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HomeMy WebLinkAboutcc min 1998/08/04MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, August 4, 1998 4:06 p.m. 1. ROLL CALL: PRESENT: ABSENT: ALSO PRESENT: CALL TO ORDER Council Chambers Public Services Building Councilmembers: Moot, Padilla, Rindone, Salas, and Mayor Horton. Councilmembers: None City Manager, David D. Rowlands; City Attorney, John M. Kaheny; and City Clerk, Beverly A. Authelet 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROVAL OF MINUTES: None submitted. 4. SPECIAL ORDERS OF THE DAY: None. CONSENT CALENDAR (Items pulled: 11) BALANCE OF THE CONSENT CALENDAR OFFERED BY MAYOR HORTON, headings read, texts waived, passed and approved 5-0 with Rindone abstaining on Item 5D and pulling Item 11. 5. WRITTEN COMM13NICATIONS: A. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on July 28, 1998, there were no actions taken which are required under the Brown Act to be reported. Per staff's recommendation, the letter was received and filed. Approved unanimously 5-0. B. Letter of resignation from the Cultural Arts Commission Thomas J. Erhardt. Per staff's recommendation, the resignation was accepted with regret and the City Clerk was directed to post the vacancy immediately according to the Maddy Act in the Clerk's Office and the Public Library. Approved unanimously 5- 0. C. Letter from Virgil Pina, Vice Chair, Human Relations Commission, requesting that a traffic signal be installed at the intersection of Broadway and Flower Street. Per staff's recommendation, staff was instructed to inform Mr. Pina that the City Council awarded a contract for the installation of a traffic signal at Broadway and Flower Street on July 14, 1998 and that construction will begin shortly. Approved unanimously 5-0. D. Letter from Hilltop High School Cheerleader Booster Club requesting a $500 donation to help sponsor a Celebrity Basketball game. They hope to raise $2500 Minutes August 4, 1998 Page 2 toward travel and competition expenses for the USA National Competition to be held in either Texas or Florida. Since the request does not meet the criteria for funding organizations established in Council Policy 159-02, as there is "no tangible benefit to the City," staff recommended that the request be denied. In past years, requests to attend national tournaments from Miss Softball America, the Chula Vista Girls Amateur Softball Association, the Sweet Revenge Softball Team, the AYSO All Star Team, and the San Diego County Boys Baseball Organization have been denied. Denial approved 4-0-0-1 (Rindone abstaining). 6. RESOLUTION 19121 APPROVING CITY-WIDE ETHICS STATEMENT - The Board of Ethics is proposing a City-wide Ethics Statement for Council's consideration and approval. Once approved, the Board of Ethics proposes that the City-Wide Ethics Statement be disseminated to all City employees and officials and that it be included in new City employee orientation materials packets. Further, the Board proposes that the City-wide Ethics Statement be made available to the public. The purpose of the City-wide Ethics Statement is to encompass into one statement the City's commitment to standards set forth in the Statement. Per staff's recomendation, the resolution was approved unanimously 5-0. (Deputy City Attorney Gross) Councilmember Rindone commented that this validates the long-term effort on the part of the Board of Ethics, the Council, and the leadership in the City. He wanted to congratulate the Board of Ethics for the tenacity and dedication to provide a city-wide ethics statement that sets the highest legal, ethical, and moral standards. It also exemplifies the expectations that the Council, leadership of this administration, and the employees set by treating all members of the public with courtesy and fairness. It also emphases that the public trust is a sacred trust and reinforces that what may occur in other cities is not going to be tolerated in this City. He congratulated the new city manager, David Rowlands, who within his first one hundred days has had many successes as the new city manager. This culminates a very successful one hundred days under his leadership not only the settlement of contracts with all six unions in negotiations but has tackled the tough issues including this one. 7. RESOLUTION 19122 APPROVING REQUEST FROM THE BONITA BUSINESS AND PROFESSIONAL ASSOCIATION TO CONDUCT THE BONITAFEST AND BONITAFEST PARADE - The Bonita Business and Professional Association is requesting permission to conduct the 26th Annual Bonitafest and Bonitafest Parade on Saturday, September 26, 1998. They are also requesting a temporary street closure of Bonita Road for the parade. The street closure would involve Bonita Road between Willow Street and Central Avenue. Per staff's recommendation, the resolution was approved unanimously 5-0. (Chief of Police) 8. RESOLUTION 19123 WAIVING THE BIDDING PROCESS AND APPROVING AN AGREEMENT WITH FRANK CHABOUDY FOR PROVISION OF PROFESSIONAL TENNIS SERVICES AND FOR OPERATION OF THE CHULA VISTA TENNIS CENTER - The Chula Vista Tennis Center has been operated by Frank Chaboudy under a series of agreements with the City since November of 1985. A new agreement has been prepared to continue his professional tennis services for an additional three and one-half years. Per staff's recommendation, the resolution was approved unanimously 5-0. (Library and Recreation Director) Minutes August 4, 1998 Page 3 Councilmember Salas wanted to know if we could start right now talking about the extension of the agreement with Southwestern College. She felt this was a valuable resource for the community. David Palmer, Library and Recreation Director, responded that he did not feel that would be a problem. That was the intent. With the Parks Master Plan being revised now, that would also be incorporated into this. Councilmember Rindone stated that on the fiscal impact statement~ perhaps a better way to phrase it would be "there is no change in the fiscal impact." There is a fiscal impact, but there is no change in it. Mayor Horton agreed with Councilmember Salas' comments about starting the negotiations on the extension of the joint use agreement. She had questions about the actual programs being offered. She asked staff if they had any idea how many students are involved, and how do they go about advertising to the community that this program is available for them. Sunny Shy, Assistant Director of Recreation, replied that they advertised through their brochure that comes out about the availability for tennis. Also, Mr. Chabbody does a good job of advertising through the Star News and through the College. On an annual basis, there are over 600 students involved. 