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HomeMy WebLinkAboutcc min 1999/06/29 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, June 29, 1999 6:00 P.M. CALL TO ORDER A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:10 p.m. in the Council Chambers located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. Councilmembers Moot, Padilia, Salas and Mayor Horton Councilmember Davis ALSO PRESENT: City Manager Rowlands, City Attorney Kaheny, City Clerk Bigelow 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROVAL OF MINUTES There were none submitted for approval. 4. SPECIAL ORDERS OF THE DAY There were none submitted. CONSENT CALENDAR (Items 5 through 7) 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 June 22, 1999, that there were no actions taken which are required under the Brown Act to be reported.. Staff recommendation: The letter be received and filed. 6. RESOLUTION 19508, AMENDING FISCAL YEAR 1998/99 BUDGET IN ACCORDANCE WITH THE BUDGET TRANSFER POLICY (4/STH'S VOTE REQUIRED) The Council Policy on Financial Reporting and Transfer Authority requires that all departments complete the fiscal year with a positive balance in each summary category account (Employee Services, Supplies and Services and Capital Outlay). In order for all departments to comply with the intent of this policy, transfers are recommended to be approved. Staff recommendation: Council adopt the resolution. (Director of Finance) ROLL CALL PRESENT: ABSENT: CONSENT CALENDAR (Continued) RESOLUTION 19509, AMENDING THE FISCAL YEAR 1999/2000 BUDGET FOR THE PLANNING AND BUILDING DEPARTMENT TO ADD AN ASSOCIATE PLANNER POSITION TO AUGMENT STAFFING FOR THE COMMUNITY PLANNING SECTION, FUNDED BY UNANTICIPATED REVENUE FROM A DEVELOPER PROCESSING AGREEMENT (4/5TH'S VOTE REQUIRED) The City reached tentative agreement with EastLake Development Company to process plans for the EastLake Business Park Phase II and EastLake IIl on an expedited basis. In order to meet the proposed schedule, staff has determined that an additional Associate Planner in the Community Planning section of the Planning and Building Department is needed immediately. Staff recommendation: Council adopt the resolution. (Director of Planning and Building) ACTION: Mayor Horton moved to approve staff recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 4-0. ORAL COMMUNICATIONS Bob Crane, 1925 Otay Lakes Road #196, realtor, asked the Council for assistance in a real estate transaction wherein an offer was made and accepted for the purchase of a mobilehome, and the parties subsequently found out that the rent had been raised. He stated that when he requested a hearing before the Mobilehome Rent Review Commission, he was informed that the Commission is not expected to meet for two or more months. Mayor Hotton asked Mr. Crane to call her office to schedule a meeting for Thursday afternoon with her and the City Attorney regarding the matter. The following persons asked the Council to investigate and warn the community about questionable physicians and practices at a women's medical clinic located at 335 H Street: Troy Newman, representing Foothills Presbyterian Church, San Bernardino Marcie Northum, P. O. Box 712772, Santee Phil Magnan, representing Calvary Chapel/Life Source, Chula Vista Heather Mechanic, MFCC, RN, Poway Sylvia Sullivan, 7892 Hillside Drive, La Mesa Cheryl Sullenger, California Life Coalition Mayor Horton informed them that the City has no jurisdiction over alleged medical malpractice but that the matter would be referred to the County Health Department and the District Attorney for investigation. Jennifer Heatherly, representing INTRAX, asked for host families to house overseas students arriving on July 8, 1999. Page 2 - Council 06/29/99 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES PUBLIC HEARING TO CONSIDER GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVICES THROUGH SEPTEMBER 4, 2007 WITH AN OPTION TO EXTEND UNTIL THE YEAR 2015 SUBJECT TO SATISFACTORY PERFORMANCE, AND POTENTIAL ADDITIONAL EXTENSIONS AT CITY'S SOLE OPTION UNTIL THE YEAR 2031 (CONTFNUED FROM JUNE 22, 1999) ORDINANCE 2792, GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVlCES THROUGH SEPTEMBER 4, 2007 WITH AN OPTION TO EXTEND UNTIL THE YEAR 2015 SUBJECT TO SATISFACTORY PERFORMANCE, AND POTENTIAL ADDITIONAL EXTENSIONS AT CITY'S SOLE OPTION UNTIL THE YEAR 2031 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME (FIRST READING) RESOLUTION 1950I, APPROVING IN CONCEPT A LANDFILL AGREEMENT WITH OTAY