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HomeMy WebLinkAboutcc min 1998/06/09MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, June 9, 1998 6:03 p.m. 1. ROLL CALL: PRESENT: ABSENT: ALSO PRESENT: Council Chambers Public Services Building CALL TO ORDER Councilmembers: Moot, Padilla, Rindone (arrived at 6:10 p.m.), Salas, and Mayor Horton. Councilmembers: None City Manager, David Rowlands; City Attorney, John M. Kaheny; City Clerk, Beverly A. Authelet; and Deputy City Clerk, Charline Long. 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROVAL OF MINUTES: May 19, MSC (Moot/Padilla) to approve the carried 4-0-1 (Rindone absent). 1998 and May 26, 1998. May 19 and May 26, 1998 minutes. Motion 4. SPECIAL ORDERS OF THE DAY: A. Oath of Office: Town Centre Project Area Committee - James D. Fergus and David Ruch. City Clerk Authelet administered the oath of office to James D. Fergus. Mr. Ruch was not present. B. Proclaiming the week of June 8 through June 12, 1998 as "Affordable Mousing Week." Mayor Horton presented the proclamation to Ken Saunder of South Bay Community Services. CONSENT CALENDAR (Items pulled: none) CONSENT CALENDAR OFFERED BY MAYOR EORTON, headings read, texts waived, passed and approved unanimously 5-0. 5. WRITTEN COMMUNICATIONS: A. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on 6/2/98, that there were no reportable actions under the Brown Act to be reported. The letter was received and filed. 6. RESOLUTION 19027 ACCEPTING THE CALIFORNIA ALCOHOLIC BEVERAGE CONTROL (ABC) GRANT IN THE AMOUNT OF $100,000 AND AUTHORIZING THE POLICE CHIEF TO WORK WITH THE DEPARTMENT OF ABC TO CONTINUE THE ABC PROGRAM - The Police Department has received second year funding to continue its ABC Program. The grant funds will be used for education, prevention and enforcement of alcohol related activities in the City. The funds are available for a one-year period and will be used to cover the expenses of a full-time Peace Officer, overtime, training, travel and related equipment. Adoption of the resolution is necessary for implementation of the program to occur. Per staff's recommendation, the resolution was approved unanimously 5-0. (chief of Police) Minutes June 9, 1998 Page 2 Although the item was not pulled, Councilmember Rindone asked if staff had any information at this time as to what is contained within the alcoholic beverage control program. Ben Chassen, ABC Enforcement Officer, stated that when we put the program together for this fiscal year, the Department of Alcohol Beverage Control asked that we become more involved in the schools and prevention programs. The School District also asked that we participate more in the schools. During Red Ribbon Week this year, we are proposing to have more involvement with the School Resource Officers and to provide an opportunity for schools to put together student advisory boards to establish policies on alcohol; more of a peer program where the students would work with other students regarding drinking. We also wanted to address issues regarding the cross border drinking problems. Councilmember Rindone stated that the six weeks at the end of the spring semester is "Prom Week". He hoped that staff would take the big picture approach involving all schools in San Diego County for those six weeks in order to have some uniform task force to deal with the under aged high school youth during that period of time. 7. RESOLUTION 19028 AMENDING SECTION 2.2.2 OF THE AGREEMENT REGARDING THE DEVELOPMENT AND OPERATION OF WHITEWATER CANYON WATER PARK - On July 23, 1996, Council approved an agreement regarding the Development and Operation of Whitewater Canyon Water Park (Water Park). Staff is recommending an amendment to the agreement requiring the Water Park to remit the City's portion of shared revenue on a quarterly basis as opposed to the currently required annual basis. Water Park management concurs with the recommendation. Per staff's recommendation, the resolution was approved unanimously 5-0. (Director of Finance) The item was not pulled, but Councilmember Moot asked the following questions: Are we getting paid since we didn't get the complete amount for last year. When we go to the quarterly system, are they going to be behind. Are they planning on paying to come current with last year and then go to the quarterly, or are we going to be a quarter behind? Robert Powell, Finance Director, responded that we did not get the complete amount for last year. We have been promised, now that they are open and the revenues are coming in, that we will be fully paid this year. Their plan is to become current as soon as possible. He was not sure when that will take place. Now that they are open, he will be in communication with the General Manager who has committed to become current as soon as possible and stay current. Councilmember Moot stated we should try to bring them current, and then the quarterly system looked fine. 