HomeMy WebLinkAboutcc min 1995/06/27 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL
OF THE CITY OF CHULA VISTA
Tuesday, June 27, 1995 Council Chambers
4:17 p.m. Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT: Councilmembers Alevy, Moot, Padilia, Rindone, and Mayor Hotton (left the
meeting at 9:50 p.m.)
ALSO PRESENT: John D. Goss, City Manager; Bruce M. Boogaard, City Attorney; and Beverly
A. Authelet, City Clerk
2. PLEDGE OF ALLEGIANCE TO THE FLAG, SILENT PRAYER
3. APPROVAL OF MINUTES: June 13, 1995.
MSUC (Padilla/Rindone) tu approve the minutes of June 13, 1995 as presented.
4. SPECIAL ORDERS OF THE DAY: None submitted.
CONSENT CALENDAR
(Items pulled: none)
CONSENT CALENDAR OFFERED BY MAYOR HORTON, reading of the text was waived, passed and
approved unanimously.
5. WRITTEN COMMUNICATIONS:
a. Letter from the City Attorney stating that there were no observed reportable actions taken in Closed
Session on 6/20/95. In addition, in Closed Session on 6/21/95, the City Attorney hereby reports that although
it is not necessarily reportable action, the City Council authorized a settlement offer in the Metro Sewer
Billing dispute, the extent of which is of a nature to be kept confidential. Further negotiations are believed
necessary in order to produce a settlement. It is recommended that the letter be received and tiled.
6. RESOLUTION 17938 AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
AGREEMENT WITH THE UNITED STATES OLYMPIC COMMITTEE TO PAY THE SALT CREEK
SEWER BAS1N DEVELOPMENT IMPACT FEE FOR THE VISITOR CENTER IN THREE ANNUAL
PAYMENTS - The United States Olympic Committee has been processing the plans for construction of the Visitor
Center at the Olympic Training Center. As the Committee was preparing to obtain the building permit, they
discovered that the Salt Creek Sewer Basin Development Impact Fee (SC Swr DIF) had not been anticipated and
was beyond their financing capacity at this time. The Committee has, therefore, requested that the City allow
payment of the SC Swr DIF for the Visitor Center in three equal installments. Staff recommends approval of the
resolution. (Director of Public Works)
* * * END OF CONSENT CALENDAR * *
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
7. PUBLIC HEARING CONSIDERATION OF THE ADOPTION OF THE CITY OF CHULA
VISTA OPERATING AND CAPITAL BUDGET FOR 1995/96 - Council has held tire special work sessions to
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Minutes
June 27, 1995
Page 2
consider and discuss the proposed tiscal year 1995/96 budget. Council has received citizen input and discussed in
detail with staff the impact of this budget on all City operations. The Manager's proposed budget has been amended
based on tentative decisions by the Council at the budget work sessions and it is this amended budget which is
recommended to be adopted. Staff recon~nends Council accept public testimony and adopt the proposed budget as
amended during the review sessions and as may be further amended as a result of the public testimony. Staff
recommends approval of the resolution. (Administration)
RESOLUTION 17939 ADOPTION OF THE FINAL OPERATING AND CAPITAL BUDGETS
FOR THE FISCAL YEAR BEGINNING JULY 1, 1995 AND ENDING JUNE 30, 1996 AND AMENDING
THE MASTER FEE SCHEDULE TO INCORPORATE CHANGES TO FEES AND FINES PROPOSED IN
THE 1995/96 BUDGET
Mr. Goss stated the Recreation staff felt there was an outstanding issue of charging $1.00 for free play at Parkway
Gym for non-residents. Staff felt there either shotdd be no fee, or if there was a fee it should be applied to both
residents and non-residents above the age of 19. If there was a desire by Council to not implement the fee there
would be a $10,000 impact to the overall budget.
Mr. Boogaard stated he needed to discuss a legal issue with Council regarding the budget in Closed Session.
Council met in Closed Session at 9:20 p.m. to discttss a legal issue regarding the budget and reconvened at
9:50 p.m. with Mayor Horton absent.
Councilmember Alevy stated he was concerned with the $50.00 fee being charged to the Adult Athletic Leagues.
They were currently paying $370 and he t~lt if increased tearas would not be able to participate. With the increase
the City would be the highest fee in the County tbr the Adult Athletic Leagues. He was conumtted to a balanced
budget and questioned if there was alternate funding available for the $20,000.
® Harriet F. Acton, 265 Nixon Place, Chula Vista, CA, Member of the Board of Ethics, stated she was not
authorized to speak on the Board's behalf, therefore, she was expressing her own concerns. She
hoped the budget would further the recent Council commitment for educational and training
methods of the Josephson Institute Ethics program. The City sent an employee to a four day
training session in Washington D.C. and sponsored a seminar for staff and board/commission
members and public service guests. She was concemed regarding the follow-up of the program
if the employee was no longer available to implement Council's commitment.
· Richard Schulman, 108 Jeffi~rson, Chula vista, CA, Member of the Board of Ethics, stated having the
Josephson Institute provide training to the City was approved unanimously by the Council. Part
of the program was the training of an employee at the estimated cost of $3,000. According to the
staff report at that time the City Manager stated "it was probably the most important part of the
program and would provide follow-up and continuity to the initial training". The Board was very
concerned when they found out that the person's position was conditional and would be reviewed
in thirty days. Obviously, the City had priorities but the Board felt it was a great loss to the City
to not have follow-up. Seventy-three people attended the seminar and the cost to the City was
over $10,000. He urged Council to put the position of trainer on a permanent basis for the
coming year rather than leaving it up in the air. That way the City would not lose the momentum
gained and the various boards/commission and employees would know that a resource was
available to assistance them regarding the high goals of the Ethics Program.
Mayor Pro Tem Rindone stated Council had gone on record, and would continue to do so, that the commitment was
there. The seminar was outstanding and the real benefit would be the follow-up and review. Council was
committed to the program presented by the Board of Ethics and also committed to no layoffs. He felt that a position
would be found for the individual so training could continue.
Mr. Goss stated staff proposed that the person/position be retained as an employee of the City. A strategy had been
proposed to put that person in the Police Department which would mean that they would still be available for that
type of activity. There had been questions raised about the position and staff would return within thirty days
regarding that issue.