9.A. RESOLUTION 19124 APPROVING FINAL "A" MAP NO. 1 FOR CHULA VISTA TRACT NO. 96-04, OTAY RANCH SPA ONE VILLAGE 5, REJECTING ON BEHALF OF THE PUBLIC EAST pALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES; ACCEPTING ON BEHALF OF THE CITY OF CHtrLAVISTA THE PUBLIC DRAINAGE EASEMENTS AND ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS GRANTED ON SAID MAP WITHIN SAID SUBDIVISION; ACKNOWLEDGING ON BEHALF OF THE PUBLIC THE IRREVOCABLE OFFERS OF DEDICATION OF FEE INTEREST OF EAST PALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES, LOT "G" FOR PUBLIC PARK PURPOSES, LOT "H" FOR OPEN SPACE AND LOT "I" FOR PUBLIC IMPROVEMENTS - On November 19, 1996, Council approved a portion of the Tentative Subdivision Map for Tract 96-04, Otay Ranch SPA One (Otay Ranch Villages One and a portion of Village Five, excluding 288 acres located in a portion of Villages One and Five). On March 25, 1996, Council approved a portion of the Tentative Subdivision Map 96-04 (Otay Ranch Village Five, Neighborhoods 28, 29, 30, 31 and 39). Condition Number 117 of the resolutions require the developer to submit and obtain City approval of a master final map ("A" Map) over the portion of the tentative map within each Village area showing "super block" lots. All "super block" lots created are also required to have access to a dedicated public street. Per staff's recommendation, the resolutions were approved unanimously 5-0. (Director of Public Works) B. RESOLUTION 19125 APPROVING "A" MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NUMBER 96-04, OTAY RANCH SPA ONE PORTION OF VILLAGE 5 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT 10. RESOLUTION 19126 DECLARING THE INTENT TO ANNEX PARCEL NUMBER 639-160-32 AND THE RIGHT-OF-WAY FOR EAST NAPLES STREET ON THE SOUTHERN BOUNDARy TO OPEN SPACE DISTRICT NUMBER 18 AND SETTING THE TIME AND PLACE FOR THE PUBLIC HEARING FOR 6:00 P.M. ON SEPTEMBER 22, 1998 - The final parcel map to subdivide Parcel Number 639-160-32 is currently in process. The parkway along East Naples Street Minutes August 4, 1998 Page 4 to the south of this parcel, which is part of the right-of-way for East Naples Street, is adjacent to Open Space District Number 18 but has not yet been officially annexed to the District. Per staff's recon~nendation, the resolution was approved unanimously 5-0. (Director of Public Works) 11. REPORT CITIZEN PARTICIPATION ON THE COORS AMPHITHEATER EVENTS PLANNING AND COORDINATION TASK FORCE - The Events Planning and Coordination Task Force for the Coors Amphitheater was formed to develop and monitor the Events Management Plan to insure the smooth operation of the amphitheater and minimize negative impacts on the community. At the time of approval of the amphitheater project, Council discussed citizen participation and feedback, particularly concerning impacts to residential developments bordering Brandywine Avenue since they are the closest residential community to the amphitheater (at least until Dennery Ranch is completed). Staff proposes to facilitate citizen participation by inviting two representatives from these communities to participate in future meetings of the Events Planning and Coordination Task Force. Per staff's recommendation, Council accepted the report and authorized the Mayor to select two representatives from the Point Robinhood and Brandywine Townhomes to represent the community on the Events Planning and Coordination Task Force. Item was pulled by Councilmember Rindone. (Director of Community Development) Councilmember Rindone asked if the City will invite participants from Point Robinhood and Brandywine Townhomes. Will they be homeowners or renters? Fred Kassman, Redevelopment Coordinator, couldn't say at this point. Its a matter of being nominated by the Mayor. He knew people who have been interested have been calling. He felt it would be best to have someone from the Home Owners Association on the Board. Councilmember Rindone agreed. If we have an option and choice of volunteers, then he hoped we would opt for the homeowners. MSUC (Rindone/Norton) to accept the report. * * * END OF CONSENT CALENDAR * * * ORAL COMMUNICATIONS There were none. