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HomeMy WebLinkAboutcc min 1996/10/22MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, October 22, 1996 6:12 p.m. 1. ROLL CALL: PRESENT: ALSO PRESENT: Council Chambers Public Services Building CALL TO ORDER Councilmembers Scott D. Alevy, John S. Moot (arrived at 6:18 p.m.), Stephen C. Padilla, Jerry R. Rindone, and Mayor Shirley A. Herton. John Goss, City Manager; Ann Moore, Acting City Attorney; Beverly A. Authelet, City Clerk; and Patricia Schwenke, Deputy City Clerk. 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: September 24, 1996 (Special Meeting); September 24, 1996 (Regular Meeting); and October 8, 1996 (Special Meeting) MSC (A!evy/Padilla) to approve the minutes of 9/24/96 (Special and Regular) and 10/8/96 (Special), approved 4-0-1 with Moot absent (Rindone abstained from voting on the 10/8/96 minutes). 4. SPECIAL ORDERS OF THE DAY: a. Proclamation in recognition of "Red Ribbon Week" October 23 through October 31, 1996. Mayor Herton presented the proclamation to Jane Anderson of the South Bay Red Ribbon Coalition. b. Proclamation in celebration of the Chula Vista Chamber of Commerce "50 Years of Incorporation." Mayor Herton presented the proclamation to Chris Lewis, President, and Rod Davis, Executive Director, of the Chula Vista Chamber of Commerce. c. David Malcolm, Port District Commissioner, presented an update of current events at the Port of San Diego. He reported that the San Diego City Council recently approved the expansion of San Diego Lindbergh Field. The land is important because over 90 percent of our manufactured goods need to be shipped by air from San Diego to Los Angeles; currently the goods are shipped by tmck. The City of San Diego had two items placed on the Port in order to get the land. The first was the Port had to take responsibility of relocating the lease terns. We received the 50 acres needed, but 10 acres were designated least-tern habitat. In order to obtain the total 50 acres, the Port relocated the least tern. The other issue was that additional access improvements had to be built for the Public Safety Institute. Part of the agreement is that each of the member cities will have reduced fees over other entities that use the Public Safety Institute. Before the Port agreed with this, they met with the FAA to make sure this was a reimbursable cost from the federal government. He thanked staff, Mayor Herton, Councilmember Moot, and members of the Economic Development Commission of San Diego for meeting with the Port to bring IDEC Pharmaceuticals to Chula Vista. Even though they weren't ready to sign a definitive agreement with the Port, there has been movement and they were about ready to enter into an agreement. The agreement was subject to one thing, a discharge permit from the Regional Water Quality Minutes October 22, 1996 Page 2 Control Board, which has tentatively agreed to issue the permit. IDEC Pharmaceutical proposes to use 20 acres, which is north of the ovenight trailer park existing on the waterfront, and has sat vacant for a long time. Mr. Engel, the owner of the boat yard, has met with staff about changing the boat yard to additional restaurants and retail. IDEC will have approximately 500 employees with an average salary of $54,000. CONSENT CALENDAR (Items pulled: None) CONSENT CALENDAR WAS OFFERED BY COUNCILMEMBER RINDONE, reading of the t~,xt was waived, titles read, passed and approved unanimously. 5. WRITTEN COMMUNICATIONS: a. Letter from the Deputy City Attorney stating that there were no reportable actions taken in Closed Session on 10/15/96. It is recommended that the letter be received and filed. b. Letter from Tiffany PTA requesting waiver of any liceuse requirements for their Craft Fair to be held on November 2, 1996. It is recommended that this waiver be granted. 6. ORDINANCE 2690 ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BALDWIN BUILDERS (second reading and adontion) - The purpose of this item is to present a development agreement with Baldwin Builders. On 6/25/96, the Planning Commission and Council considered a series of development agreements with Village Properties, United Enterprises, Greg Smith, and the Foundation. (The Foundation agreement was subsequently split into three separate agreements.) The remaining party who is a property owner of a portion of the Otay Ranch property is Baldwin Builders, which is the trustee for the bankruptcy. Staff recommends Council place the ordinance on second reading and adoption. (Deputy City Manager) 7. RESOLUTION 18461 APPROVING THE 1995/96 GRANTEE PERFORMANCE REPORT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING ITS SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - The City annually submits a Grantee Performance Report (GPR) to the U.S. Department of Housing and Urban Development (HUD). The GPR provides detailed information on the use of Community Development Block Grant (CDBG) funds including the progress achieved and the status of funds. HUD reviews the GPR and evaluates whether the City has carried out its activities in accordance with the City's 1993-96 Community Development Plan and federal requirements. Staff recommends approval of the resolution. (Director of Community Development) 8. RESOLUTION 18462 ACCEPTING BIDS AND AWARDING CONTRACT FOR "CONSTRUCTION OF SALTWATER INTAKE SYSTEM AT THE CHULA VISTA NATURE CENTER (GG-155)" - The general scope of the project is to construct a flow-through sea-water system at the Chula Vista Nature Center. The project includes the construction of a concrete block pump house and installation of PVC piping to draw and return sea water from the San Diego Bay. Staff recommends approval of the resolution and awarding contract to AmeriCon Constructors, Inc. (Director of Public Works and Executive Director of Nature Interpretative Center) 9. RESOLUTION 18463 ACCEPTING BIDS AND AWARDING CONTRACT FOR "CONSTRUCTION OF SIDEWALK RAMPS ON VARIOUS STREETS IN THE FISCAL YEAR 1996/97 PROGRAM (ST-513D)" AND AUTHORIZING STAFF TO INCREASE QUANTITIES TO EXPEND ALL AVAILABLE FUNDS FOR THIS PROJECT - The work to