LANDFILL, INC. REGARDING CITY TRASH FLOW AND LANDFILL MITIGATION The current solid waste and recycling Franchise Agreement expires on September 4, 2002. In anticipation of the end of that agreement, staff worked with the City's current service provider, Pacific Waste Management, to develop the terms and conditions for a proposed solid waste management franchise renewal and a companion landfill agreement. Staff recommendation: Council place the ordinance on first reading and adopt the resolution. (Conservation Coordinator) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Conservation Coordinator Meacham presented an overview of the proposed franchise renewal and companion landfill agreements. He stated that the proposed franchise renewal is for an eight-year period, beginning with a five-year extension of the current agreement. The agreement will provide a number of benefits, including a guaranteed lowest residential rate in the County, a small reduction in small-business rates, a reduction in apartment recycling rates, and free recycling, yard waste and trash service for all city facilities, such as libraries and the senior center. He referred to the "Most Favored Nation" clause, which guarantees that Chula Vista's ratepayers will always have the lowest residential rate; ira lower rate is offered to any other city in the County, Chula Vista's ratepayers will also benefit. He then commented on proposed service enhancements, including more convenient collection times, two free passes annually to the landfill site, increased educational funding to help businesses take advantage of potential cost savings and meet the state-mandated recycling goals, more attractive street litter bins, and a number of energy-related benefits and commitments. Another benefit is a commitment to consider a variable rate option, wherein ratepayers in the future could pay based on the amount of trash they generate. Page 3 - Council 06/29/99 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued) Mr. Meacham further explained that a few years ago, Allied Waste Systems purchased the County's landfill system. Chula Vista has a unique relationship with the company in that its hauler is the same company that provides disposal for a major portion of the County, and one of its landfills happens to be just outside Chula Vista. Because of the location of the landfill, the City has been able to negotiate measures that will make the landfill a better neighbor and provide benefits to all Chula Vista residents. Among the benefits ofapproving the landfill agreement are that up to a 54-acre parcel will be donated to the City to provide a buffer between the closest Chula Vista residences and the landfill operation; up to $4 million will be donated to improve and develop the acreage as a park; the City will receive an annual bonus and franchise fee, amounting to $818,000 during the next fiscal year, for use for other City services, such as police and fire services, and these funds will not result in increased rates to ratepayers, either currently or in the future. Mr. Meacham stated that in exchange for the many benefits to the City, Pacific Waste Services is asking that the current contract, which expires in three years, be extended for five years, for a total of eight years. At the end of the eight years, the City Manager may extend the contract for an additional eight years if the company has performed adequately and is in full compliance with all the service and legal requirements of the contract. In addition, the current 50% CPI increase would increase to 66.6%; the City's disposal would be reduced from 10% to 5%, which is actually more representative of the City's disposal for the past two years; and there would be minor reductions in the number and scope of performance penalties. The company has also agreed to meet and confer regarding any remaining landfill issues. In summary, Mr. Meacham stated that the City has negotiated a below-market deal; Chula Vista's current trash rate is the lowest unsubsidized rate in San Diego County. The City will receive additional benefits and services, such as free mixed paper for multi-family housing units and free bottle and can services for restaurants. Staff believes that the City will receive a better package and better value than if the contract were to be bid. By combining the collection agreement with the landfill agreement, the City will not only receive a better price, but will also receive landfill mitigations that otherwise would not be achieved. Two cities in the