HomeMy WebLinkAboutcc min 1997/08/05MINUTES OF A REGULAR MEETING OF TIlE CITY COUNCIL
OF TIlE CITY OF CHULA VISTA
Tuesday, August 5, 1997
4:12 p.m.
1. ROLL CALL:
PRESENT:
ABSENT:
ALSO PRESENT:
CALL TO ORDER
Council Chambers
Public Services Building
Councihnembers: Moot (arrived at 4:15 p.m.), Padilia, Rindone, Salas, and
Mayor Horton.
Councilmembers: None
Assistant City Manager, Sid. W. Morris; City Attumey, John M. Kaheny: and
City Clerk, Beverly A. Authelet.
2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE
3. APPROVAL OF MINUTES: July 15, 1997 and July 22, 1997. Cnuncihnember Padilia stated he would
abstain on the July 22nd minutes. He also requested an excused absence from the July 22 meeting since he was
on police business in the City of Coronado.
MSC (Rindune/Horton) to approve the minut~ of July 15 and July 22 as amended with the excused absence
for Councilmelnber hdilla. Muti{m apprnved 3-0-1-1 (Muot absenl; Padilia abstaintug on July 22 minutes).
4. SPECIAL ORDERS OF THE DAY:
a. Oath uf Oillee: City Clerk Authelet administered the oath of office to: David L. Potter, Charter Review
Commission; and Manuel R. Aguirre, Growth Management Oversight Commission.
b. 1996 "ACES" Award. Greg Newhouse, of the California Energy Commission, presented the 1996 ACES
Award to the City's Building and Housing Department. A representative from Assemblyman Steve Baldwin's office
also recognize the Department with a State of California Assembly Resolution. Accepting the recognition was
Kenneth Larson, Building and Housing Director. Chula Vista was only one of two Califi~mia cities to receive the
ACES Award for a second consecutive year.
CONSENT CALENDAR
(Items pulled: 14,' Items ~vntinued: 10, 11)
BALANCE OF THE CONSENT CALENDAR OFFERED BY MAYOR HORTON, headings read, texts
waived, passed aud appruved 5-0.
5. WRITTEN COMIMUNICATIONS:
a. Letter from the City Attoruey stating thai to the he,~t of his knowledge frum observance of actions
taken in Closed Session un 7/22/97 in which the City Athwney participated, that there were nu reportable
actions which are required under the Bruwn Act to be repurted. The letter was received and filed.
b. Letter uf resignatim~ frmn the Youth Commission (Hilltop High School) - Michelle Monroy. The
Minutes
August 5, 1997
Page 2
resignation was accepted with regret, and the City Clerk was directed to post immediately according to the Maddy
Act in the Clerk's Office and the Public Library.
c. Letter of resigmttim~ fnnn the Otay Valley Road Project Area Committee - Jose Doria. The
resignation was accepted with regret, and the City Clerk was directed to post immediately according to the Maddy
Act in the Clerk's Office and the Public Library.
6. ORDINANCE 2710 AMENDING SECTION 19.04.093 THROUGH 095 OF THE MUNICIPAL
CODE TO MODIFY THE DEFINITION OF FAMILY DAY CARE AND FAMILY DAY CARE HOMES
(second reading and adoption) - The proposed pn,ject is an amendment to the Municipal Code to change the
definition of family day care and titmily day care homes such that they are consistent with recent changes in
California State law. Staff reco~nmends Council place the ordinance on second reading and adoption. (Director
of Planning)
7. RESOLUTION 18750 AMENDING THE EXISTING AGREEMENT WITH THE COUNTY OF
SAN DIEGO FOR RECEIPT OF FINANCIAL ASSISTANCE IN THE AMOUNT OF $6,500 TO SUPPORT
THE DESIGNATION OF CHULA VISTA HARBOR AS THE SOUTHERN HOME PORT OF THE TALL
ship CALIFORNIAN - The City's agreement with the Nautical Heritage Society to designate Chula Vista Harbor
as the southern home port of the tall ship Californian requires that the City make a $27,665 grant in fiscal year
1997/98 to the ship's organization. In consideratinn of the value of the ship as a shared conununity asset, the
County has allocated $6,500 in its Community Enhancement Funds to support his service. Staff recommends
approval of the resolution. (Principal Manage~nent Assistant Young)
8. RESOLUTION 18743 ACCEPTING TIlE CALIFORNIA INTEGRATED WASTE MANAGEMENT
BOARD USED OIL RECYCLING BLOCK GRANT #UBG5-96-2055 FOR $274,026 TO CONTINUE USED
OIL RECYCLING AND EDUCATION PROGRAMS FROM JULY I, 1997 TO JUNE 30, 2000 AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH
ADMINISTERING THE GRANT - The California Used Oil Enhancement Act requires the collection of ti~ur
manut~tcturers. Chula Vista consutners pay fimr cents per quart intn the fund when they purchase oil. The Act
mandates the California Integrated Waste Management Board use a portion of the fi~nds to provide block grants to
local governments ti>r used oil programs that encourage recycling. Staff recommends approving the resolution.