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 12. PUBLIC HEARING TO CONSIDER PLACING DELINQUENT SEWER CHARGES ON THE RESPECTIVE PROPERTY TAX BILLS FOR COLLECTION - Council shall consider placing delinquent sewer charges on the respective property tax bills for collection at the time set for hearing together with any objections or protests by interested parties. At the conclusion of the hearing, Council shall either approve the account as submitted or as modified or corrected by Council. Council shall then approve a resolution assessing such amounts as liens upon the respective parcels of land as they are shown upon the last available assessment roll. The amounts shall be charged to the property owners on the next regular tax bill. Per staff's recommendation, the resolution was approved unanimously 5-0. (Director of Finance) Continued from the meeting of July 28, 1998. Minutes August 4, 1998 Page 5 RESOLUTION 19127 ASSESSING DELINQUENT SEWER SERVICE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL Robert Powell, Finance Director, stated that when staff started this process approximately 30 days ago, we had 351 accounts totaling approximately $96,300. To date, we have cleared 144 of those accounts totaling approximately $34,300 through this process prior to putting these charges on the tax roll. There remains tonight 207 accounts valued at approximately $62,000 that staff is recommending be turned over to the County and placed on the tax roll for collection. Councilmember Salas wanted to know what kind of process was in place or assurances are there that the delinquency notice is getting directly to the property owner and not going to the renter who probably will not pass on the notice of delinquency to the property owner. Nadine Magee, Collections Supervisor, responded that the bill is sent to the tenant or service address unless otherwise requested. We bill every two months. Upon the second cycle of being delinquent, a letter is sent to the property owner notifying them of their tenant's delinquency. At that time, we do not ask for payment; we only notify them of the situation and ask that they work with their tenant to get this account current. If the next cycle turns out to be delinquent again, then another letter is sent to the property owner requesting payment at that time. We get that information from the County Tax Assessors Roll and is down loaded monthly. Councilmember Moot requested a memo breaking down how many were owners and how many were renters. It would be interesting to see how many of the delinquent people that were occupied by property owners versus renters. This being the time and place as advertised, the public hearing was opened. Addressing Council were: · Sidney Morris, Sr., 862 Cedar Avenue, Chula Vista, wanted to know what was ethical about making him responsible for someone else's debt. He wanted to know from the city attorney what was the basis for this decision to put things on the tax bill that were really not his responsibility. He was responsible for the taxes, but he was not responsible for an individual's utility bills. He felt this was not right making the property owner responsible for someone else's debt. Mayor Hotton stated that if the City were to absorb the cost, then the tax payer inadvertently would be paying for other people's debt. There being no one else indicating a desire to address the Council, the public hearing was closed. Councilmember Moot stated that when the matter was brought to Council before, it was pointed out that a sewer bill was not like an electric or phone bill which when the service wasn't paid for, it could be turned off. In a sense, this bill does sit in a materially different position than any others. This is the only practical way to enforce it. We can't turn off the sewer, and therefore, we ultimately have to put the responsibility on the person who owns the land where the sewers run to and from. Minutes August 4, 1998 Page 6 Councilmember Padilla echoed Mr. Moot's comments. When you are dealing with an extremely integrated public utility such as we are discussing and the public health issues that are present, it leaves you very little popular ways in which to enforce the proper payment. It does involve risk for those that are in the business of owning real estate and providing rental properties. RESOLUTION 19127 OFFERED BY COUNCILMEMBER PADILLA, heading read, text waived. Councilmember Rindone asked what other cities have the same billing format as Chula Vista. Ms. Magee answered that there are a couple of other cities in our County that bill similarly to us. They are La Mesa and El Cajon; they both have Helix Water billing for their water and the cities bill for the sewer. They also deal with their delinquencies via the property tax bill. Mr. Powell stated that very often the city, particularly a city the size of San Diego, the water and sewer are together. It is very unusual for them to be separate, but those that we are aware of that are separate are using the property tax roll. VOTE ON MOTION: Approved unanimously 5-0. 13. PUBLIC HEARING ADJUSTMENT OF THE TELEGRAPH CANYON DRAINAGE FEE - The fees established in 1990 for the Telegraph Canyon Drainage Basin improvements were last updated on April 21, 1998 using the Engineering News Record "Construction Cost Index." The fee was increased by 16.75% to $4,579 per acre. The last update using revised cost estimates and benefit areas as a basis was in 1992. At that time, however, due to various factors, the fee remained unchanged at $3,922 per acre. Since a public hearing is not warranted at this time, staff recommends that the item be tabled. (Director of Public Works) Continued from the meeting of July 14, 1998. No staff report was given. MSUC (Horton/Rindone) to table the item. 14. PUBLIC HEARING DECLARING THE INTENT TO INCREASE THE OPEN SPACE DISTRICT NUMBER 10 ASSESSMENT ON THE BELLA NEVONA SUBDIVISION - On May 26, 1998, Council approved the proposal to: (1) subdivide a parcel consisting of 5.25 gross acres into 28 lots for the Bella Nevona subdivision ranging in size from 5,000 square feet to 8,300 square feet; (2) amend the development standards contained in the Ranchero Sectional Planning Area to allow a reduction in minimum lot sizes and set back requirements; (3) order the initiation of assessment ballot procedures applicable to the parcel for which it is proposed that the Open Space District Number 10 assessment will be increased; and (4) schedule a public hearing on the intent to increase the Open Space District Number 10 assessment on this subdivision. Per staff's recommendation, the resolution was approved 3-0-0-2 (Moot and Salas abstaining). (Director of Public Works) Continued from the meeting of July 28, 1998. RESOLUTION 