be done consists of removal of curb, gutter, sidewalk, and construction of pedestrian ramps on various streets in the City. Staff recommends approval of the resolution and award of contract to MJC Construction. (Director of Public Works) Minutes October 22, 1996 Page 3 10.A. RESOLUTION 18464 MODIFYING THE AGREEMENT WITH MUNICIPAL RESOURCE CONSULTANTS (MRC) TO EXPAND THE SCOPE OF SERVICES PROVIDED BY MRC TO INCLUDE UTILITY USERS TAX (UUT) AUDIT SERVICES - The Fiscal Year 1996/97 budget included $50,000 in revenue to be derived from an UUT Audit. Given MRC's satisfactory performance conducting the City's sales tax audit and excellent references from jurisdictions where MRC has audited UUT, it is recommended modifying the City's agreement with MRC to add UUT audit services to be compensated on a contingency basis. To access the records of Utility providers, "Friendly Subpoenas" must be issued as companies are prohibited from voluntarily disclosing confidential customer information. Staff recommends approval of the resolutions. (Director of Finance). B. RESOLUTION 18465 INSTITUTING AN AUDIT PROCEEDING OF THE CITY'S GAS, ELECTRIC AND TELEPHONE UTILITY USERS TAX, DESIGNATING MUNICIPAL RESOURCE CONSULTANTS AS AUTHORIZED REPRESENTATIVES OF THE CITY FOR CONDUCTING THE AUDIT AND AUTHORIZING THE MAYOR TO ISSUE SUBPOENAS FOR THIS PURPOSE. 11. REPORT REGARDING THE DEVELOPMENT IMPACT FEE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1996 - State government requires local agencies assessing Development Impact Funds to make available financial data to the public each fiscal year. It also requires the local agency review this information at a public meeting. Staff recommends Council accept the report and approve of the resolution. (Director of Finance) RESOLUTION 18466 MAK1NG FINDINGS THAT THE UNEXPENDED FUNDS IN THE VARIOUS DIF FUNDS ARE STILL NEEDED TO PROVIDE CONSTRUCTION OF FACILITIES FOR WHICH THE FEES WERE COLLECTED * * * END OF CONSENT CALENDAR * * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 12. PUBLIC HEARING REGARDING EXISTING AND PROPOSED RATES AND CHARGES FOR COX COMMUNICATIONS' BASIC SERVICE TlER AND ASSOCIATED EQUIPMENT AND CABLE PROGRAMMING SERVICE TIER, AS SUBMITTED BY COX COMMUNICATIONS TO THE CITY VIA FEDERAL COMMUNICATION COMMISSION (FCC) FORMS 1235, 1240 AND 1205 - Cox Communications and staff have discussed potential courses of action regarding the City's regulation of cable rates. Those discussions have also included further contacts with the Federal Communications Commission (FCC) and the City's consultant, Public Knowledge. The staff recommended position would result in a Maximum Permitted Rate of $26.92, but would allow Cox to charge as much as $30.95 per month, unless and until such a charge is invalidated by the FCC. Staff recommends approval of the resolution. (Principal Management Assistant Young) Continued from the meeting of 10/15/96. RESOLUTION 18447 DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER; DIRECTING STAFF TO FILE A COMPLAINT WITH THE FCC ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE TIER RATES; APPROVING PROPOSED COST-BASED RATE DECREASES FOR ASSOCIATED EQUIPMENT; AND APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER Gerald Young, Senior Management Assistant, stated this item was continued from 10/15/96 so Cox Communications and staff could discus the issue still in dispute. There are three rate issues proposed for Council. On two of the issues, staff concurs with Cox and has recommended approval. On the third issue, which is related to a system upgrade that Cox completed, there was a dispute as to what portion of that upgrade should be passed on to existing customers. (Public Knowledge, the consultant, was not present.) In our discussions with Cox over the past week, we discussed the bettom-line priorities that Cox has in this rate filing. The first priority is that they have reached a market rate of $28.95 per month. This is a rate they announced in other jurisdictions and are instituting effective 11/15/96, and Cox is interested instituting that ram in Chula Vista following the resolution of these issues. The second priority was to avoid the need to file a basic rate appeal. If they were unable to reach the rates they wanted and found the need to appeal the City's decision on basic cable rates, they would file an appeal with the FCC. There are two processes that can go before the FCC: one is a basic Minutes October 22, 1996 Page 4 rate appeal, and the other is a complaint filed by the City on the expanded basic or cable programming services. In the alternatives presented by staff, the first alternative accomplishes two of Cox's priorities: it allows them to reach a rate of $28.95 per month, without having to resort to a basic rate appeal. The current maximum permitted rate is $26.92. With what staff recommends, Cox would be able to reach a rate of $30.95, subject to the possibility that the FCC might rule that all or a portion of that rate was not justified. Cox's position has been the rate is justified, and they would be allowed to charge up to that rate, unless and until the FCC ruled otherwise. If the FCC ruled that Cox charged a rate higher than they should, customers would be subject to refunds. The other two alternatives shown in the report are proposals 2 and 3, that the City approve the upgrade-based increase in the basic cable, but either file a complaint with the FCC or not file a complaint. These are somewhat more of the preferred options for Cox. The third option allows them to reach the $28.95 rate or higher, without having to file a basic rate appeal. What remains in question is whether the City would file a complaint with the FCC over the expanded basic rates, which is what Cox asks for. The current basic rate is $7.30 per month; the requested rate is $10.50 per month, which amounts to a 44 percent increase. It is staffs recommendation, on that basis and on the inconclusive nature of some of the data, that Council not approve the increase. In terms of the upgrade, Cox is requesting a portion of that upgrade be attributed to existing channels. Their