(Conservation Coordinator)
9. RESOLUTION 18744 APPROVING A CONTRACT WITH THE SAN DIEGO CHAMBER
ORCHESTRA, AND APPLYING FOR A TIDELANDS ACTIVITY PERMIT FROM THE SAN DIEGO
UNIFIED PORT DISTRICT FOR THE 1997 SUMMER POPS CONCERT - The City's annual "Summer Pops"
concert is scheduled liar Sunday, 8/24/97, at 7:30 p.m., at Marina View Park. A contract with the San Diego
Chamber Orchestra and a Tidelands Activity Permit from the San Diego Unified Port District must be approved
to proceed with the production of this event. Staff recommends approval of the resolution. (Director of Parks,
Recreation and Open Space)
10. RESOLUTION 18745 ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE
CONTRACT FOR OPEN SPACE DISTRICTS 11, 14, 15 AND 24 TO NEW WAY PROFESSIONAL
SERVICES AND RC LANDSCAPE - Bids were received on 6/10/97 to provide landscape maintenance. Existing
contract expired 6/30/97. (Director of Parks, Recreation and Open Space) Continued from the meeting of
7/22/97.
Shift recommended the item be omtinued to the meeting of 8/12/97.
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August 5, 1997
Page 3
11. RESOLUTION 18746 APPROVING A DETENTION BASIN AND SILTATION AGREEMENT
WITH VILLAGE DEVELOPMENT L.L.C. TO PROVIDE FOR THE CONSTRUCTION, MAINTENANCE
AND OPERATION OF DETENTION BASINS AND REMOVAL OF SILT FROM SAID BASINS AND
TELEGRAPH CANYON CHANNEL AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT - On 11/19/96, Council approved Tentative Map Number 96-04 ti>r a portion of Villages One and
Five of Otay Ranch. The Tentative Map conditions require that, prior to issuance by the City of a grading permit,
the developer shall enter into an agreement with the City to provide li>r the construction and maintenance of certain
drainage improvements. The developer is currently processing grading plans with the City and issuance of the
grading permit is anticipated shortly. Staff reco~nmends approval of the resolution. (Director of Public Works)
The applicant requested the item be conlinued to 8/12/97.
12. RESOLUTION 18747 ESTABLISHING DATES FOR PROPERTY OWNERS TO BE READY TO
RECEIVE UNDERGROUND SERVICE AND THE REMOVAL OF POLES AND OVERHEAD FACILITIES
WITHIN UNDERGROUND UTILITY DISTRICT NUMBER 129 ON OTAY LAKES ROAD FROM
RIDGEBACK ROAD TO APACHE DRIVE - On 10/22/96, Council established Underground Utility District
Number 129 on Otay Lakes Road from Ridgeback Road to Apache Drive. In accordance with Section 15.32.150
of the Municipal Code, Conncil shall, by resolution, fix the date npon which the affected property owners mnst be
ready to receive underground service and the date by which poles, overhead wires and associated structures shall
be removed. The conversion of overhead utilities to nnderground is schedtded to be completed in December 1997.
Staff reco~nmends approval of the resolution. (Director of Public Works)
13. RESOLUTION 18748 ADOPTING 1997 STANDARD SPECIFICATIONS FOR PUBLIC WORKS
CONSTRUCTION, "GREENBOOK," REGIONAL SUPPLEMENTS AND STANDARD DRAWINGS,
CHULA VISTA STANDARD DRAWINGS AND STANDARD PROVISIONS, AND THE STATE OF
CALIFORNIA, DEPARTMENT OF TRANSPORTATION STANDARD PLANS - In 1997, the "Standard
Specitications tbr Public Works Construction," properly known as the "Greenbook" was revised by established
committees representing all thcets of the construction industry and govermnent to reflect changes in technologies
and/or pertbrmance tests. The Regional Standards Committee (which includes Chula Vista) has revised the regional
standard drawings and specifications and have published the revised 1997 edition. Engineering staff has also revised
the City of Chula Vista Standard Special Provisions: City of Chula Vista Part I Special Provisions-General; and the
City of Chula Vista "Department of Public Works Design Standards - Construction Standards." Staff recommends
approval of the resolution. (Director of Public Works)
14. RESOLUTION 18749 AUTHORIZING SUBMITTAL OF A REQUEST FOR SOUNDWALL
PROGRAM FUNDING IN THE 1998 STATE TRANSPORTATION IMPROVEMENTS PROGRAM FOR
PLANNED IMPROVEMENTS TO THE I-805/ORANGE AVENUE INTERCHANGE AND APPROVING
THE THIRD AMENDMENT TO THE AGREEMENT WITH RICK ENGINEERING COMPANY FOR
PREPARATION OF A NOISE BARRIER SCOPE SUMMARY REPORT FOR THE I-805/ORANGE
AVENUE INTERCHANGE AND AUTHORIZING TIlE MAYOR TO EXECUTE SAID AGREEMENT ON
BEHALF OF THE CITY - In January 1996, Council approved an agreement with Rick Engineering to prepare
prelitninary studies fur interchanges at I-805 and Telegraph Canyon Road, Orange Avenue and Palomar Street. A
second amendment was approved tier additiunal work required by Caltrans. In February 1997, Caltrans notified
the City of the anticipated filnding opportunities ti~r retrofit Soundwall projects along local freeways. A third
amendment to the agreement is required tier wurk in connection with the Draft Noise Barrier Scope Summary Report
submittal. Staff recommends approval of the resolution. (Director of Public Works)
Councihnember Moot stated that this pr{~ject was originally estimated at $550,000 and this will now take it to
$648,390. He 'knew the fimds catne from the TDIF fimds, but he conld not remember how this got so liar over
budget.