8. RESOLUTION 19029 ACCEPTING BIDS AND AWARDING PURCHASING AGREEMENTS FOR TREE TRIMMING SERVICES FOR FISCAL YEAR 1997/98 TO AZTEC LANDSCAPING, INC. IN THE AMOUNT OF $50,116.31, THE DAVEY TREES EXPERT COMPANY IN THE AMOUNT OF $39,576.00, AND WEST COAST ARBORISTS, INC. IN THEAMOUNT OF $8,635.00, AND APPROVING TRANSFER OF FUNDS - On March 14, 1998, an advertisement was placed soliciting bids for tree trimming services. In addition, ten potential bidders were contacted directly by the Purchasing Agent. Of those ten potential bidders contacted, three were local vendors. On April 16, 1998, the bids for tree trimming services were opened. Five bids were received. No local vendors submitted a bid. Considering the low bidder for each item, four different vendors submitted low bids. Three vendors are recommended to be awarded contracts. Per staff's recommendation, the resolution was approved unanimously 5-0. (Director of Public Works) 9. RESOLUTION 19030 WAIVING IMMATERIAL DEFECT, ACCEPTING BIDS, AND AWARDING CONTRACT FOR THE CONSTRUCTION OF "MAIN STREET IMPROVEMENTS FROM INDUSTRIAL Minutes June 9, 1998 Page 3 BOULEVARD TO BROADWAY, IN THE CITY (ST961)" - Funding for this project was budgeted during the fiscal year 1996/97 Capital Improvement Program budget process with an additional appropriation in the fiscal year 1997/98 budget. The project was budgeted to facilitate the widening and reconstruction of Main Street from Industrial Boulevard to Broadway. As the development or redevelopment of parcels along Main Street occurred, various portions of Main Street have been widened and improved. This project is part of a phased process to reconstruct, improve, and widen Main Street to its ultimate location. Per staff's recommendation, the resolution was approved unanimously 5-0. (Director of Public Works) * * * END OF CONSENT CALENDAR * , , ORAL COMMUNICATIONS · William Tuchscher, Economic Development Commissioner, presented his resignation to the Council. He stated that it was due to his company's investments within Chula Vista's sphere of influence and to avoid any perceived future conflict of interests. William Virchis, 1604 Dartmouth, Chula Vista, 91910, a Cultural Arts Commissioner, he wanted to recognize Archie McAllister publicly and thank him for his services to the community as a Cultural Arts Commissioner. PUBLIC BEARINGS ~3qD RELATED RESOLUTIONS AND ORDINANCES 10. PUBLIC HEARING PCM 98-15 - CONSIDERATION OF AMMENDMENT TO THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLANTO ADD LANDS IN THE PROCTOR VALLEY PARCEL TO THE CONVEYANCE SCHEDULE AREA - The Otay Ranch Company has applied to amend the Conveyance Schedule in the Phase 2 Resource Management Plan to add open space and preserve land they own in central Proctor Valley to the first conveyance for SPA One. Staff recommends approval of the resolution. (Director of Planning) RESOLUTION 19031 ADOPTING THE FIFTH ADDENDUM TO THE FINAL SECOND-TIER ENVIRONMENTAL IMPACT REPORT (FEIR 95-01) FOR THE OTAY RANCH SPA ONE PLAN AND APPROVING AN ANENDMENT TO THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN AND ADDING THE "KEYSTONE" PARCELS TO THE CONVEYANCE SCHEDULE Rick Rosaler, Principal Planner, stated that staff recommends the additional lands identified in the Resource Management Plan Phase 1 as the "keystone parcels" be added to the conveyance schedule also. The City's Environmental Review Coordinator has reviewed the application and has prepared an addendum analyzing the addition of the keystone parcels. They have found that all the parcels are of high biological value and the RMP1 indicates that first priority should be given to the highest quality resources and that it is to the publics benefit for them to be conveyed as early as possible. Mayor Horton asked wouldn't this normally go through the Resource Conservation Commission for review. Mr. Rosaler replied that staff took the item as an informational item to the Resource Conservation Commission on May 18. Staff looked at the Original approval process for the RMP2, and the RCC did not review and comment on that. It is staff's understanding that the Commission's responsibilities are to review Initial Studies and Environmental Impact Reports, and they did have an opportunity to comment and review the EIR for SPA One. At the meeting on May 18, the Chair asked that staff consider using them in the review of the Resource Management Plan amendments, and we agreed to do that. We will be returning to them for their review of the in-lieu fee proposal. This being the time and place as advertised, the public hearing was declared open. Addressing Council were: Minutes June 9, 1998 Page 4 · Robert Fisher, 512 Patricia Avenue, Chula Vista, 91910, a biologist on the Resource Conservation Commission, stated that they did review the SPA One EIR, and they did con~neet on the Resource Management Plan Phase 2. However, their comments were not incorporated into the documents. They were