initial request was that 80 percent of that upgrade be attributed to existing channels; that was revised to 73 percent a few weeks ago; and in further discussions, to approximately 43 percent. In looking at the available data, it is somewhat inconclusive. Staff and the consultant came to the conclusion that perhaps 33 percent, or something less than that, might prope~y be attributed to existing channels and customers, and therefore this lower 43 percent that Cox proposed might not be an appropriate rate. Since the data is inconclusive, staff recommends that we refer this to the FCC, which is the body that typically hears cable programming service complaints to determine what the exact percentage should be. When cities review rate cases like this, they are not required to come up with those exact percentages, as they are only asked to determine whether the rates, as they are proposed, are appropriate or inappropriate. This being the time and place as advertised, the public hearing was declared open. · Mary Teets, 5159 Federal Boulevard, San Diego, CA, with Cox Communications, said the flint two issues are Cox's filing of FCC Forms 1240 and 1205. Staff and its consultant recommend approval of those forms and came to the conclusion that Cox is in compliance with FCC rules and guidelines in filing those forms. The third issue is the FCC Form 1235, which is a vehicle devised by the FCC to allow cable operators to recoup some of the costs of upgrading networks. In the South Bay, Cox invested $27 million since 1995 in the upgrade. Cox and staff have been negotiating as to what is the appropriate allocation rate. When Cox originally filed their Form 1235 with the City, the allocation rate was 80 percent; when Cox received the draft complaint from the City, the rate was reduced to 73 percent; and since having discussions with staff from the last Council meeting, Cox came down to 43 percent. The 43 percent would not allow Cox to recoup over $11 million in costs they put into the upgrade. Councilmember Alevy asked if Council moved forward as staff recommended, would Cox apply to the FCC for a higher rate, or would we send a letter of concern to the FCC and they would decide the rate. Ms. Teeks replied that on the Forms 1240 and 1205, the FCC established Cox's maximum permitted rote. Regarding Form 1235, most likely what would happen is the FCC would review it and come to a decision, and it would return to Council for certification. It could be years for a decision to be made, but Cox would do everything in their power to expedite the process with the FCC to get a ruling. Councilmember Alevy asked if there would be any back charging, or would Cox have to live with the charges the City agreed to during that interim period. Ms. Teeks responded if the FCC said 80 percent was the proper allocation rate, Cox would legally have the ability to go back and recoup that. Whether it makes sense for Cox in terms of a practical and market position, they would have to look at it at that point in time. Mr. Young stated while the complaint was pending with the FCC, Cox would have the ability to charge the full amount they requested of the City, and still do so until the FCC said otherwise. If Cox chose to charge an mount less than the full amount, there is a possibility the FCC could approve more than that, but Cox could charge as much as they initially requested until they were told otherwise, and at that point be potentially liable for refunds. Councilmember Moot asked if Cox could go from the current rate to $30.95 per month starting tomorrow. Minutes October 22, 1996 Page 5 Mr. Young answered yes. Under the staff recommendation, Cox would be able to charge up to their maximum permitted rates with 30 days' notice. If all portions of the staff recommendation were approved, Cox would be able to charge the additional rates under the Form 1240, the cost base filing, and they would be denied the increase that corresponded to the basic cable portion of the upgrade. All portions of the upgrade related to the expanded basic services is what Cox would be allowed to charge until the FCC said otherwise. Councilmember Moot asked if their target rate was $28, why were we now in the position of possibly accepting a rate hike as high as $30. Mr. Young explained the reason the option was recommended is because it gave us some certainty that the rote is justified. To this point, we operated with somewhat incomplete information as to what the appropriate criteria was to determine how much of the upgrade should be allocated to existing customers and existing channels. Cox came up with a formula working backwards from the $28.95 rate to arrive at a 43 pement rate, and while that might seem on the surface a little morn reasonable than the initial proposal of 80 percent, it is still not a rate that we have enough information to know whether it is appropriate or not. For that reason, staff recommends that we proceed with a complaint to the FCC so they can determine the exact percentage. Councilmember Moot said the whole purpose of the Telecommunications Act was to get the federal governnaent out of the regulatory business and try to get these matters resolved at a local level. The two-year costs of Cox's appeal would be paid, the FCC would incur costs, and those costs would be passed right back to the taxpayers. He questioned going through two years' of appeals if the amount of money was not significant, and we were close to handling this matter without having to bump it to a higher level. Councilmember Rindone said each $1.00 difference in the rate is hundreds of thousands of dollars in consumer payment fees, and so what might initially appear to be 20, 40 or 65 cents does not appear to be significant, but it is, particularly in Cox's viewpoint of that number times the number of subscribers each month. You would look at somewhere in excess of $400,000 for each $1 change in the rate for subscribers. Councilmember Moot said it was defmitely major dollars to Cox. He was looking at it from the individual tax payer's perspective, who would indirectly pay the cost of