Minutes
June 27, 1995
Page 3
Mayor Pro Tem Rindone stated whatever capacity that person was in training would still be available to the City.
Mr. Goss stated that was correct. He felt the concern was that if her position was eliminated in Personnel, and
there was not a position that she was moved to, that she would have no position in the City. Staff would return with
a report on how she could stay as an employee with the City.
Councilmember Moot stated he was in favor of adopting the proposed budget but was disappointed. Council had
made a lot of progress in the areas of fiscal responsibility but he felt they had gone backwards by taking the budget
out of balance with actions taken. It was done so by a failure of will to make tough decisions and it was
disappointing. Fiscal responsibility was a big issue facing government with limited resources and he personally felt
they had to get tougher, stronger, and more vigilant. Council could not afford to go backwards and he was upset
that the budget was not in balance.
Councilmember Padilia stated he agreed with Councilmember Moot's comments. Council needed to be tough and
strong and "bite the bulletM. There had been some concern in terms of having the potential, as a matter of policy,
to reallocate funds within the budget, even though the overall budget may be balanced, there could be individual
departments that were over their budgets. That was something the Council needed to be aware of at the time. He
was not proposing that Council take away all the Manager's flexibility within the budget to transfer, but to have such
liberal language was too broad and the authority too sweeping. He f~lt that needed to be deleted from the resolution
and hopefully revised language could be brought back to amend the resolution. He would not support a budget
resolution with that language in it.
MS (Padilla/Rindone) to amend Resolution 17939, paragraph 7, tn delete: "The City Manager and Director
or Finance are hereby jointly authorized to transfer appropriations within control accounts for all services
and to transfer appropriations between control accounts ~r Employee Services only".
Councilmember Moot stated he could not support the motion. The resolution enabled the City Manager to fund the
Police and Fire Departments when they went over budget and he felt public safety was vitally important. By
removing that language it could jeopardize that. Before taking such action he felt Council should think through the
impacts. He could support a modified version where Council was given notice and/or an opportunity to discuss it
but he would not be in favor of removing the section.
Mayor Pro Tem Rindone stated no one on the Council would be advocating any procedures that would hurt public
safety and did not feel that was an issue. It was clearly the budget process. To not have transfers or ~wiggle~ room
was not in the best interest of the City for daily operations. The best procedure was to have the public officials
aware of transfers. It was his experience that any time a transt~r was done that it had to be reported and required
budget approval. He was shocked to find out about the shortfalls in some of the departments for the current year
and previous year. He t~lt it appropriate t~r staff to return with a procedure to ensure that there was a reporting
process and guidelines. To have unlimited budget transfers without reporting to the policy makers was not
appropriate or good business.
Councilmember Padilia stated it was not about public sat~ty but about fiscal responsibility and how to do a budget.
A budget was a spending plan with a mechanism that let the policy makers know when large amounts of money
needed to be allocated or reallocated. If a spending plan was not followed and did not have tight controls then there
was a question as to why there was a budget in the first place. It was not allowed in other jurisdictions period and
would never be allowed in the private sector. The language and authority was too sweeping. He would be willing
to allow transfer authority that was capped with specific requirements. He was not trying to micro-manage anyone
but if there was a potential that individual departmental budgets could be way over budget and could be told that
their new appropriations was X without Council being told, that was not appropriate.
Councilmember Moot questioned what department the provision was invoked for and why.
Mr. Goss stated a number of years ago it was adopted by the Council on the theory that the City was a business
and the Council was giving authority to the City Manager and Director of Finance to run it within the overall
appropriation of the City budget. In 1993/94, in the Police Department, there was City-wide salary savings, a
percentage of which was put in both Police and Fire Departments because they were large departmental budgets.
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Minutes
June 27, 1995
Page 4
To the extent that departments may expend their entire amount of budgeted salaries they would automatically receive
the amount that was budgeted for them. Also, the MOU increases that were approved by Council in mid-year were
not added to the appropriations for 1994/95. That created more of a situation where the expenditure would exceed
the budgeted amount because the budgeted amount did not take into account the MOU approval. He had also been
apprised that there were some Worker's Comp costs that exceeded the projections.
Councilmember Moot stated by having the provision, if by chance the Police or Fire Department exceeded their
budget, the City Manager could step in and find money fi'om other areas and make sure Police and Fire had the
resources to be on the streets. It was important that Council not lose site of the fact that there needed to be
flexibility in the budget.
Mr. Goss suggested that a 2% cap be added.
Mayor Pro Tem Rindone stated no one was suggesting that public service efforts be debilitated, it was a budget and
financial issue. Otherwise, the process was a fruitless exercise. There needed to be guidelines and if there was
a demonstrated need for funding those decisions would be made. 1994/95 was not the first year it happened and
he had not been made aware it happened in 1993/94. He supported Councilmember Padilla's concerns. He
suggested that Council adopt the budget and have the City Manager bring back a policy for a cap or some type of
notification so Council would be informed of transfers.
Councilmember Moot suggested that the resolution be amended to read at the end of the sentence "... transfer
appropriations between control accounts ~br Employee Services only, pursuant to policy as adopted by Council".
Councilmember Padilia questioned what the existing policy would be between the time the resolution was approved
and the policy was brought back tbr Cooncil approval.
Mr. Boogaard stated it could not be done until the policy was adopted by Council, There could be no exercise of
the joint power appropriation authority unless it was done pursuant to a policy approved by Council and if there was
no policy approved by Council. it would have to be by Council on four votes,
Councilmember Padilia stated the affect would be what he had tried to accomplish by eliminating the language in
the resolution.
Mr. Boogaard stated that was correct until the policy was adopted by Council. If the language was deleted under
the motion it would take four votes to reinstitute it. Under his proposal it could be done on a majority vote.
MOTION WITHDRAWN: (Padilia)
MS {Padilia/Moot) to amend Resolution 17939, at the end of paragraph 7, add ".... Employee Services only,
pursuant to policy as adopted by Council".
Councilmember Alevy felt it important to have the Mayor present when establishing the policy. He wanted Council
to move forward and did not want the public to think the Council was usurping anyone's authority. Council had
been made aware of things and they were trying to take a position that reflected their concern regarding City
revenues. It was about being fiscally responsible.
