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HomeMy WebLinkAbout2008/06/10 Item 1 DRAFT MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA April 22, 2008 6:00 p.m. An Adjourned Regular Meeting of the City Council and a Special Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council! Agency Member: McCann, Ramirez, Rindone, and Mayor/Chair Cox ABSENT: Council! Agency Member: Castaneda (excused) ALSO PRESENT: City Manager/Executive Director Garcia, Senior Assistant City Attorney Marshall, Interim City Clerk Norris, Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY - City Council . PRESENTATION OF A TREE CITY USA AWARD TO THE MAYOR AND COUNCIL FROM THE CALIFORNIA DEPARTMENT OF FORESTRY & FIRE PROTECTION FOLLOWED BY A STAFF UPDATE ON THE CITY'S URBAN SHADE TREE PROJECT AND ARBOR DAY COMMUNITY TREE PLANTING EVENT SCHEDULED FOR APRIL 26, 2008 AT MOUNT AlN HAWK PARK Environmental Resource Manager Reed introduced Open Space Manager Sirois, and Lynnette Short, Urban Forestry Advisor, California Department of Forestry and Fire Protection in the San Diego Region. Ms. Short explained the "Tree City USA" program designed to recognize achievement in environmental improvement. She then presented the award to Deputy Mayor Rindone, who accepted it on behalf of the City. Environmental Resource Manager Reed talked about Earth Month, highlighting trees and their importance in the community by providing improvements in air and water quality, energy savings, enhancing neighborhoods and increasing property values. He then invited the community to participate in the Arbor Day event on April 26, 2008 from 8:30 a.m. to 10:30 a.m., at Mountain Hawk Park. Page I - Jt. Council/RDA Minutes April 22, 2008 lA-I DRAFT SPECIAL ORDERS OF THE DAY (Continued) . PRESENTATION BY MR. PETER WATRY OF SUGGESTED SOLUTIONS FOR NEAR ELIMINATION OF THE COSTS OF POLICE RESPONSE FALSE ALARMS TO THE CITY I I :1 Mr. Watry talked about the problems with false alarms and associated police responses. He presented a two part solution to the problem: I) Raise the false alarm fee schedule, and; 2) Require alarm companies to visually verify alarm legitimacy before calling the police. He stated that the reduction in false alarms in the City could reduce the number of police officer time spent on false alarm calls and result in savings for the City. He asked for Council consideration to look at changing the City's alarm system policy. . PRESENTATION BY MAYOR COX OF A PROCLAMATION TO ELIZABETH SCOTT PROCLAIMING MAY 3 AND 4, 2008 AS "RELAY FOR LIFE OF CHULA VISTA" DAYS Mayor Cox read the proclamation and Councilmember McCann presented it to Ms. Scott. Ms. Scott then invited everyone to participate in the American Cancer Society Relay for Life event on May 3rd and 4th at Chula Vista High School, and added that further information about the event could be found at www.events.cancer.org. CONSENT CALENDAR - City Council and Redevelopment Agency (Items I and 2) I. APPROV AL OF MINUTES of the Special Meetings of the Redevelopment Agency of February 12 and 26,2008. Staff recommendation: Agency approve the minutes. 2. COUNCIL RESOLUTION NO. 2008-101 AND REDEVELOPMENT AGENCY RESOLUTION NO. 2008-193, OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OWNER PARTICIPATION AGREEMENT WITH SUNROAD CV AUTO, INC, AND APPROPRIATING FUNDS ACCORDINGLY (4/5THS VOTE REQUIRED) In February 2005, the Redevelopment Agency entered into an Owner Participation Agreement (OPA) with Sumoad CV Auto, Inc. The purpose ofthe OPA was to guide the operation and maintenance of a "fIrst quality, fIrst class" Toyota dealership in the City. Adoption of the resolution will approve an amendment to the OPA to make it compatible with current law, and appropriate the necessary funds to comply with the OPA. (City Attorney) Staff recommendation: Council/Agency adopt the resolution. Page 2 - Jt. Council/RDA Minutes April 22, 2008 /11 -.2.. DRAFT CONSENT CALENDAR - City Council (Items 3 through II) Item 5 was removed from the Consent Calendar; Item II was removed from the Consent Calendar for discussion by Councilmember Ramirez. With respect to Item 9, Deputy Mayor Rindone commended staff for ensuring that the Fire Department would have the best equipment necessary in order to save lives. 3. APPROVAL OF MINUTES of the Special Meeting of March 15, 2008 and the Regular Meeting of March 18, 2008. Staff recommendation: Council approve the minutes. 