concerned that several issues which appeared to be RCC issues were going to the Planning Commission and Council instead of the RCC. As professional biologists, he felt the RCC should be the first step in the review process before they go to the Planning Commission. He asked that this issue be referred to the RCC for review prior to any action by the City Council. The change in the keystone and other issues that we are now talking about are biological issues that should go to the RCC. · Kim Kilkenny, 11975 El Camino Real, San Diego, representing the Otay Ranch Company, stated they were the applicant and supported the recommendations of staff and the Planning Commission to adopt the proposal before the Council. · Craig Fukuyama, 2727 Hoover, National City, 91950, representing McMillin Companies, stated he supported the request and recommended approval of the conveyance item. As an owner in the Otay Ranch and a participant in the RMP2, they were concerned with the proper and timely conveyance and the equity and fairness in assembling the properties of the 11,000 acres. As an owner and participant, they have no land to convey to the preserve, so they will be a payor of the fee as it evolves. B. Suzanne Farley, 300 Lakeside Drive, Oakland, representing the Estate of Patrick, informed Council that their property was definitely for sale. Some of it was offered to the Otay Ranch Company for purchase, but they turned the offer down. · William Tuchscher, 3130 Bonita Road, Chula Vista, representing Tuchscher Development Enterprises, stated he was hoping to buy Ms. Farley's property. He advocated staff's and the Planning Commission's recommendation and requested Council's approval. It will be a positive modification to the General Plan for the Otay Ranch and its development. There being no One else indicating a desire to address the Council, the public hearing was closed. Councilmember Salas stated it was her understanding that the area in question the RCC would prefer to see conveyed first is part of the first conveyance. Mr. Rosaler replied that is correct. It is part of the first conveyance in the conveyance schedule. What we are doing is adding to that all of the vernal pools on the Otay Mesa in addition to the wetlands area in Otay Valley and the gnatcatcher population in Proctor Valley and the San Ysidio mountain. Councilmember Padilla asked that we pull the existing policy on the review for the RCC. He was interested in the fact that we would have an item on the conveyance and the management plan that has some of the precedent setting type of impacts that this particular issue may have, and that by policy we are not having that reviewed by RCC. If that is what the past practice has been, then it needs to be looked at. Mayor Hotton stated it was her understanding that in Resolution 19031, the keystone parcels have been included as part of the resolution for the conveyance schedule. Mr. Rosaler replied that she was correct. They have been added and are included in the resolution. MAYOR MORTON OFFERED RESOLUTION 19031, heading read, text waived, passed and approved unanimously 5-0. Minutes June 9, 1998 Page 5 ll.A. PUBLIC HEARING PCM 98-21 - CONSIDERATION OF AN AMENDMENT TO THE OTAY RANCH GENERAL DEVELOPMENT PLAN/SUBREGIONAL PLAN (GDP/SRP) TO ALLOW REDUCTION IN VILLAGE CORE DENSITIES - The McMillin Companies has submitted an application to amend the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) and the Otay Ranch Sectional Planning Area (SPA) One Plan. In addition, they have submitted a revised Tentative Tract Map, PCS 98-04, which covers the Village Five Core area south of East Palomar Street and Park and community Purpose Facility uses north of East Palomar Street. Staff recommends approval of the resolutions. (Director of Planning) RESOLUTION 19032 APPROVING AN AMENDMENT TO THE OTAY RANCH GENERAL DEVELOPMENT PLAN (PCM 98-21) B. PUBLIC HEARING PCM 98-16 - CONSIDERATION OF AN AMENDMENT TO THE OTAY RANCH SECTIONAL PLANNING AREA (SPA) ONE PLAN ON PROPERTY GENERALLY LOCATED ON 1,110 ACRES SOUTH OF TELEGRAPH CANYON ROAD BETWEEN PASEO RANCHERO AND THE FUTURE SR-125 ALIGNMENT RESOLUTION 19033 APPROVING AN AMENDMENT PCM 98-16 TO THE OTAY RANCH SECTIONAL PLANNING AREA (SPA) ONE PLAN, WHICH INCLUDES THE OVERALL DESIGN PLAN, VILLAGE DESIGN PLAN AND SUPPORTING DOCUMENTS, PARKS, RECREATION, OPEN SPACE AND TRAILS PLAN, REGIONAL FACILITIES REPORT, PHASE 2 RESOURCE MANAGEMENT PLAN AND SUPPORTING PLANS, NON-RENEWABLE ENERGY CONSERVATION PLAN, RANCH-WIDE AFFORDABLE HOUSING PLAN, SPA ONE AFFORDABLE HOUSING PLAN AND THE GEOTECHNICAL RECONNAISSANCE REPORT C. PUBLIC HEARING PCS 98-04 - CONSIDERATION OF A TENTATIVE SUBDIVISION MAP FOR 101.4 ACRES OF THE OTAYRANCH SPA ONE, TRACT 98-04, GENERALLY LOCATED OFF THE SOUTHERN EXTENSION OF OTAY LAKES ROAD, SOUTH OF TELEGRAPH CANYON ROAD RESOLUTION 19034 ADOPTING THE FOURTH ADDENDUM TO THE FINAL ENVIRONMENTAL IMPACT REPORT FEIR 95-01 (SCH #95021012) AND