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Artgust 5, 1997
Page 4
John Lippitt, Public Works Director, responded that Caltrans required extensive additional work lbr widening the
lanes and doing things which Chula Vista staff didn't want to do, but we were required to do. He stated that the
soundwalls were jnst an incidental element of the total prqiect. We are talking abont the entire project with the
interchanges at Telegraph and Orange, the whole major project. The $100,000 was for this part of the project
where we went over the budget, not the sonndwall part.
RESOLUTION 18749 OFFERED BY COUNCILMEMBER MOOT, heading read, text waived, passed and
approved 5-0.
15. REPORT CHULA VISTA PUBLIC LIBRARY'S APPLICATION FOR LIBRARY SERVICES AND
TECHNOLOGY ACT (LSTA), VIRTUAL REFERENCE NETWORK GRANT FUNDS FOR FISCAL YEAR
1997/98 - The Chula Vista Public Library, in partnership with National City Public Library, has been specifically
invited by the California State Library to apply tbr Library Services and Technology Act grant funds to provide
equipment, stalling and materials to create an Internet-based health reference product (The Virtual Reference
Network) directed toward low-literate Hispanic women, ages 18-35. The prqject would also allow the Library to
provide access to its other databases (such as the catalog) via the World Wide Web. Staff recommends Council
accept the report and ratlily the application li~r $231,563 in LSTA filnding lbr the Virtual Reference Network
pr{~iect. (Library Director)
* * * ENI)OF CONSENT CALlfNDAR * * *
ORAL COMMUNICATIONS
Rod Davis, 233 Fourth Avenue, Chula Vista, representing the Chamber of Commerce, stated that the
Chamber was taking an "informed no position" on the sewer issue. He thanked staff tbr helping the Chamber
tinderstand the isstie.
Patrick Brajas, 375 "G" Street, Chain Vista, stated that every time weeds came up on his property, he has
to remove them. He noticed, however, that weeds were coming tip on the old Ford auto dealership property at 736
Broadway, and it was an eye sore. He t~lt something shonld be done.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
16. PUBLIC HEARING PCA 97-05; CONSIDERATION OF AMENDMENT TO SECTIONS 19.22.170
AND 19.64.180 OF THE MUNICIPAL CODE TO ALLOW BUILDING ADDITIONS ON RESIDENTIAL
LOTS CONTAINING AN EXISTING RESIDENCE TO MAINTAIN EXISTING SIDEYARD SETBACKS -
CITY INITIATED - The proposal is to amend Sections 19.22.170 and 19.64.180 of the Municipal Code to allow
building additions to adhere to the same setback enjoyed by the existing house, but no closer that five t:eet to the
side property line with a minimum ten foot separation from any adjacent residence. Staff recommends Council place
the ordinance on first reading. (Director of Planning)
ORDINANCE 2711 AMENDING SECTIONS 19.22.170 AND 19.64.180 OF THE MUNICIPAL CODE
RELATING TO REQUIRED SIDEYARD SETBACKS FOR ADDITIONS TO EXISTING RESIDENCES
(first readina)
Ken Lee, Assistant Planning Director, stated that we average between four to six variance applications a year
relating to sideyard setbacks. Approximately 30 years ago, we established the 10 and 3 foot sideyard tbr single
hmily areas. We have a number of homes that obviously were bnilt traditionally with the five and five. What
happens when someone comes in and they wish to make an addition under the present code, they are required to
adhere to the 10 foot sideyard as opposed to lining tip the addition with their existing house relating to their existing
Minutes
August 5, 1997
Page 5
floor plan. We have traditionally granted those variances, and staff t~lt it was time, and the Planning Commission
agreed, to amend the code that additions up to 50% of the floor area could be addressed and adhered to the same
setback as the existing house.