County have attempted to obtain lower rates by going out to bid; Chula Vista's rates are about $1.50 lower than one of those cities and $2.50 lower than the other. In studying 21 cities in Los Angeles, Riverside and Orange Counties that went to bid, 11 received lower rates initially but were paying rates equal to or higher than before within six to eighteen months. Mayor Horton asked how service would be monitored to ensure customer satisfaction. Mr. Meacham responded that performance measures were specifically included in the contract. For example, the company must respond within 24 hours, or face a fine of up to $15, for each inquiry regarding missed service. Also, the company funds two education officers to work with residents and businesses regarding the recycling program, and the officers also monitor service in the field. In addition, 20 to 25 liquidated-damage-type of issues are included wherein Pacific Waste would face penalties severe enough to provide a financial incentive to provide the best service possible. Councilmember Moot referred to the study of cities in Los Angeles, Riverside and Orange Counties and asked how cities could go out to bid and ultimately end up with a higher rate than initially bid. Page 4 - Council 08/29/99 PUBLIC HEAR1NGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued) Mr. Meacham stated that the contracts contained clauses permitting the companies to request a rate increase due to certain circumstances. Such clauses in the City's contract are carefully worded; and the City's contract contains the requirement for Chula Vista to have the lowest rate in the County. Also, in some bid situations, smaller companies submit a low bid but then have to request rate increases in order to adequately perform. In the meantime, the quality of service may suffer. Mayor Hotton then opened the public hearing and asked if anyone from the audience wished to speak. Joanne Clayton, 945 Nacion, asked the Council to approve the agreements, stating that Pacific Waste's services are efficient and cost-effective. Jim Ambroso, District Manager of Allied Waste Industries, stated that the City has the opportunity to extend a potentially long-term partnership to provide the ratepayers of Chula Vista with long4erm disposal capacity at the lowest rates while preserving the City's environmental resources. No other agreement in the County guarantees the lowest residential rate for the next 20 years: no other franchise agreement has secured a long-term source of revenue which could amount to over $22 million to the City during the next seven years; and the agreement contains extensive measures to expand the recycling programs and educational efforts. The agreement also provides the opportunity to extend the relationship with Pacific Waste as a community leader: the company has supported many organizations in the community. With the landfill agreement, the Council also has the opportunity to secure protections and environmental enhancements for residents who will eventually live and work near the landfill. He then submitted letters of support from the following businesses: San Diego Taxpayers' Association, Adrian Arms Properties, the San Diego Metro KOA Campground, Pacific Southwest Association of Realtors, Hometown Realtors, The Paul Miller Company, and Tyco Property Management Company and Investments. He asked the Council to support the proposed agreements. Suzanne Belmonte, representing Christmas in April-Greater San Diego and South Bay Community Services, asked the Council to approve the agreements, stating that Pacific Waste Services has provided invaluable services and advertising to non-profit organizations in the community. Robert Pinnegar, representing the San Diego County Apartment Association, expressed support for the proposed franchise agreement and enumerated the benefits, such as lower rates, Christmas tree recycling and free bulky pickup service, that it provides to the multi-family community. He stated that there has been value added to multi-family service that is far greater than found in other cities in the County. He also mentioned that Pacific Waste has assisted the association with community service projects. Jerry Harmon, 1021 Madison Avenue, Escondido, felt it was not in the best interest of the ratepayers to continue re-approving contracts that seem to never end. He commended staff for an excellent job in negotiating but pointed out that everything that had been negotiated could be included in a request for proposals that would be sent