19128 APPROVING AN INCREASE ON THE OPEN SPACE DISTRICT #10 ASSESSMENT FOR THE BELLA NEVONA SUBDIVISION Minutes August 4, 1998 Page 7 John Lippitt, Public Works Director, stated this includes the additional 28 lots added into an existing Open Space District which will have an overall effect of reducing the other lot assessments by about 4%. There is only one property owner for all twenty-eight lots. We have received a ballot voting yes to accept the assessments. Therefore, staff recommends approving the staff recommendation. This being the time and place as advertised, the public hearing was opened. There being no one indicating a desire to address the Council, the public hearing was closed. RESOLUTION 19128 WAS OFFERED BY MAYOR MORTON, heading read, text waived. Both Councilmembers Moot and Salas indicated they would be abstaining since they either lived in or owned property in the district. VOTE ON MOTION: Approved 3-0-0-2 (Moot and Salas abstaining). 15.A. PUBLIC HEARING REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NUMBER 98-3 (OPEN SPACE MAINTENANCE DISTRICT NUMBER 35 [SUNBOW II]) PURSUANT TO THE PROVISIONS OF THE "MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982," FOR THE PURPOSE OF FINANCING CERTAIN PUBLIC SERVICES THROUGH THE LEVY OF A SPECIAL TAX TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES AND THE INTENT TO AUTHORIZE A SPECIAL TAX TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES The Ayres Land Company has requested the City to conduct proceedings for the formation of Community Facilities District Number 98-3. This district will fund the perpetual operation and maintenance of open space slopes, drainage channels, detention basins, medians and parkways of Sunbow II. The City has retained the services of Dick Jacobs Associates as special tax consultant and Brown, Diven, Hessel & Brewer as legal counsel to provide assistance during the proceedings. Per staff's recommendation, the resolutions were approved unanimously 5-0. (Director of Public Works) Continued from the meeting of July 28, 1998. B. RESOLUTION 19129 MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE COMMUNITY FACILITIES DISTRICT REPORT C. RESOLUTION 19130 ESTABLISHING COMNUNITY FACILITIES DISTRICT NO. 93-8 (OPEN SPACE MAINTENANCE DISTRICT NUMBER 35 (SUNBOW II) AND AUTHORIZING THE SUBMITTAL OF LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES TO THE QUALIFIED ELECTORS John Lippitt, Public Works Director, stated this election normally cannot take place for 90 days unless we receive a consent from all of the property owners to make it less. There are currently three property owners in the district. We have received those consents. Therefore, the election will be held next Tuesday by the City Clerk and certified by the City Council on September 1. This being the time and place as advertised, the public hearing was opened. There being no one indicating a desire to address the Council, the public hearing was closed. RESOLUTIONS 19129 AND 19130 OFFERED BY COUNCILMEMBER RINDONE, headings waived, texts read, passed and approved unanimously 5-0. Minutes August 4, 1998 Page 8 16.A. PUBLIC HEARING TO CONSIDER GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL THROUGH SEPTEMBER 4, 2002 TO PACIFIC WASTE SERVICES - This public hearing is to approve the agreement for solid waste collection, processing and disposal services, and to establish a rate schedule for services provided under the agreement to be effective September 1, 1998 which: (1) includes a freeze On current rates through June 30, 1999; (2) provides a reduction in rates for commercial fiber recycling and multi-family recycling for dwellings of nine units and under; and (3) establishes fixed rates for industrial "roll-off," compactor and optional services. Staff is further requesting the amendment of Chapter 8.23 of the Municipal Code to reflect the adjustments made into the franchise agreement. Per staff's recommendation, Council placed the ordinances On first reading and approved the resolution unanimously 5-0. (Deputy City Manager and Conservation Coordinator) ORDINANCE 2740 AMENDING CHAPTERS 8.23, 8.24 AND 8.25 OF THE MUNICIPAL CODE TO MOVE THE SOLID WASTE AND RECYCLING FRANCHISE TERMS AND CONDITIONS OUT OF THE MUNICIPAL CODE INTO A SEPARATE FRANCHISE AGREEMENT, AND MAKING TECHNICAL CHANGES (first readinq) ORDINANCE 2741 GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVICES THROUGH SEPTEMBER 4, 2002 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SANE (first readinq) RESOLUTION 19131 ADOPTING THE SCHEDULE OF MAXIMUM RATES FOR SOLID WASTE, RECYCLING, AND GREEN WASTE COLLECTION AND DISPOSAL OR PROCESSING SERVICES AS SUBMITTED BY THE CITY'S SOLID WASTE FRANCHISE AGENT (PACIFIC WASTE SERVICES) EFFECTIVE SEPTEMBER 1, 1998 B. RESOLUTION 19132 AMENDING FISCAL YEAR 1998/99 BUDGET TO INCLUDE THE RECYCLING EDUCATION PROGRAM AND ADD TWO TEMPORARY, FULL-TIME POSITIONS IN UNCLASSIFIED SERVICE IN THE CONSERVATION PROGRAM AND APPROPRIATING FUNDS THEREFOR The California Integrated Waste Management Act of 1989 (AB 939) requires that cities develop and implement an Integrated Solid Waste Management Plan. The plans commit cities to implement programs that will reduce or divert 25% of their annual waste generation from landfills by 1995 and 50% by the year 2000. A failure to develop plans or make a good faith effort to meet diversion goals is subject to civil penalties of up to $10,000 per day. Per staff's recommendation, the resolution was approved unanimously 5-0. (Deputy City Manager and Conservation Coordinator) 4/5th's vote required. This is a related item, but does not require a public hearinq. Michael Meacham, Conservation Coordinator, presented the staff report. This being the time and place as advertised, the public hearing was opened. Addressing Council were: · Rick Berlin, representing Pacific Waste, addressed