APPROVING A TENTATIVE SUBDIVISION MAP FOR PORTIONS OF THE OTAY RANCH SPA ONE, TRACT 98-04, AND MAKING THE NECESSARY FINDINGS Councilmember Moot abstained on the item because it involved the McMillin Company, a client of his company; he left the dais. Beverly Blessant, Associate Planner, presented the staff report. This being the time and place as advertised, the public hearing was declared open. Addressing Council were: · Craig Fukuyama, 2727 Hoover, National City, 91950, representing the McMillin Companies. He stated they were present to respond to questions. Councilmember Rindone asked if the 15 dwelling units per acre was the minimum that MTDB would be comfortable with. Mr. Rosaler responded that staff took the applicant's proposal to MTDB and asked if they were satisfied with it; they said they were. He was not sure what the minimum density in the Village Core would have to be, but staff believes we have enough units to support the trolley line when it comes through. Councilmember Rindone stated he was sure that MTDB would not give that sanction if it was not the case. He felt it would be good information for councilmembers, staff, and developers to know what the minimum number is. It is essential that the light rail be constructed. Since this is the beginning of major developments on the Otay Ranch, and one of the fundamental keys in processing the land use provisions was to ensure that when the critical mass was reached, it would forestall the issuance of any building permits until the light rail had opened up. · Robert Fisher, RCC member, 512 Patricia Avenue, Chula Vista, 91910, stated that RCC did review the second tier EIR and the Resource Management Plan. Their Minutes June 9, 1998 Page 6 comments should be on record. The concern the RCC had with this was some of the indirect impacts north of East Orange. RCC had suggested some standards as to how the natural lands that have wildlife will be restructured and modified. We had set some standards as to how they could proceed to best minimize those impacts, and as they revegitated those slopes to best maintain the integrity, so it was intact with the western Poggi Canyon and the connectivity eventually to Wolfe Canyon. We had reviewed that, and he did not know why the Council was unaware of their recommendations on these plans. He was concerned that it was wasted effort on their part. Mayor Horton stated that Council does get copies of their minutes, so somewhere along the line, Council has reviewed them. There being no one else indicating a desire to address the Council, the public hearing was declared closed. Councilmember Rindone remarked that it was not often that a developer comes to the City for permission to reduce density. He asked who would be responsible for the maintenance of the parks. Mr. Rosaler replied that staff is discussing the maintenance of the parks as part of the comunity facilities district that is being formed for these two neighborhoods. The park maintenance itself are general fund maintenance items as are all public parks. These will be public parks. RESOLUTIONS 19032, 19033, AND 19034 OFFERED BY COUNCILMEMBER RINDONE, headings read, texts waived, passed and approved 4-0-0-1 (Moot abstaining). BOARD AND COMMISSION RECOMMENDATIONS None submitted. ACTION ITEMS 12. RESOLUTION 19002 APPROVING A SPECIFIC SITE PLAN FOR TWO ART PIECES AT BAYSIDE PARK FOR POTENTIAL PURCHASE AND INSTALLATION BY THE SAN DIEGO UNIFIED PORT DISTRICT PUBLIC ART PROJECT - On December 17, 1996, Council approved the selection of two outdoor sculptures for potential purchase and installation by the San Diego Unified Port District through the Port's Public Art Program. The two proposed art pieces are "The Wave" by Ron Jermyn and "wind and Sea" by Scott Hanson. Council also approved three optional installation sites (the terminus of "F" Street; Bayside Park; and the southwest corner of the "J" Street Marina). Staff presented the selected pieces and the optional installation sites to the San Diego Unified Port District's Public Art Committee at their meeting on June 4, 1997. Staff recommends approval of the resolution. (Library Director and Director of Community Development) Continued from the meeting of 5/26/98. Staff report presented by David Palmer, Library Director. Mayor Horton asked what was staff's recommendation on the final site on Port property. Rick Todd, Cultural Arts Coordinator, responded that the site is Bayside Park. The south end site for Wind and Sea which overlooks the Marina, and the site for the Wave is that portion of the north end of Bayside Park just about 20 feet north of the current restroom area. Addressing Council was: · Archie McAllister, Cultural Arts Commissioner, 1739 Elmhurst Street, 91913, urged Council to adopt the resolution. Mayor Horton stated she was the one who asked for the item to be continued because she wanted to revisit some of the sites and talk with the Port on their Minutes June 