This being the time and place as advertised, the public hearing was declared open. There being no one indicating
a desire to address the Council. the public hearing was closed.
ORDINANCE 2711 PLACED ON FIRST READING BY COUNCILMEMBER PADILLA, heading read, text
waived, passed and apprnved unanimuusly 5-0.
17. PUBLIC HEARING PCC-97-39; REQUEST FOR A CONDITIONAL USE PERMIT FOR A
FEDERAL GOVERNMENT OFFICE AND WAREHOUSE FACILITY FOR THE U.S. DEPARTMENT OF
IMMIGRATION AND NATURALIZATION SERVICES AT 2411 BOSWELL ROAD, WITHIN THE
EASTLAKE I PLANNED COMMUNITY - WESTERN DEVCON, INC. - The retlaest is to construct an office
and warehouse building lbr the U.S. Department of Immigration and Naturalization Services. This building will
serve as a regional thcility lbr administrative, classroom, and warehouse operations fi~r the INS. Staff recommends
approval of the resolution. (Director of Planning)
RESOLUTION 18751 APPROVING A CONDITIONAL USE PERMIT FOR AN OFFICE AND
WAREHOUSE FACILITY FOR THE U.S. IMMIGRATION AND NATURALIZATION SERVICES AT 2411
BOSVVELL ROAD, WITHIN THE P-C ZONE
This being the ti~ne and place as advertised, the public hearing was declared open. There being no one indicating
a desire to address Conncil, the public hearing was closed.
Councilmember Salas stated this was a thcility which will be used tbr office administrative functions, classroom,
and warehouse operations fi~r the INS and there are some conditions that are applied to the permit. In the Planning
Commission minutes, it stated that Commissioner Aguilar raised the issue that because the INS is a federal agency
the City has no .jurisdiction on the type of business that is conducted there. The City Attorney stated that while the
federal agencies are not restricted by our zoning laws, they have agreed to comply with the conditions. Her
question was what assurance do we have that they are going to comply if they really don't have the obligation to
do so.
Anne Moore, Assistant City Attorney, stated that realistically this is a problem. The City doesn't have .jurisdiction
over the federal government, and we certainly would not be able to regulate their activities. So if they did not
comply with the conditions, it would be difficult t;,~r us to enfi>rce it.
Councilmember Salas stated that we are told that this isn't going to be used in any way to detain people that are
about to be deported or any type of processing throngh the INS, but how are we going to monitor that.
Ken Lee, Assistant Planning Director, replied that the building was not designed to accommodate that type of an
operation, so that would help the tact that the federal government is cooperating in terms of going through our use
permit process, and they are also going through our design review process. This indicates their intent to comply
with City regulations. These are the only assurances that we have.
Councihnember Moot stated that if we were to discover that alien smngglers were being processed in this facility,
there are some dangers associated with alien smuggling, and he didn't think EastLake was the place where we would
want to detain alien smngglers. If we were to discover that was occurring, could we revoke the conditional use
permit.
Ms. Moore replied that we could attempt to revoke the CUP and we could site those as reasons, but in the final
analysis court cases have always sided tbr governmental agencies having the ability to conduct their activities on
Minutes
August 5, 1997
Page 6
their property withont control of mnnicipalities. In this case, we are dealing with the federal government, it would
be an extremely difficult case li>r us to prevail on.
Conncihne~nber Padilia stated that he had a snfficient level of comfort with what was being presented recognizing
that the tell tale sign would be in the design teattire. If federal, state. or any other level of government were
planning on utilizing a li~cility fi~r processing people who were incarcerated even temporarily, it must meet state
and federal regulations. It wonld definitely have an impact on the design feattires of the thcility. If you are looking
at having a central administrative litcility, its not generally a good place to have it in close proximity to a holding
/hcility or processing facility.
Councihnember Salas wanted to raise this isstie in order to have a discussion in the open and assurances from the
staff that they did look at the design and the liinctinn of the building so we could have assurances that type of
activity would be very unlikely.
RESOLUTION 18751 OFFERED BY COUNCILMEMBER SALAS, heading read, text waived, passed and
approved unanimously 5-0.