the roll-off portion of the agreement. One of the things accomplished is that City work crews and contractors will be given free disposal up to $250,000 a year at the local landfill in Otay. The State of California gives an annual bonus to Pacific Waste which could be from $25,000 to $30,000 that can be granted to the City for their recycling programs. They will be providing $44,000 a year in educational proceeds for either a recycling ranger or an educational person to help with the Minutes August 4, 1998 Page 9 enforcement and to increase the recycling diversion to meet AB-939 regulation in the year 2000. He guaranteed that they will perform to the City's satisfaction. · Robert Pinnigar, 2727 Camino del Rio South No. 327, San Diego, 92108, representing the San Diego County Apartment Association, stated that the following things in the contract are very exciting for their industry: there is a Cap on the increases until July 1, 1999 and a Cap on those increases to be 50% of the CPI; the shift to curbside recycling for the less than 9 unit category; the establishment of a billing hot line; the free bulk pickup; the mixed paper recycling bins; and the pickup of Christmas trees. They felt these were very positive steps forward. · Greg King, 554 Dawn Court, 91910, representing Debris Box, a roll-off trash provider, stated that roll-off trash box service to the construction and demolition industry is very different from the root business of comercial three yard bins or residential door-to-door trash pickup. The contractors are your customers for the roll-off trash boxes. Their nitch is to provide service to those customers. Pacific does a great job in the root business, but they are not specialist in the construction demolition industry. He did not feel the contractors in this area were surveyed and taken into account when setting this new franchise agreement. He recommended that Council postpone the acceptance of this franchise for 60 days and direct staff to rework the agreement to allow for competition for the construction and demolition trash hauling. If this agreement is approved, Council is telling the contractors who their subcontractors have to be. He felt Council would be tying their hands if they don't have the chance to choose the hauler of their choice. Councilmember Rindone commented that the franchise agreement was approved in September 1987 by the City Council sitting at that time. Provided in that agreement was negotiated options which included two five-year extensions. The issue that you are speaking to specifically was not enforced, because it was not priced by the grantee at that time. When this contract expires in September 2002, there will be an RFP going out that will fully provide opportunities for all potential vendors to participate in all aspects of waste hauling services. The question before Council tonight is whether to approve the final extension as originally ratified based on the points contained within the agreement. We are not considering a new agreement; a new agreement will be the focus in 2002. Mr. King responded that it is the City's position that roll-off trash boxes and construction and demolition were included in the previous franchise. He knew that when staff renegotiate a contract of this size that you also have renegotiated new terms, fines, penalties, and service terms, you would also have the opportunity to renegotiate construction and demolition items. When you renegotiate an extension, you have changed a lot of things, so you could also direct staff to take another 30 to 60 days to refine the construction demolition hauling. Councilmember Padilla asked: what was the size of the construction demolition component within the service provided by Pacific; and were there relevant impacts given the manner in which this service is provided. Does staff have an idea as to the percentage of the current service provision of the construction demolition that is alluded to by the speaker. Mr. Meacham responded that in the past we were only able to compare the amount of tonnage that we knew Pacific Waste Services took to the Otay Landfill to the numbers that are reported in total by the State of California. From that, we Minutes August 4, 1998 Page 10 have to deduct the Sweetwater Union High School District, the Chula Vista Elementary School District, and the Southwestern Community College District. Then we have to take out of that the amount of roll-off box business that they do. In the past, he has estimated that Pacific has about 60% of the roll-off box business in Chula Vista which represents about 10-12% maximum of the total amount of refuge in the top markets. What we are looking at is approximately 1-2% at the most of the total waste in the City. Councilmember Padilla asked if there are specific Chula Vista service issues related directly to that component of service that contractors are experiencing and what are they. Mr. Meacham responded the roll-off portion of the industrial is unique part of the business. The real question in terms of competitiveness and whether there is a difference in the open market or franchise system, really comes down to price and service. We have a significant commitment from the franchise hauler that they will meet that service level, and we have for the first time in the history of the City's agreement, liquidated damages where they will pay substantial fines if they do not meet that service. The second issue is price. In comparing our price to other cities and in talking with the contractors, these are extremely competitive prices which on a normal day-to-day basis for regular single pickups, he could not compete with himself. They are excellent prices. Councilmember Salas stated it was not clear to her what the 1% of the waste stream means. Are you saying that 1% of Pacific Waste Services total waste stream is due to the