VOTE ON MOTION: approved 4-0-1 with Horton absent.
RESOLUTION 17939, AS AMENDED, OFFERED BY COUNCILMEMBER PADILLA, reading of the text
was waived, passed and approved 4-0-1 with Horton absent.
Mayor Pro Tem Rindone requested the report back to Council within thirty days regarding the policy change.
8. PUBLIC HEARING CONSIDERATION OF RATE DECREASE FOR COLLECTION AND
DISPOSAL OF REFUSE, RESIDENTIAL CURBSIDE AND YARD WASTE RECYCLING - The report
Minutes
June 27, 1995
Page 5
describes proposed changes to the existing rates charged by Laidlaw Waste Systems as a result of a number of
changes to different components of the rate. The overall effect on the final rates is a significant decrease from the
existing rates. The report also addresses the cost of establishing a new administrative component of the overall rate
as allowed by Public Resources Code Section 41901. Staff recommends approval of the resolution. (Deputy City
Manager Krempl and Principal Management Assistant Snyder) Time certain 6:00 I~.m.
RESOLUTION 17940 APPROV1NG RATE SCHEDULES FOR COLLECTION AND DISPOSAL
OF REFUSE, RESIDENTIAL AND YARD WASTE RECYCLING EFFECTIVE JULY 1, 1995
This being the time and place as advertised, the public hearing was declared open.
· Jim Weaver, 881 Energy Way, Chula Vista, CA, representing Laidlaw Waste Systems, stated staff was
recommending a reduction in residential and commercial rates and he was present to answer any
questions. He requested Council support in granting a 2.5% CPI increase for operational
adjustments as part of that decrease. The rate reductions came in part as a result of County
landfill rate decreases, landfill diversion and recycling participation, and by marketing of collected
materials at pretL~rred pricing levels for the City. Laidlaw resources had provided substantial
benefit in material credits for the City and its residents by directing the sale of the materials.
Laidlaw continued to take a leadership role in the community in supporting several organizations.
Their last CPI adjustment was in July 1992. Since that time they had supported and submitted all
City staff and Council requests.
· Emerald Randolph, P.O. Box 17, Jamul, CA, Program Director tbr CAST, stated she supported Laidlaw's
request for a 2.5% CPI increase. She requested that Council take into account the contributions
Laidlaw had made to the community. Jim Weaver had never said "no" and Laidlaw was involved
in almost every effort to support and assist people and human service agencies in Chula Vista.
· Scott Mosher, 909 Loma View, Chula Vista, CA, representing the Boys & Girls Club, was not present
when called to the dais.
· Tina Williams, 50 Fourth Avenue, Chula Vista, CA, representing the South Bay YMCA, agreed with Ms.
Randolph's comments. She requested that Council give serious consideration to granting the 2.5 %
CPI adjustment to Laidlaw. Laidlaw had been a major sponsor of their golf tournament and had
enabled them to raise thousands of dollars that had gone back into the community to provide
services and programs tbr youth that could not afford to pay. They had not just done that for the
YMCA but t~or any agency that asked them. Their contribution was not only monetary, their
employees and management also volunteered hours.
Them being no further public testimony, the public hearing was declared closed.
Councilmember Rindone stated the report was very comprehensive and he t~lt the reduction in fees was due to the
Council being proactive to protect the ratepayers. Another issue 2-3 years ago was trying to clarify that the rate
of return that Laidlaw was receiving was appropriate. He did not feel Council would turn away from their
responsibility in that endeavor. No one questioned the leadership role Laidlaw had in the community. He also
realized that the cost of doing business did go up. He requested that staff clarify their position to not grant Laidlaw
a 2.5% CPI increase.
Stephanie Snyder, Principal Management Assistant, responded that staff and Laidlaw worked with a consultant to
produce a report that would be coming belbre Council in August. It had been staft's hope, as well as Laidlaw's,
that the process would produce conclusive information. When the results were presented it was made clear that the
results were inclusive. Given the direction from the Council staff limit their hands were tied with that material. Staff
did, in conjunction with Laidlaw and the consultant, determine that the information could be taken along with an
analysis of the operating expenses and reach a meaningful conclusion as to whether their rates were too low, too
high, whether they were effectually managed, or ineffectually managed. That could be done in-house but could not
be accomplished for the public hearing. Theretbre, staff had not denied that Laidlaw had not had an increase in
three years and that they had been cooperative in working with staff in trying to find a solution. Staff did not have
the data to present to Council per previous Council guidelines.
Minutes
June 27, 1995
Page 6
Mayor Hotton felt the infbrmation should have been requested sooner so it would have been ready for Council
consideration.
George Krempl, Deputy City Manager, did not believe staff could have requested the information sooner. Laidlaw's
request for a CPI increase was received on 6/6/95 and it wasn't until Friday that staff received a memo with the
information on what their actual operating costs had been, i.e. 6.7% as a percent of net revenue. Staffdid nothave
backup information as to how those percentages were arrived at. The issue, and it had been a historical one, was
not whether Laidlaw was entitled to an increase or not, but how much of an increase and what the justi~cation was.
Staff had struggled with the consultant to develop the financial indicators and staff did not feel it provided the
direction to be able to say whether or not it was a good increase or what the percentage should be. Staff felt there
needed to be validation of their operating expenses and staff needed the time to do that.
Councilmember Moot asked if there was any debate that the CPI had increased since 1992.
Mr. Krempl stated there was not. At one time those increases were made in a fairly routine fashion and in the
1991/92 period Council indicated that it wasn't required to pass through the CPI increase without some idea of what
Laidlaw's profitability was and whether they were reasonably regulating their operating expenses.
Councilmember Rindone stated the rate of increase of the CPI was not the issue. Council was attempting to
establish a reasonable rate of return. It was unfortunate that the validation had not been achieved yet. Another
concern was the fluctuating rates. He questioned what the quickest time frame was that staff could return with the
rate of return information. He did not want to delay it until the end of the year and felt Laidlaw had been
responsive to the City's request for information.
Robert Powell, Director of Finance, responded that when talking about the rate of return without examining
expenses the rate of return could be impacted by an inefficient management of expenses. If staff was provided a
detailed breakdown of operating expenses fbr the last five years staff could look at trends and the rationale for
increased expenses. He felt that could be done within the next 60 to 90 days.
