HomeMy WebLinkAboutcc min 2006/06/20 RDA/HA
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND
A SPECIAL MEETING OF THE HOUSING AUTHORITY
OF THE CITY OF CHULA VISTA
June 20,2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special
Meeting of the Housing Authority of the City of Chula Vista were called to order at 8:05 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 Mayor/Chair Padilla
ABSENT: Agency/Authority/Councilmembers: None
ALSO PRESENT: Executive Director/Interim City Manager Thomson,
Agency/Authority/City Attorney Moore, Senior Deputy City Clerk
Peoples
CONSENT CALENDAR
(Items I and 2)
Agency/Authority/Councilmember Castaneda stated that he would abstain from voting on Item
], as he owns property within 500 feet of the Property-Based Business Improvement District.
1. COUNCIL RESOLUTION NO. 2006-194 AND REDEVELOPMENT AGENCY
RESOLUTION NO. 2006-1940, JOINT RESOLUTION OF THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO SIGN THE
ASSESSMENT BALLOT ON BEHALF OF THE CITY OF CHULA VISTA AND THE
REDEVELOPMENT AGENCY TO RENEW THE PROPERTY-BASED BUSINESS
IMPROVEMENT DISTRICT FOR DO\\TNTOWN CHULA VISTA FOR A PERIOD
OF TEN YEARS
On March 7, 2006, the City acted to support the renewal of the Property-Based Business
Improvement District and to sign the petition for all City and Agency-owned parcels
within the district. Adoption of the resolution allows the City Manager to vote in favor of
the renewal on the City/Agency" s behalf. (Community Development Director/Assistant
City Manager Smith)
Staff recommendation: Council/Agency adopt the resolution.
2. COUNCIL RESOLUTION NO. 2006-195 AND REDEVELOPMENT AGENCY
RESOLUTION NO. 2006-1941. JOINT RESOLUTION OF THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING A REQUEST BY GLEN GOOGINS FOR THE WAIVER OF
POTENTIAL CONFLICT OF INTEREST WITH RESPECT TO MR. GOOGINS'
PROSPECTIVE REPRESENTATION REGARDING THE CARLIN FAMILY TRUST
CONSENT CALENDAR (Continued)
Former Senior Assistant City Attorney Glen R. Googins has requested that the City
Attorney confirm that his prospective representation of the Carlin Family Trust does not
present a conflict of interest that must be waived pursuant to California Rules of
Professional Conduct 3-31 OeD). It does not appear at this time that the interests of Mr.
Googins' prospective client are adverse to the City. Accordingly, it is recommended that
the City Council waive any potential conflict arising from Mr. Googins' involvement in
the matter. (City Attorney)
Staff recommendation: Council! Agency adopt the resolution.
ACTION:
Mayor/Chair Padilla moved to approve staff s recommendations and offered the
Consent Calendar, headings read, texts waived. The motion carried 5-0, except
on Item 1, which carried 4-0-], with Agency/ Authority/Councilmember
Castaneda abstaining as he owns property within 500 feet of the Property-Based
Business Improvement District.
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
PUBLIC HEARINGS
3. CONSIDERATION OF ADOPTION OF THE OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGETS
FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY FOR
FISCAL YEAR 2007
The Council has received and considered the City Manager's proposed operating and
capital improvement budgets for the City and the operating budgets for the
Redevelopment Agency and Housing Authority for the fiscal year ending June 30, 2007.
A work session was held on June 8, 2006 to consider and deliberate on the
recommendations contained in the proposed budgets. The budgets submitted at this time
for formal adoption represent the City Manager's initial proposed budgets for fiscal year
2007, amended to reflect various budget items that address issues identified at the budget
workshop and other miscellaneous clean up changes. (Budget and Analysis 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.
Mayor Padilla opened the public hearing
Page 2 - Council/RDA/HA Minutes
June 20, 2006
PUBLIC HEARINGS (Continued)
Director of Budget and Analysis Van Eenoo presented the proposed budget update and final
budget adjustments that included: staffing adjustments, general fund changes, other fund
adjustments, all funds expenditures, all funds revenues, and general fund reserves. Also included
were other issues such as cell phone and travel analyses, geographical distribution of capital
improvement projects, and fiscal policies (equipment replacement, fraud hotline, and reward
program).