4. RESOLUTION NO. 2008-102, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2008 BUDGET AND APPROPRIATING $1,228,169 FROM THE AVAILABLE FUND BALANCE IN OT A Y RANCH VILLAGES I, 2, 5, AND 6 PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE TO REIMBURSE OTAY PROJECT, L.P. FOR THE CONSTRUCTION OF THE EAST AND WEST OLYMPIC PARKWAY PEDESTRIAN BRIDGES (4/5THS VOTE REQUIRED) The construction of both the east and west Olympic Parkway bridges has been completed and is now accessible for pedestrian use. This appropriation from the Pedestrian Bridge Development Impact Fee fund will reimburse Otay Project L.P. for the construction costs. (Engineering and General Services Director) Staff recommendation: Council adopt the resolution. 5. Item 5 was removed from the Consent Calendar. 6. RESOLUTION NO. 2008-104, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATED MATERIALS AND FUNDS FROM THE FRIENDS OF THE LIBRARY AND THE CHULA VISTA PUBLIC LIBRARY FOUNDATION, TRANSFERRING REMAINING FUNDS FROM LB139 TO LBI40 FOR THE PURPOSE OF RE-CARPETING THE CHILDREN'S AREA OF THE CIVIC CENTER BRANCH LIBRARY, AND AMENDING THE FISCAL YEAR 2008 CIP PROGRAM (4/5THS VOTE REQUIRED) The Friends of the Chula Vista Library and the Chula Vista Public Library Foundation are donating materials and funds to complete the re-carpeting of the Children's Room at the Civic Center Branch Library. (Engineering and General Services Director) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2008-105, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "EAST H STREET SEWER MANHOLE REHABILITATION IN THE CITY OF CHULA VISTA (SW-250A)" PROJECT TO ZONDlROS CORPORATION, IN THE AMOUNT OF $70,300 Page 3 - 11. Council/RDA Minutes April 22, 2008 /f}-3 DRAFT CONSENT CALENDAR- City Council (Continued) Sealed bids were received on April 3, 2008. The project provides for the removal of 19 existing manhole frames and covers and replacement with new manhole frames with locking covers along East "H" Street between Kernel Place and Regulo Place. (Engineering and General Services Director) Staff recommendation: Council adopt the resolution. 8. RESOLUTION NO. 2008-106, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 2008/2009, THE ISSUANCE AND SALE OF A 2008/2009 TAX AND REVENUE ANTICIPATION NOTE THEREFOR AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES TRANS FINANCING PROGRAM In order to address cash shortfalls that are projected to occur in the General Fund during Fiscal Year 2008/2009 due to the cyclical nature of some of our major revenue sources, it is recommended that the City once again take advantage of the opportunity to borrow money on a short-term basis at potentially no cost by issuing Tax and Revenue Anticipation Notes (TRANs) through the pooled fmancing program sponsored by California Statewide Communities Development Authority. TRANs are recommended as an alternative to borrowing from other City funds. (Finance Director) Staff recommendation: Council adopt the resolution. 9 RESOLUTION NO. 2008-107, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER AND/OR HIS DESIGNEE TO COMPLETE ALL NECESSARY APPLICATION PROCESSES AND TO ENTER INTO A FIVE-YEAR LEASE PURCHASE AGREEMENT WITH NECESSARY PARTIES FOR THE ACQUISITION OF MEDICAL RESUSCITATION EQUIPMENT MANUFACTURED BY ZOLL MEDICAL CORPORATION FOR USE BY THE FIRE DEPARTMENT, APPROVING THE FINANCING OF THE LEASE PURCHASE AGREEMENT THROUGH KANSAS STATE BANK OF MANHATTAN, AND AUTHORIZING THE MAYOR TO SIGN ALL NECESSARY AGREEMENTS The Chula Vista Fire Department delivers quality Basic Life Support services. A vital component of this service heavily relies on the resuscitative equipment that is carried on all apparatus. Such essential equipment includes cardiac defibrillators, Auto-Pulse devices, and portable suction units. The industry standard for the service of this equipment is five years. The Fire Department is requesting authorization to enter into a 5-year lease purchase agreement with Zoll Medical Corporation for the acquisition of medical resuscitation equipment in order to replace existing equipment that is beyond its useful performance life. Kansas State Bank of Manhattan will provide financing for the lease-purchase of this equipment and no budget amendment is required for fiscal year 2007/2008 as the Fire Department has sufficient funds to make the initial payments under the proposed fmancing agreement. (Interim Fire Chief) Staff recommendation: Council adopt the resolution. Page 4 - Jt. Council/RDA Minutes April 22, 2008 /Il .. L/ DRAFT CONSENT CALENDAR - City Council (Continued) 10. RESOLUTION NO. 2008-108, RESOLUTION OF THE CITY COlJNCIL OF THE CITY OF CHULA VISTA GRANTING ANOTHER DESIGNATED PERlOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT (CALPERS) In an effort to significantly reduce the Fiscal Year 2008 General Fund budget by reducing the number of benefited employees throughout the organization, staff is proposing that Council grant two years additional service credit for eligible employees, and provide for a limited medical incentive program for those that retire during the prescribed window