HomeMy WebLinkAboutRDA Packet 2004/02/03
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CllY Of
CHUlA VISTA
TUESDAY, FEBRUARY 3, 2004 COUNCIL CHAMBERS
4:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
JOINT MEETING OF THE
REDEVELOPMENT AGENCY I CITY COUNCIL
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor Padilla
CONSENT CALENDAR
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted
by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the
public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items,
please fill out a "Request to Speak Form" availabie in the lobby and submit it to the Secretary of the
Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be
discussed after Action items. Items pulled by the public will be the first items of business.
1. APPROVAL OF MINUTES - January 13, 2004
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter
within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits
the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish
to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Agency/Council, staff, or members of the general public. The items will be considered individually by the
Agency/Council and staff recommendation may in certain cases be presented in the alternative. Those who
wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the Secretary to
the Redevelopment Agency or City Clerk prior to the meeting.
2. AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30,
2003 - Presented for Council/Agency information and acceptance are the
Audited Financial Statements for the fiscal year ended June 30, 2003, 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. [Director of Finance]
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STAFF RECOMMENDATION: Council/Agency accept the fiscal year 2002-03
Financial Statements.
3. OTHER BUSINESS
4. DIRECTOR'S REPORT
5. CHAIR REPORT
6. AGENCY COMMENTS
CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency/City Council states otherwise at
this time, the Agency/Council will discuss and deliberate on the following item(s) of business which are
permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised
should be discussed in closed session to best protect the interests of the City. The Agency/Council is required
by law to return to open session, issue any reports of final action taken in closed session, and the votes taken.
However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at
this point in order to save costs so that the Agency/Council's return from closed session, reports of final action
taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed
Session shall be made by Noon on Wednesday following the meeting at the City Attorney's office in
accordance with the Ralph Brown Act (Govt. Code § 54957.7)
7. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION --
Pursuant to Government Code Section 54956.9(a)
City/Agency vs. IT Group, Inc., et. al. [Case No. 02-10118 (MFW)]
ADJOURNMENT
The meeting will adjourn to a Joint Workshop of the City Council and
Redevelopment Agency at 6:30 p.m. at the John Lippitt Public Works Center,
located at 1800 Maxwell Road, Chula Vista, and thence to an adjourned meeting
of the Redevelopment Agency on February 10, 2004, at 6:00 p.m., immediately
following the City Council meeting in the City Council Chambers.
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619)
691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, February 3, 2004 Page 2
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MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
January 13, 2004 6:00 p.m.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 8:30 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Agency/Councilmembers: Davis, McCann, Rindone, Salas, and
ChairlMayor Padilla
ABSENT: Agency/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, City Attorney Moore,
and City Clerk Bigelow
CONSENT CALENDAR
1. APPROVAL OF MINUTES: November 25, 2003
Staff recommendation: Council/Agency approve the minutes.
ACTION: Agency/Councilmember Davis moved to approve staffs recommendation and
offered the Consent Calendar, heading read, text waived. Agency/
Councilmember Rindone seconded the motion, and it carried 5-0.
ORAL COMMUNICATIONS
There were none.
ACTION ITEMS
2. COUNCIL RESOLUTION NO. 2004-026 AND AGENCY RESOLUTION NO. 1854,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND RRM DESIGN GROUP
INVOLVING CONSULTANT SERVICES RELATED TO THE PREPARATION OF
THE URBAN CORE SPECIFIC PLAN AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT, AND AMENDING THE FISCAL YEAR 2003/2004
BUDGET BY TRANSFERRING $100,409 FROM MERGED PROJECT AREA TO
BAYFRONT, AND APPROPRIATING $100,409 FROM BAYFRONT TO EXISTING
CIP PROJECT - URBAN CORE SPECIFIC PLAN, AND TRANSFERRING $4,111
FROM BAYFRONT/TCI PROFESSIONAL SERVICES TO EXISTING CIP PROJECT
- URBAN CORE SPECIFIC PLAN
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ACTION ITEMS (Continued)
The proposed resolution approves a two-party agreement for the preparation of the Urban
Core Specific Plan by RRM Design Group. The total contract amount is for $354,520
(including a 10% contingency). Since the amount exceeds $50,000, it requires approval
by the City Council. (Community Development Director)
Agency/Councilmember McCann announced that he would abstain from discussion and voting
on Item 2 due to the proximity of his property to the project. He left the Chambers at 8:32 p.m.
Agency/Councilmember Rindone requested clarification by the City Attorney as to his
eligibility, as well as that of Agency/Councilmember Salas, to participate in Item 2. City
Attorney Moore responded that the Fair Political Practices Commission has concluded that
Agency/Councilmembers Rindone and Salas do not have a conflict because they qualify under
the general public exception. However, Agency/Councilmember McCann may have a conflict,
since he owns income property.