Councilmember Rindone questioned why that had not been done as that was clearly the desire of the Council.
Mr. Krempl replied there was a question of confidentiality and Laidlaw recommended their auditor do the audit and
provide the City with the audit information. Staff felt that was not satisfactory because they could not evaluate the
information. At that time the RFP was started to hire a consultant to do the financial indicators. Initially there was
concern by Laidlaw regarding the cost and the work program. The cost was subsequently reduced and the study
was finally completed. That study, for a number of reasons, was inconclusive and did not provide the information
needed. Staff felt if they had the rate indicators, looked at the comparisons of charges by other cities, and did the
rate analysis that the factors together would give them a complete picture. He felt a report could be back to Council
within 60 - 90 days.
Councilmember Rindone stated another concern he had was the 1/2% franchise fee increase and the AB 939 1%
administrative fee increase. Council had supported the 1% AB 939 administrative fee in the tentative review of the
revenue enhancements for the 1995/96 budget and he felt Council needed to maintain that commitment. He was
not willing to continue to enhance the franchise fee increase. The City was currently 8% and if the City went to
10% they would be tied for the highest franchise fee in the County which he did not feel was in the best interest
of the City. Option I did not include the 1/2% franchise fee increase and the rates would be $12.49 which was a
reduction of $19.85/month.
MS (Rindone/Padilla) to adnpt Option I - not to increase the Franchise Fee by 1/2% and request that staff
return in 90 days with a report for further consideration of the CPI increase and, if approved, retroactive
to July 1, 1995.
Councilmember Padilia stated it was important that Council be consistent with the direction provided and that they
follow through in receiving the documentation. In general he would not have a problem in approving that element
due to the fact that the overall rates to the ratepayer were going to decrease, but Council needed the information
as previously requested.
Minutes
June 27, 1995
Page 7
Councilmember Moot stated he would not support the motion as it took the overall budget out of balance. He was
not part of the Council that approved the policy and had a philosophical problem with government trying to
determine what a fair rate of return was for a private enterprise. The issue was whether the CPI was a cost that
they had incurred and if the increase was fair or unfair. He would support Option 4 - a 2.5% CPI increase on
"Other Cost" component which was a decrease of $7.10 on a residential rate. He was personally impressed with
the recycling efforts made by Laidlaw.
Councilmember Alevy questioned if the $76,000 negative impact on the General Fund for Option I was annual.
Ms. Snyder responded that was correct, $76,000 had been included in the proposed 1995/96 budget and if not
approved the budget would be $76,000 out of balance. Whether it would end up that way at the end of the year
would depend on many factors.
Councilmember Alevy stated he was concerned with the budget being $76,000 out of balance. It was a tough
decision but due to the negative impact on the budget he would support Option 4.
Councilmember Rindone stated the City had chosen to give Laidlaw a regulated monopoly through an exclusive
franchise. Laidlaw had been eft~ctive and did a good job, but Council had a responsibility to ensure that it was not
a request for additional funds beyond the cost of doing business. It was unfortunate that Council did not receive
that validation but the motion on the tloor would take the increase back to July 1st if the increase was justified.
The City could not charge the ratepayers twice for the same thing. The franchise fee was another form of taxation.
Mayor Hotton stated Council directed staff to bring the cost of operation intbrmation forward so they could make
_ a more educated decision on whether a rate increase was .justified. She questioned where an 8.5% Franchise Fee
would compare to other cities in the County.
Ms. Snyder clarified that because the franchise fee had essentially been frozen, the effective rate was averaging
6.33%. If increased 1/2% the effective rate would go up to 6.83%.
Councilmember Rindone stated staff was overlooking the 1% administrative fee approved by Council.
Ms. Snyder stated the AB 939 administrative fee should not be confused with the franchise fee. The AB 939
administrative fee authority came from a completely different source, i.e. the Public Resources Code. The
requirement laid out by the Integrated Waste Management Act of 1989 stated the City must have progrants in place
to divert trash from the landfills by the year 2000 and passed along the authority to charge for the cost of hiring
the staff and implementing those prograins which was not traditionally what franchise fees had been used for.
Franchise fees went into the General Fund for General Fund costs. The 1% was recommended because it would
generate a substantial portion of what was currently documented as being spent in staff time and resources to
implement the City's recycling and solid waste diversion programs. The following were the franchise fees for cities
within the County: 1) Escondido - 10%; Imperial Beach - flat fee of $156,000; Lemon Grove - 7.5%; with ten
other cities at 5 %; with several at 3 %.
Mr. Goss stated the original idea of adding the 1/2% was included in the new revenues suggested with the
transmittal letter of the budget and contained in Supplemental Budget Memo #1. The rationale was that it was
estimated that the cost would increase about nine cents per month but would be offset by the public education
charges of ten cents per month. Staff had recommended a supplemental idea of the administrative fee which was
Supplemental Budget Memo #13 which Council focused on. Both were presented separately in the budget process
because they came forward from staff separately.
VOTE ON MOTION: approved 3-2 with Alevy/Mout opposed.
ORAL COMMUNICATIONS
· Steve Motski, 352 Broadway J-8, Chula Vista, CA, stated he had reported a dangerous condition to the
Engineering Department and nothing had been done. His concern was with a manhole cover that had sunk
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Minutes
June 27, 1995
Page 8
approximately 2 1/2 inches in the middle of "G" Street .just west of Broadway. There was another smaller cover
up on Broadway approximately 50 ti. away. He also expressed his concern with the condition of "G" Street
between Broadway and Smyth Avenue.
Mayor Hotton requested that staff return by 7/11/95 with a report on the status of Mr. Milski's concerns.
BOARD AND COMMISSION RECOMMENDATIONS
None submitted.
ACTION ITEMS
9. A. ORDINANCE 2632 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY OF CHULA VISTA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES RETIREMENT SYSTEM (urtlencv and second reading) - Staff recommends Council
place the ordinance on second reading as an urgency measure and adopt effective immediately. (Administration)
4/Sth's vote required.