roll-off service. Also, what percentage of the roll-off business do the independents do and what percentage does Pacific Waste Service do? Mr. Meacham replied no. What he was saying was that 1% of the City's total waste stream. The best he can determine, Pacific Waste Services has always had about 60% of the total industrial roll-off business. A portion of that (probably 20- 35%) is hidden in the community college, high school, and elementary school districts. They are legally allowed to go outside the franchise agreement and make other contract agreements per State law. So there is a remaining 10-20% at the most that independent haulers in the City may have. Councilmember Salas felt that Mr. King had a point that if we are renegotiating certain points of the franchise agreement, and if it is in the public's interest, then we should be looking at that as well. She asked for another argument why we shouldn't. Glen Googins, Assistant City Attorney, responded that the context in which staff was negotiating with Pacific was in the context of determining whether or not to renew their franchise. The condition for renewal of their franchise was a determination as to whether or not they were in compliance with the franchise and that their performance was satisfactory. The context of the negotiations was getting at those issues where we thought their performance needed to be improved based upon past performance. Both parties agreed that the industrial roll-off box service was part of the franchise, but we did not negotiate with Pacific to carve that out as a non-exclusive or competitive market place because we considered that within the context of the overall franchise. If Pacific is willing and amenable to negotiating some segment of the business that they either can't provide or be willing not to provide, we could negotiate on those terms. To some extent, Pacific could argue that the industrial roll-off box service was within the franchise agreement and that to go too far in negotiating that away Minutes August 4, 1998 Page 11 as an exclusive right might push the envelop. Those were the legal confines. If they were willing to negotiate that, we could negotiate more specifically on those points, but our focus was on satisfactory performance and stabilization of rates. Where we did negotiate on the industrial roll-off area was bringing that more formally and definitively within the franchise, establishing the rates as competitive, and capping their ability to increase the maximum rates over the remaining term of the franchise. Councilmember Rindone stated it was his understanding from staff that it was not an issue of the City not enforcing those provisions, it was an issue that the grantee at that time had not provided the pricing structure to ensure there was a maximum rate. That has only been done recently which then provides the insurance that it is at or below current market rates and thereby triggers that option for Pacific Waste to go forward should this extension be granted. · Kris Murphy, 2628 Royal Crest Drive, Escondido, 92025, felt that everything was on the table. You have been able to negotiate selective parts to bring Pacific into compliance. One of the areas in which they have not been in compliance is in the roll-off service. According to the definitions, it defines refuge as "garbage and rubbish." When you look at these definitions, construction and demolition materials are not garbage and rubbish. Under the definition of "solid waste, it specifically labels that as demolition and construction material. The only part of the franchise that Allied has any responsibilities for is solid waste. The only reference to solid waste which is the only reference to construction and demolition debris box business, is that they are to provide all the equipment necessary to service the whole market place. They haven't done that. That is one of the areas that they are not in compliance on. The intent of the original '87 agreement eleven years ago was to have them provide full, total service for roll-off boxes. The City never required it and the previous franchisee hasn't provided it. Companies like Debris Box came in and filled the void. They now have a business license and are listed as a refuge hauler. They are now being booted out. He suggested that Council separate this percentage of one percent, take some special attention for an extra week or two, and work it out so everyone wins across the board. Councilmember Salas asked when an independent company takes care of the roll-off service on construction sites, what percentage of that debris is recycled? Mr. Murphy replied that under your existing agreement, it states that generators (people who would have these boxes brought to them) would be required to provide recycling containers so that things could be separated on site. To his knowledge that has not been enforced. Currently, there is not a major emphasis. No one provides that specific emphasis when they do business. Hopefully, that would come out of it by stricter enforcement of all of the provisions. Councilmember Salas stated that one of the things that would sway her decision in favor of directing staff to relook at the roll-off component of the agreement would be if those nitch companies could provide a better method or could do more recycling of what they haul away. Therefore, she would like to know his ability to recycle versus a very large organization like Pacific Waste Service. Mr. Murphy responded that there are equally large organizations that are currently providing different services. The roll-off business is quite unique. There is a lot of recycling now, because the boxes are only picking up asphalt or concrete which then goes to a crushing operation; or they are only picking up wood which may go across the border or to another site. There is nothing in this Minutes August 4, 