ACTION: Agency/Councilmember Davis offered Council Resolution No. 2004-026 and
Agency Resolution No. 1854, headings read, texts waived. The motion carried 4-
0-1, with Agency/Councilmember McCann abstaining due to the proximity of his
property to the project.
Agency/Councilmember McCann returned to the dais at 8:35 p.m.
OTHER BUSINESS
3. DIRECTOR/CITY MANAGER'S REPORTS
There were none.
4. CHAIR/MA YOR'S REPORTS
There were none.
5. AGENCY /COUNCILMEMBER COMMENTS
There were none.
ADJOURNMENT
At 9:00 p.m., ChairlMayor Padilla adjourned the meeting to an adjourned regular meeting of the
Redevelopment Agency on January 27, 2004, at 6:00 p.m., immediately following the City
Council meeting.
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Susan Bigelow, CMC, City Clerk
Page 2 CouncillRDA Minutes I-~ 01/13/04
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Item d-.
Meeting Date 02/03/04
JOINT COUNCIUREDEVELOPMENT AGENCY
AGENDA STATEMENT
ITEM TITLE: Audited Financial Statements for Fiscal Year ended June 30,
2003
SUBMITTED BY: Director of Finance-jK
REVIEWED BY: City Manager~t \) '" (4/5ths Vote: Yes_NoX)
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Presented for Council/Agency information and acceptance are the Audited
Financial Statements for the fiscal year ended June 30, 2003, as prepared by the
independent audit firm of Caporicci & Larson, LLP. Both the City's and the
Redevelopment Agency's Annual Financial Reports received unqualified (clean)
opinions from the independent audit firm.
RECOMMENDATION: That Council and the Agency accept the fiscal year 2002.
03 Financial Statements.
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable.
DISCUSSION:
Pursuant to the City Charter Section 1017. an annual audit is performed of the
City's financial records by an independent accounting firm. The firm of Caporicci &
Larson LLP, has examined the general purpose financial statements of the City of
Chula Vista and the Redevelopment Agency, and issued their opinion that those
statements "present fairly, in all material respects, the financial position of the City
as of June 30, 2003 and the results of its operations and cash flows.. ........ for the
year then ended in conformity with generally accepted accounting principles." In
addition, a separate report has been prepared for the Public Financing Authority
and also a report covering State and Federal Grant compliance, termed a "Single
Audit Report".
The audit did not result in any material adjustments to previously reported year-end
figures for the General Fund. The General Fund available fund balance was
verified to be $25.3 million as of June 30, 2003, a decrease of approximately $5.9
million from the balance as of the end of the previous fiscal year. This reserve level
represents 20.6 percent of the operating budget as compared to the Council policy
minimum target level of 8 percent.
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Page 2, Item d.
Meeting Date 2/03/04
The financial statements of the City and Agency were completed under the new
accounting reporting standard referred to as GASB 34 (Governmental Accounting
Standards Board Statement No. 34). Some of the key reports included in the
Comprehensive Annual Financial report includes the Management Discussion and
Analysis, the Statement of Net Assets, and the Statement of Activities and Changes
in Net Assets.
The Management Discussion and Analysis report (page 3) is a brief narrative
overview and analysis providing management's perspective on the financial picture
presented in the accompanying financial statements.
The Statement of Net Assets includes most notably the estimated value of
City/Agency owned infrastructure, i.e. streets, sewers, buildings, etc., along with
any long.term debt related to financing that infrastructure. The bottom line of this
new report theoretically estimates that if the City ceased operations as of June 30,
2003, was able to sell all assets and payoff all liabilities, it would end up with
$615.1 million (page 17).
The new Statement of Activities and Changes in Net Assets (page 18) is a
reformatted summary of revenues and expenditures on an activity or program level,
showing the net cost of the various activities. General or discretionary revenues
not specifically related to anyone activity are listed separately and added in to
arrive at the overall Change in Net Assets of $154.8 million (page 18). This
statement is now reported using the full accrual accounting basis similar to for-profit
entities, where revenues are recognized when eamed, and expenses are
recognized when a liability is incurred.
In order to form a basis for their opinion, Caporicci & Larson evaluated the internal
control procedures of the City and found no material weaknesses worthy of
corrective recommendations to the Council.
The audit firm was again very professional and efficient in their work, and provided
a great deal of much.needed assistance in the conversion to the new mandated
reporting formats. A representative from Caporicci & Larson is available to answer
any questions you may have.
FISCAL IMPACT: There is no fiscal impact to the City or Agency related to taking
action on this item. The contract for audit services totaled $57,530 for the year
reported.
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