out to bid. He suggested that the Council not proceed at this time for the following reasons: ( 1 ) the Council previously indicated that the City would go out to bid prior Page 5 - Council 06/29/99 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued) to the end of the current contract in September 2002, and nothing has happened to warrant a change in that policy; (2) it is a very large contract and should be bid; (3) the City will take up to 15% of the revenues paid by ratepayers, and he questioned whether or not Proposition 218 would apply in this instance; (4) a neighboring city recently bid its contract, and Chula Vista's incumbent hauler lost that contract; thus competitive bidding can make a difference in rates; and (5) the proposed franchise needs to be adjusted to address construction and demolition service problems documented by contractors. He asked the Council to table the contract extension to further consider competitive bidding. John Clingan, representing the Boys & Girls Club of Chula Vista, spoke in support of Pacific Waste' s contract extension, stating that the Club and children have greatly benefitted from the company's involvement in terms of both financial and staff support to the Club's environmental and recycling programs. Gregg King, 554 Dawn Court, representing Debris Box, expressed concern that there was no competition for the contract. He stated that it is a large contract for a long term; the City is taking 15% in franchise fees, paid by ratepayers, while the current rate in other cities is 8%; and there are construction and demolition industry issues which are unresolved. He asked why there had been an unannounced change in policy since last August, when staff had indicated that the contract would be bid before the September 2002 renewal date; and why staff had returned to the Council at this time with a negotiated renewal agreement with Pacific Waste. He felt that a contract of such a scope should be periodically bid. Councilmember Moot stated that the franchise fee included in the contract is 10% and asked why Mr. King cited a 15% fee. Mr. King responded that the franchise fee is 10%; however, there are additional payments required to be made to the City. Councilmember Moot stated that the agreement specifically states that the additional payments cannot be passed through to the ratepayer, so they cannot affect rates. Mr. King replied that the City could have reduced rates by 5%, passing savings along to ratepayers, rather than taking the money for City coffers. He stated that Imperial Beach ratepayers received a 4% reduction in rates. Councilmember Moot pointed out that Chula Vista rates are lower than those paid by Imperial Beach ratepayers. Mr. King explained that Chula Vista is closer to a landfill, is six times larger than Imperial Beach, and has newer neighborhoods and wider streets, providing easier access for the hauler. He stated that he was not complaining about the service, however he felt that a contract of this scope should be bid. Councilmember Padilia commented that he knew of no other franchise agreement structured similar to the one before Council at this time, wherein there is a guaranteed, unsubsidized, lowest residential rate; and he felt that no other provider would be able to match the terms, given the infrastructure in place under the current provider. He also stated that the agreement specifically states that the increase in franchise fees cannot be passed on to ratepayers. Mr. King again pointed out that all the negotiated contract terms could be included in a request for proposals, to which a number of qualified haulers would respond because of the City's significant growth rates and the opportunity to break into the San Diego County market. Page 6 - Council 06/29/99 PUBLIC HEAR1NGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued) Deputy Mayor Salas commented that Imperial Beach chose a different provider for animal shelter services last year due to a lower bid and now regrets that decision because it has received a lower level of service as a consequence. A low bid is not always the best in the long run. Art Luhan, Business Manager of the San Diego Building Trades Council, which represents all the construction unions in the community; Chairman of the Board of National City Park Apartments; and Vice President of San Diego and Imperial Counties Labor Council, which represents 110 unions, including Teamsters Local 36, spoke regarding his organizations' commitment to the people they represent and the