period. The proposal is to offer this benefit to all local miscellaneous employees, in all departments of the City. In addition, it would be offered to all eligible Police Department and Fire Department management employees to include the classifications of Police Chief, Police Captain, Fire Chief, Deputy Fire Chief and Fire Battalion Chief (Human Resources Director) Staff recommendation: Council adopt the resolution. I I. Item I I was removed from the Consent Calendar. ACTION: Mayor/Chair Cox moved to adopt the balance of the Consent Calendars (Items I through 4 and 6 through 10), headings read, text waived. Council/ Agencymember McCann seconded the motion, and it carried 4-0. ITEMS REMOVED FROM THE CONSENT CALENDAR 5. RESOLUTION NO. 2008-103, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH PACIFIC MUNICIPAL CONSULTANTS FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED FORTY THOUSAND DOLLARS ($40,000) FOR ADDITIONAL AUDITING AND ENGINEERING SERVICES REQUIRED FOR THE UPDATE OF THE POGGI CANYON BASIN GRAVITY SEWER DEVELOPMENT IMPACT FEE AND CLOSURE OF VARIOUS ASSESSMENT DISTRICT IMPROVEMENT FUNDS On May 5, 2007, the City retained Pacific Municipal Consultants (PMC) to provide consultant auditing and engineering services required to facilitate the update ofthe Poggi Canyon Development Impact Fee (DIF) and the closure of various assessment district improvement funds. Since then, as work on the Poggi DIF update proceeded, it became apparent that additional work was needed beyond what was defmed in the original scope of work in order to complete the project. Staff is recommending the contract be amended and the amount increased by $22,030 to fllCilitate the completion of the update. (Engineering and General Services Director) Staff recommendation: Council adopt the resolution. ACTION: Mayor Cox moved to approve staff recommendation and offered Resolution No. 2008-103, heading read, text waived. Deputy Mayor Rindone seconded the motion, and it carried 3-0-1, with Councilmember McCann abstaining. Page 5 - Jt. CouncillRDA Minutes April 22, 2008 11}-5 1 I I I I I DRAFT ITEMS REMOVED FROM THE CONSENT CALENDAR (Continued) 11. RESOLUTION NO. 2008-109, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH DOUGLAS R. NEWMAN RELATED TO THE WORK OF THE NATIONAL ENERGY CENTER FOR SUSTAINABLE COMMUNITIES AND THE CHULA VISTA RESEARCH PROJECT TO ANALYZE HOW THE RESULTS OF THE CHULA VISTA RESEARCH PROJECT RELATE SPECIFICALLY TO CALIFORNIA'S GLOBAL WARMING SOLUTIONS ACT OF 2006 (AB32) AND INCREASING THE CONTRACT AMOUNT BY TEN THOUSAND DOLLARS ($10,000) Since March of 2006, staff has been working with the National Energy Center for Sustainable Communities (NECSe) to advance responsible use of energy resources through the planning efforts of three master-planned developments in eastern Chula Vista (the Chula Vista Research Project or CVRP) and the Los Vecinos and Creekside Vistas projects. The resulting recommendations establish a precedent for a comprehensive approach to energy conservation, efficiency demand management and alternative energy at the individual building and community infrastructure level. The City previously entered into an agreement with Douglas Newman to publish and disseminate the results of the research of the NECSe. This amendment will analyze the results of the CVRP as they relate specifically to the State of California's Global Warming Solutions Act of2006 (AB32), and will assist both the City and the State in implementing their respective energy and climate change policies. (Economic Development Officer) Staff recommendation: Council adopt the resolution. ACTION: Councilmember Ramirez moved to approve staff recommendation and offered Resolution No. 2008-109, heading read, text waived. Mayor Cox seconded the motion, and it carried 4-0. PUBLIC COMMENTS - City Council and Redevelopment Agency Harald Werner, Chula Vista resident, representing the Human Rights Torch Relay, asked for Council support of, and invited members to, the "Global Human Rights Torch Relay" event on May 3, 2008, at the Balboa Park Spreckels Organ Pavillion, from 12:00 p.m. to 4:00 p.m. He explained that the objective of the event was to bring a message of hope and raise awareness of human rights. Rebecca Kelley, representing the International Friendship Commission spoke about Council's recent direction to staff to make contact to establish a sister city relationship with Tijuana, Mexico. She asked for Council reconsideration of the direction given to staff, and requested that the matter be placed on the next Council agenda. Councilmember Ramirez stated that he would be interested in attending the next International Friendship Commission meeting to explain his motivation and interest in establishing a sister city with Tijuana, and