this appeal. We need to develop an ability to resolve these issues at the local level, because if we want to reduce the size of government and keep taxes down, we are going to have to buy into the philosophy of the Telecommunications Act. Councilmember Rindone asked what was the responsibility of Council, as a local entity, to look at the base rate and scenario. The fact that it may be two years' backlog is an issue that is unfortunate for the applicant, because they would not know how the FCC would rule, and the potential of having to pay back not only the rates that may be overcharged but also the interest. Ms. Teets said she was not aware of the interest rates. She agreed with Council that Cox wanted to avoid a complaint being filed. Initially, Cox's rate was 80 pement; when they received the City's draft complaint, the rate was reduced to 73 percent. In the move from 80 percent to 73 percent, there was a 65 cent drop in the rates per month. In hopes of avoiding a complaint and not having to bounce this up to the federal level, Cox further reduced it to 43 percent. In terms of where staff and the consultant are, they started at 33 pement and ended at 33 perucut. This is one of the reasons that a compromise was not made. If there was a way to avoid the complaint, Cox would like to do that, but felt they negotiated in good faith and moved the allocation down. Mr. Young concurred that Cox worked in good faith with staff on this, and staff tried to present some alternatives that might accomplish Cox's priorities in other ways. The staffs viewpoint was not really from a negotiation perspective, but from a justifiable cost perspective, Sincewe are operating under semewhat incomplete information, it was the basis of the recommendation for referral to the FCC. Councilmember Alevy asked if this particular filing involved all of the paid cable subscribers or just a select few that get extended cable, premium channels, etc. Ms. Teets answered the Form 1235 filing involved upgrading the network in the Cities of Chnla Vista, Imperial Beach, National City, and Santee, and she was not aware of any other cities that took action. Councilmember Alevy indicated he wanted to see what other cities were doing before making a decision. He was concerned that we might do something other cities weren't doing, and charge more or less than others in the community. He did not want to see our citizens pay more than what others paid, Minutes October 22, 1996 Page 6 Mr. Young stated the upgrade that took place for the four cities resulted in an initial increase on 5/1/96. Cities have 180 days after the rate increase to file a protest with the FCC, after first giving Cox 30 days' notice. Chula Vista was the only city to file notice with Cox; however, we have been working with the other cities. We were participating jointly in the study by Public Knowledge, and those cities and Chula Vista shared the information that came from the study. At this point, the other cities have not decided to go forward with any rate complaints; however, they could still file rate complaints in the future as Cox made further increases in their cable programming service rates. Councilmember Rindone said he read that the other three cities missed the 180-day deadline, so it locked in the new market rate for those cities. We have a responsibility to protect the interest rates of our constituents and rate payers, and if that is justified, then that is part of the process until the FCC gets it corrected. Councilmember Moot stated the issue was the ability of Cox to recoup a capital outlay they made. Most businesses who make capital outlays recoup their cost by raising the cost of the product or cutting back services, There is a deviatinn from the norm herc and the difliculty is ~nding an appropriate percentage. Heaskediftherewasapolicy staff looked at in trying to determine the appropriate level. Mr. Young answered yes, one way of looking at it would be the upgrade from 450 megahertz to 750 megahertz. Cox made a 300 megahertz improvement in their system and have so far activated one-third of that. One way of looking at it is if they activated one-third of the system, only one-third of the cost should be passed along at this time. When the rest of the system is activated and as new channels and services are added, those services should then bear the cost of the upgrade. Councilmember Padilla stated with regard to the primary upgrade-related increase, there has been some mutual understanding about some of the things both parties should consider in arriving at a percentage. He was not going to try to quantify what the cost to the rate payers should be with sending this to the FCC. He asked how long would it last, and what would it cost, because the rate payers may pay associated costs with an FCC involvement anyway. There is also the issue if it turns out the rate is not justified and the rate payers have been paying it in the interim, they would get refunded. Mr. Young said in terms of saying there was no movement, Cox has made some movement in their position, and the movement staff tried to make is in terms of presenting alternatives that do not coat, from a policy perspective, as to whether one percentage seems appropriate or not. There still exists the uncertainty whether 43 percent is justified, or whether 43 percent is close enough to what might be justified. Councilmember Padilia asked what did Council need to know in terms of tools and resources to agree with Cox to come to a determination about whether or not that is an appropriate rate. If there is room for movement, we need to make it happen before going to the FCC. If there isn't room for movement, we nee/.1 to know the parameters are agreed on and disagreed on, and the rates are understood and disagreed to before going to the FCC. Ms. Teets commented that Cox moved from 80 percent to 73 percent, and then to 43 percent. In discussions with the FCC, they gave an unofficial response that Cox met the criteria for the Form 1235 filing. The criteria would be channel additions and improvement to the signal quality, which they