18. PUBLIC HEARING CONSIDERATION OF AN INCREASE IN SEWER SERVICE CHARGES
The City's last sewer service rate increase was passed in Jtdy 1992. Annual expenditures have increased from $8.62
million in fiscal year 1992/93 to an estimated $14.12 million in fiscal year 1997/98. Iixpenditures have exceeded
reventles by a total of approximately $4.5 million between fiscal years 1994/95 and t996/97. In order to continue
to meet expenses related to the construction and operation of the sewage transportation and treatment system, the
sewer service rates mnst be increased. Staff recntnmends approval of the resolution. (Director of Public Works)
RESOLUTION 18752 APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE ON SEWER
SERVICE CHARGES AND TRANSFER OF $3,739,581} AND $469,900 FROM FUNDS 222 AND 226,
RESPECTIVELY, INTO FUND 225
John Lippitt, Public Works Director, stated that onr costs have escalated due to the clean water program that the
City of San Diego is building. It is over a $1.5 billion program. Every $100 million represents roughly $1.00
per month on everyone's tax bill in the region. We started raising the costs in 1990 and have raised them twice,
but haven't raised the~n lbr the last li~mr years. We are drastically falling behind. We were able to keep from
raising the costs the last t~v years becanse we did have a very healthy reserve in the sewer service fund,
approximately $9 million. If nothing is done, the sewer service fund will be depleted by the end of this year. There
are other sewer/imds that do have reserves, bnt they are restricted in how we can use them. Staff is recommending
to make some transfers frotn those fimds where we feel it is allowable, but we can't take all the money from the
other funds and pnt them into this fund withont some type of detailed analysis. There is another item to be
considered by Cotlncil which is shall we continue our low income discount which is presently at 30%. Because of
Proposition 218, it has been the advise of the city attorney that we can't continne to fund this out of the sewer
service fund; we will have to find a difl~rent fired within the City to do that. Should Council decide to continue
that discount, we will return to Council with a recormnendation on where those revenues should come from. Based
on last year's cost liar that program, staff estimates it will be around $20,000.
This being the time and place as advertised, the public hearing was declared open. Addressing Council were:
· Rita Mclntyre, 30 "J" Street, Chnla Vista, stated she was opposed to the sewer rate increase. She asked
the ti~llowing qnestions:
(1) The City of San Diego has an exemption from the secondary treatment and they have the advanced
primary treatment, so what is it that has cansed them to have to upgrade the sewer treatment process.
Mr. Lippitt responded that they did not get an exemption. they got a waiver from secondary treatment at
Minutes
August 5, 1997
Page 7
Point Loma, but there were strings tied to that. They had to build 45 tnillion gallons worth of reclaimed
water by the year 2010 which is quite expensive. They are building 30 million gallons of reclaimed water
at North City right now at a sewer treatment plant which will take some of the burden off Point Loma.
That cost just for the reclaimed water plant is over $200 million. plus they are going to spend about $400
to $500 million on a solid treatment system. They have had to do majnr improvements at Point Loma even
though it is still advanced primary but the plant is over 40 years old, so there are still major costs of about
$1.5 billion that San Diego has to spend; we are 6% of that so we have to pay our share.
(2) As a rate payer, she would like to know more about the $9 million reserves and what is happening to
the interest.
Mr. Lippitt stated that the reserve was $9 million in 1992; it is not $9 million now. That is how we have
avoided a rate increase since then. We have spent in the last three years about $4.5 million more than we
have taken in. So the reserves have gone down. [f we do nothing, then the reserve in the sewer fund will
be down to less than $100,000 by the end of this year.
(3) The costs are going tip, but those costs are increasing as the revenues are increasing because Chula
Vista is now a booming metropolis and with that you have increased revenues. If you have increased
revenues, then are the costs increasing in proportion to the revenues.
Mr. Lippitt responded that when he was talking abont the costs and the revenues increasing, he was talking
about Chula Vista costs. The revenues have gone up over the last four years frum $9 million to about $10
or $11 million, but that is not nearly enough to cover our increase. Our costs have gone from $8 million
to $14 million. The growth isn't covering it and our costs are based on our flow, so as uur flow goes up
our costs go tip also.
(4) The developers pay $2,220, is this in proportion to the size of the development.
Mr. Lippitt stated that is per household. Su if they build a non-residential thcility, its based upon the
anticipated sewage flow. If they are going to build something that flows at 100,000 gallons a day, we
divide that by 250 which is an average sewage flow out of a household.
(5) She was curious how long was a Iong-tern~ basis. ls this a band aid tbr right now and because of
capacity and changes, either regulatory or by continued growth in Chula Vista, that this could happen again
to us belbre another year or two passes.
Mr. Lippitt stated that there are going to have to be other increases in the fitlure. San Diego has only
financed 1/3 to 1/2 of their system. They are going to go out with mnre bond issues. By the year 2000
or 2002, the rates will increase to the $22 range per month. That is a hmg-term basis just tbr San Diego
plans. By the year 2010, they are going to have to build another 15 million gallons of reclaimed water.
Some of that will be in the South Bay; they are going to have to build more secondary treatments. That
is because of the requirements of the waiver not necessarily because of growth. One of the other issttes
on the waiver is not only that they have to build 45 million gallons of reclaimed water, but that the solids
to the ocean can't increase, so they will have to build some more secondary facilities in the South Bay.