Mayor/Chair Padilla requested and received confirmation that the total number of full-time
equivalent positions in the proposed budget update were essential positions that reflect public
safety and a Metropolitan Transit System position, that the proposed position reclassification to
Senior Assistant City Attorney would have no net fiscal impact on the City Attorney's budget,
and that the additional appropriation of $100,000 for the City Attorney's Department dealt with
litigation and ongoing court-related litigation matters. Director Van Eenoo responded
affirmatively. Mayor/Chair Padilla also requested confirmation that the General Fund reserve, if
taken collectively, was in excess of the eight percent policy. Director Van Eenoo replied
affirmatively, adding that if combined, the restricted and un-restricted reserves were above eight
percent.
Council/Agency/Authority member McCann asked about the City"s long-term strategy of
ensuring that the City does not fall below its reserves. Director Van Eenoo replied that following
the Finance Department's five-year projections, it would look at the City's existing expenditure
commitments and compare those to conservative revenue projections. Council/
Agency/Authority member McCann asked how long it would take to implement a cell phone
policy. Finance Director Kachadoorian replied that staff would return to the Council in
approximately three weeks. Council/Agency/Authority member McCann stated he was in favor
of deleting the Principal Legislative Analyst position in the proposed budget adjustments and
also spoke in favor of deleting the Principal Management Assistant/Council Liaison position.
Council/Agency/Authority member Castaneda spoke regarding a memorandum he submitted to
the Council on a number of policy decisions. Regarding Community Choice Aggregation, he
requested that staff bring back a report as soon as possible. With reference to department line-
item budgets, he asked what happened to unused funds. Director Van Eenoo replied that
departments could move funding from different line items in their budgets to keep in line with
their budget-to-actual totals. Council/Agency/Authority member Castaneda felt that there should
be a policy that departments would need to follow to move funds between their budget line
items. He asked what quality controls existed on budgets for departments. Director
Kachadoorian replied that departments could only move up to $15,000 between categories
without Council approval. Interim City Manager Thomson clarified that any unspent funds for
departments went into the General Fund reserves. Council/Agency/Authority member Castaneda
suggested consideration of refining department budgets in order to help supplement the fund for
the capital improvement project for street maintenance and repair. Director Kachadoorian
expressed concern about restricting departments to the line item level, because she had seen, as a
former auditor, departments start charging accounts that have money versus the actual line item
accounts. Regarding street maintenance and repairs. she asked Council/Agency/Authority
Page 3 - Council/RDA/HA Minutes
June 20, 2006
PUBLIC HEARINGS (Continued)
member Castaneda if it would be his proposal that anything above the eight percent policy be set
aside for street maintenance. Council/Agency/Authority member Castaneda replied that there
needed to be a policy discussion with the Council on how to spend discretionary money for street
repairs. He expressed the need to do more in terms of infrastructure. Interim City Manager
Thomson pointed out that staff is currently conducting a pavement management study with
results anticipated for October 2006, which would be a good time to address the issue.
Additionally, a major infrastructure issue is proposed for the November ballot that could provide
potential funding for cities. He suggested that further discussions on this matter could be
facilitated within the October/November timeframe.
Council! Agency/Authority member Rindone commended the Office of Budget and Analysis and
Finance staff on an excellent and comprehensive budget document. He requested that staff
provide a report on the reserves of each of the 18 cities in the County within 60 days after
adoption of the budgets, and that the item be placed on a future agenda for discussion. He
complimented staff on a thorough report regarding a prior referral on the road condition on E
Street, stating that this referral was copasetic with the need for increased maintenance and repair
in the City. He then reported that he would abstain from voting on Items 3A and 3E because of
the proximity of his residence to the projects. He referred to a memorandum submitted by
Council! Agency/Housing Authority member Castaneda regarding constituent services and policy
review analysis enhancement, stating that he could not support Councilmember Castaneda's
recommendation to augment the Council budget by $15,000 for each Council Office, and he
believed that there was no necessity to provide fringe benefits for those particular positions. He
felt that all the other services in the Mayor's office meet the needs of Council and, when looking
at keeping a close eye on the City's reserves, he was hopeful that the Council would support his
position.
Council! Agency/Authority member Castaneda stated that he would abstain from voting on Item
3F. He then responded to Council/Agency/Authority member Rindone's comments relative to
Council staffing, explaining that the $57,000 reflected a number that has been available to
Council Offices for some time. He felt that it was important to have a full-time staff person to
provide responsive constituent services, expertise, and understanding of City/government
operations, and that while there was a need to be cognizant of taxpayers' money being spent, he
would expect any staff person working in his office to be top notch and to provide a high level of
service to the constituents. He believed that staff should be appropriately compensated for the
job they do.