B. RESOLUTION 17941 UNLLATERALLY IMPLEMENTING TERMS AND CONDITIONS OF
EMPLOYMENT AFTER IMPASSE FOR EMPLOYEES REPRESENTED BY THE WESTERN COUNCIL
OF ENGINEERS (WCE) FOR THE PERIOD OF 7/8/94 THROUGH 7/6/95 - On 6/2/95, representatives of
WCE and the City came to tentative agreement on a four-year Memorandum of Understanding covering the period
7/8/94 through about 1/1/98. On 6/20/95, WCE membership held a ratification meeting but did not ratify the
tentative agreement. Impasse was declared by the City on 6/20/95. Staff recommends approval of the resolution.
(City Chief Negotiator for WCE)
C. RESOLUTION 17942 APPROV1NG MEMORANDUM OF UNDERSTANDING CONCERNING
WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT WITH THE CHULA VISTA
EMPLOYEES ASSOCIATION (CVEA) FOR FISCAL YEARS 1994/95 THROUGH 1997/98 AND
APPROVING THE ACCOMPANYING SIDE LETTERS OF UNDERSTANDING - This is an agreement with
CVEA for four years regarding wages and other benefits. Staff recommends approval of the resolution.
(Personnel)
Mr. Boogaard requested Council consider the items in the tbllowing order: 1) Closed Session - Instruction to
Negotiators on WCE; 2) 2 % at 55 ordinance; 3) implementing the terms and conditions for WCE; and 4) approval
of the CVEA MOU. In order to implement that procedural order Council would need to meet in Closed Session
first. If Council wanted to deti~r the Closed Session he recommended Council consider Item 10 first.
Mayor Horton stated Council would be taking a break at 5:30 p.m. and would meet in Closed session at that time.
She stated the item would be trailed.
Mr. Boogaard suggested Council hear from the members of public that wanted to speak before Closed Session
deliberations.
· Rodrigo Viesca, 276 Fourth Avenue, Chula Vista, CA, resident of Chula Vista, Employee of the City, and
CVEA President, stated he supported the passage of the ordinance and CVEA resolution. The
2% at 55 rewarded dedicated employees for their long careers with the City. With a good
retirement plan the City would be able to recruit quality people. As CVEA president he
represented 405 employees of which 80 % voted for ratification of the contract. It was a relatively
no cost item to the City.
· Gena Franco, 276 Fourth Avenue, Chula Vista, CA, President of the Western Council of Engineers Local
Chapter, stated over the last 19 years the City never failed to fully consider each presentation
made by the WCE prior to arriving at a determination of policy or course of action. However,
for the present year the system had failed, not because WCE had failed in their obligation to fully
Minutes
June 27, 1995
Page 9
consider the needs of the City, but because the City failed to fully consider the needs and concerns
of their membership. A letter had been given to Council from Jim Wright, their chief negotiator,
providing details. On 6/22/95 an impasse meeting was held with the City Manager and at that
time they aired their grievances. They believed he understood their concerns, gave it full
consideration, and did what he could to resolve the issues. They wanted to make it clear that they
had no reservations about paying their fair share for the 2 % at 55 option but they believed there
were alternative ways to pay for the benefit. They were willing to sign a two year contract,
1994/95 and 1995/96, agreeing to the City's terms. They requested the opportunity to reenter the
negotiation process in a meaningful way in the Spring of 1996 for the purpose of negotiating a
successor agreement which included alternative funding sources to eliminate the mandatory
furloughs. By accepting the proposal the City had nothing to lose but would go a long way in
rekindling the trusting relationship they had enjoyed in the past.
Councilmember Moot requested that Council hold the public hearings before going into Closed Session.
Mayor Horton stated the item would be trailed.
Council met in Closed Session at 8:33 p.m. to discuss Labor Negntiations and reconvened at 9:10 p.m.
Councilmember Moot stated he had very serious reservations regarding the agreement and his reservations were
not focused on the short run because the negotiations were very successful in balancing the costs to the City versus
the cost of providing 2 % at 55. His concern was the precedent it set when the agreement was over. Supplemental
Budget Memo #28 stated over 10% of the City's budget went to the retirement benefits of the employees.
Increasing retirement plans would make that percentage even more. Govemment would eventually have to ask if
they could continue to spend that high of a percentage on retirement. Because the agreement worked out was fair
and both sides compromised and achieved an acceptable agreement over the life of the agreement he would vote
for it.
Councilmember Rindone stated he appreciated Councilmember Moot's comments. The reason for his "no" vote
was essentially the same. If it was linfited to the four year period he would not have a problem but the fiscal impact
on the long term to the City would prove to not be a wise choice. His other concern was the "me too" implications
for management and other groups that did not want to be part of the 2% at 55. Council did not have a choice due
to the current PERS regulations. The loss of services was also a concern due to the work furlough. If there was
not a new revenue flow the impacts upon future revenues was unknown.
ORDINANCE 2632 PLACED ON SECOND READING AND ADOPTION BY MAYOR HORTON, reading
of the text was waived, passed and approved 4-1 with Rindone opposed.
RESOLUTIONS 17941 AND 17942 OFFERED BY COUNCILMEMBER MOOT, reading of the text was
waived, passed and approved 4-1 with Rindone opposed.
10. RESOLUTION 17943 AMENDING AGREEMENT NUMBER 11-4239 WITH THE STATE OF
CALIFORNIA DEPARTMENT OF TRANSPORTATION EXTENDING THE TERMINATION DATE AND
BUDGET THROUGH FISCAL YEAR 1995/96 FOR THE TELECENTER PROJECT; EXTENDING LEASE
AGREEMENT ON A MONTHLY BASIS FOR THE "H" STREET TELECENTER AND APPROPRIATING
$20,000 FOR SAME ~ The item provides for approval to roll-over existing l~nds from fiscal year 1994/95 to allow
expenditures in fiscal year 1995/96 from existing grant throngh Caltrans. It also extends the lease agreement with
Kelton Title Corp on a monthly basis fi~r the East "H" Street Telecenter and establishes budget for fiscal year
1995/96. Staff recommends approval of the resolution. (Environmental Resource Manager) 4/5th's vote required.
Mayor Hotton questioned the original projections tier occupancy of the centers.
® Rod Davis, 233 Fourth Avenue, Chula Vista, CA, Executive Director, Chula Vista Chamber of Commerce,
stated the projection for the present time was 50%. The occupancy rate was presently 34-36%. They were the
most successful centers in the State.
Minutes
June 27, 1995
Page 10
Mayor Horton questioned how the centers were being marketed.