to elicit the support by the International Friendship Commission. He suggested that the commission contact his office to make the necessary arrangements. Items 13, 14, 15 and 16 were taken out of order and heard at this time. Page 6 - It. Council/RDA Minutes April 22, 2008 /1}-. t DRAFT PUBLIC HEARlNG - City Council 12. CONSIDERATION OF SUB!vlITTAL OF CHULA VISTA'S PORTION OF THE REGIONAL TRANSPORTATION IMPROVElvlENT PROGRAM State and Federal regulations require the San Diego Association of Governments develop and adopt a Regional Transportation Improvement Program (RTIP) every two years in order to continue to receive Federal and State funding. All projects that the City ofChula Vista proposes to fund with these Transnet funds must be included in the RTIP, which currently covers Fiscal Years 2008/2009 through 2012/2013. (Engineering and General Services Director) Mayor Cox announced that Councilmembers McCann and Ramirez had property conflicts on the item, and theretore, staff was prepared to amend the item to remove the street from consideration by which Councilmember Ramirez was affected, so he could vote on the item. Councilmember McCann then recused himself from discussion of the item, and left the dais at 7:01 p.m. He did not return to the dais. Engineering and General Services Director Griffm referenced page 12-28 of the Council agenda packet, noting that the Orange Avenue project would be deleted from the list of projects, thereby enabling Councilmember Ramirez to participate in the discussion and vote, and staff would return at a future date with the Orange A venue project. Engineering and General Services Director Griffin then gave a brief report on the major projects. Mayor Cox opened the public hearing. Since there were no members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Deputy Mayor Rindone moved to adopt Resolution No. 2008-110, as amended, heading read, text waived. RESOLUTION NO. 2008-110, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUBMITTAL OF CERT AlN PROJECTS FOR THE TRANSNET LOCAL STREET IMPROVElvlENT PROGRAM TO THE SAN DIEGO ASSOCIATION OF GOVERNMENTS FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM FOR FISCAL YEARS 2008/2009 THROUGH 2012/2013 Mayor Cox seconded the motion, and it carried 3-0-1, with Councilmember McCann abstaining. ACTION ITEM - City Council 13. CONSIDERATION OF QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDED MARCH 3\, 2008 Page 7 - Jt. Council/RDA Minutes April 22, 2008 ;;f -7 1 ! DRAFT ACTION ITEM - City Council (Continued) Section 504 (t) of the City Charter requires quarterly fmancial reports to be filed by the Director of Finance through the City Manager. Adoption of the resolution approves a transfer of $482,383 from the personnel services budget category to the supplies and services budget category to fund the transfer of the Fire Communications Center. Council approved transfer of Fire Communication services on December 11, 2007 as part of the Fire Department budget reduction proposals that were adopted. In the report, staff informed the Council that it would be returning to seek approval for this transfer of funds. (Finance Director) Finance Director Kachadoorian presented the 3rd quarter fmancia1 projections for Fiscal Year 2007/2008 that included a sales tax comparison, general fund estimated net impact, and estimated reserves. Deputy Mayor Rindone clarified a prior request for a list of city-owned properties, stating that his request was for staff to report only on those properties deemed to be sensible for the Council to consider. Engineering and General Services Director Griffm responded that staff would be presenting the matter to Council at a future date. Counci1member Ramirez requested that staff provide the Council with quarterly reports reflecting the most current actual reserve levels, including the report for this third quarter. ACTION: Deputy Mayor Rindone moved to accept the report and adopt Resolution No. 2008-111, heading read, text waived. RESOLUTION NO. 2008-111, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2007/2008 BUDGET, IN ACCORDANCE WITH THE BUDGET TRANSFER POLICY, BY TRANSFERRING $482,383 FROM THE FIRE DEPARTMENT PERSONNEL SERVICES CATEGORY TO ITS SUPPLIES AND SERVICES CATEGORY (4/5THS VOTE REQUIRED) Mayor Cox seconded the motion, and it carried 4-0. OTHER BUSINESS - City Council and Redevelopment Agency 14. CITY MANAGERlEXECUTIVE DIRECTOR'S REPORTS City Manager Garcia announced that the items scheduled for discussion at the May 1, 2008 Council Workshop would include the auditor's report on post-employment retirement benefits and associated liabilities, establishment of an Audit Committee, and a presentation on the capital budget plan for Fiscal Year 2008/2009. It was the consensus of the Council to hold the workshop at 6:30 p.m. on May 1,2008. 