Regarding the recommendation to add a Principal Management Assistant/Council Liaison
position, Council/Agency/Authority member Chavez suggested that the matter come back with
further details on the needs and benefits of such a position. She concurred with the
recommendation by Council/Agency/Housing Authority member Castaneda regarding Council
Aides, stating that if the City is not currently in a position to approve the recommendation, then
the matter should be brought back with a detailed analysis.
Page 4 - Council/RDA/HA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
Council/Agency/Authority member McCann stated that the Council's most important
responsibility is fiscal and fiduciary. He spoke of the need to create a budget committee to stay
ahead of the game and the need to have a clear plan to find savings, avoid cutting services, re-
capitalize City reserves, and to meet Council priorities and City services. He stated that the
budget reserves are specifically itemized for replacement costs, that the City needs to look
further to ensure that it is looking at the spending plan and revenues, and not taking away from
planned maintenance in order to continuously re-capitalize the reserves. He felt that the Council
policy of eight percent should be targeted at potentially ] 0 % or higher for the reserves to deal
with shortfalls in revenues. He expressed the need to prioritize a policy for cell phone usage and
to seek ways to save funds and maintain a high level of production and efficiency for the
residents. He pointed out the idea of implementing a fraud line and working on policies for staff
travel, staff vehicle mileage reimbursement, debt, ethics, and cash management. He felt that
ultimately, implementing a plan now would avoid long-term pains in the future.
Chair/Mayor Padilla made the following suggestions: ]) To incorporate a staff referral as part of
the budget adoption to bring back a resolution establishing a Council subcommittee to meet on
an ad-hoc basis through the next] 20 days to the balance on the calendar year, with the Mayor
and Deputy Mayor as members; 2) A time frame for staff to come back in conjunction with the
City Manager's Office and the Director of Finance on the matter of potentially establishing an
auditing division in the Finance Department; 3) That the Council subcommittee take a cursory
look, working with the City Manager, Finance Director, and Budget Director, at a citywide
departmental review of the five-year fiscal projections, staffing, allocation and prioritization of
resources; 4) Policy issues that need to be vetted that look at the fiscal aspect of the pavement
management program, and an analysis on baseline or capital improvement budgeting that looks
at rehabilitation and repair on an ongoing basis that would not be heavily dependent on grant
funding or one-time revenues; and 5) The need for an examination of the Council staff budget
policy, blocking budgeting for each Councilmember and making them accountable for their
individual budgets, and bringing the information back to Council no later than the end of
November 2006. He then spoke in support of freezing or deleting the proposed Principal
Management Assistant/Council Liaison; deleting the Development Specialist in Community
Development; and in support of the Public Safety recommendations and enhancements as being
essential services.
Council/Agency/Authority member McCann stated that he would abstain from voting on Items
3B and 3E, as he owns property that falls within the proximity of the project areas.
It was the consensus of the Council to revise the proposed budget to remove the Principal
Management Assistant/Council Liaison position to come back at a future date for discussion.
Council/Agency/Authority member Rindone stated that although he supports Item 3D, he did not
want to create a misperception, and clarified that adding $1.0 million from the Technology
Replacement Fund and $2.4 million from the Equipment Replacement Fund would not be
increasing the reserves by $3.4 million, but that it was only a different accounting method.
Chair/Mayor Padilla clarified that there has been criticism in the press that the City is not doing
well financially and suggesting that the City is behind other communities because of that. He
stated that the reality is that the City's reserves are about 9.9 percent in total. He believed that
the Council wanted to have a commitment to a healthy, fully funded reserve that keeps the City
at or above its basic minimum as a way to assure the citizens that the Council is acting in a
responsible way. Council/Agency/Authority member McCann responded to the comment by
Council! Agency/Authority member Rindone that he had not made any statements that created
new money, and he clarified the restricted versus un-restricted reserves.
Page 5 - CounciJ/RDA/HA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
Council/Agency/Authority member Rindone asked staff to bring back for discussion by the
Council the proposed salary for the Chula Vista Redevelopment Corporation CEO/Executive
Director.
ACTION:
Council/Agency/Authority member McCann moved to establish a Council budget
subcommittee consisting of the Mayor and Deputy Mayor. Mayor/Chair Padilla
seconded the motion, and it carried 5-0.
