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HomeMy WebLinkAboutRDA Packet 2004/02/03 ~~f? ~..-: -::.- - .: 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] . .. 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 . .. 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 1- I . .. 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. ~U.L"--~..~~~~.- Susan Bigelow, CMC, City Clerk Page 2 CouncillRDA Minutes I-~ 01/13/04 " .. 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) f" 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. d. - I - .. 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. ~-à - . ..