have met by upgrading the signal from a 45DB to a 48DB. Prior to the upgrade, Cox averaged close to 15,000 hours of customer outages, and after the upgrades, Cox averaged 700 hours; it has been a marked improvement in reliability, and those are some of the criteria used to come up with the allocation. In Cox's discussion with the FCC, they wouldn't comment in terms of what the exact number was because it would be something they would look at if there was an official complaint. The FCC also said it was their preference for a local settlement to be reached. If a settlement could be reached that did not go below 43 percent, Cox was open to that. Mr. Young stated there are actually a number of different criteria that Cox and staff looked at in terms of the changes in the system. As Ms. Teets referred, channel line-ups and additional channels are some of those criteria; others include how the quality of signal or reliability of the service changed, and the percentages those criteria have dramatically changed. What staff is looking at, and what our consultant advised we look at, is to ask the FCC how these criteria should be factored in, how that rate is arrived at, and what rate is passed along to the customers. We have a consultant hired by a group of cities to review the appropriateness or inappropriateness of the forms, as filed by Cox Communications. In two of those cases, we have already agreed they were properly filed. In this case, the consultant determined there were potential errors in the way Cox filed their forms. The consultant would be qualified to do a more in-depth study of what the exact rates should be charged in a situation like this. In talking Minutes October 22, 1996 Page 7 with FCC representatives, it is something they have not dealt with yet. It may be similar to previous rate studies, but it is something that will require more in-depth study. MSUC CRindoneatorton) to approve staff recommendations listed as alternative #1. 13. PUBLIC HEARING CONSIDERATION OF ESTABLISHING UNDERGROUND UTILITY DISTRICT NUMBER 129 ALONG OTAY LAKES ROAD FROM RIDGEBACK ROAD TO APACHE DRIVE - Public hearing is to determine whether the public health, safety, or general welfare requires the formation of an underground utility district along Otay Lakes Road from Ridgeback Road to Apache Drive. Staff recommends approval of resolution. (Director of Public Works). 0000 RESOLUTION 18467 ESTABLISHING UNDERGROUND UTILITY DISTRICT NUMBER 129 ALONG OTAY LAKES ROAD FROM RIDGEBACK ROAD TO APACHE DRIVE AND AUTHORIZING THE EXPENDITURE OF UTILITY ALLOCATION FUNDS TO SUBSIDIZE PRIVATE SERVICE LATERAL CONVERSION This being the time and place as advertised, the meeting was declared open. Mayor Horton commented there was reference to a section of Otay Lakes Road that is classified in the General Plan Circulation Element as a six-lane prime arterial and is designated as a scenic highway. From a safety perspective, she requested staff look at the conversion district, because it was dangerous coming down that road with the level of gravitation. RESOLUTION 18467 OI(I~'ERED BY MAYOR HORTON, reading of the text was waived, title read, passed and approved unanimously. 14.A. RESOLUTION 18416 APPROVING A RESOURCE CONVEYANCE AGREEMENT FOR THE OTAY RANCH SPA ONE, TRACT 96-04 - (This is a related item. but does not require a oublic hearing) B. RESOLUTION 18417 APPROVING AN INDEMNIFICATION AGREEMENT WITH VILLAGE DEVELOPMENT FOR TRACT 96-04 - (This is a related item. but does not require a public hearing) C. PUBLIC HEARING PCS 96-04: CONSIDERATION OF A REVISED TENTATIVE SUBDIVISION MAP FOR THE OTAY RANCH SPA ONE, TRACT 96-04 GENERALLY LOCATED SOUTH OF TELEGRAPH CANYON ROAD BETWEEN PASEO RANCHERO AND THE FUTURE SR-125 ALIGNMENT AND EXCLUDING 288 ACRES IN ASSESSOR PARCEL NUMBER (APN) 642-060-11 AND A PORTION OF APN 642-080-11 - Adopt a Second Addendum to FEIR 95-01 and recertify FEIR 95-01 and the First Addendum for the Otay Ranch SPA One and Tentative Subdivision Map for Village One and Phase I-A of Village Five of the Otay Ranch SPA One, Chula Vista Tract 96-04, in accordance with the findings and subject to the condition contained in the in the draft resolution. Staff recommends approval of the resolutions. (Otay Ranch Manager) Continued from the meeting of 9/17/96. D. RESOLUTION 18398 ADOPTING THE SECOND ADDENDUM TO AND CERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FE1R 95-01 (SCH #95021012) AND FIRST ADDENDUM READOPTING THE STATEMENT OF OVERRIDING CONSIDERATIONS AND THE MITIGATION MONITORING AND REPORTING PROGRAM FOR THE FEIR AND APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OF THE OTAY RANCHO SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING THE NECESSARY FINDINGS AND DENYING APPROVING OF ALTERNATIVE TENTATIVE MAP PROPOSALS MSUC to continue to 11/12/96. 15. PUBLIC HEARING ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT WITH VILLAGE DEVELOPMENT - An amendment to the development agreement to further guarantee infrastructure improvements where the developer wants to create parcels for sale prior to ~nalizing the final subdivision map. The amendment also addresses future problems with regard to any debt payment that might be levied to make public improvements or should development be only partially completed on any particular project due to any stoppage of work especially due to a bankruptcy action. Staff recommends Council place the ordinance on first reading. (Deputy City Manager, Planning Director, and Otay Ranch Manager) Minutes October 22, 1996 Page 8 ORDINANCE 2691 AMENDING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN OTAY RANCH, L.P., A CALIFORNIA LIMITED PARTNERSHIP, VILLAGE DEVELOPMENT, A CALIFORNIA GENERAL PARTNERSHIP, AND THE CITY OF CHULA VISTA (tint readinl~ MSUC to continue to 11/12/96. ORAL COMMUNICATIONS Frederick Rizzi, 177 L Street, Chula Vista, CA, asked if there were any plans to build a new animal shelter. John Goss, City Manager, replied that the plan has been that when the new corporation site is built, it will also include the animal shelter. When Otay Valley Road was widened, there were temporary