1998 Page 12 agreement that any independent would not conform to. He felt staff was moving in the right direction to implement this better, but their focus was on doing it all with Pacific. He felt there was an equity and fairness issue that should be addressed. He felt Council should leave the small fraction open, let the guys who are licensed continue, but make them conform to this agreement. Councilmember Moot stated in concept, he agreed. The only problem is since we are operating within the terms of an existing contract, if we ordered our staff to do that, he felt we would be in breach of contract. Mr. Murphy pointed out that staff has said that they are working on bringing Pacific into conformance where there were deficiencies in their performance. The point is that they may not be to the point where they have totally breached the agreement where you would take action to terminate, but since you are negotiating and working on their shortcomings, while you have that as an opener, you have made major adjustments, so literally everything is on the table. He suggested that this one last area be worked on before approving the amendment. He felt Pacific's short comings have opened this up. There being no one else indicating a desire to address the Council, the public hearing was closed. Councilmember Padilla stated that at earlier hearings on initial extensions, he had some serious concerns with regard to performance issues. Certainly in regard to the particular manner in which the succession of interest was handled between the previous company to Pacific Waste and the notification requirements that were contained in the agreement at that time. We found ourselves playing catchup. The reality is that we find ourselves in the framework of an existing agreement that provides for two extensions of five years which are not automatic, but there are certain requirements under which the City can terminate that. We have chosen as a City to make an analysis of those previous issues and have decided not to treat those as substantial enough breaches of the agreement that we would open up for competitive bidding at this point. The Council decided previously that until we addressed some of those performance issues within the framework of the existing contract that we would extend on a month-to-month basis. That provided some of the impetus by which the negotiations have borne fruit. He felt that the question of the strength of the City's legal position regarding this particular roll-off component is something that he would reserve comment about except to say that we have a good analysis from our legal staff that is fairly strong, and that is the policy position that the Council should take. You are either in the business of having an exclusive franchise to try to establish a consistency and stability of rates and to try to make specific performance demands that you may not be able to in an open competitive market other than what the market would provide. We are not at a point where we have serious enough issues that we can declare that now is the time to go out to bid. When the term of this existing agreement lapses, he will strongly urge the Council to make sure that is exactly what happens is a full and complete bidding process; because the issues of enforcement, the performance issues, the structuring of the rates (commercial and residential), the freeze that we have until 1999 and the capping at 50% of the CPI are all very successful and positive results. It is in the interest of the City to go ahead and to enter into the extension until the year of 2002. He will be in support of that position. Councilmember Rindone stated that what was before us will insure our constituents the lowest rates and the most favored nation clause that no city will have lower rates than the City of Chula Vista. He would support the extension of the final Minutes August 4, 1998 Page 13 five years as appropriate. He suggested that in 2002 the Council look at the length of franchises because competition is impacted. Fifteen years is a long period of time which would tend to discourage that. He also commented that it was his understanding that there is also a discussion that the roll-off trash boxes would not be implemented with Allied for at least 60 days and there is also a possibility that they could sublease that should any of the other providers be able to provide that at a rate at least as economical or if not more economical than what is proposed. The bottom line is that it is in the best interest of the constituents. ORDINANCES 2740 AND 2741 PLACED ON FIRST READING AND RESOLUTION 19132 OFFERED BY COUNCILMEMBER RINDONE. Assistant City Attorney Googins requested that Resolution forward for concurrent adoption upon second reading of Councilmember Rindone concurred with the request. 19131 be brought the Ordinances. Headings were read of Ordinances 2740 and 2741 and Resolution 19132, texts waived, passed and approved unanimously 5-0. BOARD AND COMMISSION RECOMMENDATIONS None submitted. ACTION ITEMS 17.A. RESOLUTION 19133 APPROVING THE HIRING OF ADDITIONAL TEMPORARY EXPERT PROFESSIONALS AND APPROPRIATING FUNDS - On March 31, 1998, Council authorized the Mayor to execute a contract for engineering plan review services. On May 26, 1998, Council approved the hiring of a temporary Expert Professional to supplement City staff efforts to respond to the ongoing land development activities. Per staff's recommendation, the resolutions were approved unanimously 5-0. (Director of Public Works) B. RESOLUTION 19134 APPROPRIATING FUNDS FOR LAND DEVELOPMENT PLANS REVIEW SERVICES - 4/5th's vote required. Cliff Swanson, Public Works Deputy Director, stated that as indicated in the staff report, we finally have been able to get on board the full complement of the engineering staff for the land development section. However, as also indicated, the