9, 1998 Page 7 negotiations with the U.S. Olympic Organization on their ongoing discussions to try to bring a show case place for the bronze sculptures that was presented by Port Commissioner Malcolm at one of our recent meetings. She felt the proposal by the Port Commission will bring something very exciting to our community; a project that is unlike any other art project within the County. She knew the President of the U.S. Olympic Organization is going to be here in August to continue the dialogue, and hopefully, make a more definite decision on whether or not this is going to be a viable program for the City. Her recommendation would be to approve the resolution that is before us contingent upon the discussions with the Olympic Organization which should be in August and have this as a fall back if those discussions do not materialize into a project that would benefit not only the citizens and the waterfront, but the region. Councilmember Padilla agreed with her comments on the issue that we should try to get an olympic thematic oriented public art on the Bayfront. He did not think the proposal in front of Council now are mutually exclusive. He felt that in fairness, we have a proposal that is a good one and something we should give support to. If we have some concrete proposals coming out of the Olympic Committee and the Port on thematic pieces that involve the olympic athletes that should come forward as well, then we can deal with it at that time. He felt that we either support the resolution or we don't, but don't make it contingent upon another potential proposal. RESOLUTION 19002 OFFERED BY MAYOR HeRTON CONTINGENT UPON THE ONGOING NEGOTIATIONS WITH THE OLYMPIC ORGANIZATION (hopefully with a positive answer by the end of August). Councilmember Moot stated that on the Wind and Sea sculpture, there was some discussion about whether it was a non-unique piece of art, and then there were discussions that it had been modified. Me asked for clarification of the current status. What is the estimated cost of this particular non-unique piece of art. Mr. Todd clarified that the current status was if a piece is brought forth to the Port Commission, at that particular time there would be negotiations between the Public Arts Coordinator for the Port and Mr. Hansen in terms of Some of the modifications of the particular piece that has been reproduced many times in other forms besides this particular massive piece. The modifications would be in the size of the gull and the definition of the three dolphins as they moved across the horizontal plain. The estimated cost for this particular piece is about $180,000. Councilmember Moot stated that the particular piece of non-unique art doesn't do a whole lot for him. The Mayor's suggestion that if there is an unique art piece which is related directly to the City of Chula Vista, for example statues of the olympiads, that would be more preferable to him to have that type of art work as Opposed to a piece of art work that has been replicated and appears in a lot of different places. Councilmember Salas said she was confused on how we got to a point that we have one process of choosing public art, and then we have a new opportunity for something else. She felt that when this happens, we should modify the process if we have the opportunity to get something wonderful on the Bayfront. Especially something that relates to the Olympic Training Center which we always have problems identifying the Olympic Training Center with Chula Vista. Councilmember Moot stated that if the opportunity for theme sculpture is available, maybe the Cultural Arts Commission might want to look at that to see whether that is a viable option and give us some advise as to whether they think we ought to go back to the Port Commission and say that a better idea has come along. Archie McAllister, Cultural Arts Commissioner, stated that several years ago the Port and City came to an agreement on pieces of art. Lately, Port Commissioner Malcolm has come up with this idea to place possibly an Olympic Hall Walk of Fame on the Bayfront. He felt that if we were going to do any art which relates to Minutes June 9, 1998 Page 8 the Olympic Training Center, it should be placed in the Olympic Training Center. Art should be site specific; the dolphins and the wave should be placed at the bay. Councilmember Padilla asked who contacted the Cultural Arts Commission to talk about the proposal for Olympic Theme Walk of Fame type of display on the Bayfront. Mr. McAllister replied that no one has contacted him or the Commission. We do have a co~ununity member on the Commission who normally attends the meetings, but she did not attend the last meeting. We have heard nothing from the Port on this particular project. Sunny Shy, Assistant Director of Recreation, responded that staff hasn't seen plans. We heard that the Port was considering it. Traditionally what has happened is that Port cities