changes at the animal shelter, but only for the interim until funding is obtained to build a new animal shelter and corporation yard. We are currently working on the projects and only a portion of the funding for the corporation yard has been solved. Mr. Rizzi felt Chula Vista should already have had a new animal shelter. He understands the shelter is shared by three different cities, and felt the three cities could get together and share the cost to build a new shelter. · A.W. Hall, 3665 Bonita Verde Drive, Bonita, CA, asked why a five-week limitation was placed on the minutes of 9/24/96. He also asked if there was a binding agreement between the Citrons and American Golf for a 12/31/96 deadline, and if any monies were expended by the Citrons to defray the expenses of the City Attorney and the project manager. He also asked if there were any meetings scheduled with the Citrons, and what were the legal ramifications of a fast-track deal on tins. Mayor Horton advised Mr. Hall that his questions would be answered by staff after his oral presentation. Since the item was not on the agenda, council could not address it. Councilmember Rindone commented that there seemed to be a perception in the community that Council had already consummated a deal with the Citrons for the hotel project, and it has not occurred. One of the major issues that has been raised several times during Oral Communications has been the concern about golfers, joggers, and other issues that Council is equally concerned about. Those who are promoting that this deal has been consummated is false, and it hurts the process of what tins public agency is attempting to do, and that is to review all options for the best interests of all citizens. He also assured the golfers, joggers and anyone else who had an interest, there would be a public heating when those issues come up, and Council will use due diligence to try to make a resolution to see what issues can be accommodated and dealt with before the decision is made. BOARD AND COMMISSION RECOMMENDATIONS None submitted. ACTION ITEMS 16.A. REPORT POLICE GRANT FUNDING OPPORTUNITIES - During the 1996/97 budget process, Council authorized the Police Department to pursue funding for Community Oriented Policing projects. As a result, the department has identified four grant opportunities which work together to fund community oriented policing with minimal impact to the General Fund. These grant opportunities include: the State budget appropriation identified as AB 3229 - Citizens Option for Public Safety; the COPS Universal Hiring Grant; the Domestic Violence Grant; and the Federal Local Law Enforcement Block Grant. Staff recommends Council accept the report and approve the resolutions. (Chief of Police) * * * Coundlmember Rindone !eft the dais at 7:37 p.m. * * * Councilmember Padilia commended the Police Department for taking advantage of additional funding opportunities that relieved the general fund. He was pleased to learn about the family protection unit that would deal with traditional domestic violence and juvenile sex abuse issues. In looking at how the budget covers tins in the short term, and in the fiscal analysis in year five picking up incrementally from that point forward, we are looking at increased burdenships. He knows we have been innovative in the short-term and has no doubt we can be innovative in the future to cover it, but he always bears in mind absorption issues and future funding issues. Minutes October 22, 1996 Page 9 Rick Emerson, Chief of Police, responded as the City continues to grow, they look to other funding sources to help bridge the gap. The City Manager helped the Police Department do that in past years and has allowed the Department to grow in certain areas, knowing there would be a price to be paid at the five- and six-year window. There is money set aside for a grant writer, and the issue is to continue taking advantage of these kinds of opportunities. On the universal hiring component, there are several officers added that will have an opportunity to bring revenues to the City under the asset sharing, school resource officer programs, and business and community officer. We are currently looking in the fourth and fifth year to have the revenues generated to pay for itself. Mr. Goss pointed out that at the time the budget was adopted, Council approved the budget to include the .5 crime prevention specialist; it was not ahalf-time person, but actually afull-timeperson for six months. We were charged with the responsibility of coming back and trying to identify funding for the reminder of the fiscal year. If Council passes this resolution, it is part of the program to have the crime prevention specialist for the full year. Councilmember Moot commended the Police Department for aggressively finding ways to bring more funds to our community to improve public safety in Chula Vista. The reason we are able to increase public safety funding in Chula Vista is because a managed and controlled growth policy was adopted. Without the ability to meet the matching funds in the future for these program, we could not increase the funds spent for public safety and see improvements in our crime statistics today. * * * Councilman Rindone returned to the dais at 7:45 p.m. * * * Councilmember Rindone stated that in the first three years, the grants cover most of the project, and they would generate income to pay for the fourth year. But in year five, over $250,000 would have to be budgeted from new monies to address those issues. It would have long-term implications on future Councils, but it is a commitment that Council is generating and setting the pace that public safety is the number one issue. RESOLUTIONS 18468, 18469, 18470, 18471, 18472, 18473, 18474, 18475 AND 18476, OIy~ERED BY COUNCILMEMBER MOOT, reading of the text was waived, titles read, passed and approved unanimously. * * * COPS Universal Hiring Program * * * B. RESOLUTION 18468 AMENDING THE FISCAL YEAR 1996/97 BUDGET TO ADD SIX FULL TIME EQUIVALENT POLICE OFFICERS AND ACCEPTING $450,000 OVER THREE YEARS FROM THE COPS UNIVERSAL HIRING