George Krempl, Deputy City Manager, responded that brochures were sent to major employers, advertising in the
Chula Vista Quarterly, information had gone out through the schools, and all businesses in Chula Vista were
targeted. The telephone company, SDG&E, General Dynamics and other large companies were also targeted.
Mr. Davis stated the centers had also been marketed through the PTA's, homeowners associations, etc.
Councilmember Alevy questioned if there had been coverage in the San Diego Business Journal or the Daily
Transcript.
Barbara Bamburger, Environmental Resources Manager, replied that there had been articles in the San Diego
Business Journal, San Diego Union/Tribune, ComputerLink, all local newspapers, and the Chula Vista Quarterly.
Staff had bean notified that the Director of Caltrans would tour both telecenters as the models for the State.
Councilmember Moot questioned if the $80,000 in grants fi'om the California Energy Commission had been
committed.
Ms. Bamburger stated the money had been committed to the City of Chula Vista. SANDAG applied on the City's
behalf and the money should be received in July or August.
Councilmember Rindone stated the occupancy rate in the report was 42% which was higher than reported.
Ms. Barnburger stated the occupancy rate had gone up, it was 42% at the East "H" Streat center and 27% at the
"F" Street center. If the renters were included at the "F" Sireat center the rate would be 40%.
Councilmember Rindone stated he was concerned in the preparation of the agenda statement as it was not of the
quality Council was used to. The recommendation section usually contained a summary of key points and did not
just state "approve the resolution". He hoped that would not happen again.
RESOLUTION 17943 OFFERED BY COUNCILMEMBER RINDONE, reading of the text was waived,passed
and approved unanimously.
11. RESOLUTION 17944 AMENDING THE FISCAL YEAR 1995/96 CITY BUDGET TO INCLUDE
YEAR ONE BORDER ENVIRONMENTAL COMMERCE ALLIANCE APPROPRIATIONS IN THE
AMOUNT OF $956,536 WHICH INCLUDES THE ADDITION OF THREE INTERIM FULL-TIME
ADMINISTRATIVE POSITIONS - On 1/10/95, Council approved the three year Border Environmental
Commerce Alliance (BECA) budget and related staff for submission in the City's application to EDA. The BECA
budget and staff have subsequently been approved by EDA. Council needs to take the necessary administrative
actions to legally appropriate the already approved BECA budget and staff as part of the City's fiscal year 1995/96
budget, appropriate the Year One BECA budget, and approve the addition of the threa BECA interim City
personnel. Staff recommends approval of the resolution. (Director of Community Development) 4/Sth's vote
required.
Cheryl Dye, Economic Development Manager, stated the item was originally scheduled to follow the overall
adoption of the City budget.
Mr. Boogaard recommended that the item be trailed until action was taken by Council on Item 7 as it was a budget
amendment.
Mayor Horton stated the item'would be trailed.
Mayor Pro Tem Rindone questioned if the three interim employees were charged to the General Fund.
Minutes
June 27, 1995
Page 11
Cheryl Dye, Economic Development Manager, replied that the three interim personnel would be charged entirely
to the EDA grant and CDBG funds that had been allocated.
RESOLUTION 17944 OFFERED BY COUNCILMEMBER MOOT, reading of the text was waived, passed
and approved 4-0-1 with Horton absent.
12.A. RESOLUTION 17945 SUPPORTING THE PROPOSAL TO FUND THE SAN MIGUEL
CONNECTOR FROM TRANSNET FUNDS AS A SCALED DOWN PROJECT SUBJECT TO IT BEING
CONSTRUCTED IN ACCORDANCE WITH THE SCHEDULE FOR ST-125 SOUTH SECTION AND
SUBJECT TO THE SR-125 SWEETWATER SECTION BEING CONSTRUCTED IN ACCORDANCE WITH
ADOFrED PLAN OF FINANCE - California Transportation Ventures has requested the opportunity to address
Council on two issues concerning the SR-125 Toll Road between the US/Mexican border (SR-905) and SR-54. Due
to several factors, funds are not expected to be adequate to construct the entire regional highway system under the
Transnet Program. This could mean that the San Miguel connector between the Toll Road and SR-125 will not be
fully funded. Staff recommends approval of the resolutions. (Director of Public Works)
B. RESOLUTION 17946 SUPPORTING THE EFFORTS OF CALIFORNIA TRANSPORTATION
VENTURES TO CONSTRUCT SR-125 BETWEEN SR-905 AND SR-54
Mr. Boogaard stated he would abstain from participation due to the proximity of his home to the alternate
transportation routes. He did not believe there was any direct conflict but wanted to avoid any appearance of
impropriety.
Mayor Horton questioned if she had a contlict due to the location of her home and the ownership of other properties
in Bonita.
Mr. Boogaard stated he had not analyzed the possibility of a contlict tbr the Mayor. He did not know where the
alignment was, therefore, he did not know how to measure the 2,500 ft. distance requirement.
Mayor Horton stated she did not feel there was a conflict because her properties were in the western area of Bonita
and his property was further to the east.
John Lippitt, Director of Public Works, stated the issue was the funding shortfall in the program and how to assure
there would be funding for the San Miguel connector. It was part of the TransNet program and needed to be
constructed in order to build any facility to the south, whether an interim project or the tollway. CTV and Caltrans
would address Council regarding the toll road. Revised resolutions had been placed on the dais for Council
consideration. Resolution 17945, last sentence on the first page, language should be added to read "...funding, and
the fact that since the community.... ". Staff and members of the development community met with Senator Peace
and he had concerns that 125 would be built as a toll facility based on language in the legislation. He felt it may
be challenged and that efforts should be made by the region to look at 905 and even parts of 52 as toll road in lieu
of the project. He did support the City's efibrts to keep the funding in tact fur the San Miguel section. Staff had
advised him that they would be recommending Council go forward with the resolutions because there was no
alternative funding source at the present time for 125.
Ken Olsen, CTV, stated SR 125 south toll road would not be done as a purely private toll road, they needed to tie
into the regional highway network with a TransNet funded connector and they needed the approved TransNet
projects to be built in a reasonable time frame so there was a complete system. Other transportation projects in the
County had vigorous political support from various areas. He reqoested Council adopt the same vigorous support
for the 125 project because it was important to Chula Vista, the Southbay, and San Diego region. A brief slide
presentation was given outlining the need, why it was being built as a toll road, what it was, who would build it,
and benefits to the community.