15. MAYOR/CHAIR'S REPORTS Mayor Cox reminded everyone about the upcoming "Relay for Life" event. She then requested feedback from the Council on consideratiQn to cancel the Council meetings of August 19 and August 26, 2008, and to look at dates to schedule future workshops and commissioner interviews. Page 8 - Jt. CouncilfRDA Minutes //1 -f April 22, 2008 DRAFT OTHER BUSINESS - City Council and Redevelopment Agency (Continued) 16. COUNCIL! AGENCY MEMBERS' COMMENTS Councilmember Ramirez stated that the International Friendship Games were scheduled for May 17 through 19, at the Olympic Training Center in Chula Vista. The events would include soccer, boxing, and archery. He invited anyone interested in attending to contact his office. He then spoke about the "Taste of the Arts" event, stating that he was working with the Cultural Arts Commission and Southwestern College to seek ways to make it an all-volunteer event, and that he would be working with staff to look at holding an event in Mayor June. Councilmember McCann spoke with respect to city-owned property and looked forward to the report from staff on suggested recommendations. The Council convened in Closed Session at 7:09 p.m., with all Councilmembers present. CLOSED SESSION - City Council 17. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) Two cases No reportable action was taken on this item. 18. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) · NPDES Permit No. CASOI08758 No reportable action was taken on this item. 19. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor No. 6440801000 Negotiating Parties: Rob Cameron, Jim Sandoval, Ann Moore Under Negotiation: Price and Terms This item was not discussed and no action was taken. ADJOURNMENT At 8:45 p.m., Mayor/Chair Cox adjourned the Council Meeting to a Council workshop on May I, 2008 at 6:30 p.m. in the Council Chambers, and thence to a Regular Meeting on May 6, 2008 at 4:00 p.m. in the Council Chambers, and the Redevelopment Agency to its Regular Meeting on May 6, 2008 at 4:00 p.m. in the Council Chambers. -------~- Lorraine Bennett, CMC, Deputy City Clerk Page 9 - 11. Council/RDA Minutes April 22, 2008 //f-? DRAFT MINUTES OF AN ADJOUR.c"lED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA May 1, 2008 6:30 p.m. An Adjourned Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:33 p.m. in the Chula Vista Council Chambers, located at 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Counci1members Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: None ALSO PRESENT: City Manager Garcia, City Attorney Moore, Interim City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS There were none. ACTION ITEMS I. REPORT ON AUDITING STANDARDS AND SELECTION OF AUDIT COMMITTEE Report by Kathryn Beseau of Moreland and Associates on the new standard associated with auditor communications recently published by the Auditing Standards Board. Statement on Auditing Standards No. 114 establishes a requirement for the auditor of financial statements to communicate certain significant matters related to the audit to those charged with governance. Staff recommendation: Council appoint two Councilmembers to serve on an audit subcommittee for the purpose of communicating with the City's auditors regarding the Fiscal Year 2007/2008 audit, throughout the duration ofthat audit. Kathryn Beseau, representing Macia Gini & O'Connell, LLP (formerly Moreland and Associates), presented the Statement on Auditing Standards No. 114. She then suggested that the Council establish an Audit Subcommittee comprised of members of the Council to oversee the functions of the audit process. Discussion ensued between the Councilmembers about formation of an Audit Subcommittee. Page 1 - Council Minutes May 1,2008 /~-I DRAFT ACTION ITEMS (Continued) Mayor Cox suggested that once the Audit Subcommittee was established, that staff maintain a record of minutes of all of the subcommittee meetings. Councilmember Ramirez suggested that staff provide the Council with information about procedures undertaken by other cities in the region with respect to the formation of Audit Subcommittees. Mayor Cox suggested that should the Council accept a two-member Audit Subcommittee, that the subcommittee discuss a protocol for procedures, and provide suggestions to the Council as an information item. Deputy Mayor Rindone suggested reviewing the Metropolitan Transit System's (MTS) Letter of Intent, which covered procedures for formation of the MTS Audit Subcommittee. ACTION: Councilmember McCann moved to form an Audit Committee and nominated Mayor Cox and Councilmember Ramirez to serve as members of the City of Chula Vista Audit Subcommittee. Deputy Mayor Rindone seconded