· Patty Davis, 1375 Ca[ion Montefro, #17, Chula Vista, stated that if there was any way to keep costs down,
she would vote for that. What she was opposed to right now was the city policy that the property owner is charged
if the tenant of the property does not pay the sewer I~e. This is a new policy because previously sewer bills were
billed on the water bill. Now that the Sweetwater Authority does not hill the sewer bills any longer, a separate hill
is sent out. If a tenant has moved into the property and the bill is sent to the tenant, and the tenant does not pay
that bill, then that bill becomes a lien to the property owner. She Mt this policy needed to be addressed.
There being no one else indicating a desire to speak, the pnblic hearing was closed.
Minntes
Augnst 5, 1997
Page 8
Conncilmember Rindone asked how did the funds get into Account 222 to begin with; who paid those.
Mr. Lippitt responded that these are new connections and are paid lbr by people that com~ect to the sewer; it's from
all of the development to the east, any new stores that come in, and any new developments which have not
previonsly been connected to the sewer.
Cot~ncihnember Rindone asked what would be the approxmmte projected cost ti~r the regional sewer trunk line in
the southern part of Chula Vista that will be constructed.
Mr. Lippitt replied that in 1994 it was $9.9 milliun. We may not bnild that line if we can get a good deal from
San Diego. But, we will probably pay about the same amotmt to get into their line.
Cnuncihnember Rindone l~lt that unless there was an assumption that we will build the southern trunk line and that
we will ti~ot that bill in 1997 dollars, even the prqjected costs in 1994 of an excess of $9 million, we still have in
that particular fund today in excess of $16 million in the reserve. We all realize that there will have to be
a4jnsttnents in the sewer rates charge. The call is as to when that will be. Hnwever, we have not made that
assnmption that it will ultimately be bnilt or that is the only alternative. This may or may not occur. He l~lt we
had a lot of flexibility with excessive reserves in high amnnnts. It doesn't prnvide the incentive to dig in and try
tu see if there are less costly and n~ore eft~ctive alternatives. There may come a time when there is going to be
adjustments. Staff is prnposing that we think that time is now. If all thils and the southern trunk line has to be
built, then there will have to be an adjnsm~ent made, but it won't necessarily have to be as dramatic as proposed
if there are ample funds in those reserves. He was not convinced, at this point, that we need to do this tonight.
He noticed that some cities pnt the sewer fees on the tax bill. If they are dning that then that is also a deduction
t~or the homeowners. He asked what was the downside of proceeding with that whether we raise the sewer t~es
tnnight or leave them stabilized. This was not the thrust of the staff report, but it is an important by product of this
discnssion.
Mr. Lippitt stated that when Sweetwater Anthority told ns to get off their billing system, staff came to Council with
that recommendation. It was decided by the Cnuncil to not do that because there was opposition to that, and it was
not a legal tax deduction. The issne was who would pay the bill: it changes as to who wonld pay the bill if you
have a tenant/landlord situation when ynn go fi'om the water bill to the tax bill.
Cnuncilmember Padilia clarified that the $9.9 milliun figure is nnt the total cost, and it is not being funded 100%
by Fund 222. In terms of the million dollars in future years, we are talking about an estimate of new connections
which we could attribute year-by-year. Fur a long time, we were not able to make increases to the basic f~e and
perhaps as a policy issue we shonld have considered that, bnt there were other considerations, political and legal,
in play at the time. He t~lt that if we could find ways in which we could continue to mitigate the cost to the rate
payers in the same lashjan we have dune previously given the new cost estimates on the increasing costs in the
metro system that really is the question. If the day of utilizing existing restrictive fund reserves to mitigate year-to-
year without any other action is coming to an end, especially given the growth that is occurring and our share of
the overall tipgrades that are really in our only occurring option which is the metro system, then in reality we are
against a wall. The question fi~r the policy body is to know whether or not if we are in fact in that situation.
Mayor Horton stated that in this sitnation we don't have any options; we are not in the driver's seat, the City of
San Diego is. Even if we came fi~rward with some plan tu build nn our own, it is still going to cost the City that
mnch or more. She did not want to see ns to be put in the position to propose a dramatic increase to the rate payer.
Mr. Lippitt in responding to the question as to whether there was another option stated that we have to build
something there. We may participate in San Diego's line, but at today's current costs that is $20 million not $9
million. We definitely need to do something in the Otay Valley, and it needs to come out of this fund. Whether
it needs to be done in two, li~nr, or six years, he did not know.
Cnuncihnember Rindone stated this was the nexus of the issne. Are we to the wall or are we not. If we do not
have a viable alternative, then that is difIi:rent from what he heard stated earlier.
Minutes
August 5, 1997
Page 9
Mr. Lippitt responded that we are going to need the capacity in the southern area, and we don't have a viable
alternative because the viable alternative is ahnost twice expensive. There are other lines and other improvements
that we are going to need to do in the western part of the city as we find those lines become overloaded. The other
issue is that these are restrictive fimds. By the end nf this year, we will be against the wall and will have to come
up with a larger increase if we don't raise this now.