land development section has a large work load which has been market driven and we were not able to predict it would be of this magnitude. Developers working with us didn't predict this magnitude either. While this item authorizes us to hire additional temporary expert professionals, because of our concerns as outlined in the staff report, it is our intention to hire temporary expert professionals if we can find them. We are also asking for the flexibility to use the dollars that are being appropriated in whichever manner we find that meets our needs. Hopefully, we can find individuals willing to come on board as temporary expert professionals. If not, then it would be our intent to use those to pay a consultant under a consultant contract. Mayor Horton expressed that she hoped staff would look into hiring full-time employees if they find it is appropriate. The surge in real estate will not be ending this year, so we need to look into the future and make sure we can adequately address the needs of the City. Minutes August 4, 1998 Page 14 Moot commented that the magnitude Of what we are dealing with was not predicted, although he did recall that the Council in its goals sessions specifically brought this to the attention and warned that this day was coming. RESOLUTION 19133 OFFERED BY MAYOR HORTON, heading read, text waived, passed and approved unanimously 5-0. 18. RESOLUTION 19135 APPROVING AN AMENDMENT AND RESTATEMENT OF THE EASTLAKE GREENS AFFORDABLE HOUSING AGREEMENT WHICH INCORPORATES THE EASTLAKE GREENS HOME OWNERSHIP PROGRAM - On July 25, 1995, Council approved the Affordable Housing Agreement for the Planned Community of EastLake. On December 12, 1995, Council adopted the EastLake Greens SPA Plan. In accordance with that Agreement, EastLake was to have under construction no later than June 1, 1998, 112 qualified low income housing units. EastLake was unable to meet the June 1, 1998 deadline but made a good faith effort to comply with the Agreement. EastLake continued to meet with City staff and was issued building permits with the premise that an acceptable affordable housing project would be forthcoming. The Amendment to the EastLake Greens Affordable Housing Agreement incorporates the changes to the original Agreement and includes the EastLake Greens Home Ownership Program. Per staff's recommendation, the resolution was approved unanimously 5-0. (Director of Community Development) Juan Arroyo, Housing Coordinator, stated this is part of the City's overall effort to increase housing opportunities throughout the City for all income levels. As part of our inclusionary housing requirement, the EastLake Company, in conjunction with the City, is proposing to make available at least 187 units to be sold to households at or under 80% of the median income which is currently about $40,600 for a family of four. This will more than satisfy EastLake Greens affordable housing requirement. Addressing Council were: · Bob McAlister, 2497 Golfcrest Loop, 91915, representing EastLake Greens as a homeowner and committee member, stated that since 1995 as a homeowner he has participated on the committee that was organized to look at the affordable housing issues in EastLake Greens. With staff's participation and EastLake Company's input on what they call the affordable home ownership program, as a homeowner, he was in complete agreement with the project. He spoke in behalf of many of the other homeowners in his area that they also supported this project. · Bill Ostrem, 900 Lane Avenue, Chula Vista, representing the EastLake Company, stated he appreciated staff's effort in working with them on this program. It was a tough topic. They spent the last couple of years trying to develop a program to respond to the concerns of the neighbors. Councilmember Salas was happy to see that this project was a "for sale" unit for affordable housing rather than rental units because she believed that the way you build wealth for a lot of people is the purchase of the first time home. Also, when you have home ownership in a community, you feel more of a sense of loyalty to the community and a commitment to make your community a better place to live. RESOLUTION 19135 OFFERED BY COUNCILMEMBER SALAS, heading read, text waived. Minutes August 4, 1998 Page 15 Councilmember Rindone asked if we would be able to do similar requests in the future; is this realistic or is this going to have to be a judgement based On project-by-project? Mr. Arroyo replied that it is an issue in that we are going to have to evaluate projects as they come in and take into account the priorities, the leveraging factor, and the expediency of the developers to come forward with something that makes sense. Councilmember Rindone agreed, but felt it was equally important that it is on the record. He did not want us to box ourselves in the future. While this is raising the bar and it is raising the standards and opportunity, we may not be able to have the Home Funds available to do this. He was trying to emphasize this so that whenever possible if economically we are able to meet the standard in the future, we will try to do that. But it may not be a situation because of the availability of funds, etc. It is a policy issue for other requests in the future. VOTE ON MOTION: passed and approved unanimously 5-0. ITEMS PULLED FROM THE CONSENT CALENDAR Item 11 was pulled by Councilmember Rindone. The minutes will reflect original agenda order. the 19. OTHER BUSINESS CITY MANAGER'S REPORT(S) - none. 20. Fa%YOR'S REPORT(S) Mayor Horton commended the Police Department for their traffic control efforts during the Coors Amphitheater concerts. 21. CO~rNCIL COMMENTS Councilmember Salas also commended the Police Department's traffic control during the concerts. ADJOURN~4ENT The meeting adjourned at 6:10 p.m. Respectfully submitted, ~. Althelet, CMC/AAE City Clerk