have submitted suggestions to the Port with regards to what public art they would like to see in their city. Ultimately, its up to the Port to decide whether they wish to fund the piece or not. Its on their property, and it is their money. Mayor Horton suggested that this be referred back to the Cultural Arts Commission, have the Port representative share the drawings with the Commission, and include Jay VanderPool who is our representative to the Port Art Commission at that same meeting. This is an opportunity for us, not everyone is going to get a chance like this. She has been involved with the working committee on this project so she appreciates the time and work they have put into this. Her problem is that we have never gone through an RFP process for these art pieces. The public wasn't included, so we could run into some problems later on. Mr. McAllister stated that one of the things that they have developed along the way is an Art in Public Places policy that will be coming to the Council soon, so that we will have a policy in place so this doesn't happen again. Councilmember Padilla felt that this is a situation that we shouldn't debate tonight. Commissioner Malcolm mentioned this Several months ago in a low keyed way, but in the meantime neither he or any member of the Port staff has made any contact with the people from the Cultural Arts Commission knowing full well that this process was already in progress. He felt that was wrong. He had no problem in referring this and hoping that a staff member from the Port contacts them. As far as tonight's resolution, he was going to offer it and support it to send the point that it is not right to do business in this fashion to the Commissioners who have been working hard. If Mr. Malcolm has an idea and talking to people about financing, then he should forward that to the Cultural Arts Commission, the Council, and City staff to make people aware of what he is doing. RESOLUTION 19002 OFFERED BY COUNCILMEMBER PADILLA, heading read, text waived. ALTERNATIVE MOTION: M (Moot) to continue the resolution for four weeks, request that the Port Commission advise the Cultural Arts Com/nission, and have a report brought back to us within four weeks as to whether they think it is a viable alternative. Councilmember Padilla stated he would support the suggestion only if Mr. McAllister would agree to the compromise suggestion. Mr. McAllister stated that they have worked on this for over four years, so he did not see that one more month would hurt. The problem that he sees is that their monthly meeting in July is their vacation month. But he felt they could call a special meeting so they could look at it. Councilmember Moot directed staff to work out the scheduling problems so that the Cultural Arts Commission can evaluate this in due course and bring this item back after they have had a chance at a regular meeting to look at it. Minutes June 9, 1998 Page 9 SECOND TO MOTION AND VOTE: S (Padilia). Motion passed unanimously 5-0. 13. REPORT APPLICATION FOR THE FORMATION OF COMMUNITY FACILITIES DISTRICT NUMBER 97-3 (OTAY PAUNCH MCMILLIN SPA ONE) - Otay Ranch McMillin has formally petitioned the City to form a Community Facilities District (CFD) pursuant to the Mello-Roos Act of 1982 for financing the construction and/or acquisition of certain public improvements serving the Otay Ranch McMillin SPA One project. In keeping with Council policy, the developer has submitted an application containing information required for reviewing the feasibility of the proposed CFD. Staff has reviewed the application and concluded that the financial information provided is preliminary and general in nature and that a final analysis on the financial feasibility of the project can not be made at this time. Compliance with Council policy can not be confirmed until various documents such as appraisal, market absorption study, disclosure form, Special Tax Report, Preliminary Official Statement, etc. are complete. These documents will be prepared during the district proceedings and brought to Council for consideration prior to bond sale. Staff considers that this process will provide adequate information ensuring that the developer has the financial ability to bring the project to completion. Staff recommends Council accept the report and approve the resolution. (Director of Public Works) Continued from the meeting of 6/2/98. RESOLUTION 19026 APPROVING THE INITIATION OF PROCEEDINGS TO CONSIDER THE FORMATION OF A COMMUNITY FACILITIES DISTRICT FOR OTAY RANCH MCMILLIN SPA ONE Cliff Swanson, City Engineer, stated that staff had nothing further to report. Mayor Horton stated that the City Attorney had shared that the Resolution has a correction on page 13-7, the very last paragraph, "Be it further resolved" needs to be deleted. Ann Moore, Assistant City Attorney, stated that was correct. What staff is suggesting is for that item to be deleted from the resolution tonight