commitment of Pacific Waste to its employees. On behalf of the members of Teamsters Local 36, representing 200 employees working for Pacific Waste, he urged support of the proposed contract extension, stating that Pacific Waste is an employer which is dedicated to its employees. Christina Williams, representing South Bay Family YMCA in Chula Vista, and also a resident at 335 E Street, encouraged the Council to support Pacific Waste's contract extension, stating that the company is unsurpassed in its support of local human services agencies. Rod Davis, representing the Chula Vista Chamber of Commerce, stated that Chula Vista is more than 12 times larger than Imperial Beach, and, therefore, what works in Imperial Beach may not work in Chula Vista. He also stated that if the contract went out to bid, the most likely successful candidate would be the company that owns the landfill, because the carrier can deliver the flow cheaper to a landfill that it owns. On behalf of the Chamber, he asked the Council to support Pacific Waste, which has demonstrated community leadership and has guaranteed the lowest rate for the life of the contract. Emerald Randolph, 447 F Street, spoke in support of the contract extension, stating that the company is responsible, reliable and provides good service. In addition, it supports service agencies and residents, and its level of caring and commitment to the community are rare. Shane J.A. Erickson, representing South Bay Community Services, stated that the organization is very appreciative of the support given by Pacific Waste over the years. With in-kind and other financial support, totaling approximately $20,000 per year, the generous offerings of Pacific Waste have helped the agency serve children, youth and families throughout Chula Vista. The company is a local, community-based business helping local, community-based agencies, and South Bay Community Services supports an extension of the contract. There being no further comments from the audience, Mayor Horton closed the public hearing. She stated that the Council has worked hard for the citizens to ensure competitive rates and high quality service. She commended staff for negotiating a package that insures that the City will have the lowest rates in the County for many years to come. She also noted that the only persons who came forward to speak in opposition to the proposed contracts at this advertised public hearing were persons she believed had a financial interest in breaking the contract with Pacific Waste. Page 7 - Council 06/29/99 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued) Mr. Meacham submitted two written communications for the record. One, from C. J. Weisner Construction, discussed the difficulty of obtaining forty-yard dumpsters at construction sites. The other, from Penhall Company, asked that construction and demolition hauling services be excluded from the trash hauling contract. Mr. Meatham also reiterated that the proposed action is a five-year extension of the contract, which has three years remaining, and any further extensions would be solely at the City's option. In addition, Chula Vista is guaranteed the lowest rate in the County, and revenue that is paid to the City by Pacific Waste as a result of the contract will not be passed through to ratepayers. Vice Mayor Salas stated that the agreement will benefit the residents of Chula Vista, guaranteeing the lowest rate in the County and continued good service. In addition, Chula Vista is on the forefront with its recycling program, and the proposed agreement further improves upon it. Councilmember Moot stated that the City has the opportunity to guarantee the lowest rate without the risk of going to bid and then being faced with higher rates, as has been experienced by some other communities. A responsible public official needs to protect the ratepayers and ensure the best service at the lowest price. By taking advantage of the fact that the landfill is adjacent to the City and that there is a unique relationship between the hauler and the landfill, the Council has the opportunity to guarantee something for the ratepayers that no other city can match. Councilmember Padilia stated that the premise that the market can compel lower rates by competition is a general one and does not mean that lower rates are guaranteed in each and every case. Further, public officials need to examine all options before them, and while he supported the concept of open bidding in most cases, in this instance, he felt that staff