Councilmember Salas stated that in reading the report, she was convinced that we do have to increase our rates and
the reason being is that we are running intu a revenue short fall. She did not understand about the way the rate
increases were brought beli~re Council. She ti~lt the political argument could be circumvented if there was a
program in place whereby we raised our sewer rates on an annual basis according to the CPI and according to what
it was actually costing us in increased expenditures to maintain our sewer system. She wonld support the
recotmmendation, but she felt that something should be put in place.
Councilmember Rindone stated that things did come to light that were not in the report which he felt added support
to the recotmnendation. The alternative trnnk line in the south may not have to be built, bnt what was not clear
in the report was that some of the alternatives to that may not be as cost effective as the option that is before us.
When Mr. Lippitt stated that Fund 222, the trnnk sewer capital reserves, has to be used liar capital reserves only,
he felt Mr. Lippitt was inconsistent with his earlier response. He titrther stated that the correct answer was that
it is for the capital reserves, but all of that in the reserves has not been set aside liar that, so that is how staff able
to get in excess of $1 million a year transitfred from Fund 222.
RESOLUTION 18752 OFFERED BY COUNCILMEMBER MOOT, heading read, text waived, passed und
approved 5-0.
BOARD AND COMMISSION RECOMMENDATIONS
None submitted.
ACTION ITEMS
19. RESOLUTION 18753 1) ACCEPTING CLAGGETT WOLFE ASSOCIATES (CONSULTANT)
PHASE I FINDINGS AND RECOMMENDATIONS AND AUTHORIZING STAFF TO PROCEED WITH
PHASES II AND III TO DEVELOP A SMALL BUSINESS REVOLVING LOAN PROGRAM; 2)
APPROVING AN AMENDED AGREEMENT WITH CONSULTANT FOR PHASES II, III AND A NEW
PHASE IV (ED1 GRANT APPLICATION) AT AN ADDITIONAL COST OF $5,700 TO BE PAID FROM
REPROGRAMMED CDBG AND ECONOMIC DEVELOPMENT FUNDS; AND 3) AUTHORIZING STAFF
TO USE SECTION 108 AS A RESOURCE FOR ECONOMIC DEVELOPMENT PROJECT
NEGOTIATIONS, SUBJECT TO APPROVAL BY COUNCIL OF INDIVIDUAL LOAN APPLICATIONS -
Council approved $30,000 in Community Development Block Grant ~nding to hire a consnltant to prepare a
fi~asibility analysis of the HUD 108 Loan/Loan Guarantee Program, and assuming positive results, assist staff tu
develop a Chula Vista Business Loan Program. The consultant agreement is 3-phased: Phase 1 has been completed;
Phase II is to assist staff with the preparation and submissinn of a Generic HUD Section 108 Loan application: and
Phase III is the development of a Chula Vista Small Business Revolving Loan Program. Staff recommends approval
of the resulution. (Director of Community Development)
Cheryl Dye indicated that the reconm~ended Council action would move the princess fi~rward to develop an additional
economic development tool it) add to our portfolio of incentives. While this is a step in the right direction, it will
not meet all the needs of all of our businesses. There~re, it is stafCs intent to continue to bring to Council as many
opportunities for additional incentive tools as pussihle. The specific 108 loan program which is being proposed is
a result from input from the business community including the Economic Development Commission, private lenders,
business leaders, and economic development prol~ssilmals in the region. She summarized hy stating that nnder the
proposal, the City tdtimately would be able to develop a small business revolving loan program with standardize
Minutes
August 5, 1997
Page 10
underwriting criteria and we would be able to assist our small hnsinesses to expand and to grow, and to get the kind
of grants that they need by providing gap financing. It wotdd also authorize us to itnlnediately use 108 as a tool
in negotiating major real estate economic development projects.
Councihnember Salas asked if these ~nds were restricted to businesses wanting to locate or expand in a
redevelopment area or are you going to have some kind of tool to toohitter that the loans go to areas of low income.
Ms. Dye stated that what will be necessary is to monitor the program fi~r its compliance with CDBG. One of the
criteria is to make jobs available to low and moderate income individuals, so if the company makes certain .jobs
available, it is not necessary that they actually take the .job, hut that it is available. You define that by what the
qualifications are li.~r the job. If ym~ can document that they have made those jobs available to low and moderate
income that is one way. Another way of meeting the criteria is the elin~ination of blight. If you- can show that the
pr{~iect is coming io tn eliminate blight, redevelopment is one of those ways that would also go to m~ting the
criteria.