and that staff will bring that item back to the Council for its consideration on July 28. That will provide more time for staff to work with the developer and to bring back this issue as a whole package for Council consideration. MAYOR HORTON OFFERED RESOLUTION 19026, AS REVISED, heading read, text waived. Councilmember Rindone stated the staff report indicates that McMillin is also requesting that the construction of the public parks be included in the CFD. Isn't that contrary to policy. David Rowlands, City Manager, responded that item has been removed and will come back to Council in July. In his opinion, it is contrary to policy. So we are meeting with the developer and will come back in four weeks for Council action. That is why the proposed change was made in the resolution. Mr. Swanson stated that tonight's action is merely initiating the proceedings to consider the formation of the district. A lot of the details have to be worked out before the district is formed. That issue is one of those. Councilmember Rindone requested that it be at a meeting other than July 28; either before or after. VOTE: Passed and approved 4-0-0-1 (Moot abstaining). ITEMS PULLED FROM THE CONSENT CALENDAR No items were pulled. Minutes June 9, 1998 Page 10 OTHER BUSINESS 14. CITY MANAGER'S REPORT(S) A. Budqet Workshops: Reminded Council and the public that beginning Thursday, June 11, there will be the first budget hearings for the year. Others will be on June 17 and June 18. The budget will be adopted on June 23. B. Fiscal Year 1998/99 proposed budqet overview: Mr. Rowlands stated that the focus on this year's budget has been on the overall Council policy direction and not so much on the line item details. This year's general fund budget is $65.7 million. The Agency is $6.1 million. The Capital Improvement Program is $13.6 million. All other funds are $41.4 million for a total budget of all funds is $126.9 million. This year's analysis focused on four areas: (1) revenue collection, trying to identify net cost of all city programs; (2) analyzing future cost containment areas to minimize future general fund costs by: restructuring department operations and exploring the option of contracting out certain city functions; (3) updating city's equipment, especially in the area of productivity for the workforce through computers; and (4) focused on broad policy issues for the Council. Dawn Herring, Budget Manager, presented the major areas which incorporated Council's seven major areas of improvement which are: (1) The Bayfront: generally the purpose is to continue redevelopment which will include hotels, stores, parks, marinas, condos, apartments, and houses. Included in the budget are staff support costs for implementing this project. There are promotion and project activities such as bayfront planning, a soil reclassification study, promotional activities such as Harbor Days, fireworks, and the Tall Ship Californian. In the CIP, is the MTDB right-of-way landscaping project. (2) Downtown Third Avenue Project (Town Centre I Project Area}: the goal is to revitalize the downtown area by encouraging new office development and new retail stores; working with the DBA to do joint planning, marketing, and image enhancement; and special events. Within the budget is support for staff and a new town manager. In promotional projects we have the Christmas lighting and concert series. Also included is the market void analysis. Within the CIP is the refurbishing of Memorial Park fountain, downtown street lighting, and a new project, Holiday lighting. (3) Broadway area: revitalization of the commercial corridor on Broadway with the main goal to impede blight and proliferation of blight. In addition, we want to work with the Broadway Business Association and their activities. In support of this the budget includes staff and professional services, costs, promotional projects for special studies and enhanced street sweeping. In the CIP are projects for E Street and H Street improvements to enhance the entryways to the Broadway area. (4) Otay Valley: the goal is to continue redevelopment and replanning of the area to improve its image and character. Within the budget is staff and professional support services, promotional and specific project activities. In the CIP is the corporation yard, animal shelter, and the Otay Recreation Center. (5) SR-125: this will be a 6 to 10 lane divided highway. There is current regional funding of approximately $70 million for the San Miguel connector. The goal is to ensure the project stays on schedule which is due for completion in 2001. Included in the budget is a contract for advocacy and planning services. (6) Higher education: the budget includes funds for staff and professional services for processing development agreements and support of the UCCV Task Force. (7) Improving the City's Revenue Base: what we are trying to do is to lobby the State for the return of the funds