was to be commended for taking the initiative to negotiate, under a unique set of circumstances, a terrific deal for the ratepayers of Chula Vista. He also stated that trash franchises are increasingly becoming a political issue, and the citizens of Chula Vista need to be aware that Councilmembers have suffered political threats during the past few weeks and have been told that if the Council chooses to adopt the agreement, it may become the subject of a referendum, filed and funded by persons whose motivations are unclear and who are not members of this community. The City has an agreement that guarantees residential ratepayers the lowest unsubsidized rate in the County for the term of the agreement, and the agreement should be approved. Mayor Hotton stated that the proposed agreement provides Chula Vista ratepayers with the lowest rate and a better package than is being offered anywhere in this region and beyond. She also mentioned that the City has been a leader in meeting its AB939 goals, and she thanked Mr. Meacham and Assistant City Attorney Googins for their hard work on this item. ACTION: Mayor Horton then offered Ordinance 2792 for first reading and Resolution No. 19501 for adoption, headings read, texts waived. The motion carried 4-0. At 8:12 p.m., Mayor Horton declared a brief recess. The meeting reconvened at 8:25 p.m., with all Councilmembers present except Councilmember Davis. Page 8 - Council 06/29/99 ACTION ITEMS 9.A. RESOLUTION 19510, APPROV1NG FIRST AMENDMENT TO THE CONTRACT WITH THE CHULA VISTA CHAMBER OF COMMERCE TO PROVIDE CHULA VISTA CONVENTION AND VISITORS BUREAU PROMOTION SERVICES RESOLUTION 195 l 1, APPROVING FIFTH AMENDMENT TO THE CONTRACT WITH THE CHAMBER OF COMMERCE TO PROVIDE VISITOR AND TRANSIT INFORMATION SERVICES AT THE CHULA VISTA VISITOR INFORMATION CENTER AND CHAMBER OF COMMERCE MAIN OFFICE Pursuant to Council Policy Number 230-01, staff negotiated a contract extension with the Chula Vista Chamber of Commerce for operation of a Chula Vista Convention Center and Visitors Bureau and for the performance of certain designated visitor and convention promotional services. The proposed contract runs through the end of fiscal year 1999/2000. A corresponding one-year extension to the existing contract with the Chamber for operation of the Visitor Information Center is also recommended. Since Council policy stipulates a review five years after its adoption date, staff intends to bring a mid-year report to Council fully examining the five-year history of the Chula Vista Convention & Visitors Bureau and operation of the Visitor Center with recommendations for future operations. Staff recommendation: Council adopt the resolutions. (Administration) ACTION: At the recommendation of staff, Mayor Horton moved to continue the item 90 days and to authorize the City Manager to extend the current contract until that time. Deputy Mayor Salas seconded the motion, and it carried 4-0. 10. RESOLUTION 19512, AUTHORIZING A NO 1NTEREST LOAN FROM THE GENERAL FUND, 1N AN AMOUNT NOT TO EXCEED $500,000, TO USA SOFTBALL FOR THE COMPLETION OF PHASE I OF THEIR TRAINING FACILITY AT THE ARCO OLYMPIC TRAINING CENTER AND AMENDING THE PROPOSED FISCAL YEAR 2000 BUDGET TO INCLUDE THE LOAN AND APPROPRIATE AVAILABLE FUND BALANCE FOR THE AMOUNT OF THE LOAN (4/5TH'S VOTE REQUIRED) The City Manager's Office worked with the Director of the Olympic Training Center on a variety of projects to help enhance the viability of the Center and its ultimate economic impact on the City. Notwithstanding that the Center is a great asset to the City, in its current form, it is still a "diamond in the rough" that, when its full potential is realized, will make current efforts pale by comparison. Staff recommendation: Council adopt the resolution. (Assistant City Manager) ACTION: Mayor Horton offered Resolution No. 19512, heading read, text waived. The motion carried 4-0. Page 9 - Council 06/29/99 ACTION ITEMS (Continued) 11. RESOLUTION 19513, APPROVING A MEMORANDUM OF UNDERSTANDING WITH SUNLINE TRANSIT FOR HYDROGEN FUEL CELL BUS DEMONSTRATION PROJECT Staff was directed to develop a hydrogen fuel cell bus demonstration project in conjunction with the California Energy Commission and Ballard Power Systems. Over the course of development of the project, the City identified a partnership for implementation of the project. Staff recommends approval of a preliminary negotiating agreement to set the framework for a cooperative agreement to demonstrate a bus powered by a Daimler-Benz-Ballard Corporation hydrogen fuel cell. The California Energy Commission has committed $500,000 to the City for the fuel cell demonstration project, with the stipulation that the City and Sunline Transit enter into an initial agreement by June 30, 1999. Staff recommendation: Council adopt the resolution. (Director of Planning and Building) ACTION: Mayor Horton offered Resolution No. 19513, heading read, text waived. The motion carried 4-0. 