Councilmember Rindone stated there was a discnssion about potential staffing and consultant impacts in the staff
report. He realized with the proposed revolving loan program staff may have to rely upon some additional
expertise. He wanted to be sure we were safeguarded since this is a recommendation frmn a consultant, that the
consultant is not recommending a consultant usage and then that consultant is the one that is used tier that job.
RESOLUTION 18753 OFFERED BY MAYOR HORTON, headin~ read, text waived, passed and approved
5-0.
20. RESOLUTION 18754 GRANTING EASEMENT TO OWNER OF THE PROPERTY AT 4045
PALM DRIVE FOR REMOTE WATER SERVICE THROUGH CITY OPEN SPACE AND APPROVING
AGREEMENT WITH SAID OWNER WITH RESPECT TO SAID WATER SERVICES - Paul Chavez, owner
of the vacant property at 4045 Palm Drive, plans to build a single t;amily home on the parcel. The most practical
and economical way of receiving water service with sufficient pressure is to have a remote service installed through
City open space. In order to have a meter installed, Sweetwater Authority requires the owner to provide evidence
of a grant of easement by the City liar the pipeline from Greenwood Place through two open space lots to the
property. Staff recommends approval of the resohition. (Director of Public Works)
There were no additional staff comments and no comments from the public.
RESOLUTION 18754 OFFERED BY COUNCILMEMBER RINDONE, heading read, text waived, passed
and approved 5-0.
ITEMS PULLED FROM THE CONSENT CALENDAR
(Ite~n 14 was pulled, but the minutes will reflect the published agenda order)
OTHER BUSINESS
21. CITY MANAGER'S REPORT(S)
Dates for City Council tour: Currently the next Council tour it is planned l~,~r August 23 from 9 a.m. to 12 Noon.
Items to be included on the tour are: "G" Street areas afti~cted by previous flooding, South Third Avenue
commercial area, the Otay Gym site, the Otay River Valley proposed park parcels, and the new animal shelter
proposed sites. Councihnember Moot stated he had a conflict with the August 23rd date.
Minutes
August 5, 1997
Page 11
22. MAYOR'S REPORT(S}
Ratification of appointments: MSUC (Horttm/Padilla) to ratify the hillowing appointments: Board of Appeals
& Advisors, Ed Kaya (to fill vacancy created by Metnber Puzon, whose term expired on June 30, 1997); Cultural
Arts Commission, Matt A. FIach (to fill vacancy created by Commissioner Salgado, whose term expired on June
30, 1997); Growth Management Oversight Commission, Rafael L. Munoz (Eastern Rep to fill vacancy created by
Commissioner Kell, whose term expired on June 30. 1997): Library Board, Barbara Charett (to fill vacancy created
by Member Williams, whose term expired June 30, 1997); and Resource Conservation Commission, Charles Bull
(to fill vacancy created by Commissioner Hall, whose term expired on June 30, 1997). Motion approved 5-0.
23. COUNCIL COMMENTS
Councilmember Rindone: Request ~r cunsideratiun nf a City Cnuncil Workshop for presentation by Southern
California Housing on Community Revitalization and Provision of Affordable Housing through Large
Apartment Complex Acquisition, Rehabilitation and Operation.
Councilmember Rindone stated he had a chance to meet with John Seymour, from the Southern California Housing
Development Corporation, in discussing low and moderate income housing and opportunities in Chula Vista. As
part of the conclusion of that discussion, there was a request for consideration of a City Council workshop to
propose a partnership with the Southern California Housing Development Corporation on specific items to discuss
and look at other opportunities that might enhance the City's efti~rt.
John Seymour, 3934 Murphy Canyon Road, San Diego, 92123, representing the Southern California Housing
Development Corporation, stated that if there is a meeting in the fi~rm of a workshop or in the tbrm of a direction
to staff to meet with them, they would support that. They have met with staff on two occasions.
Mayor Horton stated that it is very difficult to get the Council together especially during the summer months. There
are several items which have been prioritized as workshop sul2iects that probably have a higher precedence over this
subject. She expressed that affordable housing was important tbr the cominunity, therefi~re, she t~lt it would be
sufficient to have staff come back with a report, but to include Ibis concept with other concepts that have come
before her and the Community Development Department that have to do with affordable housing and have a
workshop on the subject of affordable housing.
Councilmember Rindone stated that the request was to have a workshop on affordable housing; not to preclude other
options. He felt that what was important was that we have an opportunity collectively as a full Council to have staff
review the issue and to look and examine the wtrious options. That will allow Council to give appropriate policy
direction to staff. He realized there were other issues, but he felt it was appropriate tier staff to come back with
a schedule. He concurred with the Mayor that a workshop be inclusive of all issues relating to af'tbrdable housing
was most appropriate.
Councihnember Rindone also requested a written update on the MCA Amphitheater prqject.
The meeting adjourned at 8:04 p.m.
ADJOURNMENT
Resp 'tfully submitted,
Authelet, CMC/AAE
City Clerk