services element to provide service programs for low-income residents, such as transportation and entertainment. Additionally, he recommended collaboration between the City and local schools to provide a learning resource facility; and with the San Diego County Social Services Department to provide counseling and employment training. Steve Palma suggested that, although he does not support the use of eminent domain, the City purchase the numerous storage facilities located south of Main Street and develop the land as a park. He expressed his desire to see more Community Development Block Grant funds allocated to improvements in the Otay area and on Third A venue near Oxford. He also said he was pleased to see the adoption of the City's 20/20 General Plan. Anne Wilson, Director of Real Estate Development for Community Housing Works, stated that staff s recommendations are important to protect, preserve, and provide opportunities to the residents. She supported the need for the Council to take action to help encourage and provide incentives to property owners to sell to non-profits; and to use available subsidies to maintain affordable housing over time. Regarding the expansion of redevelopment areas, she urged the Council to look at the ability of those areas to sustain increased growth and revitalization. She also mentioned how rarely eminent domain has been used in the City, stating that the power of friendly condemnation is really important in assembling sites in redevelopment areas and in providing tax incentives. She encouraged the Council to facilitate affordable housing development within the Urban Core early in the revitalization process, and also encouraged land banking. Page 4 - Council/Redevelopment Agency/Public Financing Autbority Minutes httn://www.chulavistaca."ov February 7, 2006 --~ CITY COUNCIL/REDEVELOPMENT AGENCY WORKSHOP (Continued) Earl Jentz spoke about market rate affordable housing and suggested that the Growth Management Oversight Commission look at thresholds that would provide controls in the event that the market gets overheated; and also look at the vacancy rate that is published twice a year through the apartment association magazine. He also recommended that staff compile applicant data as to how many units were there before, what the rates were, and the number of new units being provided. Additionally, he believed that if the vacancy rate were high, there should be no controls; and a partial moratorium should be implemented when vacancy rates needed to be slowed down. Mr. Scott referred to the population characteristics of the report, stating that the County of San Diego has estimated an increase in population of 803,805 over the next 25 years, with Chula Vista expected to absorb I I percent of the growth. He questioned the City's projection of a 22 percent population increase on the west side. He also addressed housing ownership patterns and expressed concern about the conversion of apartment units to condominiums on the west side and the proposed rules associated with the inclusionary policy. Katherine Lembo, representing South Bay Community Services, spoke in support of reducing the low and moderate-income target for affordable housing and consideration of taking over a motel or hotel to develop affordable housing. She also suggested that the number of bedrooms for low income housing be increased to three and four, and she commented on the importance of land banking. City Manager Rowlands stated that the objectives discussed would only occur with development in the City. He stressed the importance of constructive, honest, free-flowing dialogue between the City and the community in order to accomplish the City's many goals. With regard to eminent domain, Agency/Authority/Councilmember Rindone asked staff to document in the report when eminent domain has been used and for what purpose. Agency/Authority/Councilmember Castaneda suggested that Policy No.6 be included to address the preservation of existing housing units serving the lowest income residents. He expressed the need to provide incentives to rental housing owners to upgrade their properties in exchange for commitments on rent stabilization. He also recommended that the Growth Management Oversight Commission review the number of units that are consumed by redevelopment, new development, and non-redevelopment areas, and their impacts on the very lowest income families; and also look at the existing housing stock and how to efficiently serve those who are most in need. Agency/Authority/Councilmember Rindone stated that nothing was mentioned about schools in the report; and he suggested that future workshops be conducted with each school district to examine future growth and higher densities. No formal action was taken on this item. Page 5 - Council/Redevelopment Agency/Public Financing Authority Minutes http://www .chulavistaca. gov February 7, 2006 OTHER BUSINESS 4. CITY MANAGER REPORTS There were none. 5. MAYOR'S REPORTS There were none. 6. COUNCIL COMMENTS There were none. ADJOURNMENT At 9:03 p.m., Deputy Mayor McCann adjourned the meeting to a Regular Meeting of the City Council on February 14, 2006 at 6:00 p.m. in the Council Chambers; and thence to a Regular Meeting of the Redevelopment Agency on February 21, 2006 at 6:00 p.m. in the Council Chambers, following the City Council Meeting. The Public Financing Authority was adjourned until further notice. -= ;, It--/.. th-t~~ Susan Bigelow, MMC, City Clerk Page 6 - CouncillRedevelopment Agency/Public Financing Authority Minutes httD:llwww.chulavistaca.gov February 7, 2006 .~__---..J