that the State has taken away from us. We Minutes June 9, 1998 Page 11 are also limiting use of one-time revenues; we have reduced that this year from $1.7 to $1.16 million. We are working to reach the 8% reserve level, and to generally improve our long-term financial stability. Included in the budget are staff and professional services which are based on enhanced staffing levels in the Finance Department and Auditing, promotional and project activities. In the CIP are funds for a new financial system. Mr. Rowlands stated that the most important fund is the General Fund. The current budget is $66.1 million. The proposed budget is $65.7 million. The budget is balanced by maintaining the current reserve level of about $4.4 million. There are no employee layoffs, no service reductions, and included are some cost containment items. Robert Powell, Finance Director, went over the budget expenditures by major groupings which are Public Safety (45.15%); Development and Maintenance (24.75%); Legislative and Administrative (15.44%); and Cultural and Leisure (14.67%). He also went over the revenue sources for the general fund which were from sales tax, other local taxes, reimbursements, vehicle in lieu fees, property taxes, and miscellaneous other revenue sources. Redevelopment Aqencv. Ms. Herring stated that the Agency is made up of four project areas: Southwest, Bayfront, Town Centre I; Town Centre II; and Otay Valley. Included is the low and moderate income housing fund and the fine arts fund. The fund balance includes all funds even though the low and moderate income housing funds are restricted. The projected ending fund balance for all funds from the current fiscal year is $3,160,240. In the proposed budget, staff is proposing to receive tax increment revenue of $5,965,757. The operating budget is $2,444,879; debt service of $3,684,778, and a CIP of $145,250. The net change on the ending fund balance that would be projected at the end of this proposed fiscal year would be $2,851,090. 15. MJ%YOR'S REPORT(S) A. RESOLUTION 19035 OPPOSING THE INFRASTRUCTURE ACCESS CHARGE PROPOSED BY THE SAN DIEGO COUNTY WATER AUTHORITY UPON SWEETWATER AUTHORITY CUSTOMERS IN CHULA VISTA Mayor Horton stated that the resolution before Council has been revised. In paragraph 4, it should reflect, "Whereas, in the opinion of Sweetwater Authority..." has been added. Addressing Council were: · Dick Reynolds, General Manager of Sweetwater Authority, 505 Garrett Avenue, Chula Vista, thanked Council for their support and hoped that the customers of Sweetwater Authority would pay a lesser charge because of the storage that they have already paid for. · Keith Lewinger, General Manager of Otay Water District, stated that with the modifications to the resolution that Otay Water District supports the resolution. MAYOR MORTON OFFERED RESOLUTION 19035 AS AMENDED, heading read, text waived, passed and approve unanimously 5-0. Council adjourned to the Redevelopment reconvened at 9:05 p.m. Agency at 8:27 p.m. Council meeting June 9, 1998 Page 12 B. Recommendation to retain a consultant to advise the City on possible aviation noise impacts that could result from the master planning of the Brown Field Air Cargo facility and increased helicopter activity. MSUC (Morton/Salas) to approve the recommendation. Mayor Horton expressed her thanks to the community for their support during the election. 16. COUNCIL COMMENTS Councilmember Salas A. RESOLUTION 19020B AMENDING RESOLUTION NUMBER 19020A URGING INVESTIGATION OF CALIFORNIA'S MILK PRICING STRUCTURE RESOLUTION 19020B OFFERED BY COUNCILMEMBER SALAS, heading read, text waived, passed and approved unanimously 5-0. Councilmember Padilla · Thanked those who were so generous election, and he recognized his opponent, seeking public office. in their support of him during the Greg Sandoval, and his efforts in Councilmember Moot · Stated that almost ten percent of the City's budget is currently in jeopardy by legislation. He wanted Council to know that he has asked Colleen Kelly to put together some materials so that we might consider an action plan of our own which include an estimate of current unfunded State mandates that have been imposed on the City and what that costs the taxpayers of Chula Vista. He felt it was irresponsible for the governor or legislature to propose reducing funding to city government until they fully fund the mandates they do impose. · Stated we got a memo from the City Clerk regarding the filing of Statements of Economic Interests and some fines that have been imposed by the FPPC on certain members of our Boards and Commissions who did not file them timely. He was concerned about this. This is the first time that people have been fined. He wanted to know if this was a new policy of the FPPC or exactly why fines were imposed. He requested a memo explaining this. The meeting adjourned at 9:23 p.m. ADJOURNMENT Respectfully submitted, Authelet, CMC/AAE City Clerk