Charles Stohl, Project Manager, Caltrans, reviewed the status of the environmental studies being conducted for the
project. They were also performing the engineering studies to support the environmental studies. Several
alternatives had been studied in the past and several alternatives were currently being considered. A new alignment
· l'
Minutes
June 27, 1995
Page 12
had been added at the request of the Citizens Advisory Cormmttee which was in the Bonita/Sunnyside area and was
the most easterly alignment being considered adjacent to the Sweetwater Reservoir. They were trying to avoid
impacts to the greatest extent possible, if there were impacts to minimize them, and to develop mitigations for the
impacts that were left. Because it was a federal process it required an environmental impact statement. It would
be submitted to the FHWA for review during the summer and he hoped to circulate it shortly after for review.
Mr. Olsen showed a video of the technology developed by SAIC for high tech toll collection systems. Syntonic
was a San Diego based firm and was a potential supplier of the system.
Eric Pahlke, 401 B Street #800, San Diego, CA, Program Manager for Highways, SANDAG, reviewed the
information presented from the TransNet Subcommittee. There could be delay of four years for the various
segments of the 125/Sweetwater section. In terms of the TransNet program it was reasonable to assume there would
be a gas tax increase before the end of the sales tax program. That would represent a four cent increase in the gas
tax beginning 1998, and one cent per year fur the next fuur years fur a total of eight cents. A funding increase of
that magnitude would make the program complete per the current plan. They would also be discussing the
feasibility of extending the sales tax.
Councilmember Rindone questioned what type of jobs would be created by the project.
Mr. Olsen replied that there would be toll booth positions, administration, maintenance, and accounting.
· Rod Davis, 233 Fourth Avenue, Chula Vista, CA, Executive Director, Chula Vista Chamber of
Commerce, felt the benefits to business was self evident. The TransNet program would be broke
long before 2008 as it had tremendous bond debt and debt service and depended on sales tax that
was down state-wide. Any prc~ject moved out to a further date ran the risk of not being funded.
Diane Jacobs was pushing tbr completion fur the Santee leg of 52 and using all her clout. It was
up to the City to do the same. If it weren't fur the voters in the Southbay there would not be a
half cent sales tax, but virtnally all of the projects were in the North County. The only one that
impacted Southbay was the San Miguel connector. Chula Vista needed to become as aggressive
as North County to get their thir share. The City needed another major north/south freeway
system to connect to the existing system. The program was the key to the future and he requested
Council's support.
· George Kost, 3609 Bele Bonnie Brae Road, Bonita, CA, representing Sweetwater Valley Civic
Association, stated he was confused why the Council was involved when it was County land.
Bonita residents did not vote for the Council and yet the Council was making decisions for Bonita.
The predictions of continuing the sales tax seemed optimistic in the present economy. He
questioned why the developers weren't paying fur the road. He was already established and a
taxpayer and did not feel he shonld have to pay for new development. The health and general
welfare of the people affected had not been discussed, i.e. noise, air pollution, etc. If the
alignment went west of the reservoir it would have the least affect on people which was his main
concern.
· Dave Nielsen, 416 University Avenue, San Diego, CA, representing the Otay Mesa Chamber of
Commerce, passed when called to the dais.
· Kim Kilkenny, 11975 El Camino Real, San Diego, CA, Baldwin Company, representing the South County
EDC, stated they felt it was important that the San Diego Transportation Regional Plan be ful~lled
and that it was equally, if not more important, that the South County get its proportional share of
the TransNet revenues and associated facilities. Other regions had done very well under the
TransNet program and had facilities built or conunitted. They felt it imperative that the battle be
had and won because if 125 was not connected to the 54 connector and the Sweetwater portion
of 125, South County's transportation system for years to come, if not decades, would be doomed
to congestion and South County's economy would fail. They supported the resolutions and
requested that Council do likewise.
· Bruce Sloan, 900 Lane Avenue #100. Chula Vista. CA, representing the EastLake Development Company,
stated Mr. Kilkenny had expressed their views and passed.
· Patty Davis, 1375 #17, Caleya Montefrio, Chula Vista, CA. Chair of the Chula Vista Economic
Development Commission, stated the Commission had voted to support SR 125. Construction was
Minutes
June 27, 1995
Page 13
critical to the commercial and industrial development in the eastern portion of Chula Vista. One
company was already lost to Otay Mesa because there was not a straight shot from EastLake south
to Tijuana. She urged Council to support the project and fight for the TransNet funds.
· Mark Marchand, 8880 Canarios Court, Chula Vista, CA, Executive Vice President of Pacific Southwest
Association of Realtors, stated the Association had not formally taken a position on the issue but
they had met several times and discussed SR 125 with all parties on both sides. Given all the
pro's and con's the Association consistently supported the project. He urged Council to take
action to do anything that would expedite the project and support the staff recommendation
regarding the San Miguel connector.
· Rick Otis, 3394 Armagosa Way, Jamul, CA, President of Clark Lift of San Diego, First Vice President
of the Otay Mesa Chamber of Commerce, and Chair of Citizens for Border Transportation, stated
they had been working hard for several years on the border transportation problem. 905 was not
funded by any proposal at the present time, the environmental studies were going forward but
there was still no way to get on or off Otay Mesa. It was important not only for Otay Mesa but
also for the mequiladora program. Since the early 1990's there had been over 24 people killed
on Otay Mesa Road. 125 was another way to get people to and from a very active business area.
It was important for the Council to support SR 125, the connector at 54. The City's sphere of
influence could include the north portion of 125 that was still not fully funded.
· Mike Vogt, 4932 Golf Glen Road, Bonita, CA, Chair of the Otay Mesa Planning Group, stated there was
an industrial revolution at the border and there was no link for Chula Vista to directly benefit from
it and SR 125 was that link. Their prc~iections showed that there would be 70,000jobs on Otay
Mesa at build-out and many of them would be living in Chula Vista with an economic benefit to
the City. As a Bonita resident he felt the surt~ace streets were overcrowded because there were
no freeways going to and from Southwestern College, Spring Valley, El Cajon, etc. He did not
feel many people realized the benefits of SR 125. There were very few public projects where the
majority of the fees were paid for by the users. He urged Council support of SR 125.