GRANT AND APPROPRIATING $162,198 OF SUCH FUNDS FOR HIRING SIX ADDITIONAL POLICE OFFICERS lN FISCAL YEAR 1996/97 AND DIRECTING STAFF TO BUDGET THE REMAINING FUNDS AS STIPULATED BY THE GRANT IN SUBSEQUENT YEARS - 4/5th's vote required. C. RESOLUTION 18469 APPROPRIATING $122,364 FROM FUND 214 SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (SLESF) - AB 3229, CITIZENS OPTION FOR PUBLIC SAFETY FOR PAYING FOR THE SIX OFFICERS ADDED UNDER THE UNIVERSAL HIRING GRANT, $184,044 FOR EQUIPMENT PROCUREMENT, AND $50,000 FOR LOCAL LAW ENFORCEMENT SERVICES - 4/5th's vote required. D. RESOLUTION 18470 DESIGNATING REVENUES GENERATED BY ASSIGNMENT OF POLICE OFFICERS TO CERTAIN SPECIALTY ASSIGNMENTS FOR PAYMENT OF FUTURE UNIVERSAL HIRING OFFICER SALARIES AND BENEFITS - 4/51h vote required. * * * Domestic Violence Program * * * E. RESOLUTION 18471 ACCEPTING $150,000 AND APPROPRIATING $109,462 FOR THE ADDITION OF ONE FULL TIME EQUIVALENT AGENT (TO BE UPGRADED TO SERGEANT), ONE FULL TIME EQUIVALENT ADMINISTRATIVE OFFICE ASSISTANT III, $30,000 FOR FAMILY PROTECTION CONTRACTUAL SERVICES WITH CHILDREN'S HOSPITAL, $10,238 FOR EQUIPMENT, AND $300 FOR TRAVEL RELATED TO DOMESTIC VIOLENCE CASES - 4/5th's vote required. F. RESOLUTION 18472 APPROPRIATING $8,691 FROM AB 3229 - CITIZENS OPTION FOR PUBLIC SAFETY FOR UPGRADE OF THE AGENT POSITION TO SERGEANT FUNDED BY THE DOMESTIC VIOLENCE GRANT - 4/5th's vote required. G. RESOLUTION 18473 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A CONTRACT WITH CHILDREN'S HOSPITAL IN A FORM APPROVED BY THE CITY ATTORNEY Minutes October 22, 1996 Page 10 * * * Local Law Enforcement Block Grant Program * * * H. RESOLUTION 18474 AMENDING THE FISCAL YEAR 1996/97 BUDGET TO ADD $38,165 FOR ONE FULL TLME EQUIVALENT ANIMAL CONTROL OFFICER, $23,453 FOR .5 CRIME PREVENTION SPECIALIST, $10,000 FOR PATROL OVERTIME, AND $33,000 FOR CONTRACTUAL GRANT WRITING SERVICES AND $95,783 FOR EQUIPMENT - 4/5th's vote required. I. RESOLUTION 18475 ACCEPTING $257,401 FROM THE LOCAL LAW ENFORCEMENT BLOCK GRANT AND APPROPRIATING SUCH FUNDS TO PAY FOR THE ADDITIONAL POSITIONS, SERVICES AND EQUIPMENT - 4/5th's vote required. J. RESOLUTION 18476 APPROPRIATING $25,740 (LOCAL MATCH) FROM FUND 214 SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (SLESF) - AB 3229, CITIZENS OPTION FOR PUBLIC SAFETY FOR PURCHASE OF EQUIPMENT - 4/5th's vote required. 17. RESOLUTION 18477 ACCEPTING BIDS AND AWARDING CONTRACT FOR THE PURCHASE OF TWELVE POLICE PATROL SEDANS - The fiscal year 1996/97 equipment replacement budget provides for the purchase of nine replacement police patrol vehicles. Staffs proposed use of the State of California's COPS funds will require the purchase of three additional vehicles to be purchased from grant funds. Staff recommends approval of the recommendation. (Director of Public Works and Director of Finance) Councilmember Alevy discovered that the Chula Vista Ford dealer did not submit a bid, and he felt it was unusual because they provided bids to the City in the past. He spoke to a few people at the dealership, and there was some confusion as to why they hadn't responded; in a few cases, they hadn't even received the bid. He mentioned when the City has a major purchase, to advise Chula Vista businesses so they would have the opportunity to participate. RESOLUTION 18477 OFFERED BY COUNCILMEMBER RINDONE, reading of the text was waived, title read, passed and approved unanimously. 18. REPORT ANNUAL FISCAL STATUS REPORT FOR FISCAL YEAR 1995/96 AND QUARTERLY FISCAL STATUS REPORT FOR THE FIRST QUARTER OF FISCAL YEAR 1996/97 - The annual fiscal Status Report for fiscal year 1995/96 and the Quarterly Fiscal Status Report for the First Quarter of fiscal year 1996/97 are presented for Council acceptance in accordance with Charter Section 504(f). Staff recommends that Council accept the report. (Director of Finance). Councilmember Rindone stated the report showed the general funds reserves for the last six years, and the result of the actual reserves for this City were lower than in the last six years. Under the fiscal year 1995/1996 annual report, the general fund reserve was reduced $2.6 million, or a total of 41.3 percent. Council brought forth a policy to establish as a goal for the reserves of 8 percent, and he requested Mr. Powell share what that target goal would be. In the last three or four years, every time the budget cycle comes up the City had to cut expenditures. There are only two ways to deal with fiscal issues: you either cut expenditures or raise revenues, and this City cut just about every area imaginable. We need to focus on raising revenues and the real experience of this report points out the seriousness of that. He said it was incumbent for Council to meet with staff to determine the priority of those projects to raise revenues so that a year from now when this report returns on the actuals of 1996/1997, them would not be a decrease in the general fund reserves and we would see a return to reach our target of 8 percent. Mayor Horton concurred and mentioned a few weeks ago Council discussed having a workshop to set priorities of this sort. The report states the current balance doesn't appear it will continue to be a deteriorating situation. Councilmember Moot said it was interesting from the report that the sales tax revenues exceeded the property tax revenues. One area where you can make a positive impact on the ability to generate revenues for the City is by increasing existing businesses and attracting new businesses, which can boost the sales tax figure. It is one way we can continue improving our ability to provide services. The other way is to reduce our reserves, but it was important for people to understand it was important to provide a raise for our police officers. When we went into the reserves, it was for a valid reason, and one that has paid dividends to this community. MSUC (Rindone/Horton) to accept staff report for budget year 1995/1996 and first quarter of 1996/1997. Minutes October 22, 1996 Page I1 ITEMS PULLED FROM THE CONSENT CALENDAR None. * * * Meeting recessed at 8:00 p.m. to go into closed session and reconvened at 8:21 p.m.