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HomeMy WebLinkAboutcc min 1982/12/16 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, December 16, 1982 Council Conference Room 4:00 p.m. City Hall ROLL CALL COUNCILMEMBERS PRESENT Mayor Cox; Councilmembers Malcolm, Moore, McCandliss, Scott COUNCILMEMBERS ABSENT None STAFF PRESENT City Manager Cole, Assistant City Manager Asmus, Community Development Di rector Desrochers, Agency Special Counsel Reed, City Engineer Lippitt ALSO PRESENT Messrs. James Gibbs, Charles Adams Noting that Councilman Scott was delayed, Mayor Cox recessed the meeting at this time to the Redevelopment Agency meeting. The Council meeting reconvened at 4:55 p.m. 1. REPORT: BID OPENING FOR PARKING STRUCTURE City Engineer Lippitt reported that the architect's estimate for the parking structure was $2.8 million. Only one bidder out of eight bids received was over this amount. As a result of the bid opening on December 14, C. E. Wylie Construction Company of San Diego was the low bidder at $2,468,000. (A breakdown sheet of net proceeds and construction costs was submitted to the Council at this time.) Community Development Director Desrochers stated that E. F. Hutton has been informed that 52,870,700 in net proceeds should pass to the Redevelopmerit Agency for contingencies, fine arts fee, testing/inspection, clerk of the work, utility relocation, and interest income. MSUC {Cox/Malcolm) to accept the report. 2. RESOLUTION NO. llll5 - APPROVING SALE OF $4,055,000 PRINCIPAL AMOUNT OF CERTIFICATES OF PARTICIPATION FOR PUBLIC PARKING PROjECT, AND APPROVING AND AUTHORIZING EXECUTION OF LEASES, RELATED DOCUMENTS AND OFFICIAL ACTION On November 18, 1982, the Redevelopment Agency/City Council reviewed and approved the financing proposal for the Town Centre Parking Structure. Formal documents are ready for consideration by the City Council. Mr. James Gibbs, representing the bond underwriter, E. F. Mutton, explained that the Certificates of Participation were sold in principal amounts of maturity dates from 1985 to 2002. The interest rate being 7-1/2% in 1985 to 11.4% in 2002. These rates correspond with the BAA1 rating that was received from Moody's Investors Service and is considered reasonable for a city of this size. The net interest rate is 11.21% on the entire amount. Adjourned Regular City Council Meeting -2~ December 16, 1982 Mr. Gibbs added that the primary objective of this financing was to succeed in raising the capital for the parking structure without tying up the Agency's tax increment revenue. To maintain this objective, the bond underwriters had to forego using municipal bond insurance because the bond insurers required that tax increment revenues should be tied up. The City Council then directed that tax increments should not be tied up, therefore, the present bond rating of BAA1 was obtained rather than an insured AA rating. Mr. Gibbs remarked that the total debt service for the bonds is $525,000 a year for 20 years. The adjustment in interest cost if the bonds were insured would net a savings of $25,000 per year. Without insurance the Agency/City has more flexibility in the use of funds because of underwriter requirements. RESOLUTION OFFERED BY MAYOR COX, the reading of the text was waived by unanimous consent, passed and adopted unanimously. 3. RESOLUTION NO. 11116 - DETERMINING THAT CERTAIN STRUCTURES AND OTHER IMPROVEMENTS ARE OF BENEFIT TO THE BAYFRONT/TOWN CENTRE REDEVELOPMENT PROJECT AREAS, AND APPROVING AND AUTHORIZING REPAYMENT CONTRACT This resolution provides the legal mechanism for the Redevelopmerit Agency's guarantee to pay the debt service for the Parking Structure Certificates of Participation. In response to Councilman Moore's question, Community Development Director Desrochers noted that the debt service will come from tax increments and will be included in the redevelopmerit budget until the parking structure is paid off. The corresponding Redevelopment Agency Resolution 1#402) provides for Council agreement to this and for the provision of monies for the budget on an annual basis. Community Development Director Desrochers, referring to Councilman Malcolm's comments of the meeting of December 14, stated that any time Redevelopment funds are used, State Law requires that a statement and resolution must be prepared indicating the degree of benefit that the redevelopment project is receiving from the use of these monies. RESOLUTION OFFERED BY COUNCILMAN MOORE, the reading of the text was waived by unanimous consent, passed and adopted unanimously. UNANIMOUS CONSENT RESOLUTION NO. llll7 - AUTHORIZING LYNN R. McDOUGAL, CITY ATTORNEY OF EL C~jON AND SECRETARY OF THE SAN DIEGO COUNTY CITY ATTORNEYS ASSOCIATION, TO ACT FOR AND ON BEHALF OF THE CITY OF CHULA VISTA IN THE CASE OF DROGIN VS. BOARD OF SUPERVISORS, ET AL According to the action served on October 22, 1982, the City of Chula Vista has been named as a party defendant for the recovery from the County for an excessive unsecured property tax bill for the 1978-79 fiscal year. Since the Adjourned Regular City Council Meeting -3- December 16, 1982 monies that are alleged to have been unappropriately collected would be distributed to the various cities and districts in the County, the City Attorneys Association has determined that the matter might best be handled by having one City Attorney represent all of the cities to insure that we are at least on record as responding and not suffer any possibility of default. Therefore, it is recommended that the Council authorize and direct Lynn R. McDougal to act on behalf of the City of Chula Vista in the above-entitled lawsuit. Funds for this endeavor will be authorized from the City Attorney's professional services account. RESOLUTION OFFERED BY COUNCILMAN SCOTT, the reading of the text was waived by unanimous consent, passed and adopted unanimously. COUNCIL COMMENTS Mayor Cox referred to the "Co-Generation" system recently presented by Mr. Nealy, owner of the Royal Vista Inn. This system uses natural gas to power a generator which produces electrical energy. The procedure involves three meters: one was labeled "amount of energy being produced" (spinning at a fast rate); the second meter depicted the amount of energy consumed by the hotel (moving at a slower rate); and the third meter was the amount of energy that was used from SDG&E (dial did not move at all). According to this system, a net savings of $4,000-$5,000 per month to the operation would occur above and beyond the additional natural gas that would have been provided. The Mayor suggested that the Building and Housing Director review the applicability of this system to the Civic Center. MSUC (Cox/Moore) to ask staff to investigate the possibilities of implementing some type of a "Co-Generation" system for the City of Chula Vista in our City facilities and report back. ADjOURNMENT at 5:23 p.m. to the regular meeting of December 21, 1982. WPC 0236C