· Lauree Sahba, 916 Siempre Viva Road, San Diego, CA, representing the Otay Mesa Chamber of
Commerce, was not present when called to the dais.
Councilmember Alevy felt it was clear that SR 125 created a lot of positives for the Southbay and the entire region.
There were a lot of concerns that were valid and hoped that when the prqiect was put together that consideration
be given to the Bonita area and their needs and desires. The beauty and arablance of Bonita should be retained.
RESOLUTIONS 17946 AND 17946, AS AMENDED, OFFERED BY COUNCIL~IEMBER ALEVY, reading
of the text was waived.
Councilmember Rindone stated he would support the motion. It was clear that the amount of money the South
County should have had from the 1/2 cent sales tax was not proportionate. If the San Miguel connector was not
built all traffic would have to snake through Bonita and congest the streets even further. Council needed to look
at the lesser of two evils. The connector would allow north bound trips to the northeast of Chula Vista and avoid
Bonita.
Mayor Horton stated she also supported the motion. She had been a long fune resident of Bonita. She believed
that if the motion was not supported the traffic impacts and qoality of lit~ tbr the community would be lessened.
She was concerned regarding the traffic lows into the Bonita area as it was an exclusive area for the Southbay and
an area Council needed to fight hard to preserve. It had a natural beauty and there were many executive homes
in the area. The cut through trailtic would be eliminated from Bonita with SR 125. She would not support an on/off
ramp along the San Miguel section. She was a member of SANDAG and would fight that. SR 125 was also
important to the future development or' the industrial parks and it would also have a regional benefit. Without the
road the whole concept of NAFTA would not work. The connector was more important to the Southbay region
than any of the other projects being requested because the other projects affected selected areas only.
Councilmember Moot stated he would support the motion as it was vital to the health and well being of the
community to avoid the congested streets that had plagued Orange County and other areas. The City needed to take
a very realistic attitude regarding the role SR 125 would play in the community to help the City avoid the mistakes
and problems in other areas. It had to be a regional approach. Everyone should urge their representatives at the
Minutes
June 27, 1995
Page 14
State and local levels to take a realistic attitude about the traffic situation, NAFTA, and the business opportunities
available to the Southbay.
Mayor Horton stated a toll road was not her preference but it was either a toll road or no road because the funding
was not there.
VOTE ON RESOLUTIONS AS AMENDED: approved unanimously.
Council met in Closed Session to discuss Public Employee Performance Evaluation at 5:38 p.m. and
reconvened at 7:17 p.m.
ITEMS PULLED FROM THE CONSENT CALENDAR
Items pulled: none. The minutes will reflect the published agenda order.
OTHER BUSINESS
13. CITY MANAGER'S REPORT(S)
a. Scheduling of meetings. The next Council meeting will be on July 11, 1995, no meeting will be held on
July 4, 1995.
b. Mr. Goss distributed shirts from USA Volleyball. They were in the process of trying to locate their
training facilities in Chula Vista.
14. MAYOR'S REPORT(S) - None
15. COUNCIL COMMENTS
Councilmember Alevv
a. Councilmember Alevy inti~rmed Council that f~,rmer Parks & Recreation Commissioner Clifford Roland
had been killed in an automobile accident. He stated ifanyone knew of Mr. Roland's family he would appreciate
it if they would contact Jerry Foncerrada in the Parks & Recreation Department.
b. Councilmember Alevy stated he had artended the LAFCO meeting regarding the Sphere of Influence and
it had been continued to the next meeting. He requested a report back from staff.
Mr. Goss stated there was an issue with the Otay Water District over the cost of the storage of water. The other
issue was negotiating a property tax agreement with the County. Staff was at the beginning stages of negotiations
with the County regarding that issue.
Councilmember Rindone
a. Status report on negotiations of the Broadway Business Homes Project. The request is to discuss in Closed
Session.
Mr. Boogaard questioned if Mayor Pro Tem Rindone wanted to consider his item as it was tangentially related to
the demolition item on the Agency agenda.
Mayor Pro Tem Rindone stated it was a related item.
Minutes
June 27, 1995
Page 15
Mr. Boogaard recommended that a Special Meeting of the Redevelopment Agency be called to order and have a
contemporaneous meeting where the item could be discussed in Closed Session and then go into public session and
discuss the demolition.
Item was considered during the Joint Redevelopment Agency/City Council meeting held directly after the City
Council meeting.
ADJOURN MENT
ADJOURNMENT AT 10:59 P.M. to the Regular City Council Meeting on July 11, 1995 at 6:00 p.m. in the City
Council Chambers.
A Special Joint Meeting of the Re. development Agency/City Conncil convened at 10:38 p.m. and adjourned at 11:13
p.m.
A Special Meeting of the Industrial Development Authority convened at 11:13 p.m. and adjourned at 1l:16 p.m.
A Special Meeting of the Housing Authority convened at 11: 16 p.m. and a~iourned at 11: 19 p.m.
CLOSED SESSION
Council met in Closed Session at 11:21 p.m. to discuss Labor Negotiations, reconvened at 11:45 p.m., and
adjourned at 11:46 p.m.
16. CONFERENCE WITH LEGAL COUNSEL REGARDING:
1. Existing litigation pursuant to Government Code Section 54956.9
® Chula Vista and nine other cities vs. the County of San Diego regarding solid waste issues (trash
litigation).
2. Anticipated litigation pursuant to Government Code Section 54956.9
· Metro Sewer Adjustment Billing (water reclamation and expansion costs) and EPA lawsuit.
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 Unrepresented.
Employee organization: Chula Vista Employees Association (CVEA), Western Council of
Engineers (WCE), Police Officers Association (POA) and International Association of Fire
Fighters (IAFF).
Unrepresented employee: Executive Management, Mid-Management, and Unrepresented.
PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Government Code Section
54957
· City Manager
17. REPORT OF ACTIONS TAKEN IN CLOSED SESSION - No reportable actions were taken in Closed
Session.
Respectfidly submitted,
BEVERLY A. AUTHELET, CMC/AAE, City Clerk
\
Vicki C. Soderquist, CMC,"Deputy City Clerk