ACTION:
Council/Agency/Authority member McCann offered Resolution No 2006-196,
heading read, text waived:
A. RESOLUTION NO. 2006-]96, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
CAPITAL IMPROVEMENT BUDGET FOR PROJECT STL309 FOR
FISCAL YEAR 2007, AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 4-0-1, with Council/Agency/Authority member Rindone
abstaining due to the proximity of his residence to the project.
ACTION:
Council/Agency/Authority member Rindone offered Resolution No 2006-197,
heading read, text waived:
B. RESOLUTION NO. 2006-]97, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
CAPITAL IMPROVEMENT BUDGET FOR PROJECT SW235 FOR
FISCAL YEAR 2007. AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 4-0-1, with Council/Agency/Authority member McCann
abstaining due to the proximity of his residence to the project.
ACTION:
Council/Agency/Authority member Chavez offered Resolution No. 2006-198,
heading read, text waived:
C. RESOLUTION NO. 2006-198, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
OPERA TING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
CITY OF CHULA VISTA EXCLUDING CAPITAL PROJECTS STL309
AND SW235 FOR FISCAL YEAR 2007, AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 5-0.
Page 6 - CounciJlRDA/HA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
ACTION:
Mayor/Chair Padilla offered Council Resolution No. 2006-199, Redevelopment
Agency Resolution Nos. 1942, 1943, 1944, and Housing Authority Resolution
Nos. 029, 030, 031 for adoption and the ordinance for first reading, as amended to
remove the Principal Management Assistant/Council Liaison position, headings
read, texts waived:
D. RESOLUTION NO. 2006-199, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE
TRANSFER OF $1.0 MILLION FROM THE TECHNOLOGY
REPLACEMENT FUND AND $2.4 MILLION FROM THE
EQUIPMENT REPLACEMENT FUND TO THE GENERAL FUND
E. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1942, AND
HOUSING AUTHORITY NO. 2006-029, JOINT RESOLUTION OF
THE REDEVELOPMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERA TING AND CAPITAL IMPROVEMENT BUDGET FOR THE
SOUTHWEST/TOWNE CENTER II/OTAY VALLEY/ADDED AREA
PROJECT AREA FOR FISCAL YEAR 2007, AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2007
F. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1943, AND
HOUSING AUTHORITY NO. 2006-030, JOINT RESOLUTION OF
THE REDEVEL09PMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERA TING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
REDEVELOPMENT AGENCY FOR TOWNE CENTER I AND THE
BA YFRONT PROJECT AREAS FOR FISCAL YEAR 2007, AND
APPROPRIA TING FUNDS FOR THE FISCAL YEAR ENDING JUNE
30.2007
G. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1944, AND
HOUSING AUTHORITY NO. 2006-031, JOINT RESOLUTION OF
THE REDEVELOPMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERA TING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
HOUSING AUTHORITY FOR FISCAL YEAR 2007, AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE
30,2007
H. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA
VISTA MUNICIPAL CODE SECTION 2.05.010 RELATING TO THE
ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE
POSITIONS OF EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY/CEO OF THE CVRC, CBAG
EXECUTIVE DIRECTOR. DEVELOPMENT PLANNING
IMPROVEMENT MANAGER, /\ND PRINCIP.^...L M/..N/\GEMENT
/..SSIST.'\NT/COUNCIL LL'\ISON
Page 7 - Council/RDNHA Minutes
June 20,2006
PUBLIC HEARING (Continued)
The motion carried 5-0, except on Item 3E, which carried 3-0-2, with
Council/Agency/Authority members Rindone and McCann abstaining, due to the
proximity of their residences to the project area, and on Item 3F, which carried 4-
0-1, with Council/Agency/Authority member Castaneda abstaining due to the
proximity of his residence to the Towne Center I and Bayfront project areas.
OTHER BUSINESS
4. CITY MANAGER/DIRECTOR'S REPORTS
There were none.
5. MA YOR/CHAIR'S REPORTS
There were none.
6. COUNCIL/AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 12:25 p.m., Chair/Mayor Padilla adjourned the meeting to the Adjourned Regular Meeting on
June 22, 2006 at 6:00 p.m., and thence to the Regular Meeting of July 18, 2006 at 6:00 p.m. in
the Council Chambers.
,
~
Lorraine Bennett, Deputy City Clerk
Page 8 - CounciJ/RDA/HA Minutes
June 20. 2006