* * * OTHER BUSINESS 19. CITY MANAGER'S REPORT(S) John Goss, City Manager, provided an update of the Otay mountain fire, there were approximately 5,000 acres burned, and no structures were involved. In terms of the possibility of it coming towards Chula Vista, there was a significant barrier, the lower Otay Lake, and also a backfire set just to the east of the water treatment plant, so any fire headed towards Chula Vista would be put out by that defensive action. Basically, there was no threat to Chula Vista and his understanding was that we had a unit and battalion chief dedicated to that fire. He also mentioned the North County fire, where approximately 100 structures have been involved, and stated there were two units and a battalion chief from Chula Vista also dedicated to that fire. He commented on his speech to the Bonita Optimist Club members regarding the Bonita Hotel project. He advised that any project like this required an Environmental Impact Report which had not been done yet. It also required public hearings to be held, and there is a significant process that must be done before the Bonita Golf Hotel can be constructed. a. Scheduling of meetings. Mr. Goss stated he will consult with Council's clerical support staff in organizing the Redevelopment Agency budget workshop that will set priorities and lead to efforts with our staffmg resoumes to improve the revenue base for the City. 20. MAYOR'S REPORT(S) ® Mayor Horton referenced a letter she received from Robert Eugene Clement, who is a participant of one of the community arts program. Mr. Clement advised that the City had an opportunity to apply for a grant that could pay for a full-time arts coordinator. She requested staff contact the California Arts Council to possibly apply for the grant. Sid Morris, Assistant City Manager, said staff was aware of this opportunity. The Cultural Arts Coordinator was investigating the grant, and there will be a report for Council at the 11/5/96 meeting. · Mayor Horton mentioned there has been a lot of trash seen on streets and sidewalks, mostly in the business sections of the City. She believes this was more than just a lack of frequent street sweeping in those particular areas, and she requested staff work with the business community to resolve this problem. Mr. Goss suggested sending letters to the Chamber of Commerce, Downtown Business Association, and Broadway Business Association because they could encourage their members to self-police the areas in front of their stores. 21. COUNCIL CO~IMENTS Councilmember Moot expressed it was his pleasure in starting the 5K Arturo Barrios People's Race held in Chula Vista on 10/20/96 at 7:30 a.m. He also had the pleasure of being at the finish line for the ESPN road race of the Minutes October 22, 1996 Page 12 month. There was coverage from helicopters filming the entire race, and ESPN will broadcast the event at the end of October. He added that through the efforts of Arturo Barrrios, this race netted $10,000 for the Chula Vista library, and this was a classic win-win situation because the athletes won, as well as the Chula Vista Library and Literacy Team. Councilmember Rindone stated the Finance Director sent Council a memo regarding two options for business license taxes for special events. Councilmember Rindone requested the first option be selected, that the event sponsor maintain the roster of participants and collect the required $5 fee. He requested staff consider the first option only because it was more viable for the City to deal with. Another concern was brought to his attention by constituents regarding action taken by Council on 10/8/96 regarding the Laidlaw pilot program. The notice that was disseminated is confusing, and he requested staff work with Laidlaw to simplify the information. Councilmember Rindone also announced the 50th year anniversary of Chula Vista High School to be held on 11/1/96. Councilmember Alevv referred to a comment regarding the animal shelter made during Oral Communications. He believes our Police Department has been creative in coming up with grants for some of the wonderful program they have, and he requested staff talk to the Police Department grant writers to see if we qualified for grant funds to speed up the process for a new shelter. During the last six months, a lot of private donations came in which covered some improvements to the shelter. He also commended Captain Wolf for an outstanding job at our animal shelter and for working with what resources we had available. He also mentioned the North County fires, and people in Carlsbad, San Marcos and Encinitas conveyed their thanks for the assistance the City provided. He said there were facilities in our community where horses and animals could be sheltered until the burned facilities were repaired. Animal were displaced, and he implored members of the community who had extra space, stalls or corrals and could shelter the animals in the interim, contact the Red Cross or the City of Chula Vista. ADJOURNMENT The meeting adjourned at 8:40 p.m. to a closed session. CLOSED SESSION 22. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 · Christopher vs. the City of Chula Vista. 2. Antidpated litigation pursuant to Government Code Section 54956.9 · Metro sewer issues. PUBLIC EMPLOYEE RELEASE - Pursuant to Government Code Section 54957 Minutes October 22, 1996 Page 13 PUBLIC EMPLOYEE APPOINTMENT - Pursuant to Government Code Section 54957 · Title: City Attorney CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF, Executive Management, Mid-Management, and Uarepresented. Employee organization: Chula Vista Employees Association (CVEA) and Western Cotmcil of Engineers (WCE), Police Officers Association (POA) and International Association of Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. Title/Unrepresented Employee: City Attorney City Negotiator: City Council 23. REPORT OF ACTIONS TAKEN IN CLOSED SESSION: There were no reportable actions taken in closed session. Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk by: Patricia Schwenke, Deputy City Clerk