12.A. RESOLUTION 19514, APPROVING RENEWAL OF COMMONWEALTH ENERGY POWER SERVICES AGREEMENT AND GREEN POWER ADDENDUM FOR THE CITY'S ELECTRIC SERVICE PROVIDER AND INCLUDE GREEN POWER IN ALL FUTURE BID REQUESTS AND ELECTRICITY PURCHASING CONTRACTS RESOLUTION 19515, AMENDING THE FISCAL YEAR 1999/2000 BUDGET BY APPROPRIATING $13,500 TO PLANNING DEPARTMENT BUDGET FROM AVAILABLE FUND BALANCE IN THE GENERAL FUND TO IMPLEMENT A PUBLIC EDUCATION PROGRAM FOR CHULA VISTA RESIDENTS ON ELECTRICITY CHOICES AVAILABLE TO CONSUMERS, SPECIFICALLY RELATING TO GREEN POWER (4/STH'S VOTE REQUIRED) In June 1998, staff was directed to participate in the SANDAG power pool and switch some of its meters from the default energy supplier, SDG&E, to Commonwealth Energy, under the SANDAG contract. Council also directed staff to identify possible green power options for switching the City' s meters to a more environmentally favorable power mix. Commonwealth has an attractive option to its original power contract. The option has two elements: The power comes from a 100% renewable resource, and it is cheaper than the original 2.5% discounted rate. The new Green Power option reduces the cost by approximately 5%, according to SANDAG. Staff recommendation: Council adopt the resolutions. (Director of Planning and Building) ACTION: Councilmember Moot offered Resolution No. 19514 and Resolution No. 19515, headings read, texts waived. The motion carried 4-0. Page 10 - Council 06/29/99 ACTION ITEMS (Continued) 13. RESOLUTION 19516, APPROPRIATING FUNDS FROM THE OTAY VALLEY ROAD ASSESSMENT DISTRICT 90-2 CONSTRUCTION FUND TO THE OTAY VALLEY ROAD WIDENiNG CAPITAL PROJECT FOR PROJECT RELATED COSTS (4/STH'S VOTE REQUIRED) Council approved the formation of Assessment District 90-2 (Otay Valley Road) on June 23, 1992, for the purpose of funding the road widening and other improvements from I-805 to 1,200 feet east of Nirvana Avenue. Other funding sources were also used on the project. The construction work was completed a few years ago; however, the contractor on the project, Granite Construction, sued the City, and the settlement was just reached in December 1998. Staff recommendation: Council adopt the resolution. (Director of Public Works) ACTION: Councilmember Padilia offered Resolution No. 19516, heading read, text waived. The motion carried 4-0. OTHER BUSINESS 11. CITY MANAGER'S REPORTS There were none. 12. MAYOR'S REPORTS Ratification of appointments to the Board of Ethics: Teresa Thomas (to fill vacancy created by Member Schulman, whose term expires June 30, 2000); and Kenneth Culver (to fill vacancy created by Member DeVore, whose term expires June 30, 2003); and to the Mobilehome Rent Review Commission (Ex-Officio): Edmund "Pat" LaPierre (to fill vacancy created by Commissioner Biggers, whose term expires June 30, 2001). (Continued from June 22, 1999) ACTION: Mayor Horton moved to ratify the appointments of Teresa Thomas and Kenneth Culver to the Board of Ethics. Deputy Mayor Salas seconded the motion, and it carried 4-0. ACTION: Mayor Hotton moved to ratify the appointment Edmund "Pat" LaPierre to the Mobilehome Rent Review Commission. CouncihnemberPadillasecondedthemotion, and it carried 4-0. Mayor Horton also noted a SANDAG General Session meeting to be held July 1, 1999, 7:30 a.m., at the San Diego Hilton Hotel. Page 11 - Council 06/29/99 13. COUNCIL COMMENTS Councilmember Davis: Ratification of appointment to the Economic Development Commission: Dan Hom (to fill vacancy created by Commissioner Rodrigo, whose term expires June 30, 2001). It was the consensus of the Council to continue this item, since Councilmember Davis was not present. Councilmember Padilia stated that he would be on vacation on July 13th and asked to be excused from the Council meeting on that date. ADJOURNMENT At 8:58 p.m., Mayor Hotton adjourned the meeting to the Adjourned Meeting of the Redevelopment Agency, City Council and Housing Authority and thence to the Regular Meeting of July 13, 1999, at 6:00 p.m. in the Council Chambers. Respectfully submitted, Susan Bigelow, CMC/AAE, City Clerk Page 12 - Council 06/29/99