the motion. Councilmember Castaneda stated he would like to amend the motion, or to seek agreement by the Council, that the Audit Subcommittee be advisory only, to gather information, set a fran1ework, and to bring the information back to the Council for final recommendation. Councilmember Ramirez stated that the Audit Subcommittee meetings would need to be public meetings in order for him to consider serving as a member. Councilmember McCann called for the vote. Mayor Cox clarified, and the Council concurred, that the motion was to nominate Mayor Cox and Councilmember Ramirez to be members of the Audit Subcommittee, and that the Audit Subcommittee bring back to the Council, a template of how they plan to work, so that in the event that was unacceptable to the Council, the Council would discuss remedies. The motion carried 5-0. Ms. Beseau suggested a planning meeting with the Audit Subcommittee on May 5, 2008 at 2:30 p.m. in the finance conference room. Mayor Cox suggested that staff advise the subcommittee about the frequency of the meetings and associated time constraints. City Manager Garcia requested that the Audit Subcommittee consider expenses associated with meeting with the consultant, and suggested using conference calls as much as possible. 2. REPORT ON POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS AND THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 45 Report by the City's actuary, John Bartel of Bartel and Associates regarding Statement 45, "Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions," issued by the Goverrunental Accounting Standards Board (GAS B) in June 2004, which requires public agencies to report their costs and obligations pertaining to health and other benefits of current and future retired employees much like Page 2 - Council Minutes May 1, 2008 /6- ..<. DRAFT ACTION ITEMS (Continued) they now report pension plan obligations. This is a significant change in accounting, reporting and disclosure for OPEBs, which are currently accounted for on a pay-as-you- go basis. The most common types of post-employment benefits include health care insurance, life insurance, long-term care and dental insurance for retirees. (Finance Director) Staff recommendation: Council accept the report. Finance Director Kachadoorian introduced John Bartel, representing Bartel and Associates, who presented the "Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions". City Manager Garcia stated that staffs recommendation would be to add no new employees to the Post-Employment Benefits program after July I, 2008, and that statf would be coming back to the Council in the future with other options for the new employees. Councilmember Castaneda suggested that statfwork with the City's health care providers to look at ways of reducing liability and premium costs to the City by incentivizing preventative health care and reducing healthcare costs. He requested a report from statf to include all available options. Councilmember Ramirez concurred with the comments by Council member Castaneda to look at a range of options. Mayor Cox also suggested that staff provide information to the Council about current healthcare related practices by other cities. ACTION: Councilmember McCann moved to accept the report. Councilmember Ramirez seconded the motion and it carried 5-0. Mayor Cox requested that staff forward to the Council, copies of the slide presentation regarding the post employment benefits. 3. REPORT ON THE PROPOSED CAPITAL IMPROVEMENTS PROGRAM BUDGET FOR FISCAL YEAR 2008/2009 The armual Capital Improvement Program budget (CIP) is typically adopted as part of the City's overall budget. The proposed Fiscal Year 2008/2009 CIP budget is $10,550,975. (Engineering and General Services Director) Statf recommendation: Council accept the report. Engineering and General Services Director Griffin presented the proposed capital improvement program for Fiscal Year 2008/2009. Councilmember Ramirez clarified that the meter revenue generated was being spent within the parking district and requested for the future, that staff provide an accounting of revenues generated and the deposit of funds back to the parking district account. Deputy Mayor Rindone requested a written update from staff on the SDG&E undergrounding projects on L Street and Fourth A venue. No fom1al action was taken by the Council on this item. Page 3 - Council Minutes May] , 2008 /6-3 DRAFT 4. CITY MANAGER'S REPORTS There were none. 5. MA YOR'S REPORTS There were none. 6. COUNCIL COMMENTS There were none. ADJOURNMENT At 8:19p.m. Mayor Cox adjourned the meeting to the Regular Meeting of May 6, 2008 at 4:00 p.m. in the Council Chambers. ~ ",,> ~~ ---Lorraine Bennett, CMC, Deputy City Clerk Page 4 - Council Minutes May 1, 2008 //3 - 'I.